flair study - florida department of financial services department of financial services flair study...

FLORIDADEPARTMENTOFFINANCIALSERVICES

FLAIRSTUDY

DELIVERABLE5

Date: 04/09/2014Version: 100

FloridaDepartmentofFinancialServices FLAIRStudy Pagei

TableofContentsEXECUTIVESUMMARY.............................................................................................................................................1

CHAPTER1 BACKGROUND............................................................................................................................1

1.1 FLAIRStudyPurpose..............................................................................................................................2

1.1.1 ProjectScope............................................................................................................................................2

1.1.2 FLAIRStudyApproach.........................................................................................................................3

1.2 FFMISOverview.......................................................................................................................................4

1.2.1 FFMISGovernanceStructure............................................................................................................5

1.2.2 PlanningAndBudgetingSubsystem(LAS/PBS).....................................................................6

1.2.3 CashManagementSubsystem(CMS)............................................................................................7

1.2.4 PersonnelInformationSubsystem(PeopleFirst)....................................................................7

1.2.5 ProcurementSubsystem(MyFloridaMarketPlace)................................................................8

1.2.6 FLAIRSubsystem(FLAIR)...................................................................................................................9

1.2.7 ProjectAspire........................................................................................................................................10

1.3 CurrentStatePerformance...............................................................................................................12

1.4 LimitationswithFLAIRToday.........................................................................................................14

1.4.1 ConsequencesofFLAIRLimitations............................................................................................22

1.4.2 StatusQuoisNotanOption............................................................................................................23

1.5 SolutionGoalsandBenefitsMustSupportTheAgency’sMission....................................23

1.5.1 TheCFO’sMission................................................................................................................................23

1.5.2 CurrentStateChallengesandRisksRequireActionToBeTakenNow......................23

1.5.3 GuidingPrinciplesShapeTheDefinitionofSuccess............................................................24

1.5.4 LongTermVision.................................................................................................................................25

1.5.5 Go‐ForwardSolutionGoalsandBenefits..................................................................................26

1.6 OutsourcingConsideration...............................................................................................................29

1.7 IndexofFFMISRelatedLegalCitations.......................................................................................29

1.8 Chapter1Appendix.............................................................................................................................31

1.8.1 CMSBusinessApplicationSummary..........................................................................................31

CHAPTER2 OPTIONSANALYSIS..................................................................................................................1

2.1 SummaryofCurrentSituation............................................................................................................3

2.2 MarketConditionsandTrends...........................................................................................................4

2.2.1 TrendsinPublicSector........................................................................................................................4

2.2.2 TechnologyTrends..............................................................................................................................15

2.2.3 OtherConsiderations.........................................................................................................................19

2.3 CostBenefitAnalysis...........................................................................................................................28

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2.3.1 MinimumCapabilitiesofaNewFinancialSystem...............................................................28

2.3.2 ExpectedBenefits.................................................................................................................................31

2.3.3 OptionDescriptions............................................................................................................................33

2.4 OptionsAnalysis....................................................................................................................................63

2.4.1 OptionAlignmentToVision,Goals,andObjectives.............................................................63

2.4.2 CostComparison..................................................................................................................................64

2.4.3 BenefitsComparison..........................................................................................................................67

2.4.4 RiskAnalysis...........................................................................................................................................72

2.4.5 SummaryAnalysis...............................................................................................................................78

2.5 APPENDIX................................................................................................................................................79

2.5.1 KeyThemesfromStateResearch.................................................................................................79

2.5.2 AdditionalStateResearch...............................................................................................................86

2.5.3 DetailedStateProjectProfiles.......................................................................................................90

2.5.4 RequiredSystemCapabilityJustification.................................................................................98

2.5.5 RiskJustifications...............................................................................................................................107

2.5.6 ListofSources......................................................................................................................................118

CHAPTER3 RECOMMENDATION................................................................................................................1

3.1 SupportforTakingActionNow.........................................................................................................1

3.1.1 SystemArchitecture..............................................................................................................................1

3.1.2 LackofNecessaryFunctionality......................................................................................................2

3.2 Recommendation–Option3:ReplaceFLAIRandCMSwithanERPSolution...............2

3.3 ProjectCriticalSuccessFactors.........................................................................................................7

3.3.1 EstablishaComprehensiveMulti‐TieredGovernanceModel.............................................7

3.3.2 ConfirmProjectFundingSource..................................................................................................15

3.3.3 ManageSystemCustomizations...................................................................................................17

3.3.4 InitiallyDeployaLimitedScopeofCoreFunctionality......................................................17

3.3.5 UtilizeaControlledPilottoValidatetheSolution...............................................................17

3.3.6 LeveragePhasedRollouttoAgencies.........................................................................................18

3.4 ChangesinStatuteandFinancialBusinessPractices.............................................................18

3.5 OutsourcingConsideration...............................................................................................................18

CHAPTER4 IMPLEMENTATIONSTRATEGY...........................................................................................1

4.1 ImplementationTimeline.....................................................................................................................6

4.1.1 Pre‐DDIPhase&Projecttracks....................................................................................................10

4.1.2 Pre‐DDIIntegrationWithDDIPhase.........................................................................................14

4.2 SystemDevelopmentandImplementation................................................................................15

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4.2.1 Design,DevelopandImplement‐Phases.................................................................................15

4.2.1.1 ImplementFLAIR/CMSERPProjectTrack..............................................................................17

4.2.1.2 ImplementInformationWarehouse(IW)ProjectTrack..................................................18

4.2.1.3 Pilot‐FLAIR/CMSReplacementProjectTrack....................................................................18

4.2.1.4 CMSRolloutProjectTrack..............................................................................................................19

4.2.1.5 FLAIR/IWRolloutProjectTrack..................................................................................................20

4.2.1.6 ImplementPayrollERPProjectTrack.......................................................................................21

4.2.1.7 MFMPIntegrationProjectTrack.................................................................................................22

4.2.1.8 PeopleFirst(PF)IntegrationProjectTrack...........................................................................23

4.2.1.9 LAS/PBSIntegrationProjectTrack............................................................................................24

4.2.1.10 IndependentValidationandVerificationProjectTrack..............................................25

4.2.1.11 ProjectManagementOfficeProjectTrack..........................................................................26

4.2.1.12 OrganizationalChangeManagementProjectTrack....................................................27

4.2.1.13 WorkforceTransitionProjectTrack.....................................................................................28

4.2.1.14 Phase‐2ExpandedERPFunctionalityProjectTrack.....................................................29

4.2.1.15 Operation&MaintenanceProjectTrack.............................................................................30

4.3 OrganizationalChangeManagementandWorkforceTransition....................................32

4.3.1 OrganizationalChangeManagement........................................................................................32

4.3.1.1 OCMFunctionalModel......................................................................................................................34

4.3.1.2 OCMandWFTFrameworkandDeliverables.........................................................................35

4.3.1.3 CommunicationPlanning&Implementation........................................................................39

4.3.2 WorkforceTransition........................................................................................................................42

4.3.2.1 WorkforceTransitionStrategy.....................................................................................................42

4.3.2.2 WorkforceTraining............................................................................................................................44

4.3.2.3 DetailedDepartmentalImpactsandTransitionImplementationPlans...................45

4.4 Appendix...................................................................................................................................................48

4.4.1 Phase–1DDIImplementERPforFLAIR/CMS(Examples)............................................48

4.4.2 ImplementInformationWarehouse(IW)ProjectTracks(Examples).......................51

4.4.3 Pilot–FLAIR/CMSReplacementProjectTrack(Examples)...........................................53

4.4.4 CMSRolloutProjectTrack(ActivityExamples)....................................................................54

4.4.5 FLAIR/IWRolloutProjectTrack(ActivityExamples)........................................................55

4.4.6 MFMPIntegrationProjectTrack(ActivityExamples).......................................................57

4.4.7 PFIntegration/ImplementPayrollinERPProjectTrack(ActivityExamples)......57

4.4.8 Phase–1DDIIndependentVerificationandValidation.................................................58

4.4.9 Phase–2:ExpandedERPFunctionality(FLAIR/CMS)ProjectTrack........................60

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4.4.10 OperationsandMaintenanceProjectTrack(Examples)..................................................61

4.4.11 OCMModel..............................................................................................................................................61

4.4.12 OCMFunctionalModelRoles&Responsibilities...................................................................62

4.4.13 TrainingandPerformanceSupportActivities.......................................................................67

4.4.14 CommunicationPlan..........................................................................................................................68

4.4.14.1 Stakeholders.....................................................................................................................................72

4.4.14.2 CommunicationEvent..................................................................................................................72

4.4.14.3 VehiclesofCommunication........................................................................................................73

4.4.14.4 ManagementofCommunications...........................................................................................73

CHAPTER5 PROCUREMENTANDCONTRACTMANAGEMENT.....................................................1

5.1 SummaryoftheFLAIR/CMSReplacementProject....................................................................2

5.2 GeneralTimelinewithProcurementsIndicated.........................................................................2

5.3 GeneralProcurementDiscussion......................................................................................................3

5.3.1 ProcurementRisks.................................................................................................................................5

5.4 GeneralContractingInformation......................................................................................................5

5.4.1 PerformanceStandards.......................................................................................................................5

5.4.2 PublicRecordsPolicy............................................................................................................................6

5.4.3 PersonswithDisabilitiesCompliance...........................................................................................6

5.4.4 ContractorNon‐PerformanceContingencyPlan.....................................................................6

5.5 FLAIR/CMSReplacementProjectandProcurementApproaches.......................................9

5.5.1 Pre‐DDIProcurement...........................................................................................................................9

5.5.2 DDIProcurement.................................................................................................................................14

5.5.3 Post‐DDIProcurement......................................................................................................................32

5.6 Chapter5Appendix.............................................................................................................................34

5.6.1 BusinessProcessRe‐engineeringKnowledgeAreas............................................................34

5.6.2 ProcurementSupportKnowledgeAreas..................................................................................34

5.6.3 OrganizationalChangeManagementKnowledgeAreas..................................................35

5.6.4 ProjectManagementOfficePerformanceandKnowledgeAreas.................................35

5.6.5 WorkforceTransitionKnowledgeAreas...................................................................................36

5.6.6 SystemsandDataStrategyKnowledgeAreas........................................................................37

5.6.7 IV&VKnowledgeAreas.....................................................................................................................37

5.6.8 InformationWarehouse(IW)KnowledgeAreas..................................................................37

ATTACHMENT1 ASSUMPTIONS.......................................................................................................................1

1.1 Methodology..............................................................................................................................................1

1.2 CostModelAssumptions.......................................................................................................................1

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1.2.1 GeneralSupportingAssumptionsApplicabletoAllOptions.............................................1

1.2.2 Option1:EnhanceFLAIRCostAssumptions...........................................................................4

1.2.2.1 Option1:LaborAssumptions–Pre‐DDI...................................................................................4

1.2.2.2 Option1:LaborAssumptions–DDIPhase1...........................................................................6

1.2.2.3 Option1:LaborAssumptions–DDIPhase2........................................................................11

1.2.2.4 Option1:RequiredPurchaseAssumptions.........................................................................13

1.2.2.5 Option1:OngoingSupportAssumptions...............................................................................13

1.2.3 Option2:ReplaceFLAIRwithanERPSolutionCost–BenefitModel........................14

1.2.3.1 Option2:LaborAssumptions–Pre‐DDI................................................................................14





1.2.3.6 Option2:UpgradeAssumptions................................................................................................19

1.2.4 Option3:ReplaceFLAIRandCashManagementSystemswithanERPSolutionCost–BenefitModel..........................................................................................................................................20

1.2.4.1 Option3:LaborAssumptions–Pre‐DDI................................................................................20






1.2.5 Option4:ReplaceFLAIR,CMS,MFMPandPeopleFirstwithanERPSolutionCostModelAssumptions............................................................................................................................................27

1.2.5.1 Option4:Pre‐DDILaborAssumptions....................................................................................27






1.3 UserGuide:BusinessCaseModels................................................................................................34

1.3.1 MiscellaneousVariableDefinitions..........................................................................................34

1.3.2 Variables:Resources(Rows52–150)....................................................................................37

1.3.3 Variables:Weeks(Rows151–250).......................................................................................37

1.3.4 RequiredPurchases(Rows251–258)...................................................................................37

1.3.5 CostTagging(ColumnE)...............................................................................................................37

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1.3.6 InflationRates...................................................................................................................................38

1.3.7 OptionDescription..........................................................................................................................38

1.3.8 ScheduleIV‐BCrosswalk..............................................................................................................39

1.3.9 Existing/New...................................................................................................................................40

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REVISIONHISTORY

DATE AUTHOR VERSION CHANGEREFERENCE

4/9/2014 NorthHighland 100 FinalacceptedversionoftheFLAIRStudy.

QUALITYREVIEW

NAME ROLE DATE

FloridaDepartmentofFinancialServices FLAIRStudy ExecutiveSummary:Page1

EXECUTIVESUMMARY

TheFloridaConstitution(s.4(c),ArticleIV)andFloridaStatutes(Section17.001and215.94,F.S.)identifytheChiefFinancialOfficer(CFO)asthechieffiscalofficer.Byvirtueoftheposition,theCFOisresponsiblefortheFloridaAccountingInformationResourceSubsystem(FLAIR)andtheCashManagementSubsystem(CMS).Bystatute(Section215.94,F.S.)theDepartmentofFinancialServices(DFS,Department)isthefunctionalownerofFLAIR.AsthedesignatedagencyheadforDFS,theCFOisalsotheExecutiveSponsorforthisstudy.

AsaresultoftheprovisolanguageinSection6ofthe2013GeneralAppropriationsAct,theDepartmentprocuredtheservicesofNorthHighland,anindependentconsultingfirmwithexperienceinplanningpublicsectortechnologyprojects,tocompleteastudy(FLAIRStudy)andtorecommendeitherenhancingorreplacingFLAIR.Forthestudy,thejointteamofDFSandNorthHighlandisreferencedastheFLAIRStudyTeam(Team).Also,thestudyincludesaninventoryofagencybusinesssystemsinterfacingwithFLAIR(Inventory)andanassessmentofthefeasibilityofimplementinganEnterpriseResourcePlanning(ERP)SystemfortheStateofFlorida.

Fundamentally,theprovisolanguageacknowledgeschangesarenecessarytoFLAIR,andperhaps,CMS.Theprovisosummarizesthefouroptionstoevaluateas:

1. EnhanceFLAIR(Option1)2. ReplaceFLAIR(Option2)3. ReplaceFLAIRandCMS(Option3)4. ReplaceFLAIR,CMS,MFMPandPeopleFirstwithastatewideERPsolution(Option4)

TheoutstandingbusinessquestionstoanswerintheFLAIRStudyregardingtherecommendedoptionare:

IsthereanoptiontoenhanceFLAIRfromitscurrentstatetoamoremodernstatebyuseofnewtoolsandfunctionalityeitherbyaddingcomponentsoroverhaulingexistingcomponents?

Givencurrentconditionsandfutureexpectationsandobjectives,shouldFLAIRbereplacedintotalandshouldCMSalsobereplaced?

WhatisthefeasibilityofimplementinganEnterpriseResourcePlanning(ERP)systemfortheStateofFlorida?

WhatistheState’sreadinesstoimplementastatewideERPincludingthePurchasingSubsystem(MyFloridaMarketPlace,MFMP)andPersonnelSubsystem(PeopleFirst)?

ToemphasizetheimpactoftheFLAIRStudy,readersanddecisionmakersshouldconsiderthescaleandscope.Inrelativeterms,iftheStateofFloridawasacountry,itsGrossDomesticProductwouldbeamongthe20largestintheworld.IftheStateofFloridawasaprivatesectorcorporation,its$90billionbudgetwouldearnaspotinthe“Fortune25.”FinancialmanagementforanenterpriseofthesizeandcomplexityoftheStateofFloridahasascopeandscalebestcomparedtotheotherlargestates(i.e.California,Texas,NewYork,Illinois,and


Pennsylvania),thelargestUSFederalagencies,andthelargest,mostcomplexnationalandmulti‐nationalprivatesectorcompanies.

TheFLAIRStudyincludesamarketscantouseasinputforthefinalrecommendationinresponsetothebusinessquestions.Themarketscanincluded(1)areviewofotherlargestates’financialsystemmodernizationprojects,(2)inputfromselectStateagencieswithdiversebusinessneeds,(3)marketanalystrecommendationsforviablesoftwaresolutions,and(4)interviewswithrelevantprivatesectorcompaniesincludingsoftwareandserviceproviders.Also,thestudyrepresentsthelatestversionofseveralpreviousstudiescompletedbypublic1andprivate2organizations.Allofthestudies,includingthisstudy,havecometosimilarconclusions.

TheconclusionofthisstudyistheStateofFloridashouldpursuethereplacementofFLAIRandCMSwitha“CommercialofftheShelf”(COTS)ERPsolutionforthefinancialmanagementprocessestosupporttheconstitutionalobligationsoftheCFO.ThereplacementofFLAIRandCMSwill:

Mitigateriskassociatedwithafragileapplicationcodeenvironmentinarapidlychangingbusinessenvironmentwhichcanleadtosignificantoperationalinterruptionsanddowntime(e.g.,creatingnewagencies,consolidatingagencies,modifyingpayrollcalculations,addingnewdataelementstosupportfinancialcodechanges)

Implementastatewideaccountingsystemtoenforcestandardizationresultinginfuturebenefitsfromincreasedintegrationandatrueenterpriseperspectiveofgovernmentfinancialoperations

Actasascalablefoundationtoevolveasbusinessneedschange

PositionFloridaforfutureinnovationwiththeabilitytoconsideratrueenterprisesystem

CURRENTSTATUSOFFLAIRANDCMS

FLAIRandCMSarereferencestoaseriesoftechnicalsubcomponentsperformingvariousfinancialandcashmanagementfunctions.ThesystemssupportthebusinessaspectsoftheDivisionofAccountingandAuditing(A&A),theDivisionofTreasury(Treasury)andstateagencyfinancialaccounting.

Acapable,flexibleandreliablefinancialmanagementsystemisamustforanenterprisethesizeofFlorida.FLAIRisnotkeepingupwiththeState’sevolvingandgrowingbusinessneedsand,astimegoeson,theoperationalriskofrelyingonFLAIRonlyincreases.Thelimitations

1CouncilonEfficientGovernmentReporttotheGovernoronMyFloridaMarketPlace,PeopleFirstandProjectAspire,1/7/20082KPMGModernizationofStateGovernmentFinancialManagementBusinessPracticesStudy,8/2/1999–2/15/2000;KPMGFLAIRReplacementFinalReport,3/8/2001


withFLAIRandtheassociatedimpacts(e.g.,proliferationofagencycompensatingsystemsandagencyuniqueprocesses)arenottrivialandnegativelyimpacttheoperationalproductivityandthefinancialmanagementoftheState.

FLAIRisa30‐yearoldsystemwithanarrayoftechnology,oldandnew.Thecoretechnologywasdevelopedinthe1970sandimplementedinthe1980s.Whilethesoftwareandhardwareversionsarerelativelycurrent,theconstructoftheinternalsoftwarecomponentsandconfiguration(codinglanguageisoutdatedwithinthedatabase),andadministrationovertheyearspresentarigidandfragilefoundationinanenvironmentrequiringadynamicresponsetoeconomic,politicalandsocialchanges.

ThisstudyincludedaninventoryofagencysystemsinterfacingwithFLAIR.Toincreasecontextualaccuracy,theinventoryconsideredalsosystemsperformingfinancialmanagementfunctionscommonplaceformoderncorefinancialmanagementsystems.Todaythenumberofagencycompensatingsystemsismorethan400.Thisnumberrepresentsa33%increasefromasimilarstudyinin2000.Furthermore,75%ofthesesystemsareapproachingapointintimetheywillrequiresignificantresourcestomaintainandreplace.

TheFLAIRprogramminglanguageanddatafilestructurearenotcommonplaceandresourcestosupportthetechnologyarescarceinthemarkettoday.Accordingtosoftwareindustryanalysts,thecurrentprogramminglanguagedoesnotrankinthetop50in‐demandtoday.FromanITsupportperspective,approximately42%ofFLAIRtechnicalsupportemployeeshave30ormoreyearsofservice.Astheseemployeesretireitwillrepresentasignificantlossofinstitutionalknowledgeandtechnicalexpertise.Replacingthetechnicalexpertiseofamarketscarceresourceishighlyunlikely.Conclusively,theFLAIRstaffmemberswhomaydepartwithinthenextfiveyearsareseasonedandexperiencedexpertswithmanycombinedyearsofinstitutionalknowledgepresentingasignificantriskforenhancementandsupporttoFLAIRinthenearfuture.

ForCMSthereisasimilar,albeitmoremodernsituation,regardingsupportstaff.WhileasignificantportionofCMSfunctionalityisbeingreplacedbymoremoderntechnology,theresourcepoolsupportinganddevelopingthemoderncomponentsisconstrainedbyasmallnumberofexisting,senioremployees.ThispresentsadditionalriskacrossthedomainandfunctionsoftheTreasury.Mitigatingtheriskbybuildingacompleteprogrammingsupportorganizationisunrealistic.

FLAIRhasnotbeensignificantlyupgradedinthecontextofmodernizingthecoremodules.Codingtechniqueshavechangedandthereisariskofprogramswithoutdatedprogramminglanguagesoftwarestructurenotbeingproperlyupdatedwhenstatutorychangesaremade.Thelastsignificantfunctionalupgradeoccurredinthelate90’swiththeadditionofthepurchasingcard(P‐card)functionality.LesssignificantenhancementscontinueandnonesignificantlyimproveormoveforwardthebaseFLAIRtechnology.

FLAIRiscomprisedoffourcomponentstosupportaccountspayable,accountsreceivable,financialstatements,cashprojectionsandforecastingandstatepayrollprocessing:

CentralAccountingComponent(CentralFLAIR)–mostlyusedbyA&Aforauditing,maintainscashandbudgetarybalances,andfunctionsfortaxreporting


DepartmentalAccountingComponent(DepartmentalFLAIR)–usedbyallagenciestoreportgeneralledgerbalances,maintaindetailedaccountingrecords,manageassets,andadministervendorfilesusedforpayments

Payroll–processesemployeepayments,taxreportingandotheragencyadministrativepayrollfunctionsnotperformedbyPeopleFirst

InformationWarehouse(IW)–asthefinancialdataandreportingrepository,maintainsfiveyearsoftransactionhistoryandusedprimarilytosupplydatatoagencyfinancialmanagementsystems

Priorto2013,theTreasuryusedfourteendifferentapplicationswhichweredevelopedatvariouspointsintimebetween1984and20023.Thenetresultofthevariousapplicationdevelopmenteffortswasmultipledatabaseplatformstosupportmultipleprogramminglanguages.Thedifficultytomaintainadequateresourceswiththecomplexskillsetneededtosupportsuchavarietyofplatforms,andintegrationamongplatformscanbecomeachallenge.Furthermore,fromabusinessperspective,processescanbedisjointedandinterruptedcreatingmultipleentrypointsforinefficientandineffectivepractices.TheTreasuryfunctionsCMSservesare:

CashManagement

InvestmentManagement

AccountingManagement

Treasuryembarkedonatwophasemodernizationeffortwhichbeganin20094.Phase1includedanintegratedapplicationtosupportcashmanagementprocessesincludingreceipts,verifications,andchargebacksultimatelyupdatingthebankandstateaccountapplications.ThefirstphaseofthemodernizationeffortwasimplementedinAugust2013.Alsoin2013,theTreasurybeganthesecondphaseofmodernizationandthisphaseincludesvariousprocessesforconsolidatedrevolvingaccounts,investmentaccounting,trustfundaccounting,warrants,disinvestments,archives,agencyrepository,andreplacementofbankandstateaccounts.Thisphaseisinprogresswithanestimatedcompletiondateof2018.

Finally,therespectivesystemsandsubsystemsforFLAIRandCMSarenotintegrated.Theyinteractthroughexternalprogramsandfileexchanges.ThisistrueforeachofthesubsystemsoftheFloridaFinancialManagementInformationSystem(FFMIS)including:

PlanningandBudgeting

FLAIR

CashManagement

Purchasing

3DFSTreasuryCashManagementSystemModularRedesignProjectJustification,10/27/20094CashManagementSystem,ProjectManagementPlan,DepartmentofFinancialServices,12/16/2011


Personnel

FRAMEWORKFORTHEFLAIRSTUDYRECOMMENDATION

ThrougharigorousexercisefacilitatedfortheDFSexecutiveteam,avisionandcomprehensivesetofgoalswasestablishedasthebasistoevaluatethealternativesforFLAIRfromthe2013GAAproviso.Theselectionofalternativesfromthe2013GAAprovisolanguagemustsupport:

1. AreductionoftheState’sfinancialriskexposurethroughtechnologybuiltonthepremisesofscalability,flexibility,andmaintainability

2. ImprovementintheState’sspecificdecisionmakingbycapturingaconsistentandanexpandablesetofdata

3. ImprovementintheState’sfinancialmanagementandaccountingcapabilitiestoenablemoreaccurateoversightofbudgetandcashdemandstodayandinthefuture

4. Improvementinstateemployeeproductivity,reductionofoperationalcomplexityandanincreaseofinternalcontrolsbyenablingstandardizationandautomationofbusinessprocesseswithinandbetweenDFSandtheState’sothergovernmentalagencies

Thefinancial,operational,andotherbenefitsofimplementingnewtechnologyforFLAIRwillhaveasignificantimpactuponstategovernmentfromtheperspectiveofbusinessandtechnology.Benefitsinclude:

Establishmentofthenecessarycornerstoneforanewintegratedfinancialmanagementsystemwithtightlyintegratedfunctions(e.g.,generalledger,accountspayable,etc.)

InclusionofasignificantnumberofdatafieldswiththeabilitytodefineandchangethefieldstoimprovetheState’smanagementofbudgetandunitcosts

Realizationofcostavoidanceduetoreducedagencyadministrativecoststhroughprocessstandardization,overallsystemmaintenancecosts,andareducedneedforagency‐runfinancialmanagementsystemsandexternalfinancialdatarepositories

BUSINESSCASEFINDINGSANDRECOMMENDATIONS

TheFLAIRStudyaddressestheprimaryelementsforbusinesscasesinthePlanningandBudgetingInstructionsontheFloridaFiscalPortal5relativetothe2013GAAfortheFLAIRStudy.Specifically,asdocumented,tosupportthefinalrecommendation,theFLAIRStudyincludes:

5StateofFloridaFiscalPortal,PlanningandBudgetingInstructions,BusinessCaseGuidelines&Instructions


AnoptionsanalysisfortheenhancementorreplacementofFLAIRandCMSincludingtheimplementationofastatewideERPsolution

RecommendationssummarizingtheresultsoftheFLAIRStudy

ImplementationelementstosupporttherecommendationfortheenhancementorreplacementofFLAIRandCMS

ProcurementandcontractingoptionsfortherecommendedcomponentsoftheFLAIRStudy

TheFLAIRStudyTeamconductedanoptionsanalysiswasperformedbyreferencingdatagatheredfromextensivemarketresearch,specificFloridaagencyinterviews,andtargetedinterviewswithcomparablestates.TheanalysiswasbasedonsystemfunctionalityrequiredtomeettheState’sneeds.Commonthemesfromtheoptionsanalysisincludethefollowing:

AllstateswhohavemodernizedtheirsystemswithinthepasttenyearshavemovedtoanERPsolution

Enforcestandardizationofbusinessprocessesthroughgovernanceinsteadofmakingindividualcustomizations

ThelevelofgovernancestrengthisdirectlyrelatedtothelevelofsuccessandoutcomesoftheERPimplementations

Pre‐implementationactivitiesareessentialtotheoveralladoptionoftheERPsolutionsincludingpreparingforenterprise‐widechangeincludingbusinessprocessre‐engineering,workforcetransition,andmanagementoforganizationalchange

Theimplementationcostofthefouroptionsrangebetween$219millionand$467million.Thefouroptionsrangebetweensevenandfifteenyearstofullyimplementandachievetheidentifiedgoalsincludingasignificantreductioninoperationalandfinancialrisk,simplificationoffinancialmanagementprocesses,andimprovedvisibilityandreportingatastatewidelevel.

Basedontheanalysiscompleted,theFLAIRStudyTeamrecommendstheStateofFloridareplaceFLAIRandCMSwithacoreERPsolution(Option3).Thequantitativeandqualitativefactorsconsideredintheanalysisinclude:

Alignmenttodefinedmissionandsolutiongoals:

o Options3and4aremostcloselyalignedtothemissionoftheCFOandthesolutiongoalsspecificallybecausetheyrepresentastatewidesolutionwiththeabilitytoenforcestandardizationandscaletoevolvingandchangingbusinessrequirementsoftheState

o Options3and4improvetremendouslytheState’sfinancialmanagementcapabilitybyenablingmoreaccurateoversightofbudgetandcashdemandswhilereducingoperationalcomplexitiesandincreasingstandardization

o Options1and2donotsupportthemostbasicsystemcapabilityofasinglesystemofrecordforstatewidefinancialtransactionsandcashbalancesandincreasetheoperationalcomplexityoftheotheroptions


Riskanalysis:

o Option3presentsthelowestriskratingoftheelementsevaluatedincludingpoliticalandexecutivesponsorship,governance,funding,technicalresourceavailability,agencybuy‐inandsupport,standardizationandintegrationwithFMMISsystems

o Option1hasthehighestriskprofilerelativetotheanalysisbecauseenhancingFLAIRrequiresacompleterebuild

SolutionCosts‐bothimplementationandtotalcostofownershipover15years:

o Option2hasthelowestimplementationcostbyapproximately3%fromOption3($219millionversus$225million)

o Options1and4aresubstantiallymorecostlytoimplement($467millionand$383millionrespectively)

Timelinetoimplementandrealizepotentialbenefits

o Option3hasbestrankingwitha7.9yeartimelineuntilbenefitsarepotentiallyrealizedrepresentinganominalimprovementoverOption2

Irrespectiveoftherecommendedoption,theFLAIRStudyTeamspentconsiderabletimedetermininganimplementationapproachwiththeoverallobjectiveofachievingtheexpectedoutcomesbyreducingtheriskinlarge,complexITprojectsofthisnature.GiventhelessonslearnedfromProjectAspire–goodandbad,inputfromthemarketscanincludingotherlargestatesandFloridaagencies,theimplementationstrategytosupportthereplacementofFLAIRandCMSmustconsiderthefollowing:

Anenhancedandeffectivegovernancestructureattheenterpriseandoverallprojectlevel

ThebusinessandITorganizationalunitswillundergosignificanttransformation

Extensivecommunicationandcoordinationwiththestateagenciesdirectlysupportssuccess

TheInformatonWarehouserequiresanoverhaulstartingwiththecreationofasystemanddatastrategy

BusinessprocessstandardizationisimperativetosupportanyfuturebenefitsgainedfromreplacingFLAIRandCMSwithanERPsolution

BasedontheelementsofsuccessforimplementinganewFLAIRandCMSderivedfromProjectAspirelessonslearned,themarketscan,andindustryexperienceappliedtothelocalenvironment,significantconsiderationwasgiventothereplacementapproach.TheTeamdevelopedandincorporatedthreecommonprinciples.ThefirstprincipleistocreatearealisticplantocompletetheFLAIRandCMSreplacementproject.Thenextprincipleincorporatesanumberofsmallerobjectivesalongadeliberatetimeline.ThefinalprincipleacknowledgesthestatewideaspectoftheprojectandtheimpacttotheotherFloridaagencies.Withthesecoreprinciplesapplied,theFLAIRandCMSreplacementprojectshouldoccurasdescribedbelow:


ThefirsttwoyearswillconsistofactivitiestoprepareDFSforimplementationincludingdecisionpointsincorporatedalongthewaytoupdatethebusinesscaseandevaluatedirection

ThefirstimplementationwillconsistofanewERPforcoreFLAIRandselectCMSfunctions

Apilotwillbeheldpriortofullimplementationforadditionalagencies

Staggeredrolloutswilloccurwiththeagencies

ThisapproachallowstheStatetoprepareadequatelyandtoincorporatelessonslearnedwhenmovingthroughthefullimplementation.

Usingresultsfromtheoptionsanalysiswork,Gartner6analystinput,andlessonslearned,themethodofprocurementisamatterofalignmentwiththebuyingorganization.Selectingthesoftwareandservicesseparately(unbundled)isacommonapproachwhenthebasicfunctionalityandusabilityofthesoftwarearepriorities.Otherwise,conductingasingleprocurementforsoftwareandservices(bundled)givesdeferencetoleveragingaserviceprovider’sexperienceandcapabilitytoimplementandsupportERP.BothmethodshavebeensuccessfullyusedtoselectanERPsystem.Likewise,bothmethodswereusedinunsuccessfulprojectssothereisnocleardifferentiatorbetweentheprocurementmethods.

TheFLAIRStudyTeamrecommendsthefollowingmethodforFloridagiventhepastexperiencewithProjectAspireandanappropriatealignmenttocurrentandtofutureobjectives:

ConductasingleprocurementleveragingasoftwareselectionandtheexperienceofanERPsystemintegratorresultinginasinglecontractforsoftwareandservices

Includecontractualrequirementsforthesoftwarevendortoreviewandtoconfirmanycustomizationstotheirproductdoesnotinhibitfutureenhancementsandupgrades

Incorporateperiodicreviewsofprogresswithminimumcriteriaforacceptancetoassessaccuratelywhethertheimplementationiswithintoleranceforsuccessortoidentifysignsoftroubleandpreventcontinuedprogressuntilanyissuesareremedied

Requirefinancialconsequencefornon‐performanceandterminationtoensuretheStateisprotectedandabletocontinuemovingforwardwithoutsignificantadditionalinvestment

TheDepartment’sprocurementandcontractmanagementprocess,whichisdocumentedintheDFSContractManagementLifecycleandProcurementGuide,willbefollowedtodeveloptheprocurementdocumentsandcontract.

6Gartner,Incorporated,Foundedin1979,isatechnologyresearchandadvisorycompany.

FloridaDepartmentofFinancialServices FLAIRStudy Chapter1:Page1

CHAPTER1 BACKGROUND

TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFloridaStatutes.TheexhibitbelowprovidesthosestatutesapplicabletoChapter1Background.

FLORIDASTATUTE

287.0571(4)(b)Adescription andanalysisofthestateagency’scurrentperformance,basedonexistingperformancemetricsifthestateagencyiscurrentlyperformingtheserviceoractivity.

287.0571(4)(c) Thegoalsdesiredtobeachievedthroughtheproposedoutsourcingandtherationaleforsuchgoals.

287.0571(4)(d) Acitationtotheexistingorproposedlegalauthorityforoutsourcingtheserviceoractivity.

Exhibit1‐1:Chapter1FloridaStatutes

KeyTakeawaysFromThisChapter

TheabilityoftheCFOandDFStoperformtheirrolesandresponsibilitiesandcompletethestatutorymissionisbecomingincreasinglydifficultgiventhesignificantlimitationsofFLAIR.Anewfinancialmanagementsolutionisneedednowandtheneedforchangecanbeevidencedbythefollowing:

Agenciesareimplementingworkaroundsandfinancialrelatedbusinesssystemstofill“gaps”createdbyFLAIRlimitations.Theproliferationoftheseagencyuniqueprocessesandcomplementarysystemswillcontinueasbusinessneedschange.Theresultingimpactwillincreaseoperationalcomplexitythroughthecontinuedde‐standardizationofstatefinancialprocessesandanincreaseinmaintenanceandadministrativecosts.ThisconditionwillmakeitmoredifficultfortheCFOandDFStomanagetheState’sfinancialresources.

