AGENDA

• Purpose (Why Consolidate)

• Consolidation Approach

• Consolidation Status

• Consolidation Financials

• Steady State Measurements

• Budget and Personnel Information Requested (HB 1304)

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Purpose (Why Consolidate)

GOAL MEASURMENT

• Efficiency – Dollar Savings

• Alignment – Survey Results

• Quality – Service Levels

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Federated Model of The Enterprise

Agency Layer

Enterprise Layer

Infrastructure Layer

Technology Services

Agency

Services

Shared Application Services

Centralized Technology

Centralized Application

Services Utilized by Multiple Agencies

Agency Specific Services Remain

in Agency

Information Technology Processes (ITIL and PMBOK)4

OSF’s Service Portfolio

CablingInside Plant Outside Plant

Voice and Data Services

IP Telephone PBX Telephone

Contact Center

Web Conferencing

Wide Area Network Local Area Network Remote Access

Data Center and ServersMainframe Hosting Distributed Srvr Host Offsite Media Storage Data Center Space

Desktop ComputingDesktop Support File & Print Services E-mail and Calendar

Content ManagementImaging

OperationsCustom Printing Courier Services

Helpdesk Service Desk Help Desk Hosting

Application DevelopmentApplication Support

Consulting

Security

Server/Mainframe Desktop Network

Technology ServicesImplemented In Process Planned

Campus Broadband

Audio Conferencing

Policy - Procedures

Operations Center

Cyber Security Seminar

Incident Response Risk Assessment Disaster Recovery Awareness Training

Wiki

Implemented Services

Proposed Services

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Shared Services

Financial Mgt Systems Payroll/Human Resources Other

Reporting / Business IntelligenceFinancial Analytics Human Resource Procurement & Spend

Implemented In Process Planned

Extend / Collaborate

Transaction / Streamline

General Ledger

Purchasing

Strategic Sourcing E-Supplier –

Budget

Human Resource – Base Benefits-

Time & LaborPayroll

Employee Self Svc Enterprise Learning Mgmt

Higher Education Interface

Manager Self Service

Account Rec Billing

Asset Mgmt Project / Grants / Contracts

Inventory

E-Bill Payment

Expenses (travel) Help Desk Self Svc

Grants Provisioning

Licensee

OK.GOV Custom Apps

P-Cards

AP Workflow

eProcurement

Transparency

Accts Payable

OK.GOV Licensing

OK.GOV Payment Services

OK.GOV Websites

OK.GOV Webstats

Transparency

ARRA Openbooks Data.gov

Implemented Services

Proposed Services

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Consolidation Approach

• Agency by Agency - Consolidate all services for a specific agency one agency at a time (ie Treasury, Education)

• Service by Service - Consolidate a specific service for all agencies that utilize the service (ie. enterprise e-mail, mainframe hosting)

• Service by Agency – Implement a specific service or a small number of services for an agency. This is OSF’s traditional approach.

Consolidation Approaches

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Service By Service Future

• Oracle Completing Study for Unix Consolidation• Network Study: AT&T, OneNet, Lucent• Radio Study: Kimball• McAfee Study Security Services

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Agency by Agency

Leadership Common

Vision

Team Formation

Project Scope and Plan

ApproveBusiness Case

Detail PlanTransformCustomer

Relationship

Standard Process

Governance

Performance Reviews

MetricsRefined

BusinessCase

TourismBoard of Nursing

Employee Benefits Council

Office Personnel MgmtTreasury

Education

AICCM

Accountancy Board LP Gas AdminAbstractors Board Motor Vehicle CommArts Council Long Term Care BdAeronautics Optometry BdTobacco Settlement Police Pension Construction Ind Board Prof Engineers Lic Bd Comm on Teachers Prep Physicians ManpowerEthics Commission Licensed Social WorkersMerit Protection OCAST Governor Comm Consumer Credit State Fire Marshall Teachers RetirementDisability Concerns Uniform Building CodeHuman Rights Comm Commercial Pet BreederPardon and Parole Interstate OilMarginal Well Commission 10

Agency by Agency Future

DCS, OSGEEIB, AND HEALTH ARE THE NEXT THREE AGENCY CONSOLIDATIONS

THREE ADDITIONAL MEDIUM SIZED AGENCIES BEFORE JULY

EIGHTEEN MONTH PLAN IN PROCESS

Medium Sized Agencies•Indigent Defense System• Attorney General• Children & Youth Commission• Commerce •Department District Attorneys Council •Election Board •Auditor and Inspector•Insurance Department •Office of Juvenile Affairs• Land Office•Commissioners of the Libraries• Department Lottery Commission• Narcotics & Dangerous Drugs Control •Public Employees Retirement System •Personnel Management Office• Tourism & Recreation Department• Central Services - DCS •Secretary of State •Veterans Affair Department• Teachers' Retirement System• State Treasurer• Employees Benefits Council •Water Resources Board

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Agency By Agency Savings

IT POSTIONS HAVE DECREASED 21% IN AGENCY BY AGENCY CONSOLIDAITON

SERVER COUNT HAS DECREASED 58% IN AGENCY BY AGENCY CONSOLIDATION

Agency Name

Start Position

Count

End Position

CountPosition Reduction

PercentageStart Server

CountEnd Server

CountServer Reduction

Percentage

State Dept of Education 30 25 17% 75 Physical2 Physical - 29 Virtual 59%

State Treasurer 8 6 25% 26 Physical10 Physical -

5 Virtual 42%Office of Personnel Management 2 1 50% 8 Physical

1 Physical - 1 Virtual 75%

Board of Nursing 1.5 1 33% 3 Physical 1 Physical 67%

Dept of Tourism 7 5 29% 20 Physical2 Physcial -

4 Virtual 70%

TOTAL 48.5 38 21.65% 132 55 58.33%

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Legislative Mandate Savings(Appropriated Agencies)

