Meeting the Challenge

Meeting the Challenge Commonwealth of Pennsylvania Office for Information Technology

Meeting the Challenge Setting the Stage • 43 agencies under the Governor’s jurisdiction. • 67 counties. • 2500 municipalities • 80,000 employees • 12 million citizens • 550 companies on the ITQ • $1 B in IT spending The Challenge: Providing Information Technology Services to an enterprise of this size in a period of fiscal uncertainty. Office for Information Technology 2004

Meeting the Challenge • 1994: • Central Management Information Center (CMIC) moved from Middletown to a new facility at Harrisburg State Hospital (HSH) Grounds • 1996: • 1st PA CIO Appointed – Larry Olson • CMIC  CTC (Commonwealth Technology Center) • “Breaking Through Barriers”- the 1st Enterprise Strategic Plan for PA OIT’s History Office for Information Technology 2004

Meeting the Challenge 1996 (Continued): • The Office for Information Technology was created, which included the Technology Innovation Group, which focused on “affinity” projects) • Justice Network (JNET) Project Initiated (15 agencies) • Funding for the Statewide Radio Project approved & Project Office created 1997: • All agencies migrated to the Metropolitan Area Network (MAN) • 1997-2000: Preparing for Y2K • Data Center Study Initiated for an operational review of 23 data centers Office for Information Technology 2004

Meeting the Challenge 1998: • Data Center Project Team created to manage the migration to a consolidated, outsource data center The Data PowerHouse, The BCCS • Bureaus of IT Planning & Support and Desktop Technology created • PA wins “Best of the Web” award • Sign a contract with Microsoft for the rollout of an enterprise e-mail system (5,000  58,000 users; initial plan for 40,000) 1999: • Launched a portal strategy – now have 85% of agencies on a common portal framework Office for Information Technology 2004

Meeting the Challenge 1999-2002: • New CIO -- Charlie Gerhards • Survived Y2K  • Telecom Rebid awarded (transition begins from Verizon to Adelphia (Telcove) • PAOpen4Business Project initiated • Building agency e-Government applications • ImaginePA (ERP-SAP) Project launched • Enterprise Server Farm (ESF) at CTC created/evolves. 2003: • New CIO – Art Stephens Office for Information Technology 2004

Meeting the Challenge January 2004 Commonwealth Commonwealth Coordination All IT Exec. Cabinet Enterprise Network MF, Server Farm Enterprise Some Enterprise January 2003 OIT only OIT only NONE Primarily Infra. None Enterprise Network MF, Server Farm Enterprise Some Enterprise • Planning • Prioritization • GIS • Enterprise Architecture • Governance Group • Operations • Policy • Application Development OIT Snapshot

Meeting the Challenge Fiscal Issues Public Expectations The need to reorganize & reprioritize Technology Credibility Privacy 9/11– HomelandSecurity Right to Know Cyber Security Workforce Issues

Meeting the Challenge Mission Statement: “To serve the Commonwealth of Pennsylvania and its citizens by providing enterprise-wide technology policy, standards, architecture, information, and solutions to enhance system interoperability, security and cost effectiveness.” Office for Information Technology 2004

Meeting the Challenge OIT Guiding Principles • Governance Through Prioritized Investment • Enterprise Architecture • Business Partnering in an “Extended Enterprise” • Measured Performance • Customer Focused • Supporting a diverse, adept workforce Office for Information Technology 2004

Enterprise Resource Planning in the Commonwealth of Pennsylvania

Enterprise Resource Planning • A comprehensive integrated suite of software products used to execute the “major financial and administrative systems” of an organization.

Vision/Challenge • The Challenge • Multiple, aging legacy systems • Multiple, disparate databases • No real time information • The Vision • Enterprise perspective • Technology as unifying

Project Scope • 53 Commonwealth entities • 6 Modules • Finance, Budget, Procurement, Human Resources, Travel and Payroll • 27 Labor Unions • 6700 Work Schedules • 25,000 Core Users • 80,000 Casual Users • PA’s implementation is the 3rd Largest SAP Implementation in the World

Project Scope • Adopt best practices imbedded in software • Real time access to: • Empower employees to make better business decisions • Enhance customer and employee service • Achieve a higher level of electronic-government performance • Make Pennsylvania more competitive • Maintain Commonwealth’s reputation as a technology leader • Support single view of government • Replace aging legacy systems with a sustainable architecture