FLAIRisaninflexibleandfragilesystem.ItisnotkeepingupwiththeState’sevolvingandgrowingbusinessneeds,andthestabilityofFLAIRisalsoaconcernwhenchangesorenhancementsaremadetoit.Systeminstabilityintroducessignificantoperationalrisk(i.e.,systemdowntime).

Ascalable,flexibleandmaintainablefinancialmanagementsystemisamustforanenterprisethesizeofFlorida.

Itiscriticalthego‐forwardrecommendationaddressesthecurrentFLAIRlimitations,achievesthedefinedsolutiongoals,andsupportstheCFOandDFSinperformingtheirmission.


1.1 FLAIRSTUDYPURPOSE

TheFLAIRStudywasconductedinaccordancewithprovisointhe2013GAArequiringtheDepartmenttoanalyzefutureoptionsfortheFLAIRsubsystem.Theprovisodirectedthefollowingoptionsbeanalyzed:

5. EnhanceFLAIR6. ReplaceFLAIR7. ReplaceFLAIRandCMS8. ReplaceFLAIR,CMS,MFMPandPeopleFirst

Theoutcomeofthisstudywillbe1)arecommendationtoreplaceorenhanceFLAIRandanassessmentofthefeasibilityofimplementinganERPsystemfortheStateofFloridaand2)acurrentinventoryofallagencybusinesssystemsinterfacingwithFLAIR(theInventory).

1.1.1 PROJECTSCOPE

TheFLAIRStudyadherestotherequirementssetforthinthe2013GAAProvisoandinSection287.0571(4),F.S.Scopeitemsinclude:

PrepareaninventoryofagencybusinesssystemsinterfacingwithFLAIR

AssesstheadvantagesanddisadvantagesofenhancingFLAIR

Assesstheadvantagesanddisadvantagesofreplacing:

o FLAIR(Departmental,Central,IW,andPayrollcomponents)

o FLAIRandCMS

o FLAIR,CMS,MFMP,andPeopleFirst

AssessthefeasibilityofimplementinganERPsystemfortheStateofFlorida

IdentifyanyspecificchangesneededintheFloridaStatutesandtheState’sfinancialbusinesspracticestofacilitatetherecommendedoption

Performastudyofthevariousgo‐forwardoptions,provideago‐forwardrecommendation,andprepareafinalreporttitled“FLAIRStudy”

Completeanddeliverthefollowingbudgetscheduleswithinformationobtainedaspartofthestudywhererequired:

o ScheduleIV‐B–InformationTechnologyProjects

o ScheduleXII–OutsourcingorPrivatizationofaServiceorActivity(ifapplicable)

o ScheduleXIIA,1‐3–Cost/BenefitAnalysis

ThefollowingitemsareoutofscopefortheFLAIRStudy:

Implementationofanyagencysystemenhancementsorreplacementsystems(i.e.,agencybusinesssystems,agencyfinancialsystems,oragencyfinancialreportingsystems)


TechnicalassessmentofanyFFMISsubsystemorotherStatebusinesssystemsbeyondanythingrequiredinSection287.0571,F.S.andinstructionsforFlorida’sScheduleIV‐BforFiscalYear2014‐15

Businessprocessanalysisanddevelopmentoffunctionalandnon‐functionalrequirementsforanyFFMISsubsystemsorotherStatebusinesssystemsbeyondanythingrequiredinSection287.0571,F.S.andinstructionsforFlorida’sScheduleIV‐BforFiscalYear2014‐15

IdentificationorimplementationofoperationalandprocessimprovementsforDFSoranyotheragencybusinesssystemorfunctionalprocess

Initiationorimplementationofanypolicyandlegalauthoritychanges

1.1.2 FLAIRSTUDYAPPROACH

TheFLAIRStudyemployedaphasedapproach(Exhibit1‐2:FLAIRStudyApproach).Thisapproachallowedforinformationtobegleanedinastructured,objectivemanner,resultinginthedevelopmentoftwoprimarydeliverables:

AbusinesscasestudyonthealternativesfortheFLAIRsubsystemandafinalrecommendationtoreplaceorenhanceFLAIR,includinganyScheduleIV‐B(asrequired)

Aninventory(describedinSection1.4.1)ofagencybusinesssystemsidentifyingthenumberoffinancialmanagementrelatedsystems,outsideofFLAIR,inexistenceacrosstheStateprovidinganindicatorofhowagenciesarecompensatingforFLAIRlimitations

Exhibit1‐2:FLAIRStudyApproach


1.2 FFMISOVERVIEW

TheFFMISAct,establishedinJuly1997,authorizedinSections215.90‐215.96,F.S.,wasestablishedtoplan,toimplement,andtomanageaunifiedinformationsystemforfiscal,management,andaccountingsupportfortheState’sdecisionmakers.TheFFMISActhasthefollowinggoals:7

Strengthenandstandardizemanagementandaccountingprocedures

Strengtheninternalcontrols

Enablethepreparationofobjective,accurate,andtimelyfiscalreports

Reportonthestewardshipofofficialswhoareresponsibleforpublicfundsorproperty

Providetimelyandaccurateinformationfordecisionmaking

TheFFMISActestablishedtheState’sfinancialmanagementinformationsystemknowncommonlybythesamenamesake,FFMIS.FFMISiscomprisedofLAS/PBS,CMS,PeopleFirst,MFMP,andFLAIR.AnillustrationoftheFFMIStopographyisincludedbelowinExhibit1‐3.

Exhibit1‐3:FFMISTopography

7ListedgoalsareasynopsisofSection215.91(1‐3),F.S.


EachFFMISsubsystemhasastatutorilyidentifiedfunctionalowneraswellasadditionalstatutoryrequirementsasfollows:

LAS/PBS–TheExecutiveOfficeoftheGovernor(EOG)isthefunctionalowner.Thesystemmustbedesigned,implementedandoperatedpursuanttoChapter216,F.S.

CMS–TheCFOisthefunctionalowner.Thesystemmustbedesigned,implementedandoperatedpursuanttoChapters17and215,F.S.

PeopleFirst–TheDepartmentofManagementServices(DMS)isthefunctionalowner.Thesystemmustbedesigned,implementedandoperatedpursuanttoChapter110.116,F.S.

MyFloridaMarketPlace–DMSisthefunctionalowner.Thesystemmustbedesigned,implementedandoperatedpursuanttoChapter287,F.S.

FLAIR–DFSisthefunctionalowner.Thesystemmustbedesigned,implementedandoperatedpursuanttoChapters17,110,215,216,and287,F.S.

Thefunctionalownerforeachsubsystemisresponsibleformanaging,maintainingandrespondingtothedynamicdemandsofStategovernmentwithintheFFMISframework.AsummaryofrelevantFFMISstatutesisincludedinSection1.6,IndexofFFMISRelatedLegalCitations.

1.2.1 FFMISGOVERNANCESTRUCTURE

TheFFMISActestablishestheFFMISgovernancestructure.FFMISisgovernedbyaFinancialManagementInformationBoard(FMIB,Board)andaFFMISCoordinatingCouncil(FFMISCouncil).TheBoardincludesthe:

Governor,astheChair

CFO

CommissionerofAgriculture

AttorneyGeneral

TheFMIBhasoverallresponsibilityformanagingandoverseeingthedevelopmentofFFMIS,includingestablishingfinancialmanagementpoliciesandproceduresforexecutivebranchagencies.TheFMIBisnotrequiredtomeetatanyspecificfrequency,andtheGovernorortheCFOmaycallameetingoftheBoardatanytimetheneedarises.

TheFFMISCounciliscomposedofthefollowingindividualsortheirdesignees:

TheCFO,astheChair

CommissionerofAgriculture

TheDMSSecretary

TheAttorneyGeneral

TheDirectorofOfficeofPolicyandBudget


TheAuditorGeneral(non‐votingmember)

TheStateCourtsAdministrator(non‐votingmember)

AnexecutiveofficeroftheFloridaAssociationofStateAgencyAdministrativeServicesDirectors(non‐votingmember)

AnexecutiveofficeroftheFloridaAssociationofStateBudgetOfficersordesignee(non‐votingmember)

TheFFMISCouncilisrequiredbylawtomeetatleastannually.TheprimaryresponsibilityoftheCouncilistoreviewandtorecommendtotheBoardsolutionsandpolicyalternativestoensurecoordinationbetweenfunctionalownersofthevariousFFMISsubsystemstotheextentnecessarytounifyallthesubsystemsintoafinancialmanagementinformationsystem.AdditionaldutiesoftheFFMISCouncilinclude:

Conductstudiesandestablishcommittees,workgroups,andteamstodeveloprecommendationsforrules,policies,procedures,principles,andstandardstotheBoardasnecessarytoassisttheBoardinitseffortstodesign,toimplementandtoperpetuateafinancialmanagementinformationsystem

RecommendtotheBoardsolutions,policyalternatives,andlegislativebudgetrequestissuestoensureaframeworkforthetimely,positive,preplanned,andprescribeddatatransferbetweeninformationsubsystems

TorecommendtotheBoardsolutions,policyalternatives,andlegislativebudgetrequestissuestoensuretheavailabilityofdataandinformationtosupportStateplanning,policydevelopment,management,evaluation,andperformancemonitoring

ToreporttotheBoardallactionstakenbytheCouncilforfinalaction

ToreviewtheannualworkplansofthefunctionalownerinformationsubsystemsbyOctober1ofeachyear.ThereviewistoassessthestatusofFFMISandthefunctionalownersubsystems.TheCouncil,aspartofthereviewprocess,maymakerecommendationsformodificationstothefunctionalownerinformationsubsystemsannualworkplans

1.2.2 PLANNINGANDBUDGETINGSUBSYSTEM(LAS/PBS)LAS/PBSistheState’sbudgetingandappropriationsubsystem.LAS/PBSisusedfordeveloping,preparing,analyzing,andevaluatingagencybudgetrequests.EOG’sOfficeofPolicyandBudget(OPB)usesLAS/PBStodeveloptheGovernor’sbudgetrecommendationsandtoallocateandtocontroltheappropriations.TheLegislatureusesthesubsystemtocreatetheappropriationsbills,includingtheprovisoandothercontrollinglanguageusedtodocumentlegislativeintentandcreatethefoundationtoenabletheagenciestomanageandperformlegislativelyauthorizedorrequiredservicesandactivitiesconsistentwithsuchlegislativeintent.ThebudgetingandappropriationsprocessproducestheGAAanditssupplementsandamendments.


1.2.3 CASHMANAGEMENTSUBSYSTEM(CMS)

TheTreasuryreceivesanddisbursescash,investsavailablebalances,andperformsrelatedaccountingfunctions,cashmanagementoperations,andconsultations.TheTreasuryoperatesseparateapplicationsknowncollectivelyasCMStocarryoutitsresponsibilitiesofmonitoringcashlevelsandactivitiesinStatebankaccounts,forkeepingdetailedrecordsofcashtransactionsandinvestmentsforStateagencies,andpayingofwarrantsandotherpaymentsissuedbytheCFO.CMSinterfaceswithCentralFLAIR,DepartmentalFLAIR,DepartmentofRevenuesystems,otherStateagencysystems,FLAIRIW,andbankbusinesspartnersystems.

TheTreasuryisintheprocessofupgradingthecurrentCMSplatformtoaweb‐basedsystem.Theupgradewilloccurintwophases.Phase1wentliveinAugust2013andestablishedanewintegratedplatformandreplacedthreeexistingbusinessapplicationsincludingVerifies,Receipts,andChargebacks.Phase2willreplacetheremainingCMSsubsystemapplicationsandaddthecapabilitiestothenewintegratedCMSplatformdevelopedinPhase1.8Phase2isscheduledtoimplementinstagesfrom2014through2018.

1.2.4 PERSONNELINFORMATIONSUBSYSTEM(PEOPLEFIRST)

PeopleFirstisaself‐service,secure,web‐basedpersonnelinformationsystemcomprisedofthefollowingmodules:payrollpreparation,timeandattendance,recruitment,benefitsadministration,humanresourcesmanagement,andorganizationalmanagement.Itisusedbyemployees,managers,retirees,jobapplicants,andStatehumanresources(HR)staff.Thesystemcurrentlysupportsmorethan200,000StateandUniversityusers.

DMSoutsourcedtheState’spersonnelfunctiontoNorthgateArinso,Inc.(NGA).ThecurrentcontractexpiresonAugust20,2016andhasanannualvalueover$36million.9

SAPsoftwareisthecurrentplatformforPeopleFirst.NGAhasperformedmorethan17,000customizationstothesystemplatformandwebapplicationservers,and588interfaceshave

8RemainingCMSapplicationstobereplacedinPhase2include:FundAccounting,BankAccounts,StateAccounts,Dis‐investments,InvestmentAccountingSystem,ConsolidatedRevolvingAccount,andSpecialPurposeInvestmentAccounts.AdescriptionofeachbusinessapplicationcanbefoundintheChapter1Appendix.9PeopleFirstContract.


beenbuilttoexchangedatabetweenthePeopleFirstsystemandexternalsystems(e.g.,FLAIR,universitypersonnelsystems,insurancecarriers).ThesystemstreamlinesandautomatesmanyoftheState’sHRfunctions,andpromotespaperlessworkprocesses(e.g.,timesheetsubmission,benefitstransactions,anddirectdeposit).

Inaccordancewithprovisointhe2013GAA,DMSprocuredKPMGtoconductabusinesscasestudytodeterminethebestandmostappropriatehumanresourcemodelforDMStoprocureinafuturecompetitivesolicitation.ThebusinesscasestudywascompletedJanuary31,2014.10

1.2.5 PROCUREMENTSUBSYSTEM(MYFLORIDAMARKETPLACE)

MyFloridaMarketPlaceisasecure,web‐basedprocurementsystem.ItprovidesforStateprocurementstaffandvendorstoexchangeproductsandservices.MFMPallowsvendorstoregisterwiththeStateanddisplayandmanagetheircataloguesonline.BuyersuseMFMPtofindproducts,placeorders,approvepurchases,reconcileinvoicesandapprovepaymentallwithinonesystem.Procurementpersonnelcancreatesolicitationsinthesourcingmodulewhiletheanalyticsmoduleprovidesspendanalysisandreporting.ThesystemservesStateandvendorusersandsupportsabroadarrayofprocurementcapabilities.

DMSandAccenture,LLPexecutedacontractonOctober9,2002toimplementanAribaprocurementsolutionfortheStateofFlorida.TheStateofFloridaAribaapplication,knownasMFMP,isaCOTSpackagewithover300customizations.Thelargestshareofthecustomizations(28%)wasrequiredtointerfacewiththeState’saccountingsystem,FLAIR.11MFMPhasover13,000Stateusersandnearly100,000registeredvendors.

ThecurrentMFMPcontractissettoexpireonJanuary31,2017andhasoptionsforrenewal;theannualvalueofthecontractisover$10million.12

10January31,2014KPMGPeopleFirstBusinessCase.11MyFloridaMarketPlaceBusinessCaseoftheeProcurementSolutions,August2011.12MFMPContract.


1.2.6 FLAIRSUBSYSTEM(FLAIR)

FLAIRistheState’saccountingsystem.ItsupportstheaccountingandfinancialmanagementfunctionsfortheState’sCFOincludingbudgetposting,receiptanddisbursementoffunds,payrollprocessingandemployeeportal,andtheaccountinginformationfortheState’sComprehensiveAnnualFinancialReport(CAFR).

FLAIRconsistsofthefollowingcomponents:

PayrollAccounting:ProcessestheState’spayroll.PayrollcapabilitiesarecontainedwithinFLAIR.

CentralAccounting:MaintainscashbasisrecordsandisusedbytheCFOtoensureexpendituresaremadeinaccordancewiththelegislativeappropriations.Itcontainscashbalancesandbudgetrecordsaswellassupportstaxreporting;itisnotacomprehensiveGeneralLedger.

DepartmentalAccounting:Maintainsagencies’accountingrecordsandisutilizedattheendofeachfiscalyeartopreparefinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples.

InformationWarehouse:AreportinganddatarepositorysystemallowinguserstoaccessCentralAccountinginformationandmostDepartmentalAccountinginformationinFLAIR.TheIWreceivesdatafromCentralFLAIR,DepartmentalFLAIR,andPayroll.

FLAIRwasimplementedintheearly1980sbasedonsourcecodefromthe1970s.Itrunsonamainframeandisusedby36stateagencieswithapproximately14,000+individualusersat400+accountingofficesitesthroughouttheState.FLAIRsupportsthefinancialoversightmanagementoftheState’s$90billionbudget13andprocessesmorethan95millionaccountingtransactionsannually.FLAIRalsopays180,000Statepersonnelannually.

13DFSmanagesanavailablebudgetofover$90billion(includescurrentfiscalyear’sbudgetandcarryoverbalancesfrompreviousfiscalyears).


ThelastsignificantfunctionalupgradetoFLAIRoccurredinthelate90’swiththeadditionofthePurchasingCard(P‐card)functionality.Otherwise,FLAIRhasnotbeensignificantlyupgradedinthecontextofmodernizingthecoremodules.

1.2.7 PROJECTASPIRE

TheStateofFloridabegananefforttoupgradeandmodernizeitscoreoperationalsoftwareandITinfrastructure,specificallyitsaccounting,cashmanagement,procurementandhumanresourcesfunctions,inFebruary2000.AstudywascompletedbyKPMGandprovidedhigh‐leveldirectionforhowtheStatecouldachievethisgoal.Thecoreoftherecommendationwasa“bestofbreed”approachpromotingspecializedapplicationsratedhighlyinspecificfunctionalareasandwouldalsosupportenterprisewideintegration.Thestudyspawnedthreeinitiatives:MFMP,PeopleFirst,andProjectAspire.ProjectAspirewastheprojecttomodernizetheState’sfinanceandaccountingsubsystems,FLAIRandCMS.SomeoftheoriginalgoalsofProjectAspirewereto:

ModernizeandunifytheState’saccountingandcashmanagementplatforms

Createanenterpriseintegrationarchitecturetoallowotherbusinesssystemcomponents(i.e.,Personnel,payroll,LAS/PBS,andeProcurement)tobeintegrated

EstablishflexiblefunctionalityandbeabletosupporttheneedsoftheStatewithminimalornomodifications

Maintainmeaningfulmanagementinformationfordecisionmakers

Eliminate,totheextentpossible,agency‐specificsystemsbuilttoperformcriticalaccountingfunctionsnotavailableinFLAIR

Afterconductingaprocurementforcombinedsoftwareandimplementationservicesinlate2002,DFSselectedBearingPointtoimplementthePeopleSoftsoftwarepackage.TheBearingPointcontractwasforasix‐yeartermfromAugust27,2003toOctober1,2009.Theprojectexperiencedsignificantchallenges.OnMay17,2007,aftercompletingdesignanddevelopment,Aspirewassuspendedduringtestingduetosignificantconcernswithitsabilitytodeploysuccessfully.

GiventhestrongsimilaritiesbetweenProjectAspireandtheintentoftheFLAIRStudyrecommendation,itisimportanttoincludekeystrengthsandlessonslearnedfromAspireintofutureplans.Thestrengthsandlessonslearned,gleanedfromfirsthanddiscussionswithProjectAspireteammembersandtwoStatesponsoredprojectlessonslearnedsessions14,areidentifiedbelowandhavebeenincorporatedintotheFLAIRStudy(seeExhibit1‐4:ProjectAspireStrengthstoReplicateandExhibit1‐5:ProjectAspireLessonsLearned).

14GartnerProjectAspireEvaluation,May2007;andCouncilonEfficientGovernment:ReporttotheGovernoronMyFloridaMarketPlace,PeopleFirstandProjectAspire,January2008.


PROJECTASPIRESTRENGTHS WHEREINCORPORATEDINFLAIRSTUDY

AgencyEngagementandCommunication: Eachagencyhadaliaisontotheproject,was

supportedbyanactiveagencyadvocacygroup,andwasabletoprovidebusinessrequirements

Projectteamestablishedstrongprojectcommunicationpractices(projectwebsite,regularprojectNewsletter,regularmeetingswithliaisons,andprojectstatusreports)

Chapter4:ImplementationStrategy ProjectPlanning ChangeManagement

GovernanceStructure: Astronggovernancestructurewasinstitutedon

Aspireandrolesandresponsibilitiesweredefinedforeachlayerofthegovernancestructure;however,thecompositionoftheseniorleadershipwasproblematic(seeProjectAspireWeaknessesbelow)

Chapter3: Recommendation GovernanceStructure

Chapter4:ImplementationStrategy ProjectGovernance/Project

ManagementOffice

ContractManagement: Contracttermswithvendorwererigidand

enabledtheStatetowithholdpaymentwhendeliverableswerenotmet

ThecontractenabledDFStorebuffthevendor’srequesttoswitchfromafixedfeecontracttoatimeandmaterial(T&M)contract

Chapter5:ProcurementandContractManagement

PerformanceStandards

Exhibit1‐4:ProjectAspireStrengthstoReplicate

Theexhibit(Exhibit1‐5)belowfocusesonweaknessesinProjectAspireandwheretheyareincorporatedintotheFLAIRStudy:

PROJECTASPIREWEAKNESSES WHEREINCORPORATEDINFLAIRSTUDY

GovernanceandSteeringCommitteeComposition: Didnotholdallmembersaccountabletotheir

responsibilitiesandescalatesituationswherememberswerenotmeetingexpectations

DidnotidentifySteeringCommitteememberswithrelevantoperationalexperienceandwhowereableto“diveintodetails”sodecisionswerewellfounded

DidnotensureSteeringCommitteewasmakingtimelydecisionsandhadtheauthoritytomakeandenforcedecisionsrelatedtothedesign,development,implementationandrolloutoftherecommendedsolution

Chapter3:Recommendation GovernanceStructure

Chapter4:ImplementationStrategy ProjectGovernance/Project

ManagementOffice

Future‐StateVision: Didnotdefineaclearvisionforthefuture‐state

financialenvironmentandalignwithkeystakeholders(FMIB,FFMISCouncil,andkeyagencies)toensurealignmentandtheirsupport

Chapter1:Background SolutionGoalsandBenefits

Chapter4:ImplementationStrategy TransitionPlan


PROJECTASPIREWEAKNESSES WHEREINCORPORATEDINFLAIRSTUDY

ProcessStandardization/MinimizeCustomization: Didnotaggressivelypromoteprocessre‐

engineering/standardizationandopposecustomizationofsoftwaretomatchexistingbusinessprocessestoreduceimplementationcomplexityandpromoteoperationalefficiencyandconsistencyacrosstheState

Chapter3:Recommendation GovernanceStructure

Chapter4:ImplementationStrategy BusinessProcessRe‐

engineeringChapter5:ProcurementandContractManagement

PerformanceStandardsDisciplinedProcurement:

Didnotdefineandfollowadisciplinedandstructuredprocurementstrategyandapproachtoensureallappropriateduediligencewascompletedandawell‐informedpurchasedecision(s)couldbemade

DidnotdocumentvendorperformancemeasurestoenabletheStatetogaugeprogressobjectivelyandholdthevendoraccountabletoestablishedmilestonesandprojectrequirements

Chapter5:ProcurementandContractManagement

ProcurementApproachandStrategy

QualifiedandExperiencedImplementationTeam: Didnotestablishclearexpectationsaroundtheroles

andresponsibilitiesofallprojectteammemberstoreduceambiguityandgreateralignment

Didnotholdprojectteammembersaccountablefortheirwork;andaddressresourceandskillissuesaggressivelytominimizeimpacttothebroaderproject

Chapter4:ImplementationStrategy ProjectPlanning(Project

Governance)Chapter5:ProcurementandContractManagement

ProcurementApproachandStrategy

Exhibit1‐5:ProjectAspireWeaknesses

1.3 CURRENTSTATEPERFORMANCE

Anobjectivemethodtoassessthecurrentperformanceofafinancialmanagementsystemistoreviewrelevantperformancemetrics.Keyperformancemetricsallowforcomparisonsoflikebusinessfunctionstobemadeacrossindustriesandorganizationsofdifferentsizes.Trackingandreportingonkeyperformancemetricsisonewayorganizationscanevaluatetheiroperationalefficiencyandeffectivenessovertimeaswellasidentifyoperationalprocessestofocusimprovementeffortsupon.

ThedataproducedtodayaboutFLAIRandCMSandthefunctionstheysupportarenotkeyperformancemetrics,rathertheyarevolumestatisticstoindicatethesheernumberandtypeoftransactionsflowingthroughthesystem.ThesevolumemeasuresarenotoptimizedtosupportDFSoragencymanagementdecisionmakingnordotheyallowforoperationalperformancetobeassessed.ExamplesofsomeofthetransactionvolumemeasurescapturedcanbefoundinExhibit1‐6.


BUSINESSFUNCTION FLAIRSTATISTICS15

AccountsPayable(AP) NumberofWarrantsPrinted=8million NumberofEFTPayments=6.7million NumberofPurchasingCardPayments=700,000 Numberof1099sReported=12,000‐14,000

AccountsReceivable(AR) 54,801ARrecordscreated 25AgenciesrecordARrecords

FinancialStatements TimetoPrepareCAFR =7‐9monthsPayroll PercentofPayrollbyDirectDeposit=96%FinanceFunctionOverall AccountingTransactions=~95million

NumberofUsers=~14,000+ NumberofRecordsinDataWarehouse=1.2billion

TaxReporting NumberofW9Records=~80,000FundsManagement NumberofDepositsProcessed=740,612

AmountofDepositsProcessed=$83.48billion AmountofInterestApportionedtoGeneralRevenue=

$103.5Million

Exhibit1‐6:CurrentFLAIRandCMSStatistics

Floridaisnotaloneinitsabsenceofgeneratingandtrackingoperationalperformancemetrics.Aspartofthisstudy,interviewswereconductedwithsevenotherstates,includingVirginia,Georgia,Pennsylvania,NewYork,Alabama,TexasandOhio.Noneofthestatesinterviewedcurrentlyproduceoperationalperformancemetrics.

DuringthePre‐Design,DevelopmentandImplementationphase(Pre‐DDI)describedinChapter4:ImplementationStrategyandincludedaspartofthebusinessprocessre‐engineeringefforts,itisrecommendedDFSestablishabaselinesetofoperationalperformancemetrics.ThesebaselinemetricsenableDFSandtheStatetoobjectivelyassess(1)themagnitudeofpotentialoperationalimprovementsand(2)operationalimprovementprogress.PotentialoperationalmeasurestoconsiderarecontainedinExhibit1‐7:CommonFinanceandAccountingMetrics.

BUSINESSFUNCTION PERFORMANCECATEGORY POTENTIALPERFORMANCEMETRICS

FinancialReporting

CycleTime ProcessEfficiency ProcessEfficiency

AnnualClose:Daystoclose ManualJournalEntry(JE)percentageof

allJE NumberofFullTimeEquivalents(FTE)

fortheprocessgroup"performfinancialreporting"per$1Billionrevenue

15StatisticsfromFiscalYear2012‐2013.


BUSINESSFUNCTION PERFORMANCECATEGORY POTENTIALPERFORMANCEMETRICS

AccountsPayable(AP)

ProcessEfficiency

NumberofFTEsfortheprocessgroup"processaccountspayableandexpensereimbursement"per$1Billionrevenue

NumberofAPinvoicesprocessedperAPFTE

AccountsReceivable(AR)

ProcessEfficiency

NumberofFTEsfortheprocessgroup"processaccountsreceivable"per$1Billionrevenue

NumberofremittancesprocessedperARFTE

Payroll CycleTime ProcessEfficiency

Numberofbusinessdaystoprocesspayroll

NumberofFTEsfortheprocessgroup"processpayroll"per$1Billionrevenue

FinanceFunctionOverall

ProcessEfficiency CostEffectiveness

NumberofFinanceFunctionFTEsper$1Billioninrevenue

TotalcosttoperformtheFinanceFunctionperFinanceFunctionFTE

TreasuryManagement

ProcessEfficiency NumberofFTEsfortheprocessgroup"managetreasuryoperations”per$1Billionrevenue

Exhibit1‐7:CommonFinanceandAccountingMetrics16

1.4 LIMITATIONSWITHFLAIRTODAY

Intheabsenceofbeingabletousemetricstoevaluatetheoperationalperformanceofthecurrent‐stateFLAIRsystem,aqualitativeassessmentwascompleted.Thisassessment,leveraginginformationgleanedfromagencyinterviews17anddocumentation,identifiedsignificantchallengesandlimitationswiththecurrentsystem.ThesechallengesandlimitationscanunderminetheState’sabilitytoefficientlyandeffectivelymanageitsfinances,exposingtheStatetooperationalrisk,increasingstatewidemaintenancecosts,andreducingorganizationalproductivityduetoinconsistentbusinessprocesses.

TheidentifiedlimitationsofFLAIRtodayandtheirqualitativeimpactonthebusinessaresummarizedinExhibit1‐8:LimitationswithFLAIRToday.ThefollowingistheLegendforExhibit1‐8.

LEGEND:BusinessImpactScale: ‐Low ‐ Medium ‐High

16Source:AmericanProductivity&QualityCenter(APQC);www.apqc.org.17“Deepdive”interviewswereconductedwiththefollowingagencies:DepartmentofTransportation,DepartmentofRevenue,DepartmentofEnvironmentalProtection,DepartmentofFinancialServices,DepartmentofManagementServices,andDepartmentofChildrenandFamilies.


IDENTIFIEDLIMITATION/CHALLENGE IMPLICATION

BUSINESSIMPACT

INCREASEDOPERATIONAL

RISK

DECREASEINOPERATIONALEFFICIENCY/EFFECTIVENESS

INCREASEDCOSTS/LOSTREVENUE

SUBOPTIMALDECISIONMAKING

1.FLAIRdataiscompiledusingMicrosoftAccessandExcelforpreparationoftheFinancialStatements(e.g.,CAFR).

Sourcedataisbeingmanipulatedoutsideofsystemincreasingriskoferrorsbeingintroduced

Effortexpendedtoreconcileandtoconfirmfinancialfiguresincreasestimeandcoststoproducereports

2.FLAIRdoesnotsupportcashforecastingataStatelevel.

Lackofsufficient,reliable,andtimelyinformationresultsinamoreconservativepositionbeingtakenthanisrequiredinfluencingpotentialinvestmentearnings

Lackofsufficient,reliable,andtimelyinformationhindersdecisionmakingandcouldresultinanunfavorableactionbeingtaken

3.FLAIRdoesnotsupporteithertheschedulingorconsolidationofpayments.

Additionaleffortrequiredtosupportpaymentprocess(i.e.,numberofjournalentries)

Stateincursadditionalbankingfeesandcannottakeadvantageoffavorablepaymentterms

4.Accountingtransactionsarenotcapturedataconsistentlevelofdetail.

Differentprocessesandproceduresinuseacrossagenciesincreasesenterprise‐wideoperationalcomplexity

Availabledata/informationcannotbeleveragedinaconsistentmanner

5.CurrentstructureofCentralFLAIRlimitsabilitytointerfaceencumbrancesfromexternalsystems(e.g.,MFMP).

ReducesDFS/CFO’svisibilityintotheState’sliabilitiesandimpactsdecisionmakingrelatedtotheState’scashposition



BUSINESSIMPACT


RISK




6.FLAIRdoesnotcontainareceiptingfunctiontomanageandtotrackinvoices.

Agencieshaveimplementedworkarounds(i.e.,systems,processes)tosupporttheirARneeds

ItisnotpossibletogetastatewideviewofoutstandingARbalanceshinderingoperationaldecisionmaking

7.CentralandDepartmentalFLAIRdonotreconcilewithoutmanualprocesses.

Additionalagencyeffortandresourcesrequiredtocompletereconciliation

Amanualreconciliationeffortincreaseslikelihoodoferrorsbeingintroduced

8.CMSmustbereconciledwithCentralandDepartmentalFLAIRsincetheyarenotonanintegratedfinancialplatform(FLAIRandCMSarenotintegrated;theyinteractthroughexternalprogramsandfileexchanges).

Additionaleffortandresourcesrequiredtocompletereconciliation

Manualreconciliationeffortsincreaselikelihoodoferrorsbeingintroduced

9.FLAIRdoesnothavefunctionalitytokeepinteragencytransfersinbalance.

Requiresreconciliationefforttoensureagencyaccountsarenotoutofbalance(inparticularatyearend)

10.Warrantscannotbechargedtomorethanoneaccount.

Warrantsrequiring paymentfrommultiplefundsrequirejournaltransfersafterthepaymentisinitiallymadeinordertoallocatethechargecorrectlyresultingineffortbeingexpendedandpotentialerrorsbeingmade

Increasescostwithnumberofwarrants



BUSINESSIMPACT


RISK




11.FLAIRhaslimitedAsset/InventoryManagementfunctionality(e.g.,barcodereading,track“highinterest”itemswithoutneedingafinancialvalueortrackingdepreciation).

Agencieshaveimplementedtheirownsystemstomanagetheannualassetinventoryprocesswhichincreasesupportcostsandprocesscomplexity

12.ThereisnofunctionalityformanagementorstatewidereportingoftheState’sresources:

Assets Grants Projects Contracts

Oversight,management anddecisionmakingrelatedtoStateresourcesismorechallenging

Manualprocessesandworkaroundsarerequiredtosupportreportingrequirementsandmanageresources(e.g.,developmentandprocessingofcostallocations,identificationofeligible/ineligibleactivities)

13.Reportingcapabilitiesarelimited.Unabletoreportatstatewidelevel(i.e.,amountsduetotheState,vendorspend).

Additionalreportingtools/systemsarebeingusedtoproducereportsincreasingsupport/maintenancecomplexity,costandeffort

Dataismaintainedinmultiplesystemsandnotalwaysdefinedandusedconsistentlyraisingcomplexityinusingthedata/informationeffectively(i.e.,betterpricingtermsbasedonvolume)andincreasingthetimeandefforttocreateneededreports

14.Agenciescannotforecastorprojectdifferentfinancialmodelsorscenariosthroughoutthefiscalyear(i.e.,“whatif”analysis).

Analysistoaddressmanagementquestionsmid‐yearrequiresmanualprocessingandadditionalstaffeffortandtime



BUSINESSIMPACT


RISK




15.BusinessuserscannotcreateandrunadhocreportswithoutITresourceassistance.

Reportcreationbecomesaprocessneedingmanagement

Timelinessofreportcreationisnotalignedwiththeactualneedfortheinformation

IncreasedcostforITsupporttocollectdataandcreatereports



BUSINESSIMPACT


RISK




16.Technologyplatformisoutdated,inflexible,anddifficulttomaintainandenhance.18

Stabilityofsystemisaconcernwhenchangesorenhancementsaremadeleadingtodowntimeorpotentiallysystemfailure

OperationalcomplexityandcostandefforttointegrateFLAIRwithothersystemsincreasesduetoageoftechnologyinuseand“stovepipe”designofFLAIRcomponents

Enhancementsandchanges(e.g.,add/subtractagencies,addfieldstotransactiondetails)toFLAIRorganizationoraccountingchangesaredifficultandcostlytomakewhichhindersleadership’sabilitytochangetheaccountingstructuretosupportbetterfinancialmanagement

18FLAIRismorethan30yearsoldandisbuiltonanantiquatedprogramminglanguage(Natural).Naturaldoesnotrankinthetop50programinglanguagesandaccountsforlessthan0.2%popularityoftheallprograminglanguagesmonitored.Source:TIOBEProgrammingCommunityIndexforNovember2013.



BUSINESSIMPACT


RISK




17.FLAIRlacksnecessaryfunctionalitytosupporttheconstructionofcostallocationsessentialforagenciestoallocatecostsrequiredbynumerousgrantprograms.

