GCIO, Corporate Services Reform

1. GCIO, Corporate Services Reform Review of Government Selected Application Systems (GSAS) Program and the Records Management Project 2006

2. GSAS REVIEW PROJECT PRESENTATION: • What is the GSAS program • Background / Work Undertaken • Shortcomings of the current model / ALM • Conceptual Model • Comparison Table (current & proposed arrangements) • Review Process • Action Required Corporate Services Reform

3. What is GSAS • The GSAS program is a panel of 4 IT contracts covering the following corporate services disciplines: • HR & Payroll Management • Financial Management • Records and Information Management • Integrated Management Systems • Enables NSW Govt. agencies to select pre-qualified software applications without the need to go to tender. • Focussed mainly on reducing acquisition cost of software. • Software houses control implementation processes and associated consulting services. • All the 4 contracts expire over the next 12 months Corporate Services Reform

4. Background • An internal review conducted by Dept of Commerce and an external review conducted by Opticon Consultants found that GSAS served its original purpose but was now in need of substantial change. • Key Outcomes of studies: - we need to change the way we manage applications across the sector - manage the full end to end lifecycle costs of applications using ALM - Establish a Program Office to manage & coordinate purchasing, knowledge/ resource sharing, configuration database, IP register and so on. - Agree on standard processes across agencies - Build standard government version for each application to reduce implementation, upgrade, support and maintenance costs - Establish a Centre of Expertise for major Applications • Field testing separate projects with the SAP and TRIM to demonstrate the ALM framework. • During 2006 review the existing GSAS contract arrangements and develop a new model based on the ALM framework. Corporate Services Reform

5. Application Lifecycle Management Model Corporate Services Reform

6. Conceptual model Adopt a total cost of ownership Model to managing applications Build a configuration database To manage knowledge sharing, resource sharing, intellectual Property and system configurations Establish a Program Management Office to coordinate the program and all projects including the ongoing management of the program Develop a standard government configuration for each application based on standard best practice processes Corporate Services Reform

7. Acquisition GSAS Selection Leverage existing asset, no tender Full shortlist tender Full open tender Implementation Leverage / use skilled people In NSW Gov Use existing Configurations and skills Leverage / use offline IP Go it alone Infrastructure Hosted externally for all NSW Gov Clustering and hosted in NSW Gov Single NSW Gov version hosted internally Each agency runs its own Architecture Build single NSW Gov version as part of DET project Each Agency Develops its own Configuration Copy an existing build and go it alone Build several different Configuration builds & Cluster around build License Agency by agency’ using GSAS pricing as a base Centralised procurement Approach to purchases Centralised procurement & coordination approach Crown holds all licences All dimensions can be plotted on a continuumEach dimension represents a major cost pool Corporate Services Reform

8. Current arrangements: Benefit limited to acquisition costs; Govt. purchasing power not maximised; Individual / inflexible licencing arrangements; Two tier tendering process by agencies; Suppliers control over implementation partners; No common implementation / upgrade process; Intellectual property largely lost; Limited knowledge sharing; Limited opportunity for innovative service delivery solutions / product extensions New Proposed arrangements: Benefits flowing from ALM framework by generating savings through reduced acquisition, infrastructure, implementation, ongoing running, and future upgrade costs; Increase Government purchasing power; Single tendering process through centralised licencing in name of Crown; Separate arrangements for suppliers and implementation partners; Develop standard government version(s) / configurations / processes; Retain value of intellectual property; Improve knowledge & resource sharing; Improved opportunity for innovative service delivery solutions and IT industry developments; COMPARISON TABLE Corporate Services Reform

9. Review Process • Process will require extensive stakeholder involvement (agencies, suppliers, implementation partners, etc) • Projects with SAP User Group and TRIM / records management forum • Specialist groups within DoC (GCIO and SP) supported by external contractors. • GCIO will develop the conceptual model and operational framework while SP will support the process with the usual procurement management responsibilities. • Timetable to comply with extended contracts during 2006. • Review of licencing and contract conditions • Dedicated working groups for each discipline to review proposed changes and tender responses. Corporate Services Reform

10. Action Required • Involvement of TRIM and other user groups • Formulate project and ongoing communication strategies • Running of workshops • Setting up specialist working groups for each discipline for the GSAS review as well as potential initiatives/projects for the records management program • Ongoing involvement with the Program Management Office. Corporate Services Reform