Out of Scope Processes • Treasury Management • Revenue Management • Agency Billing Systems (in: interfaces or use SAP billing) • Plant Maintenance • Auctioning and Reverse Auctioning • Fleet Management • Sales & Distribution Invoicing • Fixed Assets (Logistics) • Capital Projects and Logistics • Retail Functions (for example, Liquor Control Board Retail) • In Scope Processes • General Ledger • Accounts Payable • Cash Management • Accounts Receivable • Financial Reporting • Project Accounting • Fixed Assets (Accounting) • Procurement–Commodities & Services • Vendor Management • Receiving • Inventory • Invoicing • Grants Management • Budget Creation & Allocation • Human Resources • Travel Planning & Reimbursement • Time & Attendance • Payroll • Recruitment • Training • Benefits • Position Management • Workforce Management • Class & Pay Administration • Travel Management • Business Warehouse

In Scope Organizations • 50+ Commonwealth entities: • 20 Departments and Agencies • 5 Authorities • 11 Boards • 14 Commissions • 4 offices under the Governor (OA, OB, OGC, executive offices) • 3 Other Entities (Lt. Governor, Attorney General, Administrative Office of the Courts) • Out of Scope Organizations • Auditor General’s Office • Legislature • State Treasurer • Higher Education Assistance Agency

The Journey • mySAP.com • Enterprise Buyer Professional (EBPro) • Employee Self Service (ESS) • Business Warehouse • Selection of Partners • BearingPoint • IBM • SAP

Getting Started • Structure, Staffing and Governance • Business Transformation • Business Process Redesign • Communications • Training • Workforce Transition • Mobilization and Alignment

Change Challenges • Project subject to Administration change • Balancing 27 employee unions • Used to custom software development • Well deserved pride in current systems • Very diverse user requirements • Potential for code customization • Reaching consensus on best practices

Training Challenge • Just-in-time approach • 186 Locations • 54 Instructor Led Courses • 45 Web Based Courses • 195,224 Hours completed to date • End of course evaluation tied to security

Success Factors • Strong Executive Sponsorship • Clear, Compelling Vision and Goal • Well-defined Scope • Fully Funded and Resourced • Comprehensive Change Management

Pennsylvania is the -- • First to implement Strategic Enterprise Management Module for Budgeting • First employer in the United States to implement the SAP Travel Planning module • First state to implement comprehensive Human Resources Module Leading the Way

We used a Hybrid Approach – both “Big Bang” & “Phased Deployment” Our Approach

Transition from Project to Program – From Imagine PA to IES • Versioning Up (upgrading SAP software to newer versions) • Additional opportunities to add functionality/modules • Resource Management: Fleet Maintenance, Plant Maintenance, Property Management, Real Estate • Customer Relationship Management (CRM) • Sales and Distribution • Licensing • Tax and Revenue Management Implementation is Just the Beginning

Mission - The mission of the Bureau of Integrated Enterprise System (IES) is to maintain, improve, and grow the Commonwealth of Pennsylvania’s Enterprise Resource Planning (ERP) system to accommodate the administrative and operational requirements of the Commonwealth and to promote standardization of Commonwealth business processes in an effective and efficient manner.

Goals • To provide a clear and coherent vision of the Enterprise to include an orderly and coordinated approach to future upgrades, modifications, and additions to capabilities. • To be the primary advocate for the maintenance, improvement, and growth of the IES from an Enterprise perspective. • To provide effective and efficient management of the Enterprise resources to meet customer requirements to include the continuous exploration of methods and means to achieve more with existing resources.

To champion standardization of the Commonwealth’s business processes across agencies. • To maintain SAP core competency in system and application technology. • To establish guidelines, standards, and measures of success as capabilities and users are added to the Enterprise. • To effectively communicate across the agencies. • To support business process owners to optimize their business processes as it relates to the IES. • To optimize the technical environment.

Guiding Principles • To partner with agencies and business owners to ensure continuous improvement of the ERP. • To leverage existing practices and processes for efficiency. • To ensure changes are driven by business process requirements. • To be customer sensitive and focused. • To ensure alignment with the Enterprise Architecture plans. • To partner and exchange knowledge with external public and private sector entities who use the same technology. • To look to SAP first as a solution for business and technical solutions.