Agenciesuseworkarounds(i.e.,manualprocessesorexternaltools/systems)togeneraterequiredcostallocationsandmeetreportingrequirements

Oncecalculatedcostallocationsneedtobere‐enteredintoDepartmentalFLAIRexposingagenciestomanualentryerrorsoradditionalreconciliation

18.ThedesignofFLAIRresultsinfourcashbalancesbeingmaintainedandmanaged(onebankbalanceandthreebookbalances(CMS,CentralandDepartmental)).

Monitoringmultiplecashbalancesrequiresadditionalstaffandmanagementattentionandreducesoperationalfocus

Significanteffortrequiredtokeepcashbalancesreconciled

Entryforerrorofmultiplebookbalancestoreconcile

19.ThedesignofFLAIRresultsinpayrollprocessingactivitiesbeingcompletedinmultipleseparateapplications(PeopleFirst,Payroll,CentralandDepartmentalFLAIR).

Reconciliationeffortsarerequiredbetweensystemsandoperationalcomplexityincreasessincepayrollrelatedcalculationsandactivitiesarebeingcompletedinmultiplesystems

Note:PeopleFirstcontainspayrollcapabilitiescurrentlysuppressedandbeingcompletedbyFLAIRPayroll

20.FLAIRdoesnotsupportworkflow/electronicdocuments.

Manual,paperandemail basedreviewandapprovalprocessesaretimeintensive,hardtotrack/monitor,andcouldresultinrequireddocumentationbeingmisplaced/notarchivedcorrectly

Exhibit1‐8:LimitationswithFLAIRToday


1.4.1 CONSEQUENCESOFFLAIRLIMITATIONS

AsillustratedinExhibit1‐8,FLAIRdoesnothavetheneededfunctionalityorabilitytoevolvetomeeteverchangingbusinessrequirements.Agenciesareincreasinglybecomingreliantonworkaroundsandcompensatingsystemstomeettheirfinancialmanagementbusinessneeds.Theproliferationofcompensatingfinancialsystemsandagencyuniqueprocessescontinuesastimepassesandbusinessneedschange.Theresultingimpactwillbeafurtherincreaseinoperationalriskandcomplexityandareductioninorganizationalproductivity.ThiswillmakeitevenmoredifficultfortheCFO,DFS,andagenciestomanagetheState’sfinancialresourceseffectivelyandefficiently.

ThemagnitudeandongoingnatureofagenciestryingtomakeupforFLAIRlimitationsaredemonstratedbythefindingsfromtheInventoryconductedaspartoftheFLAIRStudy.19

TheInventory(Attachment2)identifiedover400financialmanagementrelatedsystems;259haveadirectinterfacetoFLAIR.Asimilarsysteminventorywascompletedintheyear2000byKPMG,andatthetimethenumberoffinancialmanagementrelatedsystemswasapproximately300.20Overtheintervening13yearperiod,therehasbeenovera33%increaseinthenumberofagencyfinancialmanagementrelatedsystems.WhilenotallagencysystemsdirectlyinterfacewithFLAIR,theyrelyoninformationprovidedbyFLAIRdatatosupportrequiredfinancialprocesses.

ThelimitationswithFLAIRarenotnewandhaveexistedformanyyears.Over75%ofagencybusinesssystemsareover5yearsoldandonly13%arelessthan3yearsold.ThisinformationindicatesagencieshavebeencompensatingforFLAIRlimitationsformanyyearstobettersupporttheevolvingfinancialmanagementneedsoftheiragency.

Theprimaryfinancialfunctiongapsbeingclosedbyagencycompensatingsystemsinclude:

o AR/Receipting

o CostAllocation

o GrantAccounting

o ManagementReporting

o Asset/InventoryManagement

Basedoninterviewswiththeagenciessubmittingtheirbusinesssysteminterfaceinformationandthedeeperdiveagencyinterviewscompleted,thereisanindicationalargenumberofthe

19Thepurposeoftheinventorywastoidentifythenumberoffinancialmanagementrelatedsystems,outsideofFLAIR,inexistenceacrossthestateandprovideanindicationofhowagenciesarecompensatingforFLAIRlimitations.Deliverabletitle:FLAIRStudyAgencyBusinessSystemInventory,March2014.20KPMGBusinessCase:Chapter4–ITAssessment,February2000.


agencybusinesssystemsidentifiedintheinventoryarepotentialcandidatesforretirementoncethego‐forwardsolutionisimplemented.

1.4.2 STATUSQUOISNOTANOPTION

IftheStateofFloridawasacountry,itsGrossDomesticProduct(GDP)wouldbeamongthe20largestintheworld.IftheStateofFloridawasaprivatesectorcorporation,its$90billionbudgetwouldearnaspotinthe“Fortune25.”FinancialManagementforanenterpriseofthesizeandcomplexityoftheStateofFloridahasascopeandscalebestcomparedtotheotherlargestates(i.e.California,Texas,NewYork,Illinois,andPennsylvania),thelargestUSFederalagencies,andthelargest,mostcomplexnationalandmulti‐nationalprivatesectorcompanies.

Acapable,flexibleandreliablefinancialmanagementsystemisamustforanenterprisethesizeofFlorida.FLAIRisnotkeepingupwiththeState’sevolvingandgrowingbusinessneedsand,astimegoeson,theoperationalriskofrelyingonFLAIRonlyincreases.ThelimitationswithFLAIRandtheassociatedimpacts(i.e.,proliferationofagencycompensatingsystemsandagencyuniqueprocesses)arenottrivialandnegativelyimpacttheoperationalproductivityandthefinancialmanagementoftheState.

1.5 SOLUTIONGOALSANDBENEFITSMUSTSUPPORTTHEAGENCY’SMISSION

Regardlessofthego‐forwardrecommendation,itiscriticalthedefinedsolutiongoalsandbenefitsareclearlylinkedandsupporttheCFOandDFSinperformingtheirrolesandresponsibilities.ThefollowingsectiondemonstrateshowadirectconnectionwasestablishedbetweentheCFO’smissionanddefinedsolutiongoalsandbenefits.

1.5.1 THECFO’SMISSION

TheCFOhasthelegalresponsibilityforsettlingandapprovingaccountsagainsttheStateandmaintainingallStatefundsandsecurities.Thisrole,andassociatedresponsibilities,areenabledintheFloridaConstitutionandFloridaStatute(ArticleIV,Section4CandChapter17,F.S.,respectively)andestablishthemissionfortheCFO.Subsequently,DFSexiststosupporttheCFOinperforminghisroleandresponsibilities.Additionally,Section215.93,F.S.definesthefunctionalownerforeachFFMISsubsystemandthefunctionalowner’sresponsibilities.

Adefinedmissioniscriticalsinceitclarifiesthepurposeofanorganizationanditestablishestheframeworkforoperationaldecisionmaking.Allcurrentandfutureactivitiesshouldsupportthemission.Withoutaclearmission,resourcesmaybeallocatedsuboptimallyandorganizationaldecisionsandeffortsmaybeuncoordinatedandevenpotentiallycontradictory.AchievingandsupportingtheCFO’smissionmustbeatthecenterofanypotentialgo‐forwardrecommendation.

1.5.2 CURRENTSTATECHALLENGESANDRISKSREQUIREACTIONTOBETAKENNOW

TheabilityoftheCFOandDFStoperformtheirmissionisbecomingincreasinglydifficultgiventhesignificantlimitationswithFLAIR.Anewfinancialmanagementsolutionisneedednowandtheneedforchangeisevidentbythefollowing:


Agencieshaveimplementedandcontinuetoimplementworkaroundsandfinancialrelatedbusinesssystemstofill“gaps”createdbyFLAIRlimitations.Theproliferationoftheseagencyuniqueprocessesandcompensatingfinancialsystemswillonlycontinueasbusinessneedschange.Theresultisanincreaseinoperationalcomplexity,maintenanceandadministrativecosts,andincreaseddifficultyfortheCFOandDFStomanagetheState’sfinancialresources.Asecondaryimpactrelatedtothenumberofagencyuniqueprocessesandhomegrownsystemswillbeanincreasedlevelofcomplexitytotransitiontonewgoforwardsolution.

FLAIRisafragilesystemdeveloped30yearsago,anditcannotevolvetomeettheState’severchangingbusinessandfinancialmanagementneeds.Thefragilityisrepresentedbythecomplicationsandinstabilityarisingfromrequiredchangestosupportbusinessandpolicyneeds,e.g.,changingagencynamesorpayrollcalculations.

FLAIRisaninflexiblesystembasedontheunderlyingprogramminganddatastructure.Thisisdemonstratedbythelimitedpotentialtoadddataelements.Thelimitingfactoristhestructureoftheprogrammingmodules.

ResourcesneededtomaintainFLAIRarescarceandarebecomingmorelimited.Over40%ofpersonnelsupportingFLAIRhaveatleast30yearsofserviceandarecurrentlyeligibleforfullretirement.ThelossofirreplaceableinstitutionalknowledgeandlackofqualifiedresourcestosupportFLAIRincreasesfutureoperationalriskwhenchangestothesystemareneededorsystemissuesneedtoberesolved.Resourceknowledgeiscriticalsincesystemdocumentationmaynotalwaysbeaccurateanduptodate.

FLAIRcannotsupporttheDepartment’sortheState’sfinancialmanagementneeds.FLAIRcannotforecastcashdemandsatastatelevelnordoesitcontainfunctionalitysupportingoperationalefficiency(i.e.,workflow,automatedreconciliation)andcannotpromotecostsavings/revenuegeneration(i.e.,NetDiscounts,interestearnings).

FLAIR,andtheFFMISsubsystems,aredesignedandoperatedinawaynotconducivetosupportinganenterprise‐widesolution.Ifthestateeverwantstomovetowardsanenterprise‐widesolution,itneedstoestablishaflexiblefoundationtoallowforevolution(i.e.,addcapabilities)andtobeacatalystforfuturestatewideoperationalefficiencyandeffectivenessefforts.

1.5.3 GUIDINGPRINCIPLESSHAPETHEDEFINITIONOFSUCCESS

Guidingprinciplesprovidetheframeworkfordecisionmakingandsupportobjectivescreatedtomeetthestatedprinciples.Thedevelopedguidingprinciplesmusttakeintoaccountthecurrentstateenvironment(i.e.,risksandchallenges,markettrends21)andwhatisrequiredfortheCFOandDFStoperformtheirmission.Additionally,theguidingprinciplesmustbealignedtotheauthoritygrantedbystatute.ThreeguidingprinciplesweredevelopedaspartoftheFLAIRStudy(seeExhibit1‐9:FLAIRStudyGuidingPrinciplesandSupportingStatutes).

21MarkettrendinformationcanbefoundinChapter2:OptionsAnalysis.


GUIDINGPRINCIPLES SUPPORTINGSTATUTES

Implementastatewidefinanceandaccountingsystemtoenforceprocessstandardization,promoteeconomiesofscale,andenablecomprehensive,accuratefinancialinformationtobeproduced.

215.93:Noagencyshallestablish/maintainsystemswhichduplicateanyoftheinformationsystemsofFFMIS.216.102:FinancialinformationmustbecontainedwithinFLAIR.216.141:TheCFOshalluseFLAIRintheperformanceofandaccountingforallofhisorherconstitutionalandstatutorydutiesandresponsibilities

Implementanevolvingsolutionabletorespondandsupporteconomic,politicalandsocialchangesinatimelymanner.

215.91: FFMISsubsystemsshallbedesignedtoincorporatetheflexibilityneededtorespondtothedynamicdemandsofStategovernment.215.93:FFMISshallbeupgradedasnecessarytoensureefficientoperationandtoprovideinformationfortheeffectiveoperationofStateGovernment.

Implementasolutiontosupportatruestate‐wide,unifiedinformationsystem.

215.91: FFMISshallbeaunifiedinformationsystem.FFMISisusedforthecollection,processing,andreportingoffinancialmanagementdatarequiredforefficientandeffectiveoperation.

Exhibit1‐9:FLAIRStudyGuidingPrinciplesandSupportingStatutes

1.5.4 LONGTERMVISION

Priortomakingarecommendationonanygo‐forwardsolution,itiscriticaltohaveavisionclearlyarticulatingfutureobjectivessupportedbythestatutorymission.Thevisioncanbeusedasthebasisforlong‐termplanning.Thevisionshouldincorporatethekeyelementsoftheguidingprinciples.

AspartoftheFLAIRStudy,DFSleadershipcreatedthefollowingvisionstatementencapsulatingtheguidingprinciplessupportedbyenablingstatutes:

Implementastatewideaccountingsystemtoenforcestandardization,actsasascalablefoundationtoevolveasbusinessneedschange,andpositionsFloridaforfutureinnovationasitconsidersatrueenterprise‐widesolution.

Thevisionshouldbesomethinganorganizationcanstrivetowardsforthenext5,10,or15years.Additionallythereshouldbeclearlinkagebetweenthevisionandthemission.Thediagrambelow(Exhibit1‐10:RelationshipbetweenMissionandVision)illustrateshowthemissionandvisionareconnectedandinterrelated.


Exhibit1‐10:RelationshipbetweenMissionandVision

1.5.5 GO‐FORWARDSOLUTIONGOALSANDBENEFITS

TheFLAIRStudyvisionstatementsetsthefuturedirection.Itiscriticaltohavedefinedgoalsalignedtothevisionand,iftheyarerealized,theyaddressthecurrentFLAIRlimitations,supportthemission,anddeliverbusinessvalue.ThesolutiongoalsidentifiedfortheFLAIRStudyare:


Exhibit1‐11:VisionandSolutionGoals

MoredetailsoneachsolutiongoalandtheirassociatedexpectedvaluetotheDepartmentandFloridaareintheexhibitsbelow.

Exhibit1‐12:Goal1DescriptionandBusinessValue



1.6 OUTSOURCINGCONSIDERATION

ThereiscurrentlynoexistingorproposedlegalauthoritytooutsourceorprivatizeanymaterialcomponentofFLAIR.

1.7 INDEXOFFFMISRELATEDLEGALCITATIONS

ThereareseveralFloridaStatutesdirectlyorindirectlyimpactingFFMIS.Thetablebelow(Exhibit1‐16)representsanindexofthemostrelevantcitationsandprovidescontextforthescopeofFFMISanditssubsystems,theauthorityandresponsibilitiesofthekeyrolesandgoverningbodiesoverseeingandmanagingFFMISanditssubsystems,andhighlevelfunctionalrequirementsforFFMISanditssubsystems.Asthestateevaluatesaframeworkforgovernanceandbusinessprocessreengineering,modificationstothesestatutesshouldbeconsideredtosupporttherecommendedsolution.

ARTICLE/STATUTE SUMMARYOFSTATUTE/STATUTEHIGHLIGHTS

Article4(Section4c),FloridaConstitution

Introducestherolesandhigh‐levelresponsibilitiesoftheState’sExecutiveBranch,specificallytheroleandresponsibilitiesoftheCFO.


ARTICLE/STATUTE SUMMARYOFSTATUTE/STATUTEHIGHLIGHTS

17 DefinestherolesandresponsibilitiesoftheCFO.TheCFOisthechieffiscalofficeroftheStateandisresponsibleforsettlingandapprovingaccountsagainsttheStateandkeepingallStatefundsandsecurities.

110.116 InadditiontotheFFMISAct,thepersonnelinformationsystem(PeopleFirst)mustbedesigned,implemented,andoperatedpursuanttothisstatute.

215.86 EachStateagencyandthejudicialbranchshallestablishandmaintainmanagementsystemsandcontrolstopromoteandtoencouragecompliance;economic,efficient,andeffectiveoperations;reliabilityofrecordsandreports;andsafeguardingofassets.Accountingsystemsandproceduresshallbedesignedtofulfilltherequirementsofgenerallyacceptedaccountingprinciples.

215.90–215.96 Statutescollectivelycanbecitedasthe“FloridaFinancialManagementInformationSystemAct.”TheFFMISActwasestablishedtoplan,implement,andmanageaunifiedinformationsystemwhichprovidesfiscal,management,andaccountinginformation.

TheFFMISActestablishedtheFMIBandFFMISCoordinatingCouncil;anddefinestheirauthorityandtheirrolesandresponsibilities.

TheFFMISActidentifiesthefunctionalownerofeachFFMISsubsystem;anddefinestheirauthorityandtheirrolesandresponsibilities.

216.102(2) Statutehighlights responsibilitiesoftheCFOrelatedtofinancialinformationwhichmustbecontainedwithinFLAIR.

216.141 StatutedescribeshowtheEOGwillutilizeFFMISdataintheplanningandbudgetingprocesstoprovideforeffectivemanagementpracticesfortheefficientoperationsofallStateagenciesandthejudicialbranch.

216.151 StatuteauthorizestheEOGtoprepareananalysisofthelegislativebudgetrequestssubmittedbyStateagenciesandthejudicialbranchcoveringtheirrespectiveoperationalandfixedcapitaloutlayrequirements.

287 StatutedescribestherequirementsforprocuringmaterialsandserviceswithintheStategovernmentandauthorizesDMStodevelopaneProcurementsolution.

Exhibit1‐16:IndexofFFMISRelatedLegalCitations22

TheremainingchaptersoftheFLAIRStudypresenttheanalysisperformedonthefouroptionsspecifiedintheGAAproviso,recommendsago‐forwardsolution,includesaprocurementandcontractmanagementapproachandpresentsanimplementationstrategytotransitionDFSandtheStatefromthecurrentsolutiontotherecommendedsolution.

22Moreinformationonlegalcitationscanbefoundathttp://www.flsenate.gov/Laws/Statutes.


1.8 CHAPTER1APPENDIX

1.8.1 CMSBUSINESSAPPLICATIONSUMMARY

Thetablebelow(Exhibit1‐17)providesmoreinformationonthebusinessapplicationscontainedwithintheCMSsubsystem.TheTreasuryisintheprocessofupgradingthecurrentCMSplatformtoaweb‐basedsystem.Theupgradewilloccurintwophases.Phase1,whichwentliveinAugust2013,establishedanewintegratedplatformandreplacedthreeexistingbusinessapplications.ThebusinessapplicationsreplacedwereVerifies,Receipts,andChargebacks.Phase2willreplacetheremainingCMSsubsystemapplicationsandaddthecapabilitiestothenewintegratedCMSplatformdevelopedinPhase1.Phase2isscheduledtoimplementinstagesfrom2014through2018.


CMSAPPLICATIONNAME APPLICATIONCAPABILITYDESCRIPTION

Verifies UsedtoprocessandstoreagencydepositdetailsforverificationinFLAIRandreconcileTreasury’sBankAccountswithTreasuryBankAccountLedgers(producedbyBankAccountSystem).

Receipts UsedtobalanceandstoredailydepositandreturneditemdetailsprocessedinFLAIR

Chargebacks UsedtoaccountforallreturneditemschargedtotheTreasuryBankAccounts.

FundAccounting PerformsaccountingfunctionsforinvestedTrustFundsandSpecialPurposeInvestmentAccounts(SPIA)andallocatesinvestmentearningstotheGeneralRevenueTrustFund,TrustFunds,andSPIA.Afiletransferincludinginvestmentanddis‐investmentjournaltransfersisreceivednightlyfromFLAIRCentralAccounting.Also,amonthlyfiletransferissenttotheInformationWarehouse.

BankAccounts UsedtoaccountforallTreasuryassetsincludingbankaccountbalancesandinvestmenttransactions.ThisprocessrecordstheassetsoftheTreasurybypostingbankandinvestmentactivitytobankaccount/investmentledgers.

StateAccounts UsedtoaccountforallTreasuryassetsbystatefundtype.ThissystemisusedforthereconciliationofTreasuryandFLAIRCentralAccountingcashaccountbalances.AmonthlyfiletransferissenttoFLAIRCentralAccounting.ThisprocessproducestheTreasury’saccountingofStatefundswhichisusedbyFLAIRCentralAccountingtoreconciletheiraccountingrecords.

Dis‐Investments Usedtoliquidatetrustfundinvestments.Adailyfiletransferincludingdis‐investmentjournaltransfersissenttoFLAIRCentralAccounting.

InvestmentAccountingSystem

UsedtoaccountforallinvestmentsmadebytheTreasuryinternalandexternalportfoliosandincludesinterestamountstobeallocated.FundAccountingisusedtoapportiontheinterest.

CertificatesofDeposit UsedforaccountingforTreasury’sCertificateofDepositProgram.

ConsolidatedRevolvingAccount(CRA)

UsedtoaccountforallagencyparticipantbankingactivitiesassociatedwithRevolvingFunds.

SpecialPurposeInvestmentAccounts(SPIA)

UsedfortransfersinandoutoftheSpecialPurposeInvestmentAccount.ThisprocessrelatestoinvestmentsprovidedforinSection17.61,F.S.

WarrantProcessing Usedtoverifyandpaywarrantsandsupportreconciliation.AdailyfileissenttoandreceivedfromCentralFLAIR.

Exhibit1‐17:CMSBusinessApplicationCapabilities


CHAPTER2 OPTIONSANALYSIS

TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFloridaStatutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter2OptionsAnalysis.

FLORIDASTATUTE

287.0571(4)(e)

Adescriptionofavailableoptionsforachievingthe goals.Ifstateemployeesarecurrentlyperformingtheserviceoractivity,atleastoneoptioninvolvingmaintainingstateprovisionoftheserviceoractivityshallbeincluded.

287.0571(4)(f) Ananalysisoftheadvantagesanddisadvantagesofeachoption,including,ataminimum,potentialperformanceimprovementsandrisks.

287.0571(4)(g)Adescriptionofthecurrentmarketforthecontractualservicesthatareunderconsiderationforoutsourcing.


Chapter2presentsananalysisoftheoptionstoenhanceorreplaceFLAIR,identifiestheminimumsetofcapabilitiesrequiredofanewfinancialmanagementsysteminFlorida,anddescribestheexpectedbenefitsthesystemwouldbringtotheState.Toaccomplishthis,theanalysisreliesonthebackgroundinformationpresentedinChapter1,includingthemissionoftheCFO,thelimitationsoftheexistingFLAIRsystem,andtheDFSgoalsandobjectivesaswellas:

AsummaryoftheintensiveprocessesadoptedbyStateAgenciesinresponsetotheshortcomingsofFLAIR

Researchintohowotherstateshaveaddressedsimilarproblemsinthepast

StudyofthecurrentlandscapeoftheERPsoftwaremarket

Thefouroptionswhichaddresstheminimumcriteriaaredescribedindetailalongwith:

HowwelleachoptionalignstotheDFSgoalsandobjectives

Theestimatedcostsandresourcesrequiredtoimplementandmaintaineachsolution

Atimelineforthedeliveryoftheexpectedbenefits

Riskassociatedwitheachoption


FLORIDASTATUTE

287.0571(4)(h)

Acost‐benefitanalysisdocumentingthedirectandindirectspecificbaselinecosts,savings,andqualitativeandquantitativebenefitsinvolvedinorresultingfromtheimplementationoftherecommendedoptionoroptions.Suchanalysismustspecifytheschedulethat,ataminimum,mustbeadheredtoinordertoachievetheestimatedsavings.Allelementsofcostmustbeclearlyidentifiedinthecost‐benefitanalysis,describedinthebusinesscase,andsupportedbyapplicablerecordsandreports.Thestateagencyheadshallattestthat,basedonthedataandinformationunderlyingthebusinesscase,tothebestofhisorherknowledge,allprojectedcosts,savings,andbenefitsarevalidandachievable.Asusedinthissection,theterm“cost”meansthereasonable,relevant,andverifiablecost,whichmayinclude,butisnotlimitedto,elementssuchaspersonnel,materialsandsupplies,services,equipment,capitaldepreciation,rent,maintenanceandrepairs,utilities,insurance,personneltravel,overhead,andinterimandfinalpayments.Theappropriateelementsshalldependonthenatureofthespecificinitiative.Asusedinthisparagraph,theterm“savings”meansthedifferencebetweenthedirectandindirectactualannualbaselinecostscomparedtotheprojectedannualcostforthecontractedfunctionsorresponsibilitiesinanysucceedingstatefiscalyearduringthetermofthecontract.

287.0571(4)(i)

Adescriptionofdifferencesamongcurrentstateagencypoliciesandprocessesand,asappropriate,adiscussionofoptionsfororaplantostandardize,consolidate,orrevisecurrentpoliciesandprocesses,ifany,toreducethecustomizationofanyproposedsolutionthatwouldotherwiseberequired.

Exhibit2‐1:ApplicableStatutesforChapter2

Therearefouroptionsincludedinprovisolanguageinthe2013GAAfortheupgradeorreplacementofFLAIR.ThepurposeofthisChapteristodefineandprovideanevaluationofthebenefitsandimpactsofeachoptionagainsttheneedsoftheStateofFlorida.

ThisChapterbeginswithasummaryofthecurrentchallengesexperiencedacrosstheStaterelatedtotheuseofFLAIR,includingtheimpactofFLAIRontheState’sagencies.ItthencontainsanoverviewofhowthesechallengeshavebeenaddressedbyotherstatessimilarinsizeandcomplexitytoFlorida,includingareviewofrecentimplementations,ananalysisoftrendswithrespecttofinancialsystemsinthepublicsector,andadescriptionofotherimportantindustrytrends.Thisisfollowedbyanoutlineofhowthesoftwaremarkethasaddressedthesechallenges.

TheChaptercontinueswithadetaileddescriptionofeachoftheoptionstoaddresstheFLAIRsystemincludingadetaileddescriptionoftheoption,ahighlevelimplementationtimeline,costandresourceestimates,andtheadvantagesanddisadvantagesoftheoption.FollowingtheoptiondescriptionsarekeyconsiderationsFloridamustaddresswhenanalyzingthedifferentoptions.Finally,theChapterendswithacomparisonofeachoftheoptionsrelatedtotheneedsoftheState.


2.1 SUMMARYOFCURRENTSITUATION

FLAIRwasdesignedandbuilttoautomatebusinessprocessesastheyexistedinthe1980’sandtheearly1990’swhenlargeportionsoftheState’sbusinesswereperformedmanually.Inthelate1990’s,departmentaltransactionfunctionalitywasaddedtoFLAIR,andtheoriginal“CentralFLAIR”applicationwasnotintegratedbecauseitwouldhavebeentoocomplextorewriteitatthatpoint.ThishasledtothecurrentprocessingenvironmentwheretheState’sfinancialsaremanagedintwopartiallylinkeddatabaseswhichrequiresignificanteffortbyagenciesandDFStoreconcile.

Asbusinesshaschangedoverthepasttwentyyears,minorupdateshavebeenmadetoFLAIRbyaddingonexternalfunctions,mostnotablyaninformationwarehouseforenhancedreporting;however,thecoretransactionanddatacapabilitieshavenotchangedtomeettheneedsofthestateincluding:

FlexibilitytosupportnewfunctionaldemandsasStateGovernmenthaschanged

Greaterabilitytosupportstatewidereportingandinformationstandardization

Modernuserexperienceandbasicfunctionalityexpectedfromamodernsystemforincreasedproductivity

Abilitytoprocesstransactionsinareal‐timeornearreal‐timemannertosupportagencyoperations

Supportfordecisionmakingaroundcashmanagementincludingavailablecashbalances

Abilitytomaintainasinglesetofbooksforthestatewhichisusablebyagenciesfortheirreporting,andDFSforauditandreview

Supportforbusinessprocessimprovementssuchasworkflowanddocumentmanagement

UseofcurrenttechnologytoenabletheDivisionofInformationSystems(DIS)toproperlymaintainandgrowthesystemusingavailableresources

ThechangeintheoverallbusinesslandscapesinceFLAIRwasdevelopedhasforcedtheState,DFS,andagenciestochangethewaytheyinteractwithconstituentsandeachother.BecauseFLAIRhasnotbeenupdatedinthepasttwodecades,agencieshavebeenforcedtodeveloptheirownsystemstomanagefinancialtransactionsandreporting,usingFLAIRaslittleaspossible.

Individualagencysystemshaveincreasedapproximately33%since200023withacorrespondingneedforsupportandmaintenanceofthesesystems

23300agencysystemsreportedintheFebruary2000KPMGBusinessCase:Chapter4–ITAssessmentcomparedwith424agencysystemsidentifiedduringtheinventoryconductedaspartofthisproject.


Withtheproliferationofagencysystems,theabilitytoprovidemeaningfulstatewidereportinghasdecreasedduetoalackofstandardizationacrosstheagenciesandsystems

Functionalitywhichisbeneficialtothestate,suchasintegratingencumbrancecheckingintoMFMP,orinterfacingagencytransactionsystemsdirectlywithFLAIRhasbeendifficultorimpossibleduetotheunderlyingarchitectureandthebatchnatureofFLAIRprocessing

2.2 MARKETCONDITIONSANDTRENDS

ToprovidecontexttothereviewoffinancialmanagementsystemoptionsforFlorida,theFLAIRStudyTeamreviewedhowcomparablestatesandthesoftwaremarketshaveaddressedchallengeslikethosefacedbyFloridaoutlinedinChapter1andSection2.1ofthisChapter.Theteamthenreviewedandassessedadditionaldetailaroundsomeofthemoreprominenttrendsandhowtheycouldimpactthesolutionrecommendation.

2.2.1 TRENDSINPUBLICSECTOR

Overtime,publicsectororganizationsandtheirconstituentshaveincreasedthedemandstheyplaceontheirfinancialoperationsteamsandthesystemswhichsupportthem.Whetheritisadesireforgreateroperationalefficiency,fasterprocessingtimes,advancedreporting,moretransparencyandaccountability,dataanalyticsorintegrationwithanever‐changingarrayofnewend‐usertechnologiesandmobiledevices–therequirementsexpectedofpublicsectorfinancialdepartmentsareconstantlystressingtheiravailableresources.

Asaresult,modernfinancialsystemshaveevolvedrapidlyoverthepasttenyearsandoffersolutionswhichcanhelpaddressthesebaselinerequirementsandassociatedissues.Themarketnolongerprovides‘green‐screen’,text‐basedsystemsandmulti‐daybatchprocessingcyclesliketheFLAIRsystem.Itnowoffersfullyintegratedweb‐basedreplacementsfortheselegacysystemswithintuitive,modernuserinterfacesandnearreal‐timetransactionprocessingandreporting.

Manypublicsectorentitieshavetakenadvantageofthesenewtechnologiesandhavebegun(orrecentlycompleted)financialmanagementsystemandbusinessoperationstransformationprojectsoftheirown.Afterreviewingthecurrentstateofthefinancialmanagementsystemsatthetop30statesbytotalexpenditure,theFLAIRStudyTeamchoseagroupofsevenpeersforfurtheranalysis.TheselectedpeergroupisoutlinedintheExhibitbelowalongwiththereasonfortheirinclusion.Amorecompletelistofthetop30statesandsomekeycomparativeinformationisincludedintheAppendixtothisChapterinSection2.5.2.

ThesestateswereselectedbasedprimarilyonthesizeoftheirbudgetandtheirrelativecomplexityofoperationsinrelationshiptoFlorida.TheFLAIRStudyTeamfocusedonstateswhohadcompletedorwereengagedinfinancialsystemmodernizationinitiativesinrecentyearsandhavemadedifferentdecisionsonsoftware,outsourcingstrategy,fundingmodel,andbusinessprocessre‐engineeringapproaches.TheExhibitbelowreflectstheFLAIRStudyTeam’sanalysis:


STATE

STATERANK/2013STATEBUDGET24(MILLIONS)

FINANCIALMANAGEMENT

SOFTWARE,YEAR

IMPLEMENTED,DURATION25

FINANCIALMANAGEMENT

SYSTEMCOST(MILLIONS)

HR/PAYROLLSOFTWAREANDYEAR

IMPLEMENTED REASONINCLUDED

NY 2/$133,500 PeopleSoft(2011)4yrs.

200‐ 24026 PeopleSoft(2005)

LargestatebudgetandrecentERPimplementationsuccess

TX 3/$93,000 PeopleSoft(2011)3yrs.

145 ‐ 18027 PeopleSoft(2012)

LargestatebudgetandtosurveyastatewhichisstillintheprocessofgoingthroughanERPimplementation

PA 4/$66,900 SAP(2002)3yrs.

140‐ 16028 SAP(2004)

ComparablestatebudgettoFloridaandsuccessfulstatewideERPimplementation

OH 8/$57,900 PeopleSoft(2008)4yrs.

100‐ 12029 PeopleSoft(2008)

ComparablestatebudgettoFloridaandoutsourcingmodel

VA 12/$43,400 PeopleSoft(2014)5yrs.

115‐ 13530 PeopleSoft(2014)

In‐processimplementationwithuniquepilot‐agencyapproach

24NationalAssociationofStateBudgetOfficers(NASBO)ExpenditureReport2011‐201325Informationprovidedduringstateinterviews.Implementationtimeshavebeenroundedup.26Includesestimatedimplementationcostsforthefinancialmanagementsystemandcomptrollerportionsoftheprojectbasedoninformalcostrangesprovidedbyprojectparticipants.27Estimatefromoriginal2008businesscaseforstatewideimplementationmodifiedbasedoncurrentDOTimplementation.28Estimatedrangebasedontotalprojectcostof$225million,assuming2/3ofprojectcostforfinancials.29TheOhioOfficeofBudgetandManagementsetbudgetat$158millionforthefullERP,assuming2/3costforfinancials.30Estimatedrangeforinitialstatewideimplementation(includingDOT)basedonstateinterviewandprojectbriefingfromSeptember10,2012.


STATE

STATERANK/2013STATEBUDGET24(MILLIONS)

FINANCIALMANAGEMENT

SOFTWARE,YEAR

IMPLEMENTED,DURATION25

FINANCIALMANAGEMENT

SYSTEMCOST(MILLIONS)

HR/PAYROLLSOFTWAREANDYEAR

IMPLEMENTED REASONINCLUDED

GA 14/$41,100 PeopleSoft(1999)2yrs.

50 ‐ 7031 PeopleSoft(1999)

OneofthefirststatestoimplementanERPsolutionandhasundergoneseveralupgrades

AL 27/$24,200 CGIAdvantage(2002/2015

)4yrs.

50‐ 7032 CGIAdvantage(2002/2015)

StateactivelyusingCGIAdvantageandinprocessofstatewideupgradewithextensiveprocessre‐engineering

Exhibit2‐2:PeerGroupStatesChosenforComparison

Foreachstateinthepeergroup,theFLAIRStudyTeaminterviewedtheexecutivesponsorresponsibleforfinancialoperationsand/orprojectdirectorresponsibleforthefinancialmanagementsystem.Theinterviewquestionsfocusedonthe:

Structureoffinancialoperationswithinthegivenstate

Financialmanagementtechnologysolutionchosenandtheselectionprocess

Benefitsderivedfromthesolution

Infrastructure(people,technology,andgovernance)requiredtosuccessfullyimplementandmaintainthesystemsolution

LessonslearnedandrecommendationsfortheStateofFloridaasitconsidersenhancingorreplacingFLAIR

Inadditiontoconductingresearchwiththestatesdirectly,theFLAIRStudyTeamconsultedanumberofothersourcestoobtainindustrytrends.Thesesourcesincluded:

31Rangeforstatewidefinancialimplementationin1998fromComputerworldarticle,“DespiteOdds,GeorgiaHitsItBigWithERPSystem”October9,2000.32Estimatedrangeforbusinessprocessre‐engineeringandupgradeofthefinancialsystemprovidedduringAlabamainterview


Interviewswithrepresentativesfromthethreeleadingpublicsectorfinancialmanagementsoftwareproviders(Oracle,SAP,andCGI)

Interviewswithanumberofleadingpublicsectorsystemintegrators(IBM,CGI,Accenture,Deloitte)

AconferencecallwitharesearchanalystatGartner,Inc.whospecializesinpublicsectorfinancialsystemtrends

Numerousresearchpapersandstudiesfocusingontheimplementationofcommercialofftheshelf(COTS)ERPsystemsatthestatewidelevel3334

Fromthisresearchandthestateinterviews,thefollowingkeythemesemerged:

UseofERPSolutions:StatesareadoptingandimplementingERPsolutionstosupportcorestatewidefinancialmanagementincludingfinancialreportingasopposedtodevelopingnewtechnologiesin‐house.Ofthestatewidefinancialsystemimplementationsoverthepasttenyears,allhavebeenERPsolutionsincludingPeopleSoft,SAP,andCGIAdvantagesoftware.

