Enterprise Applications Program Review

1. 1 Enterprise Applications Program Review ITIB July 19, 2007 Peggy.Feldmann@governor.virginia.gov

2. 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. 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. 4 Enterprise Applications Objective Future vision of what VEAP is trying to build and deliver. Bottom level is the data sources. Next level up shows the data integration, security and consumption methods (web portal, broadcasting, etc.) Next layer provides a perspective on how the information can be used (reporting, querying, performance management) Top layer provides the �towers� which will eventually be incorporated into this modelFuture vision of what VEAP is trying to build and deliver. Bottom level is the data sources. Next level up shows the data integration, security and consumption methods (web portal, broadcasting, etc.) Next layer provides a perspective on how the information can be used (reporting, querying, performance management) Top layer provides the �towers� which will eventually be incorporated into this model

5. 5 CoVA Enterprise Programs (Future State)

6. 6 What Revenues will be Spent after the Planning Dollars are Expended?

7. 7 EA Projects and Benefits Timeline

8. 8 FM ERP Planning Timeline

9. 9 What value have you achieved so far? 

10. 10 FY07 EA Planning (ITIB Approval for Planning to June 30, 2007) 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 Reporting Test Strategy

11. 11 FY08 EA Planning 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. 12

13. 13 Hyperlinks

14. 14 Application Centric to Data Centric

15. 15

16. 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

17. 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. 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 (IV&V)

19. 19 FY 08 Functional Planning Areas Refine Future State Business Process documents Enterprise wide participation FM SW / Implementation RFP evaluations Business Process Improvements Impacts Data Cataloging and Reporting Plan

20. 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 Commonwealth�s best interest Currently discussions underway with VITA SCM on ERP RFP way forward Financials application (software and implementation) Options

21. 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 Objective here is to show the current state of FM and PB and highlight the shortcomings of the disintegrated systems.Objective here is to show the current state of FM and PB and highlight the shortcomings of the disintegrated systems.

22. 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. 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. 24 Current State Financial Management and Budgeting Tools (DOA, DPB, DGS, VEC, VDOT & VITA )

25. 25 Future Technical State Standardization � reduced reporting and analysis costs Increased control � lower operational expenses Improved service delivery � increases customer satisfaction Data Centric First Bullet: Long term support under a COE model. Second Bullet: Eases training and enhances workpool skill set Third bullet: data cleansing and cross-checking will improve data accuracy First Bullet: Long term support under a COE model. Second Bullet: Eases training and enhances workpool skill set Third bullet: data cleansing and cross-checking will improve data accuracy

26. 26 Current vs Future State Comparison

27. 27

28. 28

29. 29 Application vs. Data Centric Objective here is to show the current state of FM and PB and highlight the shortcomings of the disintegrated systems.Objective here is to show the current state of FM and PB and highlight the shortcomings of the disintegrated systems.

30. 30 FY 07 Change Management and Communications Planning Area Change Management Plan Change Impact Assessment Stakeholder Map Communications Training Strategy Facilitator training

31. 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 The first step in change management is conduct change readiness assessment activities to assess agencies' willingness and ability to meet the vision for the program. We have: Conducted focus group exercises with Future State Business Process workshop teams (completed) Conducted interviews with members of VEAP leadership and functional teams as well as other key Commonwealth players, such as DPB managers (ongoing) Conducted a change readiness survey of Phase 1 users (underway) Copies of documents are included in your notebooks. Later, we will review such agency information as organizational structures and strategic plans and conduct agency focus groups to identify and address agency change management needs. The first step in change management is conduct change readiness assessment activities to assess agencies' willingness and ability to meet the vision for the program. We have: Conducted focus group exercises with Future State Business Process workshop teams (completed) Conducted interviews with members of VEAP leadership and functional teams as well as other key Commonwealth players, such as DPB managers (ongoing) Conducted a change readiness survey of Phase 1 users (underway) Copies of documents are included in your notebooks. Later, we will review such agency information as organizational structures and strategic plans and conduct agency focus groups to identify and address agency change management needs.

32. 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 The purpose of stakeholder engagement is to identify various groups of individuals who will impact, or be impacted by, VEAP and develop plans to maximize their contribution to the program. The management team has identified stakeholders ranging from the Governor and General Assembly to agency line staff and external groups. We have listed stakeholders on a matrix and defined for each the following criteria: 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 We will create leadership action plans to manage stakeholders according to their interest and influence. The stakeholder matrix is included in your notebooks. The purpose of stakeholder engagement is to identify various groups of individuals who will impact, or be impacted by, VEAP and develop plans to maximize their contribution to the program. The management team has identified stakeholders ranging from the Governor and General Assembly to agency line staff and external groups. We have listed stakeholders on a matrix and defined for each the following criteria: 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 We will create leadership action plans to manage stakeholders according to their interest and influence. The stakeholder matrix is included in your notebooks.

33. 33 Communications Message development Audience analysis Delivery methods Name, logo, and tag line Web site Communication efforts are getting underway. An important early step is to conduct a visioning session with the steering committee to identify the key messages that they want to convey about the program. We will then undertake an analysis of various internal and external audiences and determine the most effective methods for delivering these key messages to each. We are looking forward to the opportunity that the establishment of a new program name, logo, and tag line will provide to launch a program Web site. In addition to the usual program information typically contained on a Web site, we plan such interactive features as question and feedback pages and possibly even blogs. Communication efforts are getting underway. An important early step is to conduct a visioning session with the steering committee to identify the key messages that they want to convey about the program. We will then undertake an analysis of various internal and external audiences and determine the most effective methods for delivering these key messages to each. We are looking forward to the opportunity that the establishment of a new program name, logo, and tag line will provide to launch a program Web site. In addition to the usual program information typically contained on a Web site, we plan such interactive features as question and feedback pages and possibly even blogs.

34. 34 Training Comprehensive training plan Influenced by software solution selected Agency information review Training will be important for all Commonwealth employees impacted by systems and process changes. We have developed the template for a comprehensive training plan that goes beyond operational training (�buttonology�) covers many areas necessary for program success. We will flesh out this plan to meet specific training needs based on the software solution selected and our review of agency organization and staffing information. Training will be important for all Commonwealth employees impacted by systems and process changes. We have developed the template for a comprehensive training plan that goes beyond operational training (�buttonology�) covers many areas necessary for program success. We will flesh out this plan to meet specific training needs based on the software solution selected and our review of agency organization and staffing information.

35. 35 Enterprise Standards and Mandates Direct benefits of standards Reduced project costs Reduced technical infrastructure costs Greater leverage with vendors Reduced reconciliation costs �

36. 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. 37 Enhanced Tax Recoveries