10 Keys To a Successful SAP Implementation Commonwealth of Pennsylvania Governor’s Office of Administration and Budget Office of Information Technology Bureau of Integrated Enterprise System

Define Vision and Project Drivers • Avoid Scope Creep At All Costs • Build and Maintain Executive Buy-In • Build a Solid Technical Infrastructure • Secure Sufficient Project Resources & Co-Locate Project Team • Communicate, Communicate, Communicate • Invest in Change Management • Over-Invest in Training • Say “No” to Software Customization • Plan for Post Implementation Support

Define the Vision and Project Drivers (or . . Have a Well Defined Case for Change) • “I forget . . . Why are we doing this project?” • Be able to succinctly articulate vision – elevator ride test • What are the reasons behind it? • Very easy to skip this step . . . It can be painful • If you don’t know where you are going, any road will get you there • WIIFM – What’s In It For Me?

Avoid Scope Creep at all Costs (Swirling Demand) • Must be managed throughout the project • Defining and communicating (in writing) the scope upfront to all stakeholders is key • Get used to saying “NO” – be the “scope creep police” • Don’t let the Project Manager carry the burden – define & follow a process for evaluating changes to the scope • Make it a formal (and painful) process

Build and Maintain Executive Buy-In • THE most difficult job of the Project Manager • As Project Manager, you must never stop selling • Clearly define their roles in the project • Get in their face – Establish Executive Steering Committee & meet bi-weekly • Build a mechanism for decision making • If you don’t have buy-in – “Don’t do the project” • Launch organization specific implementation teams

Build a Solid Technical Infrastructure • ERP systems are resource intensive (technical team, hardware, software) • ERP System is only as strong as the weakest link • An ERP system requires more than a simple client/server architecture – now internet computing architecture • Prepare and test infrastructure BEFORE the implementation

Secure Sufficient Project Resources • The #1 issue with all ERP projects • Team must be composed of “best and brightest” resources – this is not an option • Core team members must be dedicated on a full time basis, with part time Subject Matter Expert’s (SME’s) supporting them • Project team individuals will become the organization’s greatest assets • Approximate 50/50 split of resources with integrator – knowledge transfer • Do not do the project without full time skilled resources – It will fail!

Communicate, Communicate, Communicate • How about a dime for every time you hear: “No one ever told me anything about the project. . .” • Highly visible project can still be a well kept secret • Competing with many other active projects • Negative information travels around with little effort • Battling the negative rumor mill • Regular status reporting with executives and line management • Make sure vendors and suppliers know you are “going live” • Give the end-users a forum for communication (like a user group) – Remember WIIFM • Communicate success and quick wins – “Prize Patrol” • Use multiple communications vehicles to get the word out.

Invest in Change Management (or.. Readiness Effort) • Usually overlooked, under-funded, & under-valued • Most project plans/budgets do not include anything for change management • Every process is changing – the foundation of the entire organization is being rocked – “so let’s skip the change management . . . ” • ERP is not a technology implementation but a change in the way business is conducted

Over-Invest in Training • Every process is changing – the foundation of the entire organization is being rocked – “so let’s cut the training budget!!” • Utilize knowledgeable organization employees as trainers and keep them for entire training period • Training must be process and role-based – the walls are down and errors have a rippling effect • Prepare Managers and Supervisors with tools to discuss changes with their employees before training starts • Assess and develop strong computer literacy skills across the organization prior to SAP training • Tightly manage all logistics and resources (facilities, schedules, trainers) • Stress Test Learning Management System (LMS) • Realize that Training NEVER takes the place of production experience – expect a steep learning curve • 508 compliance on training is critical

Say “No” to Software Customization • Customization is death for an ERP project • Customization = Code Change = $$$$$ • Customizations can cause upgrade issues • “Are you really that unique?” • Make the requester pay for it (the implementation and the eventual upgrade)

Plan for Post Implementation Support • Post Implementation Support is an absolute necessity – productivity will “drop” after “go live” EXPECT IT and COMMUNICATE IT • On-site support (SWAT) versus help desk (or both?) • Staff the help desk with Functional and Technical experts • Track all calls and perform follow up – Remedy • Provide support at end-user sites – “get out in the field” • Plan for 30 – 90 days of support after “go live” • This is when the true “knowledge transfer” takes place • Training, Training, Training

Meeting the Challenge