Cross‐AgencyStandardization:Statesabletomandateandenforceconsistentbusinessprocesseshadloweroverallsupportandmaintenancecostsbecauseoftheprocessstandardizationaswellastheabilitytolimitagency‐specificcustomizations.Uniqueagency‐specifictransactionswererequiredtobeinterfacedleveragingastandardinterfaceprotocol.

StrongEnterpriseandProjectGovernance:Stateswhohavesuccessfullyimplementednewenterprisefinancialmanagementsystemsallhadclearlydefinedprojectgovernancestructureswhichdefinedprocessesfordecisionmaking.Inaddition,theprojectsthatenactedsignificantbusinessprocesschangehadclearlydefinedenterprisegovernancetodirectstatewidepolicyandinteractionbetweencompetingpriorities.

BusinessProcessRe‐engineering(BPR)PriortoImplementation:Asawaytoavoidcustomizationinthenewsystemandachievebenefitssooner,manystatesunderwentaperiodofBPRpriortotheimplementationphase.StateswhodidnotperformBPRhadlargevolumesofcustomizationsandgenerallyhadtowaituntiltheyperformedthere‐engineeringtoachieveexpectedprojectbenefits.

LimitSystemCustomizations:AbestpracticeinsuccessfulstatesistouseERPfunctionalityasdesignedandkeepcustomizationsforcorefinancialtransactionsandreportingtoaminimum.Limitingcustomizationsreducestheimplementationand

33PNNarayan,MartinBenison,andNaomiWyatt,“TheStateofERPintheStates,”TheNationalAssociationofStateChiefInformationOfficers2008AnnualConference(Milwaukee,WI),September200834MassimilianoClapsandIvyI.Anderson,“TrendsinStatewideERPImplementations,”Gartner,October5,2009.


maintenancecostofapackagedsystemandenablestheStatetotakeadvantageofnewfunctionalityviaregularvendorupgrades.

SystemIntegrator(SI)SelectioncanbeasImportantasSoftwareSelection:Whileprocurementstrategiesvariedwidely(SIfirst,softwarefirst,combinedselection,etc.),almosteveryoneinterviewedstressedtheselectionoftherightSIcanbeasimportantastheselectionoftherightsoftwarepackage.TheSIwascriticaltothesuccessofeachoftheinterviewedstates’ERPprojects,providingexpertiseduringsystemdesign,configuration,testing,andendusertraining.

PhasedImplementationApproach:Ingeneral,stateshavetakenaphasedapproachtotheimplementationofnewenterprisefinancialmanagementsystems,oftenrevampingcentralsystemsfirstbeforeaddressingagencyconcerns.AphasedapproachallowstheStatetotackletheinitiativeinsmaller,moremanageablepieces,realizingbenefitssooneroftenbeforechangesinadministration.

FocusonOrganizationalChangeManagement(OCM):Innearlyeverycase,OCMplayedakeyroleinensuringasuccessfulimplementation.Keycomponentsaddressedbysuccessfulstatesincludeorganizationaltransformation,internalcommunication,jobtraining,systemtraining,andexternal(public)communication.

PartnerwithKeyAgencies:Toensuresuccess,manystateschosetopartnerwithakeyagencyoragenciesasapartoftheinitialimplementation.Thesepartnershipsensuredagencyneedswereconsideredduringthedeployment,servedasanexampleofsuccessthatmadeiteasiertoonboardotheragenciesinlaterphasesorwerevehiclestoprovideadditionalsourcesoffunds.

ExistenceofanAgencyChargebackCostingModel:FundingmodelsforERPinitiativesvariedamongstthestatesinsomecapacity,butmosthadsomeelementwhereanagencywaschargeddirectlyeitherforongoingoperations,orfordevelopmentofspecialfunctionality.

CombinationofIn‐HouseandOutsourcedSupport:Moststatesinterviewedarecurrentlyhostingtheirfinancialmanagementsystemswithinstate‐rundatacentersorondedicatedoutsourceddatacenters.Inaddition,abouthalfofthestatesinterviewedoutsourcedatleastpartoftheirongoingapplicationsupport.

AdditionalinformationontheenterprisesystemsenvironmentateachstatesurveyedisincludedintheAppendixtothisChapterinSection2.5.1.

2.2.1.1 SUMMARYOFSTATEINFORMATION

TheExhibitbelowsummarizestheresultsoftheresearchintoongoing(andrecentlycompleted)enterprisefinancialmanagementsystemreplacementinitiativesinthepeergroup.TheresultsaresummarizedinExhibit2.3belowandadditionaldetailforeachinterviewedstateislocatedinSections2.5.2and2.5.3oftheAppendix:

State–StatesformallyinterviewedbytheFLAIRStudyTeam

FinancialSolution–Theselectedfinancialmanagementsoftware,go‐livedate,andprimarySI


HR/PRSolution–TheselectedHumanResourcesandPayrollsoftware,implementationdaterange,andprimarySI

ProcurementStrategy–MethodofselectingsoftwareandSI

FundingModel–Methodforinitialimplementationandongoingsystemfunding

OngoingSystemSupport–Modelusedbythestateforsystemsupport(in‐housevs.outsource)

BPR–IndicateswhetherornotthestatewentthroughaperiodofBPRaspartoftheimplementation


STATE

FINANCIALSOLUTION,YEARIMPLEMENTED,INTEGRATOR

HR/PRSOLUTION,YEARIMPLEMENTED,INTEGRATOR

PROCUREMENTSTRATEGY FUNDINGMODEL ONGOINGSYSTEMSUPPORT BPR

NY PeopleSoft(2011)

Deloitte/IBM

PeopleSoft(2005)IBM

Unbundled InitialProjectFunding&OngoingSupport:Appropriation

Inhouse,(approx.150employees)

Performedprocessstandardizationaspartofinitialimplementation

TX PeopleSoft(2011)Deloitte35

PeopleSoft(2012)Deloitte

Unbundled InitialProjectFunding&OngoingSupport:Appropriation

OutsourcedtoXerox

Limitedaspartofinitialimplementation

PA SAP(2002)

BearingPoint

SAP(2004)

BearingPoint

Unbundled InitialProjectFunding:Appropriation

OngoingSupport:AgencyChargeback

In‐house(approx.100employees)

Limitedduringinitialphase

Performingaspartofcurrentupgrade

35Go‐livedatesrepresentinitialsystemusagebythefirstwaveofparticipatingagencies.Rolloutofadditionalagenciesisexpectedtotakebetweenfiveandsevenyears.


STATE




VA PeopleSoft(2014)

Accenture

PeopleSoft(2014)

Accenture

Bundled‐Integratorspitchedbest‐fitsoftwareandimplementationstrategy

InitialProjectFunding:50%TreasuryLoan/50%fromVDOT


HardwareoutsourcedtoNorthropGrumman

AccentureandVAstaff:Applicationsupport,DatabaseAdministration,Development

Performingprocessstandardizationaspartofinitialimplementation

OH PeopleSoft(2008)

Accenture

PeopleSoft(2008)

Accenture

Bundled InitialProjectFunding&OngoingSupport:Agencychargeback

AdditionalPayrollprocessingcharge

OutsourcedtoAccenture

Performedprocessstandardizationaspartofinitialimplementation

GA PeopleSoft(1999)Cedar

Crestone

PeopleSoft(1999)Cedar

Crestone

Bundled InitialProjectFunding:Appropriation


In‐house(approx.60employees)




STATE




AL CGIAdvantage(2002/

planned2015upgrade)CGI

CGIAdvantage(2002/

planned2015upgrade)CGI

Bundled‐SoftwareSelection(2010)toconfirmintegrator

InitialProjectFunding:Appropriation

Ongoingsupport:AgencyChargeback

OutsourcedtoCGI,buthostedinstatedatacenter



Exhibit2‐3:SummaryofStateSurveyResults


2.2.1.2 SUMMARYOFAGENCYINFORMATION

TobetterunderstandthewaysinwhichstateagenciesinteractwithFLAIRinthecourseoftheirbusinessoperations,theFLAIRStudyTeamconductedinterviewswithasampleofagenciestoobtainarepresentationoftheinputs,needs,andattitudestowardFLAIR.Duringthoseinterviews,corefunctionalbusinessownersprovideddescriptionsofthewaystheiragencyperformstheprimarybusinessprocesseswhichinteractwithFLAIRincluding:

Generalledgerandfinancialreportingfunctions

Budgetingandbudgetreporting

Contractsmanagementandpurchasing

Accountspayable

Cashreceipting,invoicing,andmanagingreceivables

Projectandgrantmanagementaccountingandmanagement

Assetandinventorymanagement

Thefocusoftheinterviewsanddiscussionswereoncurrentbusinessprocessesrelatedtofinancialtransactionstoidentifypotentialneedsoropportunitiesrelatedtotheuseofacentralaccountingandfinancesystem.

ThefollowingExhibitoutlinestheagenciesinterviewedalongwiththemajorreasonforincludingeachintheinterviewprocess:

AGENCY REASONFORINCLUSION

DepartmentofFinancialServices Representativeofasmalleragencywithbroadneeds

DepartmentofManagementServices

Smallagencywithbroadneeds,alsoincludesoversightofMFMPandPeopleFirst

DepartmentofTransportation(DOT)

Large,complexagencywithdetailedneeds,particularlyaroundproject,contract,andgrantsmanagementandreporting

DepartmentofRevenue(DOR) Mediumcomplexityagencythatprovidescentralizedprocessing(receipting)forotheragencies

DepartmentofChildrenandFamilies(DCF)

Largeagencywithfocused agencybusinesssystemsandsignificantexternalreportingneeds,particularlyrelatedtofederalgrants

DepartmentofEnvironmentalProtection(DEP)

Mediumagencywithbroadneedsincludingpointofsaleandgrantsmanagement

Exhibit2‐4:AgenciesIncludedinProcessOutreach

Fromourinterviews,multiplethemesbecameapparentregardingtheuseofFLAIRbytheagenciesincluding:

AgencieshavefinancialmanagementneedswhicharenotbeingmetbyFLAIRandhavethereforeimplementedtheirownsystemstomeettheseneeds


TheFLAIRinterfaceisinconvenient,andagenciesminimizetheirinteractionwithit

IntegrationwithFLAIRistechnicallydifficult,andthetechnologyusedcauseslimitationstoagencyfunctionality

AgencieshavehadtodevelopreportingcapabilitiesandworkaroundsolutionsduetolimitationsinFLAIR

UnmetBusinessNeeds

Inadditiontotheirspecificagencybusinesssystems,alloftheagenciesinterviewedhadcommonbusinessprocesseswhichfedintooruseddatafromDepartmentalFLAIRwheretheyhadacquiredandmaintainedtheirownsystemstoperformthisfunction.Someexamplesofthisinclude:

Everyagencyinterviewedmaintainseitheramanualorautomatedaccountsreceivablesystemwheretheytrackreceivables,manuallyreportbaddebtstoDFSasneeded,orrecordreceivablesmanuallyintoFLAIRattheendoftheyear.

Agencieswithsignificantallocations,particularlywherepaymentsareprocessedfrommultiplesourcesarechallengedwithFLAIR’sinabilitytomakeadisbursementfrommorethanoneaccountandfund.Theseagencies(includingDCF,DEP,DFS,andDOT)haveagencysystemstofacilitatethecalculationandprocessingofallocationstotrack,enter,andreconcilethisdistribution.

AgencieshaveindividualsystemsormanualprocessestotrackandprovidereportingforactualtobudgetexpendituresbecauseoflimitationsofFLAIRreportingandthelevelofdetailatwhichtransactionsarerecorded.

Theprocessforpostingandallocatingpayrollexpensesiscumbersome.Whenthepayrollispaid,FLAIRmakesaone‐sidedentryintothecashledgerinCentralFLAIRandprovidesaseparateprogramwithasuggestedexpensedistributionfortheagenciestomakeintoDepartmentalFLAIR.TheagenciesspendalargeamountoftimeensuringthatlabordistributionisproperlyenteredandthatCentralandDepartmentalFLAIRremainproperlyreconciled.

InconvenientInterface

TheagenciesinterviewedeitherindicatedtheFLAIRinterfacewasdifficulttouse,(includingDCFandDFS),ortheydidnotuseFLAIR;havingdevelopedalternatesystemswhichinterfacedataintoFLAIR(e.g.,DEPhasdevelopedanapplicationtofacilitatetransactioninputintoFLAIRandDOTemployeesusetheirownbusinesssystemswhichinterfaceintoFLAIRformostfinancialtransactions).

TechnicalDifficultiesInterfacingwithFLAIR

ThereweretwoprimarytechnicaldifficultiesidentifiedwhenworkingwithFLAIR.Thefirstwasthelackofastandard,moderninterfaceprotocol.ThisnegativelyimpactstheabilityofagencysystemstosharedatawithFLAIRandpreventedanautomatedinterfaceforvalidatingavailablebudgetwhencreatingrequisitionsorpurchaseordersinMFMP.


AsecondtechnicallimitationinFLAIRisthefactthesystemisprimarilybatchbased,meaningmanyofthetransactionsenteredduringthedayareprocessedovernightwiththeresults(includingerrorreports)notavailabletousersuntilthenextday.DEP,DOT,DFS,andDMSallmaintainreconciliationprocesseswhichwerecreatedtokeepdatafromtheircorebusinesssystemsreconciledwiththetransactionaldatainFLAIR.

ManyoftheseagencybusinesssystemsdonotintegratewithFLAIRandrequiremanualentriesonaperiodicbasis.Thereare,ofcourse,risksassociatedwiththisincludingthepossibilityofhumanerrormadeinthetransferofdataandtheabsenceofmaterialdatainthesystemonatimelybasis.DCFisoneagencyfacingthisissue.Forreceipting,theyhaveaFeeMaintenanceSystemwhichdoesnotinterfacewithFLAIRandrequiresamanualupload.

ReportingLimitations

AnothercommonpointofcontentionwithFLAIRisitsinabilitytoproduceusefulreportsordataextractsinareadilyusableformatforagencyconsumption.AgenciesoftenextractFLAIRdataandmaintainitintheirowndatawarehouseeitherbecauseFLAIRdoesnothaveallofthedesireddata.OrincaseswhereFLAIRreportsareused,thereportsrequireextensiveformattingandcleanupeffortinExcelbeforetheycanbeused.DOTforexample,pullsaccountsreceivablereportsfromitsownReceiptsProcessingSystem(RPS).DMSandDEPontheotherhandcreditFLAIRforhavingsufficientdata,butwhentheypullassetandotherbasicfinancialreportsfromFLAIR,theymustperformanextensivemanualeffortinExceltomakethedatareadableforuse.

2.2.2 TECHNOLOGYTRENDS

Overthepastfifteenyears,themarketforpublicsectorenterprisefinancialmanagementsystemshasconsolidatedconsiderablywithafewsoftwarevendorsemergingwiththebreadthoffunctionalityrequiredtosupporttheoperationsofalargestate.Whiletherehavebeenveryfewnewenterprisesoftwarecompanieswhohavedevelopedpointsolutions,nonehaveaddressedthechallengesoffinancialmanagementatthestatewidelevel.Thefollowingvendorswereidentifiedasleadersinthismarketplacebasedonstateinterviewsandindustryresearch:36

OraclePeopleSoft

SAP

CGIAdvantage

Workday37

36IndustryResearchconfirmedbyGartneranalystconferencecallonDecember9,2013and2013GartnermagicquadrantforERP.37WorkdayisnotconsideredaleaderintheStateERPspacebasedoninstallbase,butwasincludedbecauseofitsstatusasanupandcomingsoftwarepackage.


2.2.2.1 ORACLEPEOPLESOFTINPUBLICSECTOR

Oracle’sPeopleSoftERPsoftwarehasbeenthemostcommonchoiceforstateandlocalgovernmentswith12ofthetop30statesusingthesolution.Oracle’sERPsolutionshavebeenknownfortheirservice‐orientedframework,makingPeopleSoftaparticularlygoodfitforgovernmentorganizations.Theyhavemodulestohandlethemainaspectsofpublicsectorbusiness.Thesemodulescanperformkeyfunctionsforawidearrayoforganizations,bothintheprivateandpublicsectors.38

PeopleSoftisalsoknownforthesuperiorityofitshumanresourcesfunctionality.TheirUserProductivityKittoolisapowerfulfeatureforend‐usertraining.Itsout‐of‐boxfitforpublicsectorbusinesshasmadeitthetopchoiceforstategovernments.Aswithallenterprisesoftware,successfulimplementationofPeopleSoftrequiresasignificantinvestmentandoftenresultsinradicalchangesinthewaybusinessisperformed.39

ThetopERPsoftwareintegrators,includingAccenture,Deloitte,andIBMperformPeopleSoftintegrationservices.SecondtierintegratorslikeCherryRoadTechnologiesandCiberarestartingtomakeapushandarebeginningtobeconsideredviableoptionsasintegratorsforlargeorganizationslikestategovernments.Integratorstypicallyliketofollowaphasedapproachtoimplementationbywhichdifferentwavesofagenciesarebroughtontothenewsystemoneafteranother.The“big‐bang”approachhasbeenfollowedinafewplacestoimplementHR/Payrollfunctionalityacrossallstateagenciesatonetime,butthishasnotbeenthenorm.

PeopleSofthasbeenthemostcommonchoiceasastatewideERPsolutionsincetheboomoftheseinitiativesroughlyadecadeago.Georgia,Virginia,Ohio,Texas,andNewYorkareafewexamplesofstateswhohaveselectedPeopleSoft.Georgiahasfoundsuccesswithitssystemsinceitwentlivein1999andhasseenmajorimprovementsinfinancialmanagement,HR/payroll,andprocurementfunctionality.Virginiahastheirsysteminplaceattwoagencies,andhasplanstoexpandstatewideinthecomingyears.OhiohasseensignificantimprovementsintheirfinancialmanagementoperationssincetheyimplementedPeopleSoftinplacein2008.

2.2.2.2 SAPINPUBLICSECTOR

SAP’scoreERPsolutionforprivatesectorbusinesshasbeenoptimizedtofittheoperationsandcomplywiththestandardsofstateandlocalgovernments.Thecoresolutioncansupportthemainbusinessfunctionsforstateandlocalgovernments.TheinherentfeaturesofSAPforPublicSectorhaveallowedstatesusingtheapplicationtoexpandthecapabilitiesoftheirsystemtoimprovetheirabilitytomanagepublicfunds,deliverbetterservicetocitizens,

38MeetingwithPeopleSoftRepresentatives,December17,201339OraclePeopleSoftApplicationsOverview


streamlinethetaxcollectionprocess,ensuresafetyandsecurityofthecommunity,andsecurelymanagemobiledevicesanddelivercontent.4041

SAPisamarketleaderforlargebusinesses.TheStateofFloridafitsthisdescriptionasitoperatesabusinesswhichwouldcomfortablyplaceitamongsttheFortune500intheprivatesector.SAPisknownforhighqualityapplicationswhichcanbedeployedasanintegratedbundleormodularlywiththecapabilityoffutureintegrationofothermodules.Theirapplicationsholdanadvantageoverthecompetitionformanufacturingandmovementofgoods.Thetopsystemintegrators,includingIBM,Accenture,andDeloitte,allprovideSAPimplementationservices.

PennsylvaniawasoneofthefirststatestoundertakeastatewideSAPimplementationproject,havingmadethetransitionin2002.TheyusedBearingPoint,acquiredbyDeloitte,forintegrationservices.Upgradesprovideachallengeforthestateduetocustomizationsmadeearlyintheproject.NorthCarolinaalsousedBearingPointastheintegratorforitsSAPHR/Payrollsystemin2008.Aftersuccesswiththisproject,theyarepoisedtotransitiontheirfinancialmanagementfunctionstoaSAPsolution.4243

2.2.2.3 CGIADVANTAGE

CGIhasdevelopedtheirCGIAdvantagesolutionspecificallyforstateandlocalgovernments.ThisseparatesthemfromOracleandSAP,whotooktheapproachofmodifyingandexpandinganexistingcommercialsolution.CGIAdvantagetypicallyrequiresfewercustomizationsthansomeoftheothercommercialpackagesbecauseitwasdevelopedforthepublicsector.ThesystemhasspecialcapabilityforComprehensiveAnnualFinancialReporting(CAFR)andforkeepinginlinewiththeCashManagementImprovementAct(CMIA).4445

CGIalsoheavilypromotestheir“ManagedAdvantaged”software‐as‐a‐servicemodel,whichhasbeenselectedbyseveralstatesincludingAlaska,Colorado,andWyoming.46ThismodellessenstheburdenonstateITstaffforsystemmaintenancebyputtingitinthehandsofCGIandmakessystemcostsmorepredictable.CGIisasmallerplayerintheERPworldanddoesnothavethesameinstalledbaseasSAPorOracle.47

OnlyCGIperformsintegrationservicesforitsCGIAdvantagesoftware.Thus,bychoosingCGIsoftwareasthebest‐fitsoftware,aprocurementstrategyforservicesis,bydefault,alreadyin

40SAPforPublicSectorProductOverview41MeetingwithSAPRepresentatives,December11,201342InterviewconductedwithformerNorthCarolinaStateComptroller,December6,2013.43“StateofNorthCarolina:StandardizingtheProcessofDeliveringGovernmentServices,”August,2008.44CGIAdvantageERPOverview45MeetingwithCGIRepresentatives,December17,201346CGIAdvantageERPManagedAdvantageOverview47CGIManagedAdvantageOverview


place.Therearepositivesandnegativestothismodel.ProblemscouldariseiftheCGIteamisunabletosuccessfullycompleteanimplementationsincethereisnosecondarymarketofavailableintegrators.

SeveralstateshaverecentlyselectedorconfirmedCGIAdvantage.AlabamahasbeenoperatingwithlegacymainframeAMS(nowCGI)AdvantagesoftwareforcentralaccountingandHR/Payrollforthepast25years,andisintheprocessofamajorupgradewhichincludessignificantbusinessprocessre‐engineering.ByOctober2015,theyplanonhaving20stateagenciesliveonthenewsystem.Thetimelinecallsforallstateagenciestomakethistransitioninthenext5years.48ArizonahasalsoselectedCGIAdvantagesoftwareforstatewidefinancialmanagement.ThenewsystemwillintegratewiththeState’sexistinghumanresourcesinformationsystem.49

2.2.2.4 WORKDAY

OneothersolutionthathasbeenmakingheadwayintheERPmarketisWorkday,whichisarelativelynewplayerinthemarket,havingbeenfoundedin2005.WorkdayisuniquefromtheothermajorERPsoftwarevendorsinthattheyfullysubscribetothesoftware‐as‐a‐service(SaaS)modelwherethesoftwareishostedinthecloudandallparticipantssharethesameapplicationcode.TheirsolutionsforFinancialManagementandHumanCapitalManagement(HCM)areinplaceatover600companiesacrosstheprivateandpublicsectorswithapproximatelyhalfoftheseclientsimplementingtheir“fullplatform,”ofbothFinancialManagementandHumanCapitalManagementmodules.5051

BychoosingWorkday,anycustomerisfullycommittingtoaSaaSmodel,whichinherentlyhasadvantagesanddisadvantages.Workdaypridesitselfonitsabilitytokeepeverycustomeruptodateonitsmostcurrentversion,theeaseofsystemaccessonmobiledevices,andtheuser‐friendlinessofitsinterface.CustomizationsarenotpossibleundertheSaaSmodel,andanyuniqueneedsmustbemetthroughconfigurationoroutsideofthesystem.Theupgradeprocessislesspainfulthanitiswiththetraditionalsoftwareandsupportmodelastheyaremadeautomaticallywithoutthehindranceofcustomizations.Upgradecostsarebuiltintothesubscriptioncostoftheservice.

Thearrayoftop‐tiersystemintegratorsincludingAccenture,Deloitte,andIBMhavebeenbuildingtheirWorkdaypracticesoverthelastfewyears.MostofWorkday’spublicsectorcustomersareatthelocallevel.Theydidachieveonelarge‐scalestatecontractoftheirHCMsolutioninNebraskain2012.Itwasduringthisimplementationgovernment‐specificbusinessfeaturesweredeveloped.52Workday’sHCMsolutionwasalsorecentlyselectedfor

48AlabamaInterview,December20,2013.49CGIAdvantageERPProductOverview50WorkdayProductOverview51MeetingwithWorkdayrepresentativesconductedonFebruary5,2014.52DougHenschen,“WorkdayWinsMoreCustomersforCloudApps,”InformationWeek,August,1,2012.


theStateofMaryland.Todate,therehavenotbeenanyimplementationsofWorkday’sFinancialManagementsolutionatthestatelevel.

2.2.3 OTHERCONSIDERATIONS

Duringthemarketanalysisandcomparablestateinterviews,anumberofitemscameupwhichcouldhavesignificantimpactandneedtobeconsideredaspartofthesolutionanalysis.Eachoftheseitemsisdefinedinthissectionandassessedwithrespecttotheobjectivesofthestudyusingacombinationofindustryresearch,comparisonagainstthefinancialmanagementenvironmentofsimilarstates,andtheprofessionalexperienceoftheFLAIRStudyTeam.Thetopicscontainedwithinthissectionandtheirreasonforinclusionfollow:

UseofERPSoftware:BackgroundandconsiderationsrelatedtothistopicarecriticalincomparingtheFLAIRenhancementorreplacementoptionsincludedinproviso

OutsourcingofBusinessOperations:Asignificantindustrytrendistheoutsourcingofbusinessoperations(aswasintendedwiththeimplementationofthePeopleFirstproject)

OutsourcingofApplicationSupport:OnesignificanttrendidentifiedduringthestatemarketanalysisandwillhaveamaterialimpactonthefutureofFLAIRishowtheapplicationwillbesupported

SoftwareLicensing:Themodelforlicensingapplicationsoftwarecanhaveanimpactontheoverallfinancingandsupportoftheimplementedsystem

FundingModels:Fundingoftheinitialfinancialmanagementsystemimplementationandongoingapplicationmaintenanceandsupportisacriticalitemtoensuresuccessoftheproject

ImplementationCostDrivers:TheseitemswereidentifiedbytheFLAIRStudyTeamduringresearchincludingdiscussionswiththestatepeergroupandformthebasisforthecostmodelsdevelopedandpresentedlaterinthisChapter

2.2.3.1 USEOFINTERNALLYDEVELOPEDSOFTWAREVS.COMMERCIALOFFTHESHELFERPSOFTWARE

ThefirstfundamentalquestiontoaddressiswhetherFloridashoulddevelopitsnextgenerationoffinancialmanagementsoftwareinternallyorpurchaseandimplementacommercialofftheshelf(COTS)ERPsoftwarepackage.

Ifthestatechoosestodeveloptheapplicationinternally,itwillneedtodevelopandthenmaintainasignificantlevelofveryspecificskillsandcapabilitiesinthecreationandmaintenanceofapplicationsoftware.Inaddition,asthemarketchanges,DFSwillhavetocontinuetomakechangestokeepupsoastoavoidarepeatofthecurrentsituationwithFLAIR.

ThefollowingExhibitcontainsthebenefitsandtrade‐offsofcustomdevelopmentcomparedtothepurchaseofanERPsolution:


FACTOR DEVELOPINTERNALLY IMPLEMENTERP

Scalability53 Customdevelopedsolutionsaretypicallytailoredtothespecificneedofanorganizationandareoftenbuiltwithoutregardforscalabilityorfuturecustomizations.Therefore,theseapplicationstendtobelessscalablethantheirofftheshelfcounterparts.

Providersofofftheshelfsoftwaretypicallybuildittosupporttheneedsofmanyorganizationsofdifferentsizesandcomplexities–thereforetheirproductsinherentlysupportbothscalabilityandchange.

Stability54 Becausecustomdevelopedsolutionsaretailoredtoanorganization’sexactbusinessrequirements,theytendtobeextremelystablesolongasrequirementsdonotchange.

Customdevelopedsolutionstendtostruggleindynamicenvironmentsbecausechangesoftenrequireextensiveprogramminginsteadofminorconfiguration.

Supportinglargecustomdevelopmentsoftwaresystemscanbecomeachallengeinorganizationswherestaffturnoverishigh.

Unlessitisheavilycustomized,ERPsoftwareistypicallyverystable,havingbeenthoroughlytestedandusedbythousandsofcustomers.

Inmostcases,offtheshelfsoftwarevendorsprovidesupportandkeepbasetechnologycurrentaspartofanannualmaintenancecontract.

53ReferencestheflexibilityoftheidentifiedoptiontoadapttothechangingdemandsoftheState.54Referencestheimpactoftheidentifiedoptionontheoverallstabilityofthestate’ssystemsandbusinessprocesses.



Cost55 Forlargescalesystems,initialdevelopmentandimplementationcostscanbehigherthanthepurchaseofERPsoftwareastheStatewouldhavetodo100%ofthedesignanddevelopment,wherebypurchasinganERP,thedevelopmentcostsarespreadacrossallofthevendor’scustomers.

Longtermmaintenancecostsaretypicallyhigherforcustomdevelopedsolutionsbecauseorganizationswhichcustom‐buildsoftwaremustmaintaindeepsoftwaredevelopmentskillspostimplementationtosupportupgrades.

CurrentFLAIRsupportcostsarenotcomparabletosupportofamodernapplicationbecausetheFLAIRsystemhasnotbeenupdatedonaregularbasistokeepupwiththedemandsoftheState.

Forlarge‐scaleandcomplexapplications,itistypicallylessexpensivetobuysoftwarefromavendorwhocanaggregatethecostofdevelopmentacrossalloftheirclients.

WhenmaintaininganERP,thereisasupportcostwhichmustbepairedtothevendoreachyear,butthisistypicallyoffsetbylowerdevelopmentstaffcoststherebyprovidinggreaterstability.

55Therelativeimpactofeachoptiononthetotalcostofownership.



EaseofImplementation56

Customdevelopedsolutionsalloworganizationstocreatesoftwaretoexactlymatchabusinessprocess.Whereprocessesarestandardized,thiscanbealargebenefit,butinFlorida,wherethereislimitedstandardizationbetweentheagencies,thisdoesnotprovideabenefit.

CustomdevelopedsolutionstypicallytakesignificantlylongertodevelopandimplementthanERPalternativesbecauseeveryfunctioninthesystemhastobedesigned,developedandtested,takingsignificantnumbersofinternalandexternalresources.AcquiringthenecessaryresourcesmaybedifficultfortheState.

ERP softwarehasmanycommonprocessesbuiltinandcanbeusedasatemplatetohelpFloridaimproveoperations.

ERPsoftwareenforcesprocessstandardizationandrequiresprojectgovernancetofacilitatechangestobusinessprocesstominimizecustomdevelopmentforaneffectiveimplementationandsupportablesolution.

Shorterimplementationtobenefitsrealizationifproperlymanagedbecausesoftwareisconfigured,notcreatedfromscratch.

ReferenceStates None–allsurveyedstatesareeitheralreadyonERPsystemsoraremigratingfromcustomsystemstoERPforfinancialtransactionprocessing.

Alabama,Georgia,Ohio,Pennsylvania,NewYork,Texas,Virginia.

Exhibit2‐5:UseofERPSoftwareSummary

2.2.3.2 OUTSOURCINGOFBUSINESSOPERATIONS

Onesignificantopportunityfacingstatesandpublicsectorentitiestodayistheoptiontooutsourcesegmentsoftheiroperations.Traditionally,outsourcinghasbeendiscussedinthecontextofInformationTechnologysystems,butisnowalsooftendiscussedrelatedtospecificbusinessprocesses.Thedecisiontooutsourceabusinessprocessorfunctionisamixofstrategic,financial,andculturalconsiderations.

Processeswhicharegoodcandidatesforoutsourcingexhibitsomeofthefollowingcharacteristics:

Clearlydefinedserviceandmethodforengagingtheservice

Standard,repeatableprocesswhereclearmeasuresandmetricscanbeestablishedandtracked

56Therelativeimpactofeachoptionrelatedtocomplexityandsuccessfulabilitytodeploythesolution.


Theprocessbeingoutsourcedrequiresveryspecificskillsthataredifficulttomaintain

Notcoretothemissionoftheorganization

Managementoffinancialtransactions,data,andreportingisthecorebusinessandthedirectresponsibilityofDFS.OutsourcingthesecorefinancialprocessesdoesnotmeetthecriteriaaboveandwouldthereforenotbeagoodcandidatefordiscussionaspartoftheFLAIRassessment.

ThepayrollfunctioncurrentlyperformedbyDFSincludesagrosstonetpaycalculationanddatavalidationstepforinformationthatisoriginallyenteredandprocessedthroughtheState’sPeopleFirstsystem.DFSisthenresponsibleforsettlingthepayrollandwithholdingobligationsoftheState.Althoughthereareviableprivatesectoroptionsavailable,payrollisconsideredcoretothemissionofDFSandiscurrentlynotconsideredagoodcandidateforoutsourcing.

2.2.3.3 OUTSOURCEAPPLICATIONSUPPORT

Atrendhasbeendevelopingforyearsintheprivatesectortowardoutsourcingsupportofinformationtechnology.Intheinterviewswithcomparablestates,aroundhalfarecurrentlyoutsourcing,orareplanningtooutsource,someportionofthemanagementandsupportoftheirenterprisefinancialmanagementsystems.

Applicationsupportforanenterprisesystemtypicallyincludesarangeofactivitiessuchas:

Maintenanceofthehardwareandtechnicalinfrastructuretosupportthesystem

Maintenanceofthesoftware,ensuringitisavailableandworkingasdesigned

Managementandmaintenanceofupgradesandenhancementrequests

Managementofongoingknowledgeactivitiessuchassystemtraining

ThefollowingExhibitoutlinesthebenefitsandtrade‐offsofoutsourcingsystemsupportfunctions:

FACTOR OUTSOURCED INTERNALLYMANAGED

Scalability Anoutsourcedsolutionishighlyscalablebecausetheresponsibilityformanagingtheresourcesandcapabilitiesfallwiththecontractedprovider,minimizingtheimpacttothecustomer.Thestrengthofthecontractandcontractmanagerwillhaveadirectimpactontheabilitytomakechanges.

Dependingonjobmarketconditions,itmaybedifficultforpublicsectororganizationstoidentify,train,hireandretainskilledapplicationsupportspecialistsinternally,causingscalabilityissues.


FACTOR OUTSOURCED INTERNALLYMANAGED

Stability Astrongprocurementwhichresultsintherightvendormanagedbyastrongcontractwillprovideaverystablesupportenvironment.

Stabilityofthesupportenvironmentisbasedontheabilitiesandavailabilityofinternalstaffresources.

Cost Outsourcedapplicationsupportresourcestendtocostssignificantlymorethanusinginternalresources.

Outsourcedsupportcanbemorecosteffectiveforahighlyspecificskillneededonaninfrequentbasis(e.g.adatabaseadministratorwhoisneededonceperquarter.).

Internalresourcesareusuallysignificantlylessexpensivethanoutsourcedresources.