IT COST HAVE DECREASED 10% SINCE 2009

IT POSITIONS HAVE DECREASED 11% SINCE 2009

Year Savings Achieved FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Legislative Mandate Savings 2010 $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401Legislative Mandate Savings 2011 $17,048,226 $17,048,226 $17,048,226 $17,048,226 $17,048,226 $17,048,226 Total Annual Savings $11,384,401 $28,432,627 $28,432,627 $28,432,627 $28,432,627 $28,432,627 $28,432,627

Savings Over 7 Years (NPV1) $166,394,032Notes:1Current savings plus NPV of savings from FY 12 through FY 16 @4%

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IT Consolidation Savings Completed and In Process Projects

CURRENT ESTIMATED SAVINGS OF $172M OVER 7 YEARS

Agency Name Status FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

2010 Savings Achieved Completed $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401 $11,384,401

2011 Savings Achieved Completed $17,048,226 $17,048,226 $17,048,226 $17,048,226 $17,048,226 $17,048,226

State Dept of Education Execution $324,027 $753,479 $632,479 $659,979 $753,479

State Treasurer Execution $91,524 $183,048 $183,048 $177,516 $177,516

Office of Personnel Management Execution $56,967 $121,371 $120,484 $114,184 $114,184

Dept of Tourism Execution $32,402 $119,691 $119,011 $119,011 $119,011

Board of Nursing Execution -$9,252 -$10,264 -$15,764 -$15,764 -$15,764

Disaster Recovery Services Completed $247,344 $419,245 $203,524 $203,524 $203,524

VOIP OCCHD Execution $711 $65,688 $65,688 $65,688 $65,688

AIICM Execution $4,896 $24,003 $24,003 $24,003 $24,003

First National Fiber Buildout Execution $6,573 $51,045 $51,045 $51,045 $51,045

Total Annual Savings $11,384,401 $28,432,627 $29,187,818 $30,159,933 $29,816,145 $29,831,813 $29,925,313

Savings Over 7 Years (NPV1) $172,370,020

Notes:1Current savings plus NPV of savings from FY 12 through FY 16 @4%

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Consolidated Agencies Strategic Initiatives

Concept Initiation ExecutionPlanning Close

Treasury Dept of Education Tourism

Boa

rd o

f Nu

rsin

g

2011 2012 2013

OP

M

Shared Application Services

State-wide Licensing

BottommlineCheck Print

Cash Managemen

t

Treasury Work Station

Higher Ed Interface

Corrections HCM

State-wide Org chart

Enterprise Learning Mgmt III

Human Resources Dashboard

Electronic Action Form

- EPAF

Absence Mgmt

E-Performance

Enterprise Learning Mgmt III

Time and Labor Pilot

Treasury GL Child Nutrition – Direct

Certification

K12 Longitudinal Data System

CMS(New Website)

School Bus Certification

My Data Application

Career Tech Interface

State-wide Student

Information System

GEAR UP

OCAS

Grants Provisioning

Grants, Project and Contracts

Licensing

SEAS Interface and Data Exchange

Early Warning Indicator

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IT Budget and Personnel Status of Requested Information

100% OF THE AGENCIES HAVE RETURNED REQUESTED INFORMATION

38% OF THE AGENCIES HAVE MADE AGENCY SPECIFIC SYSTEM REQUEST

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Agency Specific System Request

269 OK. COMM. FOR TEACHER PREP. 645 CONSERVATION COMMISSION

270 STATE ELECTION BOARD 650 DEPARTMENT OF VETERANS AFFAIRS

292 DEPT. OF ENVIRONMENTAL QUALITY 670 J.D. MCCARTY CENTER

300 STATE AUDITOR AND INSPECTOR 695 OKLAHOMA TAX COMMISSION

308 STATE BUREAU OF INVESTIGATION 800 CAREER & TECHNOLOGY EDUCATION

309 DEPT OF CIVIL EMERGENCY MANAGEMENT 805 DEPARTMENT OF REHABILITATION SERVICES

315 FIREFIGHTERS PENS. & RET. SYST. 807 HEALTH CARE AUTHORITY

340 STATE DEPARTMENT OF HEALTH 815 EMPLOYEES BENEFITS COUNCIL

343 ST. BD. OF EXAMINERS OF PERFUSIONISTS (w/450) 830 DEPARTMENT OF HUMAN SERVICES

345 DEPARTMENT OF TRANSPORTATION 835 WATER RESOURCES BOARD

385 OKLAHOMA INSURANCE DEPARTMENT 981 OKLAHOMA MUNICIPAL POWER AUTHORITY

400 OFFICE OF JUVENILE AFFAIRS

405 DEPARTMENT OF LABOR

410 COMM. OF THE LAND OFFICE

415 COUNCIL ON LAW ENFORCEMENT ED & TRNG Reported has working on, but not received

435 OKLAHOMA LOTTERY COMMISSION 131 DEPARTMENT OF CORRECTIONS

448 BD OF LIC ALCOHOL & DRUG COUNS (w/450) 452 MENTAL HEALTH & SUBSTANCE ABUSE SERV.

450 BD. OF MED. LICENSURE & SUPV. 980 GRAND RIVER DAM AUTH.

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