Technology Governance Board The Evolution of Executive Branch IT Governance

1. Technology Governance Board The Evolution of Executive Branch IT Governance Presented by: Mollie Anderson John Gillispie Director Chief Operating Officer Department of Administrative Services Information Technology Enterprise

2. The EIP Assessment • EnterpriseInfrastructure and Personnel Assessment • (1QFY04 through 3QFY05) • Focused on Executive Branch Information • Technology • Addressed three interrelated aspects of • organizational agility: • Definition of processes • Technology capabilities and agility • Organizational capacity for change and readiness to support Executive Branch business requirements EIP Assessment

3. EIP Recommendations • Programmatic Recommendations • Leverage Common Statewide Infrastructure • Data Center Consolidation • Move To A Highly Standardized Statewide Desktop • Environment – Initiate A “Lifecycle” Program • Conduct A Complete Enterprise Application Inventory & • Consolidation • Critical IT Organizational Recommendations • Redefine The Role Of The Chief Information Officer (CIO) • Create A Customer Relationship Management Focus • Create A Statewide Information Technology Service • Provider Organization EIP Recommendations

4. EIP Recommendations (Continued) • Technology Process Recommendations • Establish a Technology Governance Board • Decision-making based on business drivers in support of customer requirements. • Develop an Enterprise Portfolio Management Office • Funding methodology to promote fiscal and management efficiencies. • Develop a Statewide Enterprise Architecture • Statewide common infrastructure standard. • Develop a Performance Based Partnering Strategy • Centralized IT procurement process. EIP Recommendations

5. Technology Governance Board • The • Legislation

6. Technology Governance Board (TGB) • House File 839 - Eighty-First General Assembly (2005) • Established the Technology Governance Board Within the Department of Administrative Services • The Bill Establishes: • Membership • Powers and Duties • Funding of the Board • Rulemaking Authority Within DAS for the Board • Initial Terms of Membership (Transition) The Legislation – HF 839

7. TGB Membership • The Director of DAS (Permanent Chair of the Board) • The Director of the Department of Management (or • designee) • Eight Governor’s Appointees • Three representatives from large agencies. • Two representatives from medium-sized agencies. • One representative from a small agency. • Two public members knowledgeable about information technology matters. • Vice chair annually elected from among the members. The Legislation – HF 839

8. Powers and Duties of the TGB • Annual report to the Governor, the Department • of Management, and the General Assembly. • Work with the Department of Management and the • State Accounting Enterprise to maintain the relevancy • of the central budget and proprietary control accounts • of the general fund of the state to information • technology. • Develop and approve administrative rules governing the • activities of the board. • Develop and adopt information technology standards • applicable to all agencies. The Legislation – HF 839

9. Powers and Duties of the TGB (continued) • Make recommendations to DAS regarding: • Technology utility services to be implemented by the department or other agencies. • Improvements to information technology service levels and modifications to the business continuity plan for information technology operations. • Technology initiatives for the executive branch. • Review the recommendations of the IowAccess Advisory Council regarding rates to be charged for value-added services performed through IowAccess. • Designate advisory groups to assist the board. The Legislation – HF 839

10. TGB Advisory Groups For: • Development of an executive branch Strategic • Technology Plan. • Annual review of technology operating expenses and • capital investment budgets of agencies by October 1. • Quarterly review of requested modifications to budgets • of agencies due to funding changes. • Review and approval of all RFPs (prior to issuance) for • all information technology devices, hardware • acquisition, information technology services, and • software development projects that exceed the greater • of fifty thousand dollars or 750 staff hours. The Legislation – HF 839

11. TGB Advisory Groups For: (continued) • Development of a plan and process to: • Improve service levels • Improve continuity of business operations • Maximize the value of information technology investments • Formation of internal teams to address cost-savings • initiatives, including consolidation of information • technology and related functions among agencies. • Development of information technology standards. • Development of rules, processes, and procedures for • implementation of aggregate purchasing among • agencies. The Legislation – HF 839

12. Technology Governance Board (TGB) TGB Advisory Groups Implementation of Aggregate Purchasing Among Agencies Executive Branch Strategic Technology Plan Internal Teams to Address Cost Saving Initiatives Quarterly Review Of Requested Changes To Agency Budgets Annual Review Of Agency Technology Expenses & Budgets Development of Service Improvement Plans & Processes Development of Information Technology Standards Review & Approval of Information Technology RFPs

13. TGB Annual Report • The report shall include: • Total spending on technology for the previous fiscal year. • Total amount appropriated for the current fiscal year. • Estimate of the amount to be requested for the • succeeding fiscal year for all agencies. • A five-year projection of technology cost savings. • An accounting of the level of technology cost savings for • the current fiscal year. • A comparison of the level of technology cost savings for • the current fiscal year with that of the previous fiscal • year. • The report is due after the close of a fiscal year no later • than the second Monday of January of each year. TGB Annual Report