Specific,infrequentlyusedskillscanbemorecostlyanddifficulttomaintainwithemployeesrequiringsignificanttrainingandcertificationforinfrequentlyusedskills.

EaseofImplementation

Outsourcedapplicationsupportisamatureindustry,makingtransitioningtoathirdpartymanagedservicesproviderarelativelystraight‐forwardprocess.

Providingsupportinternallyrequiresactivemanagementofafullsupportorganization.

Dependingonjobmarketconditions,hiringskilledstafftosupportapplicationsinternallymaybechallenging.

ReferenceStates Virginia,Ohio,Alabama,Texas

(partial) Pennsylvania,Georgia,New

York

Exhibit2‐6:Outsourcedvs.InternallyManagedApplicationSupport

2.2.3.4 FUNDINGMODELS

Statewidefinancialmanagementapplicationsarecomplexandexpensivetoacquireandmaintain.Therearetwobasicmodelsforsystemfunding.Inone,thebudgetforthefinancialsystemisappropriatedbytheowningentity.Theotherisacharge‐backmodelwhereeithertheimplementationcostsoroperationsandmaintenanceofthesystem(orboth)areallocatedtotheparticipatingagenciesbasedonsystemusage.Inthismodel,eachagencyhastoincludesystemusageintheirannualbudgetrequest.

AgencyChargebackModels

Ofthestatesinterviewed,themajorityfundedtheirinitialimplementationthroughalegislativeappropriation,althoughVirginiaisfinancingtheirimplementationandrepayingthecostswithplannedassessmentsfromtheparticipatingagencies.Afterthesystemislive,themajorityofthestatesinterviewed,includingAlabama,Georgia,Ohio,Pennsylvania,andVirginia,plantooraresupportingtheirstatewidefinancialsystemthroughchargestoparticipatingagencies.

Themodelsforthechargebackofcostsvarybasedontheorganizationandoversight.Fromresearchwiththeinterviewedstates,theonesusingachargebackmodelsharedthefollowingcharacteristics:


Costsformanagingthesystemarespreadacrossparticipatingagenciesusingeitherachargebasedondirectusagewhereactualusageis‘billed’totheagencyafterthefact(costrecoverymodel),orabudgetaryassessmentcalculatedbasedonapreviousperiod’susage

HRcostsaretypicallyallocatedbasedonthenumberofemployeesasthisrepresentsthemostreadilyavailableconsistentmetric

Financialsystemcostsaretypicallyallocatedbasedonamixofthefollowingtwoelements:

o Numberofkeytransactionsperformedbytheagency(e.g.,JournalEntry,PO,APWarrant,etc.)

o Dollarspend,eitherinspecifictransactionsortotalbudgetfortheagency

Therearespecificbenefitsandchallengeswithimplementinganagencycharge‐backsystem.Multiplestates,includingVirginiahadtogetlegislationpassedtosupportchargingagenciesforuseofthestatewidesystem.Inaddition,whenchargingforfunctionalityandsupportthereisthepotentialfordiscordamongagencieswherethelargeragencieswithmorebudget(likeDOT)canhavemoreswayoverprojectscopedecisionsiftheyoffertodefraythecostsoftheadditionalfunctionality.Inaddition,thechargebackmodelcanbecomplexandrequiresignificantmaintenance.Oneofthemajorbenefitsofacharge‐backmodelisagencieshaveadirectcostforusingthesystem,andforanyupgradesimplemented,makingtheparticipatingagenciestakeamoreproactiveroleinmanagingsystemrequestsandonlyaskingfortrulyrequiredfunctionality.

DirectAppropriation

FloridacurrentlyusesadirectappropriationmodelwhereDFSreceivesfundingtosupportFLAIR.MyFloridaMarketPlaceisalsofundedthroughlegislativeappropriation.Oneofthebenefitsofthismodelisitisverysimpletoadministerandwouldnotrequireanychangesincurrentstatute.Inaddition,therewouldbenotransitionorlearningcurverequiredforthelegislatureortheagencies.

SomechangesinthecurrentappropriationmodelwouldbeextremelybeneficialforDFSandtheState.First,anongoingcommitmenttothesupportofFLAIRanditsassociatedcostscouldbeachieved.Onereasonthecurrentsystemhasstagnatedisalackofadequatefundingforongoingmaintenanceandupgradestokeepupwithtechnologyandtheneedsoftheagencies.Inaddition,becauseofthenatureofsoftwaresystemprojects,ifaprojectisdelayed,unspentfundsmayneedtoberetainedfromoneyeartothenext.

AlternateFundingOptions

Inadditiontoabudgetaryappropriation,therearealternatesourcesoffundingwhichmaybeavailabletoFloridatosupportdevelopmentormaintenanceofanimprovedFLAIRsystem.Eachoftheseoptionscomewithlimitationsandwouldrequiresignificantadditionalanalysis:


Externaltransactionfee–MFMPcurrentlychargesvendorsa1%feeforallsalesmadetotheState.ThismodelcouldpotentiallybeexpandedorenhancedtohelpsupportthepaymentprocessingandvalidationthatisperformedbyFLAIR.

Treasuryinterestcharges–interestonstatefundsiscurrentlyanincomesourceforTreasurywhichissubsequentlyprovidedtoagenciesasincome.Whilemodest,itmightbeanoptiontoapportionsomeofanyincreaseininterestincomeduetobettercashmanagementtofromanimprovedFLAIRandCMStosupportthenewFLAIRsystem.

2.2.3.5 LICENSINGMODELS

Therearetwoprimarymodelsforenterprisesoftwarelicensing,eitheraper‐useroranenterpriseor‘site’license.Aper‐userlicensecostisexactlyasitsounds,thesoftwarecompanychargesaspecificcostforeachuseraccessingthesystem.Thesecostsmaybefurtherrefinedbythefunctionaccessedbyanemployee(e.g.auserwhoisonlyusingreportingmaycostlessthanauserwhoisperformingaccountingtransactions).Anenterpriselicenseiswhereanorganizationpaysaflatamountandthereisthennoincrementalchargeperemployeeusingthesoftware.

Thepricingmodelissetbythesoftwarevendor.Thisanalysisispresentedtoinformtheoverallevaluation,butthelicensingmodelwillbedrivenbythesoftwarevendorchosen,asopposedtobeingaprimarychoiceDFSandthestatewillmake.

ThefollowingExhibitoutlinesacomparisonbetweenperuserandenterprisesoftwarelicenses.

FACTOR PERUSER ENTERPRISE

Scalability CostandusageofthesoftwareisdirectlyscalabletothenumberofemployeesusingthesystemwheretheStatewouldpayanincrementalamountforeachuseraccessingthesystem

Softwarecostisfixedanddoesnotchangewiththenumberofusersorvolume

Stability Notapplicabletothisanalysis NotapplicabletothisanalysisCost Thecostcomparisonforthelicensingmodelmustbeaddressedaspartof

theprocurementprocessaseitheroptioncouldendupmorebeneficialtotheStatedependingonthenumberofusers,howthevendorsetsupthesystemcost(enterprisewide,byfunction,etc.)andtheactualcostforeachmodel

EaseofImplementation

Wherethereisahighcosttousethesystem,employeeswithminimalneedsmaybekeptoutofthesystem,leadingtoofflineprocesses

Becausethereisnoincrementalcost,employeescanbeencouragedtousethesystemforanypossiblefunction

Exhibit2‐7:LicensingModelSummary


2.2.3.6 PROJECTGOVERNANCEMODELCONSIDERATIONS

ProperprojectgovernancewillbecriticaltothesuccessoftheimplementationandtheStatereceivingtheexpectedbenefitsfromthisproject.Thereareseveralinterrelatedelementstobeaddressed.Anoverviewoftheseelementsispresentedinthissection,withaspecificrecommendationpresentedinChapter3ofthisstudy.Thefollowingelementswerepresentinsomecapacityineachoftheinterviewedstatesaswellasourresearch:

ExecutiveCommitment–Asystemandprojectwhichhasstatewideimpactmusthavetheactivesupportofthehighestlevelofinvolvedpartiestosetpolicy,supportdecisionmaking,andprovideresources.Eachreferencehadoneormultipleexecutivesponsorstodrivetheproject.Forexample,inNewYork,therewereco‐sponsorsfromtheDivisionofBudget(ExecutiveBranch)andtheComptrollertofacilitatethenecessarycoordinationbetweentransactionentry,audit,andpaymentapproval.OtherstatesincludingAlabama,Georgia,Pennsylvania,andVirginia,hadcabinetlevelmembersontheexecutivesteeringcommittee.

InvolvementbyAllImpactedParties–Whilesystemsaretypicallyownedbyonecentralcontrolagency,allstateagencieswhousethesystemshouldhaveactiveinputintothedecisionmakingprocessforthescopeofthesystem,priorityofenhancementsandupgrades,andtherolloutprocessandtimingforanychanges.Inmanyofthestatesinterviewedincluding,Alabama,Georgia,NewYork,Pennsylvania,andVirginia,agencyrepresentativeshaddirectseatsontheprojectsteeringcommitteeduringtheimplementation.

Multi‐LevelStructure–Becauseanenterprisesystemhasmanyfacetsapplicabletoeithersmallgroupsofusers,ormayimpactallemployeesacrosstheState,successfulgovernancewillhavedecisionsthataremadeattherightlevel.Followingarethekeylevelsforthegovernancestructure:

o Executive–Establishingandenforcingtheoverallvisionoftheproject,makingoverallpolicydecisionsandresolvingissuesbetweenjurisdictionsarecriticalelementsandifnotperformedinanefficientmannercanhavesignificantnegativeimpactsonaprojectasbroadasthereplacementofthestatewidefinancialsystem.

o Project–Fromtheinitiationoftheprojectuntiltransitiontosteady‐statesupport,afocusedprojectgovernanceteamwillmakeprojectresource,scope,budget,andtimelinedecisionsalongwithaddressingandresolvingprojectissues.Thislevelofgovernanceiswhatistypicallyreferredtoasthe‘steeringcommittee’andwaspresentineachoftheinterviewedstateprojects.

o Functional–Duringandaftertheimplementation,manyofthedecisionsrequiredbytheprojectarerelatedtohowspecificbusinessfunctionsareperformedacrossthestate.Anexampleofafunctionalgovernanceteamwouldbeastatewideaccountspayableworkinggroupwhoproviderecommendationsandinputtotheprojectsteeringcommitteeonwhatdatashouldbeinavendorfile,orhowtorecordandmanagevendorpaymentterms.ManyofthestatesincludingAlabama,NewYork,Pennsylvania,andTexascreatedandusedfunctionalgroupsduringandafterimplementation.


2.2.3.7 TECHNOLOGYSOLUTIONCOSTDRIVERS

Therearemanyindividualcostelementswhichhaveanimpactontheoverallcostofanenterprisefinancialmanagementsystem.Generally,theseindividualcostelementsarecombinedintothefollowingthreecategories:

RequiredPurchases:Thesecostsincludealltheup‐frontitemswhichmustbepurchasedtoenhanceanexistingsystemordeployanewone.Thisincludessoftwarelicenses,computerhardwareanddatacenterfacilitiesandequipmentaswellasanyinfrastructuretechnologysystemsrequiredtosupportthenewsystem(e.g.,DirectoryServices,SecurityServices,etc.).

Implementation:Thesecostsincludethein‐houseandcontractedlaborrequiredtodeployanewenterprisesystem.Majorcostcomponentsincluderequirementsdevelopment,projectoversight,softwareinstallationandconfiguration,softwaredevelopment,systemintegration,reportdevelopment,dataconversion,testingandqualityassurance,processre‐design,organizationalchangemanagement,projectteamtraining,andendusertraining.

OperationsandMaintenance:Thesecostsincludealllaborandmaterialsrequiredtosupporttheenterprisesystemoverthecourseofitsfulllifecycle.Majorcomponentsofthiscategoryincludesoftwaremaintenance,productionsupportandtraining,softwaredevelopment,plannedfutureupgrades,processimprovements,changemanagementrelatedtoupgrades,infrastructuresupport,systemadministration,ongoinghardware,datacenterfacilities,andotherequipmentmaintenancecosts.

2.3 COSTBENEFITANALYSIS

TheStateofFloridaneedstoaddresstheshortcomingsofitsexistingfinancialmanagementsystemasoutlinedwithinChapter1,andsection2.1ofthisChapter.Thissectionofthestudydescribeseachoptionindetail,providingalistofexpectedbenefitsandidentifyingtheadvantagesanddisadvantagesofeachsolution.

2.3.1 MINIMUMCAPABILITIESOFANEWFINANCIALSYSTEM

ToproperlyevaluatethesolutionsavailabletotheStateforimprovingitsfinancialmanagementsystem,theFLAIRStudyTeamdefinedaminimumsetofcapabilitieseachoptionmustfulfillbaseduponthefollowingcriteria:

ThemissionoftheCFOandotherexistingstatutes

ThelimitationstofinancialmanagementposedbythecurrentFLAIRsystem

TheState’sguidingprinciples,goals,andobjectivesforanewsolutionforfinancialmanagement

ResearchintohowFloridaAgencies,otherstatesandthesoftwaremarkethaverespondedtothechallengescausedbyFLAIR’scurrentlimitations


TheExhibitbelowcontainsthelistofminimumcapabilitiesidentifiedtomeettherequirementsoffinancialmanagementwithinFlorida.AdditionaldetailregardingeachcapabilityiscontainedinAppendixSection2.5.4.

LEGEND: Theshadingofthestarsdescribestherelativesupportandlevelofjustificationforincludingtheenumerateditemasaminimumcapability.

‐High ‐Medium ‐Low


MINIMUMCAPABILITIES

JUSTIFICATIONFORINCLUSION

MISSIONOFTHECFO,EXISTINGSTATUTE

OROTHERPOLICY

LIMITATIONSOFEXISTINGSYSTEM

GUIDINGPRINCIPLES,GOALSAND

OBJECTIVES

AGENCYRESEARCH

STATERESEARCH

MARKETRESEARCH

1. Singlesystemofrecordforstatewidefinancialtransactionsandcashbalances

2. GeneralLedger(G/L)

3. AccountsPayable(A/P)

4. BasicAccountsReceivable(A/R)

5. BankReconciliation

6. PayrollCalculation,VerificationandPayment

7. BudgetandEncumbranceManagement

8. Real‐timeornearreal‐timetransactionprocessing

9. Warrantspaidfrommultiple accountcombinations

10. Electronicworkflowandrouting

11. Effectivedatingoftransactions

12. Supportforindustrystandardcommunication/systemintegrationprotocols

13. Useofmodernprogramminglanguagesanddatabasetechnologies

14. Multipleenvironmentstosupporttestingandmigration

15. Minimizeoreliminateuseofthemainframeandtakeadvantageofamulti‐tierapplicationarchitecture

16. Flexibledatabasearchitecturethatsupportsmultiplefields


MINIMUMCAPABILITIES

JUSTIFICATIONFORINCLUSION

MISSIONOFTHECFO,EXISTINGSTATUTE

OROTHERPOLICY

LIMITATIONSOFEXISTINGSYSTEM

GUIDINGPRINCIPLES,GOALSAND

OBJECTIVES

AGENCYRESEARCH

STATERESEARCH

MARKETRESEARCH

17. Abilitytoreportonastandardizedsetofdata

18. Storageofdevelopedqueries,views,andreports

19. Modernsetofreportingtoolsforexportandanalysisofdata

20. Self‐servicereporting

21. Asset,Project,ContractandGrantsAccounting

22. Modern,user‐friendlyinterfaces

23. Electronicdocumentstorageandattachments

24. DirectinterfacewithproductivitytoolssuchasMicrosoftExcel

Exhibit2‐8:MinimumRequiredSystemCapabilitiesandJustificationforInclusion

2.3.2 EXPECTEDBENEFITS

ImplementingafinancialmanagementsystemwiththecapabilitiesdescribedintheExhibitabovewilldelivernumerousbenefitstotheState.Keybenefitscanbegroupedinoneofthreecategories;reductionofrisk,operationalimprovements,orimproveddecisionmaking.

ReductionofRisk

Bymodernizingitsfinancialmanagementsystem,theStatewillsignificantlyreduceriskswhicharepresentduetobothFLAIR’sageandtheunderlyingtechnologywhichsupportsit.Specificareasofriskreductioninclude:

Riskofacatastrophicsystemfailurewouldbesignificantlyreducedbymovingtoaneworenhancedsystem


Systemsupportandmaintenancechallengeswouldbesignificantlyreducedbecausemovingtoamoderntechnologyplatform/ERPsolutionwouldmakeidentifyingandretainingskilledtechnicalstaffmucheasier

Riskandinstabilityresultingfromalackofdocumentationwithinthecurrentsystemwouldberesolvedduringtheimplementationofthenewsystem

BusinessrisksassociatedwiththelackofflexibilityandscalabilityofthecurrentsystemwillbereducedoreliminatedbyenhancingorreplacingFLAIRwithamodernsystem

OperationalImprovements

Amodernizedfinancialmanagementsystemwilldelivernumerous,materialbenefitsthatwillimprovetheefficiencyandeffectivenessoffinancialmanagement.Specificexamplesinclude:

Encumbrancesareinterfacedfromexternalsystemsandtraceableonallpayabletransactions

FLAIRusesasinglecommondatabaseremovingtheneedforthecurrentintegrationandreconciliationbetweenCentralandDepartmentalFLAIR

Inter‐agencytransfersandeliminationsareautomaticallyprocessedandbalanced

Warrantscanbepaidfromanyaccountcombinationentered

Thenewsystemsupportstheconsolidationandschedulingofpaymentsbasedonduedatesandpaymentterms

Anaccountsreceivablesystemthatsupportstrackingandreportingofmoniesowedtothestate

CMScheckreconciliationandcashavailabilityfunctionssharedatawithFLAIRtransactionsremovingtheneedtoreconcilethem

Thestatemaintainstwocashbalances(bookinthenewsystem),andthebankbalance,reducingthetimespentoncashreconciliation

Thesystemmaintainseffectivedatesfordataandtransactions

Thesystemsupportsworkflowprocessingandelectronicdocumentmanagement

Systemsupportresourceshaveacommonskillsetandcanbeeasilyrecruitedorcontractedfrommultiplesources

Thenewsystemincorporatesstandardfunctionalitytosupportbarcodereadingandmoreefficientinventoryprocessing

Standardfunctionalitysupportsbasictrackingandaccountingforassets,grants,projects,andcontracts

ImprovedDecisionMaking

Thenewsystemwilloffersignificantlyimprovedreportingcapabilitiesonceoperationalized,whichwillallowtheStatetomakebetterfinancialdecisions.Specificexamplesinclude:


FinancialsystemdatawillbeavailablethroughqueriesfromtheinformationwarehousereducingtheneedforMSAccessandExcelforpreparationoftheFinancialStatements(e.g.,CAFR)andmanagementreports

Agingofaccountspayableandaccountsreceivableaswellasothercashforecastingreportswillbeavailabledirectlyfromthesystem

Accountingtransactionsarecapturedataconsistentlevelofdetailacrossthestate,leadingtobetterreporting

Dataandreportingtoolsareavailabletosupportstatewidereportingofkeymetrics(e.g.,vendorandcategoryspend)

BusinessuserscancreateandrunadhocreportsandqueriesasneededwithoutITresourceassistance

Applicationmaintainsaflexible,standardizedChartofAccounts(CoA)structuresupportingstatewidereportingwhilegivingagenciestheabilitytocategorizeexpensesatalowerlevelofdetailasneeded

Agenciescanforecastfinancialperformancethroughouttheyear(e.g.,“whatif”analysis)

2.3.3 OPTIONDESCRIPTIONS

The2013GAAProvisolanguagefortheFLAIRStudyprojectincludedrequirementstoevaluatethefollowingsolutionsastohowbesttheywouldaddresstheissuesidentifiedearlierinthisChapter:


ThecommercialsoftwaremarketcommonlylabelssoftwarewhichcanperformthefunctionsrequiredbytheStateasEnterpriseResourcePlanning(ERP)software.ERPisbusinessprocessmanagementsoftwarethatallowsanorganizationtouseasystemofintegratedapplicationstomanagethebusinessandautomatebackofficefunctions.CommontoallERPsystemsarecorefinancialtransactions(generalledger,accountspayable,accountsreceivable,assetaccounting),andbasicprocurement(purchasing,contracts,andreceiving).ERPsystemsalsoincludeadditionalfunctionssuchasprojectandgrantstracking,humanresources,andpayroll.Tobeconsistentwithstandardindustrydefinition,thetermERPisusedwhenreviewingtheoptionstoreplaceFLAIR.

AsummaryofthesystemcomponentsandfunctionalitywhichwillbeaddressedineachoptionisincludedintheExhibitbelowalongwithanindicationofwhetherfunctionalityisCoreandthereforeincludedfortheoption,consideredExpanded,andwouldbeincludedin


Phase2oftheimplementationorInterfaced57fortheoptionbecausetheexistingsystemswilladdressthoseneeds.TheExhibitbelowoutlinestheincludedfunctionsforeachofthefouroptionsconsidered.

OPTIONSCONSIDERED

FUNCTION

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST

BudgetLedger Core Core Core CoreCashLedger Core Core Core CoreAccountsReceivable Core Core Core CoreAccountsPayable Core Core Core CoreW9 Core Core Core CoreEFT Core Core Core Core1099 Core Core Core CoreWarrants Core Core Core CoreGeneralLedger Core Core Core CoreProjectAccounting Core Core Core CoreAssetAccounting Core Core Core CoreGrantsAccounting Core Core Core CoreInformationWarehouse/Reporting Core Core Core CorePayroll Core Core Core CoreGrantsManagement Expanded Expanded Expanded ExpandedContractManagement Expanded Expanded Expanded ExpandedProjectManagement Expanded Expanded Expanded ExpandedAssetManagement Expanded Expanded Expanded ExpandedCMS:Receipts Interfaced Interfaced Core CoreCMS:Verifies Interfaced Interfaced Core CoreCMS:Chargebacks Interfaced Interfaced Core CoreCMS:TrustFundAccounting Interfaced Interfaced Core CoreCMS:InvestmentAccounting Interfaced Interfaced Core CoreCMS:Disinvestments Interfaced Interfaced Core CoreCMS:BankAccounting Interfaced Interfaced Core CoreCMS:StateAccounts Interfaced Interfaced Core CoreCMS:CRA Interfaced Interfaced Core CoreCMS:AgencyRepository(DocMgmt.) Interfaced Interfaced Core Core

57Interfacedreferstoboththeelectronicandmanualmovementofdatabetweensystems.


OPTIONSCONSIDERED

FUNCTION

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST

CMS:WarrantProcessing Interfaced Interfaced Core CoreCMS:Investments(Trading)58 Interfaced Interfaced Interfaced InterfacedCMS:SPIA59 Interfaced Interfaced Interfaced InterfacedCMS:Archive60 Interfaced Interfaced Interfaced InterfacedMFMP:Purchasing Interfaced Interfaced Interfaced CoreMFMP:Receiving Interfaced Interfaced Interfaced CorePeopleFirst:HumanResources Interfaced Interfaced Interfaced CoreLAS/PBS:Budgeting Interfaced Interfaced Interfaced InterfacedFACTS:GrantsAdministration Expanded Expanded Expanded ExpandedFACTS:ContractAdministration Expanded Expanded Expanded ExpandedAgencyBusinessSystems61 Interfaced Interfaced Interfaced Interfaced

Exhibit2‐9:SystemFunctionComparisonbyOption

Eachofthefouroptionsisdescribedindetailincludingthefollowingelements:

Anoverviewofthesolutionincludingafuturestatesystemdiagramandalistofincludedfunctions

Ahigh‐levelimplementationtimelineincludingdescriptionsofthemajorphases

Ayear‐by‐yearbreakdownoftheexpectedcostsassociatedwiththesolution

Asummaryofresourcesrequiredforimplementation

Alistofadvantagesanddisadvantages

58Investmentmanagement(trading)functionalityisnotstandardtoERPsoftwareandisnotrecommendedforinclusion;however,accountingforinvestmentswouldbeincludedintheERPtoprovideastatewideviewoffinancialaccounting.59SpecialPurposeInvestmentAccount(SPIA)transactionsandaccountmanagementfunctionalityisnotstandardtoERPsoftwareandisthereforenotrecommendedforinclusion;however,accountingforinvestmentswouldbeincludedintheERPtoprovideastatewideviewoffinancialaccounting.60TheCMSarchivewouldremainonCMS,alltransactionsprocessedinthenewsystemwouldbeavailablefromthenewsystemforreportingorreview.61Whilereplacingagencybusinesssystemsisnotspecificallywithinthescopeofthisproject,itisexpectedthatwithadditionalfunctionalityinFLAIR,certainagencysystemswouldbecomeobsolete(orredundant).


2.3.3.1 OPTION1:ENHANCEFLAIR

Ascurrentlyconstructed,FLAIRdoesnotmeettheminimumsetofcapabilitiesrequiredformanagingFlorida’sfinancesassupportedintheprevioussection(seeExhibit2‐8).EnhancingthecurrentsystemratherthanreplacingitwithpackagedERPsoftwareisthefirstoptiontoconsider.

TheExhibitbelowcontainsananalysisofthescopeoftheenhancementtoFLAIRrequiredtosupportaselectionoftheminimumcapabilitiesdefinedintheprevioussectionofthisChapter.Thesecapabilitieswereselectedforillustrativepurposesduetotheirrelativeimportanceandoverallimpactonthescopeoftherequiredenhancements.

SELECTIONSFROMMINIMUMSETOFCAPABILITIES(EXHIBIT2.8) IMPACTONENHANCEMENTSCOPE

1 Singlesystemofrecordforstatewidefinancialtransactions

Asinglesystemofrecordforstatewidefinancialtransactionsdoesnotexisttoday.

Toestablishasinglesystemofrecordforstatewidefinancialtransactions,corecomponentsofCentralFLAIR(cashledger)andDepartmentalFLAIR(generalledgerforAgencies)willneedtobecombined.

ThisconsolidationofCentralandDepartmentalFLAIRrepresentsafundamentalchangetoarchitectureoftheexistingsystem.Implementingthischangewouldrequirenearlyallsystemcomponentsandinterfacestoberewritten.

8 Real‐timeornear‐realtimetransactionprocessing

FLAIRascurrentlyconstructedisabatchbasedsystemwhichdoesnotsupportreal‐timetransactionprocessing.Whilebatchbasedfinancialsystemsdostillwidelyexistinboththepublicandprivatesector,theycanintroduceprocessingdelaysifinformationmustbemovedbetweenmultiplesystemsorsystemcomponentstocompleteatransaction.

Forexample,inFLAIR,asimplefundstransfertransactioncantakeasmanyasfivedaystoprocessduetoaday‐longdelayeachtimeinformationis“batched”andtransferredbetweenCMS,CentralFLAIR,DepartmentalFLAIRandagencysystems.

Addingreal‐timeprocessingcapabilitiestoFLAIRisafundamentalchangerequiringnearlyallcoreprocessingmodulesandsub‐componentsofthesystemtoberewritten.

10 Electronicworkflow FLAIRdoesnotsupportelectronicworkflowcapabilitiesorautomation.Thislackofautomationsignificantlyreducesoperationalefficiencies.

Addingelectronicworkflowcapabilitiestoasystemwhichdoesnotinherentlysupportitwouldrequiresignificantre‐work.

ToaddworkflowcapabilitiestoFLAIR,allcoremodulesofthesystemwouldneedtoberewrittentoincludethiscapabilityandinterfacestoallothersystemswouldneedtobeupdated.



11 Effectivedatingoftransactions FLAIRdoesnotinherentlysupporttheabilitytoprovideaneffectivedateforeachtransactionposted.

Withouteffectivedatingoftransactions,significantoperationalinefficienciesareintroducedwhentryingtoproduceaccuratereports,astediousmanualadjustmentsarenecessary.

Whileaddingtheabilitytoeffectivelydatetransactionswouldnotnormallyrequireasignificantupgradetoamodernfinancialsystem,FLAIR’slimitationsmakeaddingthiscapabilityallbutimpossiblewithoutupdatingthedatamodelandexpandingthenumberoffieldsavailableforeachtransaction.Thesetwoactivitieswouldessentiallyconstitutearewriteoftheentiresystem.

17 Flexibledatabasearchitecturewhichsupportsmultiplefields

FLAIRcurrentlyrunsfromanon‐relationaldatabasewithlimitedfields.

AddingadditionaldatafieldsforaprocessentailsmakingchangestotheunderlyingarchitectureofFLAIRwhichwouldmandatechangestoeveryfunctionandsub‐componentreferencingthedataelement.

24 Modern,user‐friendlyinterfaces UsersinteractwithFLAIRtodayusingtextbasedTN3270/5250connectionswhicharetypicalofmainframebasedapplications.

Thecurrentuserinterfaceisfunctional,butisnotuserfriendlyandcanbechallengingforanewusertolearncomparedtoawindowsorwebbasedinterface.

Onesolutiontothisproblemistointroduceamodernweb‐basedfront‐endtoFLAIR,externaltothecoresystem,throughwhichemployeeswouldinteractwiththesystem.

Whileaddressingthiscapabilitywithaweb‐frontendwouldnotrequireFLAIRtoberewrittenitwouldstillrequireamulti‐yearefforttoimplementandwouldnotaddressanyoftheothercoreissuesinherentwithinthesystem.



13 Useofmodernprogramminglanguagesanddatabasetechnologies

Theexistingsystemiswrittenontopofagingtechnologyplatformswhicharenolongerwidelyused(Natural/ADABAS).Inonestudy,Naturaldoesnotrankwithinthetop50programminglanguagesutilizedandaccountsforlessthan0.2%popularityoftheallprogramminglanguagesmonitored.62

Inadditiontointroducingfunctionalandtechnicallimitations,thetechnologyplatformsonwhichFLAIRhasbeendevelopedmakeidentifyingandretainingstaffchallenging.

Movingtomoremoderntechnologyplatformswillnecessarilyrequireafullsystemrewrite.

WhiletoolsareavailableinthemarketplacewhichcanspeedtheprocessoftransitioningfromNatural/ADABAStomoremoderndatabase/programminglanguages,therearesignificantdrawbackstothisapproach:

o Toolstoautomateplatformconversionarenotinexpensiveandcanintroducesignificantrisks.

o Whileconversiontoolscandecreaseimplementationtimes,deployingFLAIRonanewtechnologyplatformusingthesetoolswillstillrequireasignificant,multi‐yeareffort.

WhilemodernizingthetechnologyplatformssupportingFLAIRwouldhelpreducetheriskofacatastrophicsystemfailureandwouldalleviatesomeofthestaffingchallengescurrentlyfacedbyDFS,itwouldnotaddressotherkeyrequirementsofanewsystem(ex:creatingasinglesystemofrecordforstatefinancialtransactions,providingelectronicworkflow,introducingreal‐timeprocessingcapabilities,etc.).

Exhibit2‐10:ImpactofMinimumCapabilitiesonEnhancingFLAIR

TheanalysisclearlyshowsenhancingFLAIRinawaywhichaddressesallofFlorida’srequiredcapabilitiesforanewfinancialmanagementsystemwillrequiretheentiresystemberewritten.Thisincludesnotonlyanupdateofthetechnologyplatformsanduserinterfacesbutalsoaredesignoftheunderlyingsystemarchitecture,consolidationofCentralandDepartmentalFLAIR,andupdateofthedatamodel.

RewritingFLAIRwillrequireasignificantlylargerinvestmentthanprovidingincrementalenhancementstotheexistingsystem–butwithoutperformingthisrewrite,itisnotpossiblefortheStateofFloridatoaddressallofitsrequiredfinancialmanagementcapabilities.

62Source:TIOBEProgrammingCommunityIndexforNovember2013.


ThefollowingpagescontainadescriptionoftheeffortrequiredtorewriteFLAIR,includinganestimatedprojecttimelineandananalysisofcostsandrequiredresources.

SolutionOverview

TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolutionwithin‐scopecomponentshighlightedingreyandoutlinedwithaboldredline.KeycharacteristicsofthissolutionincludetheconsolidationofexistingCentralandDepartmentalFLAIRintoasingleplatform,referredtobelowasNewFLAIR.

Exhibit2‐11:Option1:EnhanceFLAIRScopeIllustration

ImplementationTimeline

ThefollowingExhibitshowsatimelineandahigh‐levelimplementationplanforrewritingFLAIR.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthefollowingpages.DetailedassumptionssurroundingthisapproachcanbefoundinAttachment1tothisstudy.

Pleasenotethekeymilestoneshavebeenannotatedwithcallouts.


Exhibit2‐12:Option1Timeline63

Pre‐DDI:Beforeanysoftwaredevelopmentcanbegin,asignificantamountofpre‐implementationworkmustoccur.Specifictasksinthepre‐design,development,andimplementation(DDI)phaseincludebusinessprocessre‐engineering,establishmentofprojectgovernancestructures,andorganizationalchangemanagementactivities.Inaddition,asignificantstrategicplanningeffortaroundinformationtechnologywillneedtooccurincludingtheselectionoffuturestatetechnologyplatformsandplanningforthetransformationofthetechnologyorganization.

Anumberofprocurementswillalsoneedtooccurtosupportthisphase–bothforacquisitionoftheselectedtechnologyplatformsaswellasforasoftwaredeveloper/systemintegratorwhowillassistwiththedevelopment.

63TheResourceBreakdownintheExhibitprovidestheexpectedtotalannuallaboreffortforeachyear.Duetotimingofresourceneed,skills,andotherfactors,actualstaffingmayvary.

Pre‐DDI

Planning,Re‐engineering,andProcurement

Design

Build/Test

FFMISSystemIntegration

PilotandSystemUpdates

NewFLAIRRollout

Design

Build/Test

PilotandUpdates

RollOut

Design

Build/Test

PilotandUpdates

RollOut

InformationWarehouseRedesign

InformationWarehouseImplementation

SupportExistingFLAIR

SupportNewFLAIR

ImplementationMaintenanceCosts‐ExistingFLAIRMaintenanceCosts‐NewFLAIR

ImplementationTotalSupportTeam

$23,866 $33,446$9,044 $44 $44 $6,171

$0 $0

$55,697 $23,143 $4,561 $7,143

$18,446 $18,723 $19,004 $19,289 $19,578 $19,872 $5,062

$35,663 $40,568 $46,088 $60,727 $56,652

184 93 38 47142 159 179 218 18449 87 86 140 142

$7,581

$16,870

$0

32

$44$0 $1,544 $44 $44

$34,347 $35,149

$17,123 $17,380 $17,641 $17,905 $18,174

$11,216 $28,324 $20,576

165 295 311 165 165 165165 165 165 165 226165 165 165 165

CostBreakdown(inthousands)

ResourceEffortBreakdown

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19Activities

$22,412 $16,374 $18,452

DDIPhase1:Re‐WriteFLAIR(CentralandDepartmental)

DDIPhase3:Payroll

DDIPhase5:InformationWarehouse

OperationsandMaintenance

DDIPhase4:AdditionalFunctionality

DDIPhase2:AgencyOnboarding

LegacyFLAIRRetired

LegacyPayrollRetired

ArchitectureandSISelected

People FirstContractExpires MFMPContractExpires


AlsoduringPre‐DDI,theprojectteamwillworkcloselywithDMStoevaluatethebestplatformandoptionforreplacementofFLAIRpayroll.ThisevaluationwillcorrespondwiththerenewalofthecurrentPeopleFirstcontract.

