Modernizing Legacy in the Public Sector

1. Modernizing Legacy in the Public Sector Ted Venema – Director, Modernization Solutions

2. Oracle Modernization • We are a team of Modernization SMEs available to help you – at no charge • We understand modernization and have extensive modernization experience in Public Sector • We help you develop your modernization roadmap • We provide product independent: • Modernization Discoveries (conf calls, half day sessions) and Insights (more formal 2 day sessions). Examples include: • State: New Mexico, Colorado, Delaware, California, Minnesota • Other PS: Hennepin County, Miami Dade County, Dade County • We know the partner eco-system that provides the means to get there • We understand the need to modernize incrementally to avoid project risk • We bring together shared experiences from other states • Manage the Oracle Modernization Alliance (www.oracle.com/goto/oma) • System Integrators • Work with them on their Modernization Practices • Specialty modernization vendors • Advise you on who to check out • Advise on product vendors that add value to provide a complete Modernization Architecture

3. Why Governments Need to Modernize Business factors are forcing public sector to modernize! • To increaseagility • Slow better address ongoing legislative changes • To improve service and access for the general public – Citizen at the Center • To improve and automate interaction with other other government departments, external agencies, and other levels of government • To reducerisk • Eliminate complex environment created through years of island development • Eliminate reliance on critical legacy skills in an aging workforce that is retiring soon • Eliminate proprietary infrastructure – encourage re-use and “plug and play” • Eliminate reliance on unsupported products and technologies • To decreasecost • Eliminate legacy software on proprietary O/S and expensive hardware • Reduce massive operational and maintenance costs (80% of budget) • Avoid need for high cost legacy skills and “hire back” consultants

4. How Did We Get Here? • Not aligning IT with Business • Worry about data models instead of process models • Monolithic solutions that are hard to change. • Not externalizing those things that change most – legislation • The RFP Process • Lack of balance in function (users) and architecture (IT) • One of everything • Bad short term vs. long term cost evaluation • Funding issues • Color of money created strange application separation • Misunderstanding of COTS and COTS Applications • COTS is excellent, but modified COTS (MOTS) may be the worst way to go • Just because you can buy it doesn’t make it good • Buying someone else’s way of doing things may not fit • Buying someone else’s poor or old design • Over-outsourcing - attempt to outsource responsibility for key components • Architecture • Re-Use/Shared Services • Technology choices

5. ADSO Natural 3) The Means to Get There CSP Portals Work Flow Orchestration Legacy COTS MOTS Re-Arch Business Intelligence Rules Engine Content Content Content Content Identity Management Integration Engine Shared Content Services 1) Open Target Architecture 2) Proper Content Content Management Shared Technology Services Database 3 Main Modernization Requirements VMS Z/OS OS/400 TPM COBOL IMS/DB Top Secret PL/1 ISAM/VSAM RACF “C” RMS Legacy PowerBuilder RPG Datacom ISPF CA/7 IDMS Adabas IMS/DC 3270 VT100 JES CICS LU6.2 APPC

6. Portals Web User Interface 3270 Mobile Identity Mgmt Security Workflow Orchestration Process Process Rules Agency-to Agency DMV Tax Function HHS Labor Non-Relational Relational Data Unstructured Documents GIS Networks Computers Hardware/OS Operating Systems Security Public Sector Modernized Architecture

7. Why Architecture is Important • Needed as the basis for any cost savings • Cost savings through shared services re-use • Of purchased COTS Technology • Of purchased COTS or MOTS Content • Of re-architected Content • Cost savings though business/IT alignment • Better citizen service (web driven, flexible access, etc.) • Faster reaction to legislative change (externalizing rules, workflow, etc.) • Needed as the basis for any consolidation goals • Lack of common architecture caused the current problems • Stop making the problem worse • Needed as the foundation for shared services • Grid Computing • Cloud Computing • Needed to provide a way to “stage” the way to savings • Architecture is NOT about J2EE or .net – it IS about SOA and shared services • Therefore also a key to consolidation efforts

8. Example – State of Colorado • Is mandated by legislation to consolidate and has developed a “high level” plan and basic architecture • Savings increase as you move “up the architecture stack” • Gets harder as you move “up the architecture stack” • Issued RFI for “shared services” environment • Recognize that shared services are the root of cost reduction and use of modern environments such as grid and cloud computing • Shared services further expanding on architecture needs • Recognize that shared services are not just about data • Has worked with Oracle on developing a roadmap for their modernizing their extensive NATURAL/ADABAS environment

9. COTS Technology Can Replace Legacy Content COTS Content is Superb – provided it is “off-the-shelf” Portals Work Flow Orchestration Be careful with MOTS – it isn’t COTS and can be the most expensive alternative Shared services save cost – but only if you have them! Re-Arch Legacy COTS MOTS Business Intelligence Rules Engine Content Content Content Content Identity Management Re-Architecting is not “Rip and Replace” and less costly than you think Integration Engine Modernization Environment needs to include Legacy Shared Content Services Content Management Shared Technology Services Database Modernizing Public Sector Content

10. Three Main Things to Consider for Content Replacement • What you have • Its driving the business today • It can’t be “left behind” • What architecture you need to save money • Technical consolidation, cloud computing, etc. • Process and SOA architecture for ease of change • What functionality you need • Compared to what you have

11. COTS Driven Modernization 3) Replace/Re-factor content 2) Recover content and needs Legacy Processes Legacy Dialogs Legacy Legacy Online Legacy Batch Legacy Data Model 1) Define New Architecture (wide)

12. COTS Driven Modernization Benefits • Understand what you have – “no requirement left behind” • Maximize the value of COTS Technology and COTS Content with the right architecture and shared services • Make the right content choices • Evaluate RFPs in the right context • Cover functionality • Address architecture • Don’t make the problem worse

13. Nova Scotia Registry of Motor Vehicles • NS RMV provides vehicle registrations, drivers’ licenses, and related services via 19 offices across the province. Before CHALLENGES/OPPORTUNITIES: • Comply with the Canadian Drivers’ License Act (CDLA) which is equivalent to the US Real ID Act in requirements • Provide increased self-serve capabilities • Provide single driver record visualization including systems such as alcohol conviction tracking • Modernize business processes and technical environment (NATURAL/ADABAS, COBOL, green screen moved to Java/Oracle) • Reduce Cost • Legacy Profile: • 2.4m lines of Natural code • 4,100+ green screens • 1,100 legacy reports • 332 batch jobs • 100+ external interfaces • $330K/mo operating cost • Completely new design based on SOA • Used COTS properly RESULTS After • Java/J2EE Outcome: • Single Driver Record • 450K LOC Java • 190K LOC XHTML • 650 screens (~16%) • 490 BI reports • 0 batch jobs • 100+ external interfaces • 60% cost savings • Half the cost of “MOTS” SOLUTIONS • Oracle Modernization Advising • Tool Driven Re-Architecting: MAKE Technologies • 2 year project with 2 year payback

14. Summary • Modernization is something every public sector organization needs to be concerned about • You can’t successfully modernize what you don’t understand – assessment is important • There is a cost to doing nothing • What to consider? • An architecture based on shared services is necessary – start now • COTS is about both technology and content • Evaluate closely the cost/benefits of MOTS • COTS Driven Modernization is an approach that works well for Public Sector

15. Q & A Thank You! For more information, contact: joe.mudroch@oracle.com (314-984-5312) ted.venema@oracle.com (604-637-4460) www.oracle.com/goto/modernization