14. TGB Briefing • Information Technology Governance

15. Sustained Leadership • Communication • Collaboration Vision & Strategic Planning • A Broad Perspective of Customer • Needs • Sustained Agency Cooperation The Goals of Successful IT Governance IT Governance

16. Increasing the Value of IT in Government IT Governance Three Dimensional Value Accretion Model

17. Disciplines Required to Affect Improvement • Value Centric Performance Measurement– Developing business and financial disciplines, using business performance metrics to assess and monitor value contributions. • Enterprise Portfolio & Program Management– Ensuring technology investments gain maximum value and return, managing repeatable, stable project execution to increase the business value of an organization’s project portfolio. • Enterprise Architecture– Creating an adaptable IT environment using business-aligned technology consideration and selection processes. IT Governance

18. Disciplines Required to Affect Improvement (continued) • Value Sourcing– Strategies that optimize IT service delivery sources such as selective outsourcing, performance-based vendor management and procurement excellence. • Human Capital & Organization Management– Enhancing organizational performance for enabling the business and information processes through a focus on business alignment, relationship management, and mobilization of the Governor's and Legislature’s vision and strategy. IT Governance

19. IT Lifecycle Management IT Governance Standardized Statewide Information Technology “Lifecycle” Program

20. IT Portfolio Management A Tool for Attaining Our Goals Strategic Sourcing & Relationship Management Infrastructure Architecture Information Systems Common Services IT Governance Consulting & Project Management Asset Portfolio Management

21. IT Portfolio Management • Infrastructure Architecture • Relevancy - Design & Maintenance of Information Technology Shared Resources • Mission & Value - Common Information Architecture Fuels: • Efficiency; • Collaboration; and • innovation across organizational, geographical, & technical boundaries. • Sample Service: Common Statewide IT Infrastructure • Core Processes: Shared resource design; engineering; interoperability; modularity; standardization; reusability; & management. IT Governance

22. IT Portfolio Management • Strategic Sourcing & Relationship Management • Relevancy - Interactions WithEmployees, constituents, vendors, external service providers, contractors, strategic partners, & other stakeholders. • Mission & Value: Fulfill, measure, & continuously improve business processes. • Sample Service: Customer Relationship Management Focus • Core Processes: Resource cultivation; contract negotiation & administration; expectation & service level management; pricing & funding determination; performance monitoring & measurement; dispute resolution; facilitation; arbitration; & business intelligence. IT Governance

23. IT Portfolio Management • Asset Portfolio Management • Relevancy - Asset types such as hardware, software, data, real property, people skills & capabilities, & intellectual property. • Mission & Value - Acquire, maintain, enhance, leverage, protect, & dispose of assets. • Sample Service - Standardized Statewide Desktop • Environment . • Core Processes - Supply & demand management; asset acquisition; financial valuation; inventory management; security administration; disaster recovery; risk management; license management; and life-cycle management. IT Governance

24. IT Portfolio Management • Consulting & Project Management • Relevancy- Infrastructure projects, internal & external capability delivery. • Mission & Value - Efficiency, innovation, & acceleration. • Sample Service - Enterprise Application Inventory & • Consolidation • Core Processes - Needs analysis & prioritization; solution innovation; prototyping; process engineering; methods management; resource allocation & scheduling; escalation management; issue & problem resolution; & change management (organizational & technical). IT Governance

25. IT Portfolio Management • Information Systems Common Services • Help Desk and Trouble Ticketing • Desktop Support • Application Development • Application Hosting • Web Development • Contingency Planning and Disaster Recovery Services • Virtual Private Networking (VPN) IT Governance

26. TGB Meeting Discussion Items Administrative Support Funding for the First Year • TGB Support • Enterprise Portfolio Management • Enterprise Architecture Discussion Items

27. TGB Meeting Discussion Items • Emerging IT Government Issues • Most Important IT Actions a Governor Can Take to Improve Service Delivery and/or Government Efficiency • Implement an IT governance model focused on results; • Establish a decision-making body and process for IT investment; • Empower a trusted advisor to bridge policy and technology; • Develop an enterprise model for managing technology; • Leverage IT to solve business problems; • Use IT to understand and better manage federal funds; • Reform procurement to save money and improve outcomes; • Make information sharing a priority; and • Encourage and leverage IT innovation. • Source: National Governor’s Association – Center for Best Practices Discussion Items