DDIPhase1:RewriteFLAIR:Thisactivitywillconsistof3rdpartyandStateresourcesworkingtogethertoredesignanddevelopanewfinancialmanagementsystemfortheState.ThisactivitywillreplicatethefunctionalityofexistingCentralandDepartmentalFLAIRwithanumberofkeyenhancementsincluding:

o ConsolidationofexistingCentralandDepartmentalFLAIRfunctionalitytocreateasinglesystemofrecordforstatewidetransactionsandcashbalances

o Standardizationofdatasetstoallowforbetterreportingandimproveddecisionmaking

o Useofmoderntechnologyplatforms,programminglanguagesanddatabases

o AllotherfunctionslistedintheminimumsetofcapabilitiesatthebeginningofthisChapter

DuringthisphaseoftheprojectsignificanteffortswillbeundertakentointegratethenewfinancialmanagementsystemwithotherFFMISsystems,includingtheexistingMFMP,PeopleFirst,CMS,LAS/PBS,andtheexistingFLAIR.

DDIPhase2:AgencyOnboarding:Toensuresuccessfuldeploymentandacceptanceofthenewsystem,agencieswillbemigratedtothenewsysteminphasesoveratwoandahalfyearperiod(followingan18monthpilotwithoneortwoagencies,includingDFS).Specificagencieswhowillbebroughtonlineduringeachphaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,willingnesstosupportmigrationtothenewsystem,andneed.

DDIPhase3:Payroll:Oncethecorefunctionalityforthenewsystemhasbeendeveloped,existingpayrollprocesseswillberedevelopedtotakeadvantageofthecapabilitiesofthenewsystem.Specificimprovementscouldinclude:

o Abilitytoapplypayrolltransactionsdirectlytodepartmentaccounts

o Abilitytosourcepayrolltransactionsfrommultiplefunds

o Redevelopmentofthepayrollcalculationsystem,includinganevaluationofPeopleFirstasanalternativesolutionforthisfunction

DDIPhase4:AdditionalFunctionality:Oncecoresystemfunctionalityhasbeendevelopedandtherollouttostateagencieshasbegun,thefocuswillshifttothedevelopmentofadditionalfunctionalitybuildinguponandfurtherimprovingtheState’sfinancialmanagementcapabilities.Specificfunctionalitydevelopedwillinclude:

o Grantmanagement

o Assetmanagement

o Projectmanagement

o Contractmanagement


Itisimportanttonotewhiledevelopmentoftheseadditionalcapabilitieswillbewellunderwayatthecloseofthe15yearanalysiswindow,itisnotexpectedtobeavailabletorollouttotheagencieswithinthe15years.

DDIPhase5:InformationWarehouse(IW):AkeypartoftheenhancementofFLAIRwillberedesigningtheIW.ThenewIWwilltakeadvantageofthecapabilitiesofthenewsystemtoprovideadvancedreportingcapabilitiestoagencyusersandimprovetheirdecisionmakingcapabilities.Keytasksinthisphasewillinclude:

o Workingwithbusinessoperationsteamstostandardizedatadefinitionssoimprovementscanbemadetothedatawarehouseandreportingfunctions

o Deployadditionalanalyticcapabilitiestotakeadvantageofnewdatacomingintothesystem.Thismayrequiretheprocurementofadditionalthirdpartysoftwareandtools

OperationsandMaintenance:ThecurrentFLAIRsystemwillneedtobemaintaineduntilithasbeendecommissioned.ThenewFLAIRsolutionwillneedsupportandmaintenancebeginningpartwaythroughtheimplementation,thuscreatingaperiodwherethereismaintenanceandsupportrequiredforbothsystems.

CostBreakdown

Basedontheimplementationtimelinedefinedabove,theestimatedcostsforrewritingFLAIRareoutlinedintheExhibitbelow.DetailedinformationonthederivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.

COSTCATEGORY AMOUNT(MILLIONS)

ImplementationCost $467.4ExistingFLAIRSupportCosts $225.1NewFLAIRSupportCosts $131.5SolutionTotalCostofOwnership $824.0

Exhibit2‐13:Option1SummaryCosts

InExhibit2‐13above,thesolutiontotalcostofownershipisthesumofthefollowingcomponents:

ImplementationCost:Internal(employeetime)andexternal(contractors/purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR

NewFLAIRSupportCost:ExpensesassociatedwithsupportingthenewFLAIRsolutionduringandafteritsimplementation

ExistingFLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriortoitsretirement

AnannualbreakdownofinformationisrepresentedgraphicallyinthefollowingExhibit:


Exhibit2‐14:Option115YearCostSummary64

ResourceBreakdown

RewritingFLAIRisnotatrivialtaskandwillrequireasignificantnumberofinternalandexternalresourcestoexecutesuccessfully.TheExhibitbelowestimatesthetotalworkeffortinannualequivalentsforinternalandexternalresourcesrequiredtocompletetheproject:

Exhibit2‐15:Option1ImplementationResourceEffort

64TheNewFlairmaintenancecostsrepresentedpriortogo‐liveprimarilyincludehardwarecosts,includingamajorhardwareupgradeinFY20‐21.

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29

ExternalResourceEffort 17 26 46 45 74 75 75 84 95 111 93 93 47 20 25

InternalResourceEffort 15 23 41 41 66 67 67 75 84 107 91 91 46 18 22

0

50

100

150

200

250

Option1:ImplementationResourceEffort


AdvantagesandDisadvantages

ThefollowingExhibitoutlinestheadvantagesanddisadvantagesofimplementingOption1:

ADVANTAGES DISADVANTAGES

Solutionismodernizedandprovidesenhancedfunctionality(e.g.,newinterfaceframework/informationbroker)

Solutionisbuilttobusinessrequirements(i.e.,yougetexactfunctionalityyouwant)

ImpactofchangeonstaffislessthanpackageERPsolutionsinceterminologywouldbesimilartocurrentsolution

SourcingofITresourcesismucheasiersincesolutionisbuiltonmoderntechnology

Costandtimingofupgradesandsolutionsenhancementsiscontrolledbytheagency(notanERPsoftwareprovider)

Implementationofthenewsystemextendsbeyondthe15yearanalysistimeframe

Whenimplementationiscomplete,DFSmustkeepateamofsoftwaredevelopersonhandtocontinuouslyresearchanddevelopsystemenhancementstoensuretheproductdoesnotbecomeoutdatedsoonafterdeployment

Significantlikelihoodsolutionfunctionalitywillbecomestagnantthroughlackofadequatemaintenanceandsupport(similartowhathappenedwithFLAIR)

InterfacingwithCMSwillcontinuemultiplecashbalancesthatmustbereconciled

Businessprocessesarelimitedtosolutiondesignandbusinessrequirements(i.e.,notbasedoninherentbestpracticesinapackagesoftwareproduct)

SoftwaredesignanddevelopmenttimelinewillbelongerthanapackagedERPsolution

ImplementationcostissignificantlyhigherthanOption2andOption3.

FFMISapplicationswouldrequiremodificationstointegratewithnewsolution(i.e.,designandprocessingchangeswillbenecessary)

Exhibit2‐16:Option1AdvantagesandDisadvantages

2.3.3.2 OPTION2:REPLACEFLAIR

ThesecondoptionavailabletotheStateistoreplacecoreFLAIRcomponentswithERPsoftware.Specificcomponentsaddressedwouldinclude;

CentralFLAIR

DepartmentalFLAIR

InformationWarehouse

Payroll


SolutionOverview

TheExhibitbelowprovidesapictorialrepresentationofthesolutionforOption2:

Exhibit2‐17:Option2:ReplaceFLAIRScopeIllustration


ThefollowingExhibitshowsatimelineandahigh‐levelimplementationplanforreplacingFLAIR.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthefollowingpages.DetailedassumptionssurroundingthisapproachcanbefoundinAttachment1tothisstudy.

Keymilestoneshavebeenannotatedwithcallouts.

Mainframe

AccountsPayable

AccountsReceivable

GeneralLedger

GrantsAccounting

EFT Warrants

BudgetLedger

CashLedger

AssetAccounting

ProjectAccounting

NewFLAIR(Custom)

PersonnelInformationSystem

PeopleFirst

Treasury

FACTS FLAIRInformationWarehouse

MyFlorida‐MarketPlace

A&AUsers

AgencyUsers

BusinessSystems

1099 W9

PrimaryAccess

Agency/Other

Procurement

Payroll

CMS

CashMgt

InvestmentMgt

AccountingMgt

GrantsandContractAdministration Reporting

LAS/PBS

PrimaryAccess



Pre‐DDI

Beforeanysoftwareconfigurationordevelopmentcanbegin,asignificantamountofpre‐implementationworkmustoccur.Specifictaskswillincludebusinessprocessre‐engineering,establishmentofprojectgovernancestructures,andorganizationalchangemanagementactivities.Inaddition,asignificantstrategicplanningeffortaroundinformationtechnologywillneedtooccurincludingplanningforthetransformationofthetechnologyorganization.

Anumberofprocurementswillalsoneedtooccurtosupportthisphase.KeycomponentsincludetheselectionofanERPsoftwarevendorandasystemsintegratortoassistwiththeimplementationoftheERPsolution.

AlsoduringPre‐DDI,theprojectteamwillworkcloselywiththeDMStoevaluatethebestplatformandoptionforreplacementofFLAIRpayroll.ThisevaluationwillcorrespondwiththerenewalofthecurrentPeopleFirstcontract.

DDIPhase1:ImplementERPSolution



ImplementERPforFLAIR

DeployInformationWarehouseforERP

PilotERPSolution

FLAIR/IWRollout

ImplementPayrollinERP

AddExpandedFunctionalityinAllAgencies


SupportERPFLAIR

UpgradeERP

ImplementationMaintenanceCosts‐FLAIRMaintenanceCosts‐ERP

ImplementationSupport‐FLAIRSupport‐ERP

$0 $0

$276 $280 $284 $28

$9,846 $39,062 $30,798 $37,482 $31,008 $31,883 $3,183 $5,738 $10,686 $6,349 $6,573 $0

$5,285 $260 $264 $268 $272$17,123

$0 $8,733 $10,719 $17,285 $22,334 $30,140 $27,367 $29,911 $27,978

9 43 42

$17,380 $17,641 $14,128 $10,161

$32,791 $29,585 $28,931 $29,258 $34,0

25 36

165 165 165

43 87 117 87 53 59

162 162132 147 162 162 162

3 3 3 344 3 3 3 3

Pre‐DDI

FY27‐28

FY28‐2

‐ ‐ 25 51 91

$6,753

$16,870

$0

30

165


125 84

162 162 162


FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY26‐27

DDIPhase2:ExpandERPFunctionality


Activities


DepartmentalFLAIRRetired

CentralFLAIRRetired


ERPSolutionandSISelected



ImplementERPforFLAIR:DFSwillworkwiththechosenSItoconfigurethefunctionalityoftheexistingCentralFLAIRwithintheERPsolution.Inparallelwiththisdevelopment,DFSwillalsobuildandconfigureDepartmentalFLAIRfunctionalitywithintheERPsolution.Keycomponentsofthisstepinclude:

o BuildinganinterfacebetweenthenewERPsolutionandexistingDepartmentalFLAIR

o ConfiguringtheERPsystemtosupportthebusinessprocessesdefinedintheminimumsetofcapabilities

o Scoping,developing,andtestingintegrationswiththeotherFFMISsystemstoensurethenewERPsystemwilloperateefficientlywiththeotherFFMIScomponentsystemsincludingCMS,MFMP,PeopleFirst,andLAS/PBS

DeployInformationWarehouse(IW)forERP:InadditiontoconfiguringcoreCentralandDepartmentalFLAIRfunctionalityinthenewERPsolution,thisphaseoftheprojectwillincludeare‐designanddeploymentofthecurrentDFSIW.

DeployingtheIWwillincludeprocurementandimplementationofnewtechnologytosupportdatawarehousing,reportingandbusinessintelligenceaswellas:


o Deployingnewanalyticcapabilitiestotakeadvantageofdatacomingintothesystem

PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenewsystem,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafullfiscalyear.Participatingagencieswillberequiredtodiscontinueuseoftheoldsystemduringthepilot.

Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordforstatewidecashbalances;however,financialresultsinthenewsystemshouldreconciledirectlywithCentralFLAIR.Oncethepilotofthenewsystemissuccessful,CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agencieswillbemigratedtothenewsysteminphasesoveratwoyearperiod.Specificagenciestobebroughtonlineduringeachphaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,willingnesstosupportmigrationtothenewsystem,andneed.

OnceallagenciesaremigratedtotheERPsolution,DepartmentalFLAIRwillberetired.

ImplementPayrollinERP:Payrollprocesseswillbere‐designedtotakeadvantageofthecapabilitiesofthenewERPsolution.Specificimprovementsmayinclude:






OncecoresystemfunctionalityhasbeenimplementedwithinthenewERPsystemandtherollouttoStateagencieshasbegun,thefocuswillshifttotakingadvantageofinherentcapabilitiesofthechosenERPsolutiontoexpandandimproveupontheState’sfinancialmanagementcapabilities.Specificfunctionalityexpectedtobedevelopedincludes:

o Grantmanagement

o Assetmanagement

o Projectmanagement



SupportExistingandERPFLAIR:ThecurrentFLAIRsystemwillneedtobemaintaineduntilithasbeendecommissioned.ThenewERPsystemwillrequiresupportandmaintenanceduringthepilottestingprocess.Thiswillcreateaperiodwherethereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingupwithavailablevendorupgrades.Theseupgradestypicallyincludetheincrementaladditionofnewfunctionality,securityupdatesandbugfixesandothersystemenhancementswhichensurethesystemremainssupportedbythevendor.ThreeupgradesoftheERPsystemareplannedoverthe15‐yearwindow–twominorupgrades‐‐typicallypointreleaseswherenewfunctionalityisnotconfiguredandrolledouttoendusers‐‐andamajorreleaseincludingtheimplementationofnewcapabilities.

CostBreakdown

Basedontheimplementationtimelinedefinedabove,theestimatedcostsforimplementinganERPsolutiontoreplaceFLAIRaredescribedintheExhibitbelow.DetailedinformationonthederivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.


ImplementationCost $219.4FLAIRSupportCosts $100.8ERPSupportCosts $329.1SolutionTotalCostofOwnership $649.3



IntheExhibitabove,thesolutiontotalcostofownershipisthesumofthefollowingcomponents:


FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriortoitsretirement

ERPSupportCost:ExpensesassociatedwithsupportingthenewERPsolutionduringandafteritsimplementation

Anannualbreakdownofinformationisrepresentedgraphicallyinthefollowingdiagram:

Exhibit2‐20:Option215YearCostSummary

ResourceBreakdown

TheExhibitbelowestimatesthetotalworkeffortinannualequivalentsforinternalandexternalresourcesrequiredtocompletetheproject:


FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29



0

20

40

60

80

100

120

140



Advantages/Disadvantages

TheadvantagesanddisadvantagesforthisoptionareoutlinedintheExhibitbelow:


Solutionbasedonindustrystandardtechnologyinfrastructure

Solutionleveragesindustrystandardpracticesforcorebusinessprocesses

Vendorupgradeswillensuresolutioncontinuestoevolveandgrow(i.e.,addnewfunctionality/capabilities)

Fasterdesign,development,andimplementation(DDI)cyclesrelativetocustombuiltsolutions

Easiertoidentifyandacquireresourcestosupportsolution

ProvidesamodernizedERPfoundationtoallowforfurtherstateenterpriseintegrationinthefuture(e.g.,CMS,Procurement)

Solutionestablishesaconsistentsetofaccountingdatadefinitions

Failstoleveragethepotentialprocessimprovementstocashreconciliationprocesses

InterfacingwithCMSwillcontinuemultiplecashbalancesthatmustbereconciled

Costs,timeline,andupgradescheduledictatedbyasystemintegrator

Packagesolutionrequiresextensivebusinessprocessre‐engineeringtosupportstandardbusinessprocesses

Packagesolutionwouldrequirestafftolearnnewbusinessterminologyandprocesses

FFMISapplicationswouldrequiremodificationstointegratewithnewsolution


2.3.3.3 OPTION3:REPLACEFLAIRANDCMS

ThefollowingprovidesadditionalcontextaroundthescopeforOption3:ReplaceFLAIRandCMS.

ReplacethefourmaincomponentsofFLAIRwithanERPsoftwarepackage:

o CentralFLAIR

o DepartmentalFLAIR

o InformationWarehouse

o Payroll

LeveragethechosenERPsolutiontoreplacetheexistingCashManagementSystem(CMS)administeredbytheTreasury

SolutionOverview

TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolution:


Exhibit2‐23:Option3:ReplaceFLAIRandCMSScopeIllustration


ThefollowingExhibitshowsthetimelineandhigh‐levelimplementationplanforreplacingFLAIRandCMS.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthefollowingpages.DetailedassumptionssurroundingthisapproachcanbefoundinAttachment1tothisstudy.



Pre‐DDI


Anumberofprocurementswillalsoneedtooccurtosupportthisphase.KeycomponentsincludetheselectionofanERPsoftwarevendorandanSItoassistwiththeimplementationoftheERPsolution.

AlsoduringPre‐DDI,theprojectteamwillworkcloselywiththeDMStoevaluatethebestplatformandoptionforreplacementofFLAIRpayroll.ThisevaluationwillcorrespondwiththerenewalofthecurrentPeopleFirstcontract.


Activities


ImplementERPforFLAIR/CMS


PilotERPSolution

CMSRollout

FLAIR/IWRollout




SupportERPFLAIR

UpgradeERP



‐ ‐ ‐165 165 125

27 52 95 135 150 165 165 165 165 165 165 165 165

‐ ‐ ‐ ‐ ‐

$37,199

91 121 91 57 59 9 43 42 25 36 ‐ ‐ ‐

‐ ‐

165

43

$0 $0 $0

$16,870

$0 $0

$17,123 $17,380 $17,641 $14,169 $10,077 $5,157 $0 $0 $0 $0


$0 $0 $0

$10,686 $6,349 $6,573



30

165

$0

$4,944 $6,838 $16,235 $22,923 $31,642 $29,783 $32,422 $30,585 $35,496 $32,388 $31,835 $32,264

83 42

$6,753 $9,846 $40,407 $31,666 $38,897 $32,362 $32,179 $3,183 $5,738



Pre‐DDI

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23


CentralFLAIRRetired

CMSRetired





DDIPhase1:ImplementNewFLAIR

ImplementERPforFLAIR/CMS:DFSwillworkwiththechosenSItoconfigurethefunctionalityoftheexistingCentralFLAIRwithintheERPsolution.Inparallelwiththisdevelopment,DFSwillalsobuildandconfigureDepartmentalFLAIRfunctionalitywithintheERPsolution.Keycomponentsofthisstepinclude:



o ConfiguringtheERPsystemtosupportcurrentCMSfunctionality

o Scoping,developing,andtestingintegrationswiththeotherFFMISsystemstoensurethenewERPsystemwilloperateefficientlywiththeotherFFMIScomponentsystemsincludingMFMP,PeopleFirst,andLAS/PBS


Thiswillincludeprocurementandimplementationofnewtechnologytosupportdatawarehousing,reporting,andbusinessintelligenceaswellas:


o Deploymentofnewanalyticcapabilitieswhichtakeadvantageofdatacomingintothesystem

PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenewsystem,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafullfiscalyear.Participatingagencieswillberequiredtodiscontinueuseoftheoldsystemduringthepilot.

Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordforstatewidecashbalances;however,financialresultsinthenewsystemshouldreconciledirectlywithCentralFLAIR.Assumingthepilotofthenewsystemissuccessful,CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agencieswillbemigratedtothenewsysteminphasesoveratwoyearperiod.Specificagenciestobebroughtonlineduringeachphaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,willingnesstosupportmigrationtothenewsystem,andneed.

OnceallagenciesaremigratedtotheERPsolution,DepartmentalFLAIRwillberetired.

ImplementPayrollInERP:Payrollprocesseswillbere‐designedtotakeadvantageofthecapabilitiesofthenewERPsolution.Specificimprovementsmayinclude:






OncecoresystemfunctionalityhasbeenimplementedwithinthenewERPsystemandtherollouttostateagencieshasbegun,thefocuswillshifttotakingadvantageofinherentcapabilitiesofthechosenERPsolutiontoexpandandimproveupontheState’sfinancialmanagementcapabilities.Specificfunctionalityexpectedtobedevelopedincludes:

o Grantmanagement

o Assetmanagement

o Projectmanagement



SupportExistingandERPFLAIR:ThecurrentFLAIRsystemwillneedtobemaintaineduntilithasbeendecommissioned.ThenewERPsystemsolutionwillneedsupportandmaintenanceduringthepilottestingprocess,creatingaperiodwherethereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingupwithavailablevendorupgrades.Theseupgradestypicallyincludetheincrementaladditionofnewfunctionality,securityupdatesandbugfixesandothersystemenhancementswhichensureyoursystemremainssupportedbythevendor.ThreeupgradesoftheERPsystemareplannedoverthe15yearwindow–twominorupgrades–typicallypointreleaseswherenewfunctionalityisnotconfiguredandrolledouttoendusers–andamajorreleasewhichwillincludetheimplementationofnewcapabilities.

CostBreakdown

Basedontheimplementationtimelinedefinedabove,theestimatedcostsforimplementinganERPsolutiontoreplaceFLAIRandCMSareasfollows.DetailedinformationonthederivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.

COSTCATEGORY AMOUNT

ImplementationCost $224.6MillionFLAIRandCMSSupportCosts $98.4MillionERPSupportCosts $344.6MillionSolutionTotalCostofOwnership $667.6Million





FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriortoitsretirement




ResourceBreakdown





TheadvantagesanddisadvantagesforthisoptionarecontainedintheExhibitbelow:


Solutionbasedonindustrystandardtechnology

Solutionleveragesindustrystandardpracticesforcorebusinessprocesses(e.g.,order‐to‐cash,procure‐to‐pay)


Fasterdesign,development,andimplementation(DDI)cyclesrelativetopurecustombuiltsolution

Easiertoidentifyandsourceresourcestosupportsolution

ProvidesamodernizedERPfoundationtoallowforfurtherstateenterpriseintegrationinthefuture

Singleintegratedplatformautomatesandsimplifiescomplexcashreconciliationprocess

SolutionestablishesasolidfoundationtoextendtheERPplatformtootherbusinessfunctions(e.g.,procurement)

InvestmenttimelineandupgradescheduledictatedbytheERPvendor



FFMISapplicationswouldrequiremodificationstointegratewithnewsolution


2.3.3.4 OPTION4:REPLACEFLAIR,CMS,MFMP,ANDPEOPLEFIRST

ThefollowingprovidesadditionalcontextaroundthescopeforOption4:ReplaceFLAIR,CMS,MFMP,andPeopleFirst.

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29



0

20

40

60

80

100

120

140



ReplacethefourmaincomponentsofFLAIRwithanERPsoftwarepackage:

o CentralFLAIR

o DepartmentalFLAIR

o InformationWarehouse

o Payroll

LeveragethechosenERPsolutiontoreplacetheexistingcashmanagementsystem(CMS)runbytheTreasury,MFMP,andPeopleFirst

TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolution:

Exhibit2‐29:Option4:ReplaceFLAIR,CMS,MFMP,andPeopleFirstScopeIllustration


ThefollowingExhibitshowsatimelineandhigh‐levelimplementationplanforreplacingFLAIR,CMS,MFMP,andPeopleFirst.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthefollowingpages.DetailedassumptionssurroundingthisapproachcanbefoundinAttachment1tothisstudy.

Keymilestoneshavebeenannotatedwithcallouts.



Pre‐DDI


Anumberofprocurementswillalsoneedtooccurtosupportthisphase.KeycomponentsincludetheselectionofanERPsoftwarevendorandaSItoassistwiththeimplementationoftheERPsolution.


ImplementERPforFLAIR/CMSandProcurement:DFSwillworkwiththechosenSItoconfigurethefunctionalityoftheexistingCentralFLAIRwithintheERPsolution.Inparallelwiththisdevelopment,DFSwillalsobuildandconfigureDepartmentalFLAIRfunctionalitywithintheERPsolution.Keycomponentsofthisstepinclude:



Activities


ImplementERPforFLAIR/CMSandProcurement


PilotERPSolution

CMSRollout

FLAIR/IWRollout

ImplementHRandPayrollinERP



SupportERPFLAIR

UpgradeERP


ImplementationSupport‐FLAIRSupport‐ERP 165 165135 150 165 165 165‐ ‐ 26 52 94 165 165 165

‐ ‐ ‐ ‐ ‐ ‐ ‐

125 120 54 36 ‐

$0

165 165 165 165 165 123 81 41

128 134 116 78 89 106

$17,641 $17,481 $13,396 $8,483 $3,506

ResourceEffortBreakdown‐32 47 117

$34,772$9,614 $15,449 $22,309 $37,465 $33,716 $37,716 $39,692

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

$0

Pre‐DDI

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

CostBreakdown(inthousands)$0

$0$16,870

$7,489 $10,829 $33,728 $33,153 $50,580 $41,394 $35,740 $38,751 $42,624 $29,270 $36,006 $23,257 $262



$29,139 $30,878

$0 $0 $0 $0 $0 $0

$0 $7,576 $28,848 $27,537

$17,123 $17,380


DepartmentalFLAIRandMFMPRetired

CentralFLAIRRetired

CMSRetired

PeopleFirstandLegacyPayrollRetired





o ConfiguringtheERPsystemtosupportcurrentCMSfunctionality

o ConfiguringtheERPsystemtosupportcurrentcoreMFMPfunctionality–includingpurchasingandreceiving

o Scoping,developing,andtestingintegrationswiththeotherFFMISsystemstoensurethenewERPsystemwilloperateefficientlywithanyremainingFFMIScomponentsystemsincludingLAS/PBS


Thiswillincludeprocurementandimplementationofnewtechnologytosupportdatawarehousing,reporting,andbusinessintelligenceaswellas:


o Deploymentofnewanalyticcapabilitieswhichtakeadvantageofdatacomingintothesystem

PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenewsystem,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafullfiscalyear.Participatingagenciesarerequiredtodiscontinueuseoftheoldsystemduringthepilot.

Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordforstatewidecashbalances,howeverfinancialresultsinthenewsystemshouldreconciledirectlywithCentralFLAIR.Assumingthepilotofthenewsystemissuccessful,CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agenciesaremigratedtothenewsysteminphasesoveratwoandahalfyearperiod.Specificagenciesbroughtonlineduringeachphaseoftherolloutarechosenbasedonacombinationoftheirsize,complexity,willingnesstosupportmigrationtothenewsystem,andneed.OnceallagenciesaremigratedtotheERPsolution,DepartmentalFLAIRisretired.

ImplementHRandPayrollinERP:FollowingthedeploymentofCentralandDepartmentalFLAIR,CMSandMFMPinthenewERPsystemthefocuswillshifttoconfiguringhumanresourcesfunctionalitywithinthenewsystem.AllfunctionscurrentlycontainedwithinPeopleFirstwillbemigratedintotheERPsystemandaccesswillberolledoutstatewidefollowingapilotwithasubsetofagencies.


OncecoresystemfunctionalityisimplementedwithinthenewERPsystemandtherollouttostateagencieshasbegun,thefocusshiftstotakingadvantageofinherentcapabilitiesofthechosenERPsolutiontoexpandandimproveupontheState’s


financialmanagementcapabilities.Specificfunctionalityexpectedtobedevelopedincludes:

o Grantmanagement

o Assetmanagement

o Projectmanagement



SupportExistingandERPFLAIR:ThecurrentFLAIRsystemneedstobemaintaineduntilithasbeendecommissioned.ThenewERPsystemsolutionwillneedsupportandmaintenancebeginningduringpilottestingprocess,creatingaperiodwherethereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingupwithavailablevendorupgrades.Theseupgradestypicallyincludetheincrementaladditionofnewfunctionality,securityupdatesandbugfixesandothersystemenhancementsthatensurethatyoursystemremainssupportedbythevendor.ThreeupgradesoftheERPsystemareplannedoverthe15yearwindow–twominorupgrades‐‐typicallypointreleaseswherenewfunctionalityisnotconfiguredandrolledouttoendusers‐‐andamajorreleasethatwillincludetheimplementationofnewcapabilities.

CostBreakdown

BasedontheimplementationtimelinedefinedabovetheestimatedcostsforimplementinganERPsolutiontoreplaceFLAIR,CMS,MFMP,andPeopleFirstaredescribedinthefollowingExhibit.DetailedinformationonthederivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.


ImplementationCost $383.1FLAIRSupportCosts $111.9ERPSupportCosts $354.7SolutionTotalCostofOwnership $849.7



ImplementationCost:Internal(employeetime)andexternal(contractors/purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR,CMS,MFMP,andPeopleFirst

FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIR,CMS,MFMP,andPeopleFirstpriortoitsretirement


ResourceBreakdown




TheadvantagesanddisadvantagesforthisoptionarecontainedintheExhibitbelow:


Solutionbasedonindustrystandardtechnology

Solutionleveragesindustrystandardpracticesforcorebusinessprocesses(e.g.,order‐to‐cash,procure‐to‐pay)


Fasterdesign,development,andimplementation(DDI)cyclesrelativetopurecustomizedsolution

Easiertoidentifyandsourceresourcestosupportsolution

Singleintegratedplatformautomatesandsimplifiescomplexcashreconciliationprocess

Solutionprovidesasingleintegratedplatformsupportingstatewidefinancialmanagement

Dataconsolidatedonsingleplatformfacilitatesenhanceddecisionmakingandanalysis

Criticalprojectandenterprisegovernanceissuesneedtobeaddressedandimplementedbeforethisoptionwouldbefeasible

InvestmenttimelineandupgradescheduleddictatedbytheERPvendor



PlanningandimplementationactivitiesaremorecomplexsincetheyneedtoincludePeopleFirstandMFMPgo‐forwardplansandcontractualrequirements(throughAugust2016andJanuary2017,respectively)


FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29



0

20

40

60

80

100

120

140

160



2.4 OPTIONSANALYSIS

InadditiontoconsideringtheadvantagesanddisadvantagesofeachoptionpresentedinthepreviousSectionofthisstudy,theStatemustcarefullyconsiderotherfactorsinmakingaselection.Theoptionsanalysisisstructuredaroundthefollowingfourelements:

OptionAlignmenttoGoalsandObjectives

CostComparison

BenefitsComparison

RiskAnalysis

2.4.1 OPTIONALIGNMENTTOVISION,GOALS,ANDOBJECTIVES

Chapter1,Section1.5introducedaprojectvisionstatementandfoursolutiongoalsandtheirassociatedbusinessvalue.Thevisionprovidesdirectiononwhatistryingtobeachievedbyanypotentialsolutionandabasisforfutureplanning;whilethesolutiongoalsprovideaminimumsetofcapabilitieswhichmustbemetbyanypotentialsolution.Establishingaminimumsetofcapabilitiesiscriticalinordertoensurealloptionsarecomparedtoacommonstandard.Thiscommonbasewillallowoptioncosts,timelines,andcapabilitiestobecomparedinaconsistentmanner.

Aspartoftheanalysis,eachoptionwasassessedagainstthevisionstatementandfoursolutionsgoals.Thisassessmentwasqualitativewiththealignmentpresentedforeachoptionrelativetotheotheroptions.TheExhibitbelowreflectstheoutputofthisqualitativeassessment:

EVALUATIONOFQUALITATIVECRITERIA

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,A

ND

PEOPLEFIRST

Vision:Implementastatewideaccountingsystemwhich enforcesstandardization,actsasascalablefoundationtoevolveasbusinessneedschange,andpositionsFloridaforfutureinnovationasitconsidersatrueenterprise‐widesolution.

Goal#1:ReducetheState’sriskexposurebyharnessingmodernfinancialmanagementtechnologybuiltonthepremisesofscalability,flexibility,andmaintainability.

Goal#2:Improvestateandagencyspecificdecisionmakingbycapturingaconsistentandanexpandablesetofdata.


EVALUATIONOFQUALITATIVECRITERIA

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,A

ND

PEOPLEFIRST

Goal#3:ImprovetheState’sfinancialmanagementcapabilitiestoenablemoreaccurateoversightofbudgetandcashdemandstodayandinthefuture.

Goal#4:Improvestaffproductivity,reduceoperationalcomplexityandincreaseinternalcontrolsbyenablingstandardizationandautomationofbusinessprocesseswithinandbetweenDFSandagencies.

CombinedAlignment68 1.6 1.8 2.8 3

RelativeCorrelationtoStatedSolutionGoal: Low(1)Medium(2) High(3)

Exhibit2‐35:OptionAlignmenttoVisionandGoals

2.4.2 COSTCOMPARISON

Belowisanoverviewoftheresultsofthecostmodelingexercise.ForeachoptiondescribedinSection2.3ofthisdocument,theteammodeledcostsovera15yearwindowstartinginJuly2014(FY14‐15).Thistimeframewasselectedforanumberofreasons,including:

Inalloptionsanalyzed,therequiredminimumcapabilitiescanbeachievedduringa15yearwindow.Benefitsarerelatedtoimplementationoftheminimumcapabilitiesandshouldalsobeginwithinthiswindow.69

Ineachcase,a15yearwindowprovidesvisibilityintonotonlythecostsofimplementationbutalsosupportcostsforthesystemonceitreachessteadystate.

Itisimportanttonotetheselectionofa15yearwindowisnotinanywayindicativeofthelifespanofthenewFLAIRsystem.Inallcasesitshouldfaroutlivethetimelinesbuiltintothemodels.

68Thecombinedalignmentscoreistheaverageofthealignmentofeachoptiontothefourgoalsandvisionscoredonascaleof1to3witha3havingthehighestalignment.69Implementationoftheminimumcapabilitieswillbecompletebytheendofyear15forOption1,butsomeoftheenhancedfunctionalitymaynotbecomplete.


TheExhibitbelowsummarizesexpectedtotalcostofownershipforeachoptionoverafifteenyearperiodstartinginJuly2014(FY14‐15).

COSTCATEGORIES(INMILLIONS)

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST

ImplementationCost $467.4 $219.4 $224.6 $383.1

FLAIRSupportCosts $225.1 $100.8 $98.4 $111.9

NewFLAIR(ERP)SupportCosts(includingUpgrades) $131.5 $329.1 $344.6 $354.7

SolutionTotalCostofOwnership $824.0 $649.3 $667.6 $849.7

Comparativescore70 2.5 3 2.9 2.4

Exhibit2‐36:SummaryOptionCostComparison


ImplementationCost:Internal(employeetime)andexternal(contractors/purchases)expendituresrequiredtodesignandimplementthesolutiontoreplaceFLAIR

NewFLAIR(ERP)SupportCost:ExpensesassociatedwithsupportingthecurrentFLAIRsystempriortoitsretirement

ERPSupportCost:ExpensesassociatedwithsupportingthenewFLAIRreplacementsolutionduringandafteritsimplementation

TheExhibitbelowcomparesthetotalcostofownershipgraphicallyforeachofthefouroptions:

70Thecomparativecostscoreiscalculatedonascaleof1to3withthelowestcostassigned3andtheothervaluesdistributedbasedontheirpercentagedifferencefromthelowestcost.


Exhibit2‐37:OptionTotalCostofOwnershipComparison

CostComparisonSummary

Basedonbothimplementationcostandtotalcostofownershipovera15yearperiod,thedifferencesbetweenoption2andoption3islessthantwopercent,makingthemeffectivelycostneutral,withOption4beingthemostexpensive.


2.4.3 BENEFITSCOMPARISON

Oneofthekeydifferentiatorsbetweenthefouroptionsanalyzedisthetimelineforthedeliveryoftheexpectedbenefits.TheExhibitbelowsummarizestheexpecteddeliveryyearforeachofthebenefitsoutlinedinSection2.3.2ofthisdocument.

BENEFIT DELIVEREDWHEN….