28. TGB Meeting Discussion Items • Desired TGB Goals and Outcomes • Implement a standard process to manage the selection, control, and evaluation of the State’s IT investments. • Assist the Chief Information Officer (CIO) in developing an Information Technology budget to reflect the total annual technology expenditure. • Set statewide standards and ensure that IT projects follow those standards. • Identify projects that can cross agency and program boundaries to leverage resources. • Review the progress of current projects to determine if their success rate (i.e. on time, within budget, and meets functional requirements.) Discussion Items

29. TGB Meeting Discussion Items • What is the role of the TGB? • What activities are suggested for the TGB? • Measurements of a Successful Governance Model? Discussion Items

30. Annual Review of Agency Technology Budgets and Expenditures • Background & • Discussion Review of Agency Technology Budgets & Expenditures

31. Annual Review of Agency Technology Budgets and Expenditures • “. . . maintain the relevancy of the central budget and proprietary control accounts of the general fund of the state to information technology”. • Background • Peat-Marwick Established an Information Technology Financial Base Case 1996. It took over 4 months and cost $80,000 plus an estimated 600 – 800 hours of involvement from State of Iowa FTEs. • IT expenditure codes were implemented in IFAS 1998 to dynamically track IT expenses. Review of Agency Technology Budgets & Expenditures

32. Annual Review of Agency Technology Budgets and Expenditures • To efficiently capture and report the following information for the Executive Branch: • Total spending on technology for the previous fiscal year. • Total amount appropriated for the current fiscal year. • Estimate of the amount to be requested for the succeeding fiscal year for all agencies. • It will be necessary to develop and use an effective set of account and expenditure codes in the Budget and Accounting systems. The data generated can also assist with the assessment of cost savings from year to year. Review of Agency Technology Budgets & Expenditures

33. Annual Review of Agency Technology Budgets and Expenditures • Action Items • Monitor the new object and class codes have been implemented for FY06 expenditures and FY07 budgets. • Adopt a standard way of having >$50K or 750 man-hour projects documented and prepared for review by the TGB or an advisory group.

34. EIP Report Projections • Projected Investments, Savings, & Strategic Sourcing

35. EIP Report Projected Savings and Investments • Projected Five Year Savings Desktops: $4.2 Servers: $3.0 (All $ in Millions) Network: $5.3 Savings & Investments Data Center: $9.5 Applications Development & Maintenance: $12.7 Investments Required: $8.6 Source: Enterprise Infrastructure and Personnel Assessment Final Report

36. EIP Report Projected Savings and Investments • Investments Required to • Realize Savings Savings & Investments Investments Required: $8.6M (All $ in Millions) Source: Enterprise Infrastructure and Personnel Assessment Final Report

37. Current Collaborative IT Initiatives & Projects • Mainframe Consolidation Studies • Domain Name Service Coordination • Virtual Private Networking (VPN) • Pooled Purchases to Achieve Cost Savings (Desktop • PCs, Laptop PCs, IBM Passport Licenses, Computer • Associates Software, Oracle Software, Veritas Email • Enterprise Vault, Mainframe Leases, and Secure Socket • Layer Server Certificates). • Continuing Improvements to the Return on Investment • (ROI) Program • Information Technology Communications Plan • Revision and Updating of Enterprise IT Standards Collaborative IT Initiatives & Projects

38. Strategic Sourcing • Strategic Sourcingis an initiative to leverage the • purchasing power of government in Iowa to receive lower • costs and better value for the goods and services • purchased. • Objectives of Strategic Sourcing • Understand the potential for savings with a high degree of certainty; • Revise sourcing approaches to generate substantial savings during the 2006 calendar year; • Improve procurement processes and practices; • Transfer knowledge to State staff to make improvements in supply chain efficiencies; and • Conduct sourcing activities in an ethical, respectful, and business- like manner. Savings & Investments

39. Strategic Sourcing (continued) • The initial focus of commodities for strategic sourcing: • Fleet: Vehicles, Supplies, Services • Food • Fuels, Oils • IT Contractors • Maintenance Supplies • Office Supplies • Print and Promotion • Stationery/Printed Forms/Labels • Medical Equipment, Supplies

40. Discussion of Draft TGB Bylaws • Article 1. Name • Article 2. Purpose • Article 3. Guiding Principles • Article 4. Membership • Article 5. Officers And Staff • Article 6. Duties Of Officers • Article 7. Committees • Article 8. Meetings • Article 9. Voting • Article 10. Administration • Article 11. Parliamentary Procedure

41. TGB – Next Steps • Where Do We Go From Here?

42. TGB Meeting Dates • Meeting Time • Second Thursday of Every Month • 3:00 p.m. to 5:00 p.m.