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

ReductionofRisk

Riskofacatastrophicsystemfailurewouldbesignificantlyreducedbymovingtoaneworenhancedsystem.

Agencyrolloutcomplete(CentralandDepartmentalFLAIRreplaced)

FY26‐27

FY21‐22

FY21‐22

FY22‐23

Systemsupportandmaintenancechallengeswouldbesignificantlyreducedbecausemovingtoamoderntechnologyplatform/offtheshelfsolutionwouldmakeidentifyingandretainingskilledtechnicalstaffmucheasier.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Riskandinstabilityresultingfromalackofdocumentationwithinthecurrentsystemwouldberesolvedduringtheimplementationofthenewsystem.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

BusinessrisksassociatedwiththelackofflexibilityandscalabilityofthecurrentsystemwillbereducedoreliminatedbyenhancingorreplacingFLAIRwithamodernsystem.


FY26‐27

FY21‐22

FY21‐22

FY22‐23



OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

OperationalImprovementsEncumbrancesareinterfacedfromexternalsystemsandtractableonallpayabletransactions.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

CentralFLAIRandDepartmentalFLAIR shareacommondatabaseandthereisnoneedtoreconcilethetwo.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Inter‐agencytransfersandeliminationsareautomaticallyprocessedandbalanced.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Warrantscanbepaidfromanyaccountcombinationentered.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Thenewsystemsupportstheconsolidationandschedulingofpaymentsbasedonduedatesandpaymentterms.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Anaccountsreceivablesystemwhichsupportstrackingandreportingofmoniesowedtothestate.


FY26‐27

FY21‐22

FY21‐22

FY22‐23



OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

CMScheckreconciliationandcashavailabilityfunctionssharedatawithCentralandDepartmentaltransactionsremovingtheneedtoseparatelyreconcilethem.

Agencyrolloutcomplete(CentralandDepartmentalFLAIRreplaced)orCMSRolloutComplete

FY26‐27

FY21‐22

FY20‐21

FY21‐22

Thestatemaintainstwocashbalances(bookinthenewsystem),andthebankbalance,reducingthetimespentoncashreconciliation.

Agencyrolloutcomplete(CentralandDepartmentalFLAIRreplaced)orCMSRolloutComplete

FY26‐27

FY21‐22

FY20‐21

FY21‐22

Thesystemsupportsworkflowprocessingandelectronicdocumentmanagement.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Systemsupportresourceshaveacommonskillsetandcanbeeasilyrecruitedorcontractedfrommultiplesources.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Thenewsystemincorporatesstandardfunctionalitytosupportbarcodereadingandmoreefficientinventoryprocessing.

AdditionalFunctionality(Phase2)complete

FY29‐30

FY24‐25

FY24‐25

FY26‐27

Standardfunctionalitysupportsbasictrackingandaccountingforassets,grants,projects,andcontracts.


FY26‐27

FY21‐22

FY21‐22

FY22‐23



OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

ImprovedDecisionMaking

FinancialsystemdatawillbeavailablethroughqueriesfromtheinformationwarehousereducingtheneedforMSAccessandExcelforpreparationoftheFinancialStatements(e.g.CAFR)andmanagementreports.

InformationWarehouseComplete

FY22‐23

FY21‐22

FY21‐22

FY22‐23

Agingofaccountspayableandaccountsreceivableaswellasothercashforecastingreportswillbeavailabledirectlyfromthesystem.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Accountingtransactionsarecapturedataconsistent levelofdetailacrossthestate,leadingtobetterreporting.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Dataandreportingtoolsareavailabletosupportstatewidereportingofkeymetrics(e.g.vendorandcategoryspend).

InformationWarehouseComplete

FY22‐23

FY21‐22

FY21‐22

FY22‐23

BusinessuserscancreateandrunadhocreportsandqueriesasneededwithoutITresourceassistance.


FY26‐27

FY21‐22

FY21‐22

FY22‐23



OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

Applicationmaintainsaflexible,standardizedChartofAccounts(CoA)structurewhichsupportsstatewidereportingwhilegivingagenciestheabilitytocategorizeexpensesatalowerlevelofdetailasneeded.


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Agenciescanforecastfinancialperformancethroughouttheyear(i.e.,“whatif”analysis).


FY26‐27

FY21‐22

FY21‐22

FY22‐23

Exhibit2‐38:BenefitsRealizationbyOption

BenefitsRealizationSummary

Akeyassumptionoftheoptionanalysisisthattheidentifiedbenefitswillberealizeduponsuccessfulcompletionoftheimplementation.Thedifferenceishowsoonthesebenefitscanberealized.Averagingthenumberofyearsitisexpectedtotaketorealizeeachbenefit,thefollowingsummarycomparisonshowsthatthereisnegligibledifferencebetweenthetimetobenefitforoptions2and3withoption1takingsignificantlylonger:


OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST

Averagetimetobenefit(years) 12.8 8.1 7.9 8.9

Comparativescore71 1.8 2.9 3 2.7

Exhibit2‐39:AverageTimetoBenefitbyOption

2.4.4 RISKANALYSIS

Allfouroptionsbeingevaluatedarecomplexandchallenging.Implementationtimelinesaremeasuredinyears(notweeksormonths)andrequiresignificantresourcesinvestedtoachievesuccessfulcompletion.Becauseofthecomplexityandbreadthoftheoptions,theysharemanyofthesameriskswiththedifferencebeingthelikelihoodandseverityofimpactofeachoftherisks.TheExhibitbelowhighlightsthecommonriskswhichmaybeencounteredduringtheimplementationregardlessoftheselectedoption:

71Thecomparativetimetobenefitscoreiscalculatedonascaleof1to3with3representingtheshortestaveragetimetobenefit,andtheotherbenefittimesdistributedbasedonthepercentageofadditionaltimeittakestoachievebenefits.


RISK POTENTIALIMPACTS MITIGATIONSTRATEGIES

Lossofpolitical/executivesponsorship Failedimplementation Benefitsnotrealized

Educateexecutiveleadership onthecurrentrisksandchallengesfacedwithcurrentenvironment

Documentgo‐forwarddirectionandtimelineinStatute

Structureimplementationtoachieveincrementalsuccesses

Ineffectivegovernanceprocessespreventdecisionmaking

Increasedcustomizations Highersupportcosts Benefitsnotrealized Budgetoverruns Failuretomeetimplementationtimeline

Define agovernancestructuredenotingauthoritytomakedecisionsandenforcepolicyacrossFFMIS

Establishcleardefinitionofdecisionswhichcanbemadewithintheprojectandwhatdecisions/approvalneedtoberaisedtoahigherlevel

Clarify/modifyStatutestoenforceprocessstandardization

Communicatetoagenciesatthebeginningoftheprojecttheexpectationsrelatedtoprocessstandardizationandcustomizations–onlycustomizationsrequiredtomeetstateorfederalstatuteswillbecompleted

Executiveleadershipmustcommittomakingharddecisionsaroundagencyrequests,noteveryrequestcanbeaccommodated

Fundingnotavailable Failedimplementation Benefitsnotrealized

Establishfundingmechanismswhich aredocumentedinstatute

CompletetheprojectinphasestolowerfiscalcommitmentswhilestillmovingforwardwithwinsandprogressfortheState

Thirdpartysoftwaredevelopersand/orERPimplementationexpertsnotavailable

Failedimplementation Budgetoverruns Failuretomeetimplementationtimeline

Ensureadequatebudgetisavailabletoacquire/retaintheappropriatetechnicalresources



FLAIRusersnotabletoadapttonewsystemandprocesses

Failedimplementation Benefitsnotrealized Budgetoverruns Failuretomeetimplementationtimeline

Determineearlyinprojectifkeyresource/skillgapsexistanddevelopstrategiestoaddress(training,strategichiring,etc.)

Investsignificantresourcesintodevelopingandexecutingacomprehensivechangemanagementandorganizationaltransitionplan

Lackofagencybuy‐inandsupport Failedimplementation Benefitsnotrealized Failuretomeetimplementationtimeline

Educateagencyleadership ontherisksandchallengesfacedwithcurrentenvironment

Includeagenciesinprojectleadershipandincludethemthroughouttheprocess

Usephasedimplementationapproachtobuildmomentumandsupport

Documentgo‐forwarddirectionandtimelineinstatute

Agenciesdonotassignanadequatenumberofresourcestotheproject


Identifyandcommunicateagencyresourceneedsatthebeginningoftheproject;setexpectationsoftheirrequirements/timecommitment

EscalateresourceissuestoProjectLeadershipquicklyandaddressimmediately

Definepart‐timecommitmentsrequiredDFSmaynothavetheskills,experienceorstafftodesign,develop,test,androlloutthesolution


Establishastronggovernancemodelandprojectmanagementstructuretomonitorprogressandguideimplementation

SupplementDFSstaffwithanexperiencedandseasonedSI

Increasepaylevelsforspecifictechnicalpositionstoensurerecruitmentandretention

Businessprocessesnotchanged Failedimplementation Benefitsnotrealized

Conductbusinessprocessimprovementeffortatbeginningofprojectandchallengethestatusquo



Integrationissueswithexistingagency/FFMISsystemsincludingmanagingaroundcontractupdatesforbothPeopleFirstandMFMP

Failedimplementation Budgetoverruns Failuretomeetimplementationtimeline Increasedcustomizations Highersupportcosts

Ensurephasedapproachtosystemdevelopmentandrollout

Buildextratimeintobudgetstosupportintegrationchallengesastheyarise

Sufficientresourcesarenotassignedtoperformongoingsystemsupportandupgrades

Highersupportcosts Shortenedsolutionlifespan

Includeupgraderequirementsintoprocurementdocuments,longtermstrategicplans,andbudgets

Documentastrategicplanandenhancementroadmapwhichisupdatedannually

LeverageenterprisegovernancestructuretodefineintegrationpointsbetweenFLAIRandallFFMISsubsystems

Exhibit2‐40:SummaryofCommonImplementationRisks


EachoftherisksidentifiedintheExhibitaboveapplytothefoursolutionoptionsindifferentways.Dependingonthecharacteristicsofeachsolution,thelikelihoodoftheriskaffectingtheimplementationwillvaryfromlowtohighasdoesthepotentialimpact.

Usingtheriskratingmatrixbelow,theFLAIRStudyTeamdeterminedtheseverityofeachriskidentifiedintheExhibitaboveforeachofthefoursolutionoptions.Thesearepresentedasfollows:

Exhibit2‐41:RiskRatingMatrix

RiskRatingsforOptionsConsidered

ThefollowingExhibitcontainsriskratings(R)representingthesumofthelikelihood(L)andimpact(I)foreachoftheoptionsconsidered.Duetothesizeandcomplexityoftheendeavor,anyoftheoptionshavesignificantrisk;andsomeoptionsarehigherriskthanothers.

RISK

OPTIONSCONSIDERED

OPTION1:

E NHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST

L I R L I R L I R L I R

Lossofpolitical/executivesponsorshipH H H L H M L H M M H H

L=LikelihoodofOccurrenceI=ImpactonProjectR=RiskRating


RISK

OPTIONSCONSIDERED

OPTION1:

E NHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST


Ineffectiveprojectgovernanceprocessespreventdecisionmaking L H M L H M M H H H H H

FundingnotavailableH H H M H H M H H H H H


H H H L H M L H M L H M

FLAIRusersnotabletoadapttonewsystemandprocesses L H M M H H M H H M H H

Lackofagencybuy‐inandsupportM H H L H M L H M H H H

Agenciesdonotassignanadequatenumberofresourcestotheproject M M M L M L L M L M M M

DFSmaynothavetheskills,experienceorstafftodesign,develop,test,androlloutthesolution

M H H L H M L H M L H M

BusinessprocessesnotchangedH M H M M H M M M L M L


L M L L M L L M L M M M


H M H L M L L M L L M L

AggregateCombinedRisk72 1.7 2.5 2.5 2.1

Likelihood/Impact L=Low M=Medium H=High

72Theaggregatecombinedriskisanaverageofthecombinedriskforeachoptionusingthescaleofalowriskbeing3,mediumrisk2,andahighriskbeing1.



RISK

OPTIONSCONSIDERED

OPTION1:

E NHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACE

FLAIR,CMS,MFM

P,

ANDPEOPLEFIRST


CombinedRisk Low(3) Medium(2) High(1)

Exhibit2‐42:RiskRatingsofConsideredOptions

2.4.5 SUMMARYANALYSIS

Thetablebelowprovidesacomparisonofthefouroptionsacrosseachofthekeyelementsofalignmenttogoals,cost,benefitachievement,andrisk.

REVIEWCATEGORY

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

AlignmenttoVisionandGoals 1.6 1.8 2.8 3

TotalCostofOwnership 2.5 3 2.9 2.4

AchievementofBenefits 1.8 2.9 3 2.7

Risk 1.7 2.5 2.5 2.1

CombinedComparison 1.9 2.6 2.8 2.6

Exhibit2‐43:SummaryOptionComparison


FloridaDepartmentofFinancialServices FLAIRStudy Chapter2Appendix:Page79

2.5 APPENDIX

Thisappendixcontainsthefollowingsections:

KeyThemes

AdditionalStateResearch

DetailedStateProfiles

MinimumCapabilityJustification

RiskDetails

2.5.1 KEYTHEMESFROMSTATERESEARCH

Thissectioncontainsadditionaldetailonthekeyimplementationthemesidentifiedfromthestateinterviewsandsummarizedinsection2.2.1.Theyare:

UseofERPSolutions

Cross‐AgencyStandardization

StrongEnterpriseandProjectGovernance

BusinessProcessRe‐engineeringPriortoImplementation

LimitSystemCustomizations

SystemIntegratorSelectioncanbeasImportantasSoftwareSelection

PhasedImplementationApproach

FocusonOrganizationalChangeManagement

PartnerwithKeyAgencies

ExistenceofanAgencyChargebackCostingModel

CombinationofIn‐houseandOutsourcedSupport

2.5.1.1 DETAILEDINFORMATION

UseofERPSolutions

StatesareadoptingERPsoftwareforcorestatewidefinancialmanagementincludingfinancialreportingasopposedtodevelopingnewtechnologiesin‐house.

Severalstatesstillusecustom‐builtsoftwareforbusinessoperations,butthemajorityhaveoptedtomakethetransitiontoanERPsolution.AllstatesinterviewedhaveundergoneanERPinitiativewithinthepastfifteenyears.Thistrendaroseoutoftherealizationthatcustomsystemscouldnotbemaintainedwiththeretirementofkeyworkersandtheshiftinavailablesupportforlegacytechnologies.Newemployeeswouldlikelynothavetheknowledgenecessarytooperatethisoutdatedtechnology.Somestates,including


PennsylvaniaandGeorgia,haveachievedstatewiderolloutandareontheupgradepathwhileotherslikeVirginiaandTexashaveonlyimplementedtheirnewsolutionatafewstateagencies.

Therearealargenumberofsoftwarevendorsinthemarket,butwithstategovernmentoperationsbeingaslargeandcomplexastheyare;allstatesinterviewedhavechosentop‐tiersoftware.ThesesolutionsareOracle’sPeopleSoft,SAP,andCGIAdvantage.NewYork,Texas,Virginia,Ohio,andGeorgiachosePeopleSoft.OfthestatesinterviewedSAPandCGIAdvantagewereonlychosenbyonestateeach,PennsylvaniaandAlabamarespectively.However,anexpandedscanshowsthatbothofthosesoftwarepackagesareinuseinotherstates.

Cross‐AgencyStandardization

Stateswhowereabletomandateandenforceconsistentbusinessprocesseshadloweroverallsupportandmaintenancecostsbecauseoftheprocessstandardizationaswellastheabilitytolimitagency‐specificcustomizations.Uniqueagency‐specifictransactionswererequiredtobeinterfacedleveragingastandardinterfaceprotocol.

Ofthestatesinterviewed,mosthadeithercompletedorhadplanstocompleterolloutsoftheirnewsolutionsinallstateagencies.PennsylvaniawasthefirsttodosowhentheywentlivewithstatewidefinancialsandHR/Payrollfunctionalityby2004.Ohiowastheonestateinterviewedwhodidnothaveanall‐agencyplanfirmlyestablished.WhilemoststateagenciesinOhiohavemadetheswitch,theirDepartmentofTransportation,forexample,hasnot.Concernsoverthelimitationsofprojectandgrantsmanagementfunctionalitywithinthenewfinancialmanagementsystemhavedriventhemtostayontheirlegacysystem.

NewYorkbeganwithamodelwherebylargerandmorecomplexagenciesmaintainedtheirlegacysystems,butinterfacedtransactionsintothenewPeopleSoftsystem.Inthiscase,thenewsystembecamethestatewidesystemofrecord,andagencieswererequiredtoprovideaspecificleveloftransactionaldetailinthenewstatewideChartofAccounts.Anunforeseenoutcomeoftheprojectwasmanyofthesmalleragenciesendedupbandingtogetherandbeingservicedbyanewstatewidesharedservicesorganization.

StrongGovernance

Stateswhosuccessfullyimplementednewenterprisefinancialmanagementsystemshadclearlydefinedgovernancestructuresforstatewidepolicyandsystemusageincludingdefiningdecisionmakingprocessesandaclearprojectscope.

Steeringcommitteesandoversightboardshavebeenestablishedinallinterviewedstatesforleadershipandimportantprojectdecision‐making.Withoutastronggovernancestructureinplace,decisionscantakealongtimetobemade.Akeyelementofsuccessfulgovernanceisactiveparticipationandcooperationbythegoverningparties.NewYorkhasasimilarsegregationbetweenexecutivebranchagenciesandtheircomptrollerasFloridahasbetweentheexecutiveagenciesandtheCFO.Theirimplementationwassuccessfulafteractive


participationwasestablishedonthesteeringcommitteewithadecisionmakingmemberfromeachcontrolagency.

InTexas,aprimarysteeringcommitteewasassembledattherecommendationofabusinesscasecreatedtoassessthefeasibilityofimplementingastatewideERPsolution.Thissteeringcommitteewastaskedwithgoinginfrontofthelegislaturetogeneratethefundingfortheinitiative.Oncefundswereappropriated,aseparatesteeringcommitteewasbuiltforprojectdecisionmaking.Severalstateshadsimilarmodelsinplaceforgovernancewithanaddedlayerunderneath.Pennsylvaniahadsub‐committeesoffunctionalbusinessarealeaderswhocouldvoicetheirneedsforthenewsystem.Thisensuresvoicesoftheend‐usersarebeingheard.

BusinessProcessRe‐engineeringPriortoImplementation

Asawaytoavoidcustomizationinthenewsystem,manystatesunderwentaperiodofbusinessprocessre‐engineering(BPR)priortotheimplementationphase.Stateswhodidnotperformprocessre‐engineeringhadlargevolumesofcustomizationsandgenerallyhadtowaituntiltheyperformedthere‐engineeringtoachieveexpectedprojectbenefits.

Stateagenciesoftenhavetodealwithuniquerequirementsintheireverydaybusiness.Toaccommodatetheseneeds,theyhavebeenbuildingcustomizationsintotheirlegacysystemsforyears,andhavebecomefullydependentonthem.Everystateinterviewedencounteredthisissue,andseveralrecommendedperformingbusinessprocessanalysisandre‐engineeringpriortosystemimplementation.

Virginiare‐engineereditsbusinessprocessintheyearpriortosoftwareandintegratorselection.Theyformedtheirbusinessprocessrequirements,andallowedintegratorstopitchtheirservicesafterdeterminingthebest‐fitsoftware.Whenaskedaboutlessonslearned,Pennsylvaniasupportedtheideaofperformingbusinessprocessre‐engineeringpriortoimplementation.NewYorkalsorecommendedanalignmentofbusinessprocessestoinherentsystemcapabilitieswherepossible.Bymappingoutfuturebusinessprocessestofittheout‐of‐boxsoftwarecapabilities,astatecouldavoidcustomization,havehighereaseoftraining,andincreasingefficiency.Ohiounderwentbusinessprocessre‐engineeringsubsequenttoinitialgo‐live,butdidsopriortosystemupgrades.Therewillrarelybeaperfectfit,makingsmallcustomizationsunavoidable,buttheycanbedealtwithinanupgrade.

LimitSystemCustomizations

AbestpracticeforsuccessfulstateswastouseERPfunctionalityasdesignedwhilekeepingcustomizationsforcorefinancialtransactionsandreportingtoaminimum

Moststatessurveyedplacedheavyemphasisontheirdesiretokeepcustomizationtoaminimum.Systemswithheavycustomizationpresentmajorchallengesduringtheupgradeprocess.SuchhasbeenthecaseinPennsylvania,whichtookonanefforttoreversethecustomizationswithintheirSAPsystemtoaccommodateupgrades.Texasalsoindicated


severaloftheirlarger,morecomplexagencieshavefelttheneedforcustomizationtoaccommodatebusinessprocesses,andtheycouldencounterproblemswithupgrades.

Allstates,particularlyVirginia,admittedcertaincustomizationswillbeunavoidable,primarilyforthecomplexagencies.Inthesecases,theyrecommendedrequestsforcustomizationbebroughtinfrontofagoverningbodywhocouldassessandgiverulingonthenecessityofthecustomization.Onlythosewhoareabsolutelyvitaltoanagency’suniqueoperationsshouldbeallowed.Processeswhichcanbetweakedslightlytofitout‐of‐boxsoftwarecapabilityshouldbeadjustedassuch.

SystemIntegratorSelectioncanbeasImportantasSoftwareSelection

Whileprocurementstrategiesvariedwidely(integratorfirst,softwarefirst,combinedselection,etc.),almosteveryoneinterviewedstressedtheselectionoftherightintegratorisasimportantastheselectionoftherightsoftwarepackage.

Everystateinterviewedstressedtheabsolutenecessityofhavingstrongintegrationsupport.Theyallchosetorelyononeofthetopintegratorsinthemarket.ThelistincludesIBM,Deloitte,Accenture,andCGI(specificallyfortheCGIsoftware).Virginiahaspleasedwiththeirimplementationpartnerandhassignedacontractwiththemforoperationsandmaintenancesupport.Incontrast,TexasfacedchallengeswiththeinitialconfigurationandrolloutoftheirPeopleSoftimplementationandexpandedtheirsupportforthesystemandfuturerolloutstoincludeanadditionalvendor.

Althougheachsoftwarepackagehasdifferentstrengthsandcapabilities,alltheviablesoftwarepackageshavehadsuccessesandfailuresinthepublicsector.Thecauseforfailureismostoftenrelatedtotheintegrationapproachandsupport,notthesoftware.ThesoftwarewillonlybeabletomeetacertainpercentageoftheState’srequirementsoutofthebox.Theintegratorcancomeupwithcreativesolutionstobridgethatgapandenablethesystemtosupportbusinessoperations.Implementationwilltakeseveralyears,soitisimportanttohaveatrustingrelationshipwiththeintegrator,andbeconfidenttheycandeliverontheirtimeline.

PhasedImplementationApproach

Ingeneral,stateshavetakenaphasedapproachtotheimplementationofnewenterprisefinancialmanagementsystems,oftenrevampingcentralsystemsfirstbeforeaddressingagencyconcerns.

WiththemanymovingpiecesassociatedwithstatewideERPinitiatives,moststatesadoptaphasedimplementationstrategy.Withthistypeofstrategy,asingleorseveralleadagencieswouldsuccessfullyimplementthenewtechnologybeforeanewwaveofagenciesmadethechange.Bybreakingtheoverallimplementationintopieces,goalsbecomemorevisibleandmanageable.Phasedimplementationmightalsobetheonlyoptionforcertainstatesforbudgetaryreasons,whichiswhyamulti‐yearphasedimplementationisoftenthemostrealisticmodel.


InVirginia,theDepartmentofTransportation(VDoT)andtheDepartmentofAccountsagreedtoleadtheeffort.VDoTwentlivewiththeirsolutionin2011,followedthenextyearbyDOA.Theseagencieswerethechampionsforanewsystembecauseofbusinessneedsthatwerenotbeingmetbytheirlegacysystems.Therearetworemainingwavestotheirimplementationtimeline.ThefirstwaveofagencieswillbebroughtontothesystembyOctober2014andthesecondwavebyFebruary2016.AlabamaisalsofollowingaphasedimplementationapproachwithtwentystateagenciesscheduledtogoliveontheirnewCGIAdvantagesolutionbyOctober2015.Theremainingagencieswillundergoimplementationinseveralphasesoverthecomingyears.

Theimportanceof“gettingawin,”asitwasputinseveralstateinterviews,wasacausefortransitioningagencieswithsimplebusinessprocessesontothenewsystemfirst.Ohiofollowedthisformat.Thisisbeneficialforstateswhoarelookingtohavemeasurableresultsbeforeanadministrationchange.Otherstates,VirginiaandTexasforexample,triedtacklingarguablytheirmostcomplexagency,theirDepartmentsofTransportation,attheoutset.Ifsuccessisachievedforcomplexagencies,thesimpleronesshouldpresentlessofastruggleadjustingtothenewsystem.

FocusonOrganizationalChangeManagement

Innearlyeverycase,organizationalchangemanagementplaysakeyroleinensuringasuccessfulimplementation.

WhicheveroptionFloridaultimatelychooseswillleadtochangesintheday‐to‐dayjobsofemployeesacrossthestate.Thepeoplesideofthetransitionwillbeequallyimportantasthetechnologypiece.Theprojectteamislikelytofacepushbackfromsomeoftheseemployeesastheyaretakenoutoftheirroutines.Thebenefitsrealizedwillhavetobereinforcedthroughoutthedurationofthissystemtransformation.Tohavethesestateemployeesbuyintothevisionandmissionoftheproject,strongleadershipwillbenecessary.

NewYorkhadanentireteamdedicatedtoagencyoutreachservingasaliaisonbetweentheagenciesandtheproject,helpingtofacilitateprojectactivitiesandtosupportindividualchangeleadersateachagencyduringthetransition.Virginiaindicatedtheirimplementationincludesasubstantialchangemanagementeffort.Theyhavebeenusingacombinationofweb‐basedandclassroomtrainingtoteachemployeeshowtointeractwiththenewinterface.InOhio,asistypicallythecase,theexternalOCMteamwasresponsibleforbuildingtrainingmaterialsandleadingstrategy.ItwasalsomadeapparentintheinterviewwithAlabamathatchangemanagementwillbecrucialbecausetheywillbemakingatransitionfromprimarilypaper‐basedprocessestoanear‐paperlessenvironment.

PartnerwithKeyAgencies

Toensuresuccess,manystateschosetopartnerwithakeyagencyoragenciesasapartoftheinitialimplementation.Thesepartnershipsensuredagencyneedswereconsideredduringthedeployment,servedasanexampleofsuccessthatmadeiteasiertoonboardotheragenciesinlaterphasesorwerevehiclestoprovideadditionalsourcesoffunds.


StatewideERPinitiativessometimesariseoutofthebusinessneedsofoneorseveralkeyagenciesnotbeingmet.InAlabama,forexample,itsMedicaidAgencywaslimitedbycurrentsystemfunctionality.Theprospectofanewstatewidesolutionaroseoutofthatneed.VirginiaandTexas,aspreviouslymentioned,partneredwiththeirDepartmentsofTransportationtoleadtheimplementation.TheDepartmentofAccountsinVirginiaandtheagenciesundertheCommissionofHealthandHumanServicesinTexasalsoservedasleadersfortheirstates’ERPprojects.

Asuccessfulimplementationataleadagencyprovestootherstateagenciesthatbenefitscanberealizedfromthetransition.Therolloutataleadagencyservesasamodelforsubsequentrollouts.Lessonslearnedfromtheleadagencycanbuildefficienciesforthesesubsequentrollouts.Partneringwithaleadagencyalsoensuresthevoicesofend‐usersarebeingheard.

ExistenceofanAgencyChargebackCostingModel

FundingmodelsamongstthestatesfortheirERPinitiativesdifferedinsomecapacity,butallhadsomeelementwhereanagencywaschargeddirectlyeitherforongoingoperations,orfordevelopmentofspecialfunctionality.

Legislativeappropriations,agencychargeback,andoftenamixofthetwoseemedtobethemostpopularoptionsforsystemfunding.Treasuryloansrepresentanothersourceoffunding,butwerenotsocommonlyused.Thechallengewiththisfundingmodelisitisdifficulttogetfundingfortheinitialinvestmentfromagencieswhoarenotyetseeingbenefits.Onlyoncetheyhavemadethetransition,canthechargebejustified.Forthisreason,thelegislatureoftenhashadtoappropriatefundstokick‐starttheproject.ThiswasthecaseforseveralofthestatesweinterviewedincludingNewYork,Texas,Pennsylvania,andGeorgia.

Theagencychargebackmodelrequiresafeeauseragencypaystothemaintainingagencyforuseofthesystem.Theratesatwhichuseragenciesarechargedwerebasedonaformulathattakesintoaccountthenumberoftransactionsprocessedornumberofusers.Thelevelofcomplexityvariedamongthestatesinterviewed.

Pennsylvania,Ohio,andVirginiarepresentafewofthestateswhoutilizeachargebackmodel.Pennsylvaniareceivedinitialprojectfundingfromappropriations,butsupportsongoingsystemoperationsthroughagencychargeback.Virginiagottheirinitialfundingfromatreasuryloan,andthentransitionedtoachargebackmodelforsupportandtorepaytheloan.Ohiohasusedanagencychargebackfundingmethodfromthebeginning.

CombinationofIn‐HouseandOutsourcedSupport

Moststatesarecurrentlyhostingtheirfinancialmanagementsystemswithinstate‐rundatacenters,buttheystillleverageconsultantstoassistwithsoftwaremaintenanceandcomplexsystemupgrades.

Findingsfromthestateinterviewsidentifiedamixtureofin‐houseandoutsourcedsupport.Bothhardwareandpeopleforapplicationsupport,databaseadministration,and


developmentarebeingoutsourcedatleastinpart.Manyofthesoftwarevendorsandsystemintegratorspromotetheuseoftheirresourcesforsystemmaintenanceandprovideadvantagestoimplementationpricingifasupportmodelispartofthecontract.Itcanbedifficultforstatestohireandretainemployeeswiththelevelofexpertiseneededtomaintaincomplexsystems,whichisonereasonoutsourcedsupporthasbecomefairlypopular.

Ohio,aPeopleSoftuser,hasinlargepartoutsourcedITinfrastructureandapplicationsupporttoAccenture.Somestatescontinuetorelyprimarilyoninternalstatestaffforsupportallowingforstaffaugmentationasrequired.NewYork,forexample,doesnotutilizeanyformofoutsourcingforsystemmaintenance.Theyusedanintegrator(IBM)forimplementationservices,butallothersystemsupportisdonewithstatestaff.Asahybridmodel,VirginiaoutsourcesinfrastructuresupporttoNorthropGrumman,buthasacombinationofinternalstatestaffandAccenturecontractorswhocarryoutdatabaseadministration,applicationsupport,development,andothermaintenancetasks.Thisisperhapsthemostfavorableoptionsincecontractorsprovideexpertiseatarelativelyhighcost.Internalstatestaffcanhandleaportionofthesystemsupportatarelativelylowercostthanadditionalcontractors,whocanbeleveragedasneeded.


2.5.2 ADDITIONALSTATERESEARCH

ThefollowingExhibitisaconsolidationofbasicresearchonstatefinancialmanagementandHR/Payrollsystems.Theserepresentthetop30statesintermsoftotalexpenditures.TheExhibitshowstherangeoftechnologysolutionoptionschosenaswellastheyeartheywereorwillbeimplemented.Finally,the“AdditionalComments”columnexpressesthereasonsforselectingNewYork,Texas,Virginia,Pennsylvania,Georgia,Ohio,andAlabamaformorein‐depthanalysis.

STATERANK/2013STATE

SPENDING73(MILLIONS)FINANCIALMANAGEMENT

SOFTWARE HR/PAYROLLSOFTWARE ADDITIONALCOMMENTS

CA 1/$199,400 PeopleSoft(2012)

CustomLegacy

N/A

NY 2/$133,500PeopleSoft(2011)

PeopleSoft(2005)

LargestatebudgetandrecentERPimplementationsuccess

TX 3/$93,000 PeopleSoft(2011)

PeopleSoft(2012)

LargestatebudgetandtosurveyastatethatisstillintheprocessofgoingthroughanERPimplementation

PA 4/$66,900 SAP(2002)

SAP(2004)

ComparablestatebudgettoFloridaandsuccessfulstatewideERPimplementation

73NationalAssociationofStateBudgetOfficers(NASBO)ExpenditureReport2011‐2013


STATERANK/2013STATE



IL 5/$65,700CustomLegacy

(SAMS) (Legacy)

IssuedRFPforstatewideFinancialandHR/Payroll(2013)

FL 6/$63,000CustomLegacy

(FLAIR) PeopleFirst(SAP) N/A

MA 7/$59,300CGIAdvantage

(2010)PeopleSoft(2010)

N/A

OH 8/$57,900 PeopleSoft(2008)

PeopleSoft(2008)

Comparable statebudgettoFloridaandoutsourcingmodel

NJ 9/$48,600 CustomLegacy(NJCFS)

CustomLegacy N/A

MI 10/$47,300

CustomLegacy(MichiganAdministrative

InformationNetwork‐MAIN)(1994)

LawsonHR/Payroll(1994)

IssuedRFPforsoftwareselection(2012)

IssuedRFPforsoftwareintegratorselection(2013)

NC 11/$46,600 CustomLegacy(NCAS)

SAP(2008)

N/A

VA 12/$43,400 PeopleSoft(2014)

PeopleSoft(2014)

In‐processimplementationwithuniquepilot‐agencyapproach

WI 13/$41,300PeopleSoft(2015)

PeopleSoft(2017)

N/A


STATERANK/2013STATE



GA 14/$41,100PeopleSoft(1999)

PeopleSoft(1999)

OneofthefirststatestoimplementanERPsolutionandhasundergoneseveralupgrades

WA 15/$35,000CustomLegacy(AgencyFinancialReportingSystem‐AFRS)

SAP(2006)

N/A

MD 16/$34,900 CustomLegacy(FMIS)

CustomLegacy(StatePayrollSystem)

BeginningprocesstoimplementWorkDayforHR/Payroll

MN 17/$31,300 PeopleSoft(2011)

PeopleSoft(2011)

N/A

TN 18/$30,400 PeopleSoft(2009)

PeopleSoft(2009)

N/A

CO 19/$28,800 CGIAdvantage(2014)

CustomLegacy N/A

AZ 20/$28,500 CGIAdvantage(2014)

LawsonHR/Payroll Intheprocessof

implementingCGIAdvantage

CT 21/$27,600 PeopleSoft(2008)

PeopleSoft(2008)

N/A

LA 22/$27,000 SAP(2011)

SAP(2001)

N/A

OR 23/$27,000

CustomLegacy(StatewideFinancial

ManagementApplication–SFMA)

CustomLegacyPayrollSystem

N/A


STATERANK/2013STATE



IN 24/$26,400 PeopleSoft(2009)

PeopleSoft(2009)

N/A

KY 25/$25,600 CGIAdvantage(2006)

SAP(2011)

N/A

AL 26/$24,200 CGIAdvantage(2002/2015)

CGIAdvantage(2002/2015)

StateactivelyusingCGIAdvantageandinprocessofstatewideupgradewithextensiveprocessre‐engineering

MO 27/$23,400AMS(nowCGI)Advantage

andBrass(2000)

AMS(nowCGI)AdvantageandBrass(2001)

N/A

SC 28/$22,000SAP

(2010)SAP

(2010) N/A

WV 29/$21,800CGIAdvantage

(2014)CGIAdvantage

(2015) N/A

OK 30/$20,900PeopleSoft(2003)

PeopleSoft(2006)

N/A

Exhibit2‐44:AdditionalStateInformation


2.5.3 DETAILEDSTATEPROJECTPROFILES

Thefollowingsectionscontaindetailedinformationgatheredfromstateinterviewsaswellasadditionalresearch.

2.5.3.1 NEWYORK

In2009,NewYorkformedtheStatewideFinancialSystem(SFS)Program.TheirgoalwastoimplementanintegratedstatewideenterprisefinancialmanagementsolutiontoreplacetheirlegacyCentralAccountingSystem(CAS)andseveralexistingagencyfinancialsystems.TheyestablishedtheChangeControlBoard,acollaborationofrepresentativesfromtheGovernor’sOfficeandtheStateComptroller’sOffice,toleadprojectstrategyanddecision‐makingaroundnewsystemcapabilitiesandenhancements.AseparatesteeringcommitteegatheredfeedbackfromstateagenciesontheimpactoftheimplementationandcommunicatedwiththeChangeControlBoard.

Initialandongoingsystemfundingwasappropriatedbythelegislature.Thesefundsweregeneratedfromten‐yearbondsobtainedbythestate.PriortotheselectionofanERPsolution,Gartnerperformeda“buildvs.buy”analysiswhichultimatelysupportedthestate’sdecisiontobuyacommercialofftheshelfsoftwarepackage.ProcurementforsoftwareandthesystemintegratoroccurredseparatelywiththestateselectingPeopleSoftFinancialsandthensubsequentlyselectingIBMforimplementationservices.Duringimplementation,NewYorkutilizedroughly160contractors.TheIn‐scopefunctionalityforthenewsystemincludedgeneralledger,accountsreceivable,accountspayable,procurement,grants,andbilling.Therewasnolegislativemandateforagenciestousethenewsystem,andsomecontinuetointegratelegacysystemswiththeERP.NewYorkfocusedonimplementingPeopleSoftwithasfewcustomizationsaspossible,andwereabletouseover90%outoftheboxfunctionality.

TheinitialrolloutwasdonefortheDepartmentofGeneralServicesin2012.Thereweredelaysinthetimeline,whichNewYorkindicatedwasusedtorepeatdataconversionrehearsalsandtesting.Ongoingsystemsupportishandledbyover100stateemployeeswithoutsidecontractorsasnecessary.

NewYorkhasrealizedanumberofbenefitsfromthisinitiativeincludinghavingonesourceoffinancialtruth,standardizedandimprovedbusinessprocess,andincreasedbusinessprocessautomation.Additionally,theyprovidedseverallessonslearnedfromtheirproject.Theyindicateditwouldhavebeenfavorabletoprocuresoftwareandthesystemintegratorinonecontracttoprovideasinglepointofaccountabilityforsoftwareandmodifications.Inhindsight,thestatealsowouldhavedelayedthedatawarehousepieceoftheprojectuntilafterinitialgo‐live.Theyalsoregrettednothavingmoreagencyrepresentativesonthe


projectteamduringinitialdesigntocommunicateagencyneeds.Theywillcontinuetheirefforttobringagenciesontothenewsystem.7475

2.5.3.2 TEXAS

In2007,TexasidentifieditsneedforastatewideERPsystemtostreamlineprocessesofmanyofitsmajorfunctions.In2008,thestatecontractedSalvaggio,TealandAssociatestoperformabusinesscasestudytodeterminewhatthesystemsneedsofthestatewereandtoproviderecommendationsofpossiblesolutions.By2010,thestatelegislatureapprovedaneightyearERPproject.CalledProjectONE,thegoalwastoimplementfunctionalityforfinancialsandHR/Payrollwithnewenterprisesoftware.TheimplementationsoffinancialsandHR/Payrollfunctionalityarebeingcarriedoutseparately.

Asaresultofthebusinesscase,anexecutivesteeringcommitteewasformedtopromotetheneedforanewsystemtothelegislature.Whenfundingwasappropriated,anothersteeringcommitteewasformedforprojectdecisionmaking.Asagenciesarebeingaddedtothesystem,thegovernancestructureisexpanding.

PeopleSoftwasselectedasthebest‐fitsoftwaretomeettocomplexbusinessneedsofTexas’morethan150agencies.ThenewsystemwillbecalledCAPPS(CentralAccountingandPayroll/PersonnelSystem)andwillserveastheState’sERPsystemgoingforward.Deloittewassubsequentlychosenasthesystemintegrator.

Financialfunctionstobesetinplacebytheendoftheprojectincludegeneralledger,accountspayable,accountsreceivable,procurement,grants,andprojectcosting.HRfunctionalitywillincludecoreHR/payroll,timeandlabor,enterpriselearningmanagement,enterpriseperformancemanagement,andrecruiting.

TheDepartmentofInformationResources,theDepartmentofTransportation,andthefiveagencieshousedunderHealthandHumanServicesCommissionemergedastheinitialpilotagenciesafterexpressinglimitationstotheircurrentsystemsinmeetingtheirneeds.WhendifficultieswereencounteredwiththeDepartmentofTransportation,Texastransitionedtoa“HubModel”forimplementation,inwhichtheagencieswithmorecomplicatedbusinessprocessesweregivenacopyofthesoftwaretoformtheirowninstanceandmakethenecessarycustomizationsthemselves.Go‐liveforfinancialfunctionalityoccurredin2011forDIR,andisstillbeingrolledoutinotheragencies.ForHR/Payrollfunctionality,theagencieswhoareapartoftheHealthandHumanServicescommissionwentlivein2012.

TexascurrentlyhasacontractwithXeroxtoprovidesystemmaintenance.TheircontractwithDeloittecanbeusedforfuturedeploymentsatstateagencies,butXeroxisalsobeing

74NewYorkInterview,December10,2013.75NewYorkStatewideFinancialSystemSite,2014.


usedinthiscapacityatthispointintime.ThestateexpectsittotakeanotherfivetotenyearsbeforeCAPPSisfullyimplementedstatewide.7677

2.5.3.3 VIRGINIA

In2006,theCommonwealthofVirginiaestablishedtheVirginiaEnterpriseApplicationsProgram(VEAP)toperformabusinesscaseonthecurrentstateoftheirfinancialsystems.Theyalsoevaluatedthefeasibilityofreplacingthecurrentsystemwithnewenterprisesoftware.Theninlate2009,theCommonwealthembarkedontheCardinalProject,astatewideERPeffort.TheDepartmentofTransportationalongwiththeDepartmentofAccountsagreedtospearheadtheproject.ProjectCardinalisgovernedentirelyundertheDepartmentofAccountswithadministrativeresponsibilityundertheGovernor.TheDepartmentofTransportationfundedfiftypercentoftheprojectwiththeotherhalfcomingfromatreasuryloan.

Beforeprocuringsoftwareandanintegrator,Virginiaunderwentaone‐yearbusinessprocessre‐engineeringperiod,duringwhichtheyinternallydevelopedalistofsystemrequirements.TheythenpresentedtheserequirementstoagroupofintegratorswhoeachselectedthebestfitsoftwareandpitchedanimplementationplantoVirginiarepresentatives.AccenturewaschosentoleadtheimplementationofPeopleSoft.They,alongwithateamofstatestaff,continuetoprovideapplicationsupport,databaseadministration,development,andgeneralmaintenance.HeavycustomizationwithinthesystemforspecificagencyneedshascausedproblemsinthepastforVirginia.Thistimearound,everycustomizationtothenewsystemhastobeapprovedbythesteeringcommittee.

ProjectscopeinvolvedastatewidereplacementofalegacyfinancialmanagementsystemwiththePeopleSoftfinancialmanagementpackage.Thefirstphaseoftheprojectwastoimplementnewgeneralledger,accountsreceivable,accountspayable,timeandattendance,projectaccounting,andprocurementfunctionalityforVDoT.Theyfocusedonperformingprocessreengineeringandchangingbusinessprocessinsteadofthesystemwhereverpossibleresultinginasmallpercentage(lessthan15%)ofrequirementsrequiringacustomization.Inthistransition,5,000enduserswerethoroughlytrained.CardinalwassuccessfullydeployedatVDOTin2011andatDOAin2012.Theremainingstateagencieswillbebroughtonthrough2016.Asagenciesarebroughton,achargebackapproachwilltakeeffectforthecontinuedfundingofthesystem.Theratesatwhichagenciesarechargedwilldependonusageandwillbelegislativelyapproved.Aportionoftherateisfortherepaymentoftheinitialtreasuryloan.Thisprojectwillresultinimprovedreporting,decisionmaking,functionality,standardizeddata,andconsistentprocessesacrossagencies.787980

76TexasInterview,January15,2014.77TexasProjectONESite,2014.78VirginiaInterview,December4,2013.79VirginiaCardinalProjectSite,2010.80VirginiaEnterpriseApplicationsDivisionSite,2014.


2.5.3.4 PENNSYLVANIA

In2001,theCommonwealthofPennsylvaniaembarkedonastatewideERPinitiative.Theinitiative,namedImaginePA,wastaskedtoimproveprocessesforthefivekeyfunctionsofaccounting,budgeting,humanresources,payroll,andprocurement.Withoneofthenation’slargesttechnologybudgetsat$250million,PennsylvaniatookononeofthemostrobustpublicsectorERPimplementationsdoneinanystatetodate.TheStateestablishedtheCIOAdvisoryCounciltoassistwithscopingandplanningofthisproject,andalsocontractedtheGartnerGrouptoprovidetheirexpertiseinthisarea.

Twoyearspriortoprojectkickoff,PennsylvaniaperformedtheapplicationselectionatwhichtimetheydeterminedSAPwasthebestfitfortheirneeds.Intheyearleadinguptoofficialprojectinitiation,BearingPointwasselectedforintegrationservices.Forallfinancialfunctionality,thesystemhadbeensuccessfullyimplementedinthreewavesforallagenciesbysummer2002.Themostdifficultagencies,includingPennDOT,weretransitionedinthelastphase.ImplementationofHR/Payrollcapabilitiesforallagencieswasdonewitha“big‐bang”approachbyearly2004.TheprojectredefinedthefinancialmanagementandHR/Payrollsystemsusedby53oftheState’sagenciesandover70,000users.TherewasasignificantfocusonOrganizationalChangeManagement(OCM)duringallphasesoftheprojectincludingengagingafulltimeOCMteam,thedevelopmentofanextensiveambassadornetworktoeachparticipatingagency,andweavingchangemanagementintoallphasesoftheprojectfrominitialdesignthroughfinalroll‐out.

TheCommonwealth’sIntegratedEnterpriseServicesBureauwasestablishedastheprojectlead,operatingwithabout155employeesacrossitsthreedivisions(1)technicaloperations(2)businessoperations(3)programoperationsandsupport.TechnicaloperationsstaffconsistofDatabaseadministrators,SAPsecuritypersonnel,developers,andothersupportstaff.Thebusinessoperationsteamfocusesonthefinance,HR/Payroll,andaccountingfunctions.Theprogramoperationsstaffdealswithprojectmanagement,budgetmanagement,andotherinternalmatterssuchashelptickets.SomeIESstaffwerepulledfromstateagenciesforthedurationoftheproject,andreturnedtotheiragenciesaftercompletionoftheimplementation.

AsteeringcommitteecomprisedoftheSecretaryofAdministration,theComptroller,theCIO,andseveralcorebusinessowners(Procurement,HR,&Budget)actedastheleadgoverningbodyoverthesystem.Duringtheimplementationproject,thiscommitteewasreferredtoastheAdvisoryCommittee.TherealsoexistsaseparateOperatingCommitteemadeupofcorebusinessrepresentativeswhichinteractwithteammanagersforfeedbackonday‐to‐dayoperationsthatcanthenbecommunicatedtotheSteeringCommittee.Theexistinggovernancestructureisnotestablishedinstatestatute.

Theinitialprojectfundingwasfromlegislativeappropriation.Forfundingofongoingoperations,achargebackmethodisusedforallservicedagencies.Costsavingswerenotrealizeduntilafterthelegacysystemswerecompletelyshutoff.

Sinceimplementation,Pennsylvaniahasundergoneonesignificantupgrade.Futureupgradeswillbedonewithupgradepackstoavoidmoredramaticcoresystemupgrades.


End‐usertrainingwasdonebythesystemintegratornomorethan60daysbeforego‐live.818283

2.5.3.5 GEORGIA

In1999,GeorgiawasoneofthefirststatestogolivewithandERPsolutionforfinancialmanagementandHR/Payrollfunctions.PeopleSoftwasdeterminedtobethebestfitfortheState’sbusinessneeds.ThesolutionhasbeendeployedinallstateagencieswiththeexceptionoftheDepartmentofLaborforanumberofyears.ModuleswhicharecurrentlyinuseincludecoreHR/Payroll,timeandlabor,generalledger,accountspayable,accountsreceivable,procurement,andbudgeting.Intotal,thereareabout80,000systemusersforthevariousfunctions.

Georgiausesanagencychargebackmodelforsystemfunding.Atthebeginningofeachyear,aflat‐rateestimateforsystemusageischargedtoeachuseragency.Specificsystemmodificationsarerequestedbyindividualagenciesandarechargedseparatelytothoseagencies.Asteeringcommitteeisresponsibleforsystemoversightanddecision‐making.Threeandfiveyearplanshavebeendevelopedandareupdatedannuallybythissteeringcommittee.

Thesystemhasbeenupgradedfourtimes.AccentureandDeloittecarriedoutthefirsttwoupgrades,andthetwomorerecentupgradeshavebeenexecutedbyinternalITstaff.IntheinterviewwithGeorgiaitwasindicatedtheexpertiseofexternalresourcesmadethefirsttwoupgradessmootherthanthemorerecentones.

Georgiamadetwoimportantpointswhenaddressingtheirlessonslearned.Theyfirstsuggestednottostrivetomakethenewsystemperformliketheoldone,andtotakeadvantageoftheopportunitytore‐designandstandardizebusinessprocesses.Theyalsostressedtheextensivechangemanagementeffortthatwillresultfromaprojectofthismagnitude.TheywereoperatingonalegacymainframesystempriortothePeopleSoftimplementation,andthedramaticchangethatoccurredfromthetransitionwasdifficultformanyemployees.848586

81PennsylvaniaInterview,December6,2013.82WilliamWagnerPh.D.andYvonneLedererAntonucciPh.D.,AnAnalysisoftheImaginePAPublicSectorERPProject(Proceedingsonthe37thHawaiiInternationalConferenceonSystemSciences,2004)1‐8.83“TheCommonwealthofPennsylvaniatoImproveStateGovernmentThroughPartnershipwithSAPPublicSectorandEducation,”SAP,pressrelease.June14,2000.84GeorgiaInterview,December9,2013.85“StateofGeorgiaImplementsOracle’sPeopleSoftApplicationstoStreamlineFinancialManagementandHumanResourcesProcesses,”OracleCorporation,pressrelease.June20,2007.86“GeorgiaStatePurchasingDivisionImprovesStatewideStrategicSourcingwithOracle’sPeopleSoftEnterpriseApplications,”OracleCorporation,pressrelease.August8,2011.


2.5.3.6 OHIO

In2003,thestateofOhioperformedabusinesscasetoassesstheirneedforanewfinancialmanagementandHR/Payrollsystem.By2005,theyselectedAccenturetoimplementPeopleSoftforthesestatefunctions.ThesystemwasgiventhemonikerOAKS,meaningtheOhioAdministrativeKnowledgeSystem.OAKSwasaconsolidationoffourmainframelegacysystemsinoperation.Go‐liveforHumanCapitalManagement(HCM)functionsincludingpayrollandbenefitsoccurredinJanuary2008.Thefinancialfunctionsincludinggeneralledger,accountsreceivable,andbasicprocure‐to‐paywerebroughtoninJune2008.AcustomrewriteoftheirlegacysystemwasneveraseriousoptionforOhio.

Asteeringcommitteeconsistingofseniorleadersofeachofthecorebusinessareaswasresponsibleformakingimportantprojectdecisions.Smaller‐scaledecision‐makingfellunderthebusinessadvisoryleadershipgroupscomposedofotherOhiostatestaffthatspecializeinthevariousbusinessfunctions.Thegovernancestructureisnotestablishedinstatestatute.

OhiooutsourcedmuchofitsITsupportforOAKSin2009toAccenture.Someimportantlessonswerelearnedduringtheimplementationoftheirnewsystem.Ohiobelievesitisvitaltokeepcustomizationstoaminimumbymandatingstateagenciestomoveontothenewsystemandpromotestandardizedprocesses.TheyimplementedOAKSwithaverylowinstanceofcustomizations.Notallstateagencieswererequiredtomakethetransition,whichhasbeenlookedbackonasamistake.Currently,oneoftheirmorecomplexagencies,theirDepartmentofTransportation,isassessingthefeasibilityofmakingthejumptoOAKS.Additionalgrantsandprojectmanagementfunctionalitymustbeaddedbeforethiscantakeplace.Theyalsostressedtheimportancetoofstrongintegrationsupportforbuildingtrainingmaterialsandleadingprojectstrategy.87888990

2.5.3.7 ALABAMA

Forthepast25years,theStateofAlabamahasrunitsfinancialandHRsystemswithAMSAdvantagesoftware.AgencyaccountingandprocurementsystemsareseparatefromthecorefinancialandHRsystems,butinterfaceviacrosswalktables.Allprocessingisdoneovernightinbatches.Around2010,theydecidedtoproceedwithastatewideERPimplementationofCGIAdvantage3.9,andwouldsubsequentlyplanforanupgradetoversion3.10.CGIisprovidingimplementationservices.

TheinitiativeisafourtofiveyearprojecttobringallstateagenciesontotheCGIAdvantagesolutionforfinancialsandprocurement.ByOctober2015,thegoalisfortwentyagenciestohavesuccessfullymadethistransition.Thiswillcompletelychangethewayaccountingis

87OhioInterview,December23,2013.88“AccenturetoDesign,Implement,andSupportOhio’sNewStatewideERPSystem,”Accenture,pressrelease.May4,2005.89HiltonCollinsandMattWilliams,“OhioSharedServicesUsesEnterpriseSystemtoConsolidateStateFinancials,”August31,2010.90OhioAdministrativeKnowledgeSystem,“OutsourcingProgramOverview,”November9,2011.


doneinAlabamabymovingawayfromamanual,paper‐intensiveprocesstoapaperlessandstreamlinedone.Fundingfortheprojectiscomingfromacombinationofchargebackandappropriations.Whenthesystemiscompletelyupandrunning,itwillbefullyfundedbyagencychargebacks.Afterallstateagencieshaveimplementedfullfinancialmanagement,procurement,andbudgetingcapabilitiesbyOctober2016,HR/Payrollisplannedtobeaddressedwithinthenextyear.

Athree‐tiergovernancestructurewasestablishedforthisproject.AnExecutiveOversightCommitteeconsistingoftheFinanceDirector,AssistantFinanceDirectorforOperations,theStateTreasurer,theSecretaryofIT,andonesenioragencyrepresentativewereresponsibleforestablishingtheprojectcharterandmeetquarterlyforprojectupdates.AnExecutiveSteeringCommitteeisdesignedtobethegoverningbodyforthesystem.Therepresentativesareresponsibleformakingstrategicdecisions.Anadditionalsteeringcommitteehasbeenassembledforday‐to‐daydealingsthatgetreportedtotheExecutiveSteeringCommittee.919293

2.5.3.8 ADDITIONALSTATERESEARCH

Asapartofthemarketscan,informalinterviewswereconductedtowiththeformerNorthCarolinaStateComptrollerandmembersoftheCaliforniaFinancialInformationSystemsforCalifornia(Fi$Cal)projecttoobtainadditionalinformation.DuetothestatusofERPatbothofthesestates,theywerenotincludedasprimaryreferencesforFlorida.Summarynotesforeacharebelow.

NorthCarolina

In2003,NorthCarolinainitiatedProjectBEACON,BuildingEnterpriseAccessforNorthCarolina’sCoreOperatingNeeds.ThisinitiativewasaimedataddressingtheneedtoconsolidateandimprovetheefficiencyoftheiragencyHR/Payrollsystems.AstudyconductedbyDeloitteprovidedjustificationfortheinvestment.AcrosstheState’s34stateagencies,30separateHR/Payrollsystemswereinuseresultingin30differentpayrollcycles.Inaddition,stateemployeesdidnothaveacentralportaltoaccessforHR‐relatedissuesandquestions.

FromApril2006toJune2008,NorthCarolina,withthehelpofsystemintegratorBearingPoint,implementedSAP’sHumanCapitalManagementsolution.Byearly2008,NorthCarolinawasabletogolivewithitsnewsolution.Thissolutionhelpedthemdrasticallyreducethenumberofmonthlypayrollcyclesfrom30to2,andcreatedacentralcontactauthoritytoaddressemployeequestionswiththeBEACONEnterpriseSupportTeamShared

91AlabamaInterview,December20,2013.92ThomasL.White,“StateofAlabama:HowanERPProjectbecameaSegmentedApproach,”TheNationalAssociationofStateAuditors,Comptrollers,andTreasurersAnnualConference(Seattle,WA),March22,2012.93GetSMARTStateBusinessSystemsProjectBriefing,May29,2008.


Servicesorganization.Anemployeeportalwasalsocreatedforaneasy‐to‐usewayofupdatingbenefits,payroll,andtimekeepinginformation.

WiththesuccessofthisportionoftheBEACONproject,NorthCarolinaplanstomoveforwardwiththeBudgetandFinancialsInitiativetoimprovetheprocessesofcriticalfinancialfunctions.Thisinitiativehasseendelaysduetoissuesoverprojectfunding.9495

California

TheStateofCalifornialaunchedtheFI$CalandMyCalPAYSprojectsin2005.Sincetheinitiation,MyCalPAYS,thepayrollproject,hashitseveralroadbumps.Theywereforcedtoterminateanintegratorafterfailuretoimplementpayrollfunctionality.Afterthisinitialattempt,theyturnedtoanSAPsystemforpayrollandalmostimmediatelywerestruckwithmajorissuesregardingincorrectpaymentsbeingmadetoemployeesinthesmalldeploymentgroup.ThisledtotheterminationofthecontractwithSAP.

Forfinancials,CaliforniaselectedPeopleSoftandHyperionsolutions.HyperionwillgiveCaliforniamorerobustreportingpower.TheprojectaimedtoadvancetheState’sbudgeting,accounting,procurement,andcashmanagementfunctions.AccenturewasselectedbythestatetointegratetheirPeopleSoftandHyperionsolutionswithminimalcustomizations.CGIinitiallywontheintegrationservices,buttheirpricewasmateriallyhigherthanAccenture’s.Softwareandintegratorprocurementswerecarriedoutseparately.96

94InterviewconductedwithformerNorthCarolinaStateComptrollerRobertPowell,December6,2013.95NorthCarolineProjectBEACONSite,2008.96FI$CalProjectSite,2013.


2.5.4 REQUIREDSYSTEMCAPABILITYJUSTIFICATION

ThefollowingExhibitcontainsadditionaldetailandexplanationaroundtherequiredsystemcapabilities:

REQUIREDSYSTEMCAPABILITY REASONFORINCLUSION

1. Singlesystemofrecordforstatewidefinancialtransactionsandcashbalances

MissionoftheCFO: necessarytoprovideefficientreportingofstatewideexpenditures.

Section215.93,F.S.:Noagencyshallestablish/maintainsystemswhichduplicateanyoftheinformationsystemsofFFMIS.

Section216.141,F.S.:FinancialinformationmustbecontainedwithinFLAIR.TheCFOshalluseFLAIRintheperformanceofandaccountingforallofhisorherconstitutionalandstatutorydutiesandresponsibilities.

LimitationsofExistingSystem:Atanygiventime,Treasuryandtheagenciesaremonitoringfourdifferentcashbalancesresultingfromlackofreal‐timeintegrationofCentralandDepartmentalFLAIR.

GuidingPrinciples:Implementastatewidefinanceandaccountingsystemenforcingprocessstandardization,promoteseconomiesofscale,andenablescomprehensive,accuratefinancialinformationtobeproduced.

GoalsandObjectives:ImprovetheState’sfinancialmanagementcapabilitiestoenablemoreaccurateoversightofbudgetandcashdemandstodayandinthefuture.

AgencyResearch:Multipleagencies,includingDEP,DFS,DOT,andDMSindicatedtheyspendsignificanttimereconcilingandmanagingtheiravailablecash.

StateResearch:Manystates,includingGA,NY,OH,andPAareusingtheirERPsystemsasthestatewidesystemofrecord.

MarketResearch:ERPsystemsprovideasingledatabasefortransactions,programmaticallyenforcingonevalueforanygiventransaction.

2. GeneralLedger(G/L) MissionoftheCFO: CoretoCFO’sroletomanagetheaccountsoftheState.

Section216.141,F.S:FinancialinformationmustbecontainedwithinFLAIR.

LimitationsofExistingSystem:CentralFLAIRdoesnothaveaG/L,requiringadditionalreconciliationwithdoubleentrytransactionsmadeinDepartmentalFLAIR.

Goalsandobjectives:ImprovetheState’sfinancialmanagementcapabilitiestoenablemoreaccurateoversightofbudgetandcashdemandstodayandinthefuture.

StateResearch:Eachstateinterviewedwasusingastandarddouble‐entryG/LinherentintheirERPsystem.

MarketResearch:G/LfunctionalityisaninherentfeatureinallstatelevelcommercialERPsoftware.



3. AccountsPayable(A/P) MissionoftheCFO: necessarytoprovideefficientcontrolandreportingofstatewideexpenditures.


LimitationsofExistingSystem:FLAIRlackstheabilitytoschedulepaymentsbasedonpaymenttermsanddoesnotautomaticallygenerateliabilitieswithprocurementtransactions.

AgencyResearch:DEP,DOR,andDOThavesignificantmanualprocessandexternalsystemstoaddresslimitationswiththecurrentA/PfunctionalityinFLAIR.

StateResearch:AllstateswhoimplementedanewfinancialmanagementsystemincludedA/Pfunctionality.

MarketResearch:A/Pfunctionalityisaninherentfeatureinallcommercialsoftwarewhichwasconsidered.

4. BasicAccountsReceivable(A/R)

MissionoftheCFO: Core toCFO’sroletomanagetheaccountsoftheState.


LimitationsofExistingSystem:FLAIRcannotrecordinvoiceinformationandtrackAPforagencies.

AgencyResearch:Everyagencyinterviewedhadtheneedtotrackaccountsreceivableand23ofthe31agenciesinthesysteminventoryhavesystemstomanageA/R.

StateResearch:AllstateswhoimplementedanewfinancialmanagementsystemincludedtheA/Rfunction.

MarketResearch:A/Rfunctionalityisaninherentfeatureinallcommercialsoftwareconsidered.

5. BankReconciliation MissionoftheCFO:CoretoresponsibilitytomanagetheaccountsoftheState.

LimitationsoftheExistingSystem:BankreconciliationhasbeenbuiltintoCMS,butonlyforsomebanksandtransactions.


AgencyResearch:Treasuryandalloftheagenciesspendsignificanttimereconcilingbetweenthefourcurrentcashbalances.DOTexpressedtheirdesireforanimprovedcashreconciliationprocess.

MarketResearch:AccountreconciliationisstandardinmostERPsystems.



6. PayrollCalculation,VerificationandPayment

MissionoftheCFO: necessarytoprovideefficientvalidation,control,andreportingofstatewideexpenditures.

LimitationsofExistingSystem:ThepayrollsystemcurrentlyrecordscashinCentralFLAIR,butdoesnotmakeentriesforpayrollintoDepartmentalFLAIR,causingthepotentialforoutofbalanceentries.


AgencyResearch:DOTandDCFexplainedthecomplexprocesswhichtakeplaceandtheflowofdatainandoutofFLAIRforpayrollprocessing.

StateResearch:Texas,Pennsylvania,Georgia,Ohio,andAlabamahaveimplementedorplantoimplementthepayrollfunctionalitywithintheircommercialsoftwarepackage.

7. BudgetandEncumbranceManagement

MissionoftheCFO: necessarytoprovideefficientvalidation,control,andreportingofstatewideexpenditures.

LimitationsofExistingSystem:FLAIRcanrecordanencumbrance,butitsstructurewillnotpermitthistobeeasilyinterfaced.


AgencyResearch:DOTidentifiedFLAIR’sinabilitytoencumberfundsovermorethanoneyearasahindranceontheiroperations.

AgencyResearch:DCFstrugglesthroughamanuallyintensiveprocesstotransferbudgetdatafromLAS/PBStoFLAIR.

StateResearch:PennsylvaniaandGeorgiaincludedthebudgetingfunctionwhentheyimplementednewsystems.Alabamaplanstodoso.

MarketResearch:Budgetingandencumbrancefunctionalityisaninherentfeatureinallcommercialsoftwarewhichwasconsidered.



8. Real‐timeornearreal‐timetransactionprocessing

LimitationsofExistingSystem:Proliferationofagencyuniqueprocessesand“shadow”systems1)increasesthedifficultyinmanagingtheState’sfinances,2)exposestheStatetooperationalrisk,3)increasestheState’sadministrativeandsupportcosts,and4)decreasesoperationalefficiencyandeffectiveness.TheseshadowsystemsoftencommunicatewithFLAIRonaonce‐dailybasismeaningactionisnotalwaysbeingtakenonthemostaccuratedata.

LimitationsofExistingSystem:Atanygiventime,Treasuryismonitoringfourdifferentcashbalancesthatresultfromlackofreal‐timeintegrationofDepartmentalandCentralFLAIR.

LimitationsofExistingSystem:Nightlybatchprocessingdelayssometransactionswithmultiplestepsuptothreedaysbeforetheyarefinalized.


StateResearch:OtherstatesimplementingERPhaveeitherrealtimetransactions,orwheretherearebatches,multiplerunsperday.

MarketResearch:AllofthecommerciallyavailableERPpackageshavereal‐timeorlimitedbatchprocessingforcoretransactions.

9. Warrantspaidfrommultipleaccountcombinations

Section 215.91,F.S.: FFMISsubsystemsshallbedesignedtoincorporatetheflexibilityneededtorespondtothedynamicdemandsofStateGovernment.

LimitationsofExistingSystems:FLAIRrequiresonlyonefundandaccountcodeforeachwarrant,necessitatingmanualallocationsinsteadoftheabilitytoenterdistributionfullyonthepaymentinstrument.

Goalsandobjectives:Improvestaffproductivity,reduceoperationalcomplexityandincreaseinternalcontrolsbyenablingstandardizationandautomationofbusinessprocesseswithinandbetweenDFSandagencies.

AgencyResearch:DOT,DEPandDCFnotedthisasacauseforconsiderableefforttoallocatedisbursementstoallappropriateaccounts.



10. Electronicworkflowandrouting

Section 215.93,F.S.: FFMISshallbeupgradedasnecessarytoensureefficientoperationandtoprovidenecessaryinformationfortheeffectiveoperationofStateGovernment.Workflowisnecessaryforefficientandeffectiveoperationinbusinesstoday.

LimitationsofExistingSystems:FLAIRlacksanyinteractiveworkflowtoroutorapprovetransactions.


AgencyResearch:DEPidentifiedFLAIR’slackofworkflowasasystemlimitationwhichhindersefficiency.

StateResearch:Themajorityofthestatesinterviewedareimplementingelectronicworkflowandpushingtowardlimitingpaperprocessingwherepractical.

MarketResearch:Workflowfunctionalityisaninherentfeatureinallcommercialsoftwarestudied.

11. Effectivedatingoftransactions

MissionofCFO:Providesaccurate audittrailsforkeytransactions.

LimitationsofExistingSystems:FLAIRcannoteffectivedatetransactionsorstaticdata,causingreconciliationissues.


StateResearch:Allofthestatesinterviewedusesystemsthateffective‐datetheirtransactions.

MarketResearch:CurrentERPsystemshaveeffectivedatingoftransactionsasastandardcapability.

12. Supportforindustrystandardcommunication/systemintegrationprotocols

Section 215.91,F.S.: FFMISshallbeaunifiedinformationsystem.

Section215.92,F.S.:FFMISshallensuretheefficientoperationofanintegratedfinancialmanagementinformationsystem.

LimitationsofExistingSystem:LackofintegrationisoneoftheKeyChallengestheStatefaceswithFLAIR.

Goalsandobjectives:ReducetheState’sriskexposurebyharnessingmodernfinancialmanagementtechnologybuiltonthepremisesofscalability,flexibility,andmaintainability.

GuidingPrinciples:Implementasolutionwhichsupportsatruestatewide,unifiedinformationsystem.

StateResearch:AlloftheinterviewedstateshaveextensiveinterfacesbetweentheirERPsystemsandexternalagencysystems.

MarketResearch:AllcurrentERPsystemshavetoolsandcapabilitiestointerfaceeasilyandinastandardmannerwithexternalsystemsandprocesses.



13. Useofmodernprogramminglanguagesanddatabasetechnologies

Goalsandobjectives: ReducetheState’sriskexposurebyharnessingmodernfinancialmanagementtechnologybuiltonthepremisesofscalability,flexibility,andmaintainability.

LimitationsofExistingSystem:FLAIRisafragilesystemandisexposingtheStatetooperationalrisk.Withanoutdatedprogramminglanguage,theavailabilityofresourceswithproperknowledgetomaintainitissparse.

StateResearch:Alloftheinterviewedstateswerelookingtomakeuseofmoderntechnology.

MarketResearch:AvailableERPsoftwareiswrittenusingmoderntools,andiskeptuptodatebythesoftwarecompanies.

14. Multipleenvironmentstosupporttestingandmigration

Section215.93,F.S.: FFMISshallbeupgradedasnecessarytoensureefficientoperationtoprovidenecessaryinformationfortheeffectiveoperationoftheStateGovernment.Tomeetthisobligationwhenperformingupgrades,atestingenvironmentwillbenecessary.

LimitationsofExistingSystem:Duetothecurrentarchitecture,thereisnotestinstanceofFLAIR,meaninganychangescanonlybemadedirectlyintotheproductionsystem.


StateResearch:Allofthestatesinterviewedhavemultipleenvironmentstosupportdevelopment,testingandproductioninstancesoftheirfinancialmanagementsystem.

15. Minimizeoreliminateuseofthemainframeandtakeadvantageofamulti‐tierapplicationarchitecture

LimitationsofExistingSystem: FLAIRisafragilesystemandisexposingtheStatetooperationalrisk.Mainframetechnologyisoutdated,andtherearebetteralternatives.


StateResearch:Allofthestatesinterviewedhavemovedoffofmainframesfortheirfinancialsystems.

MarketResearch:AvailableERPsoftwareisdevelopedtorunonmodernarchitecture;noneofthenewersystemsarewrittentoworkonamainframesystem.

16. Flexibledatabasearchitecturewhichsupportsmultiplefields

Section 215.91,F.S.: FFMISsubsystemsshallbedesignedtoincorporatetheflexibilityneededtorespondtothedynamicdemandsofStateGovernment.

LimitationsofExistingSystem:FLAIRisinflexibleandnotmeetingtheState’sfinanceandaccountingneeds.

Goalsandobjectives:Improvestateandagencyspecificdecisionmakingbycapturingaconsistentandanexpandablesetofdata.

MarketResearch:AvailableERPsoftwareisdevelopedwithaflexibledatastructure.



17. Abilitytoreportonastandardizedsetofdata

MissionoftheCFO.Requiredtoprovideaccuratestatewidereportingofexpenditures.

LimitationsofExistingSystem:StatewidereportingiscurrentlylimitedbyavailabilityofdataandthefactagenciescanusethesamefieldwithinDepartmentalFLAIRfordifferingpurposes.

AgencyResearch:EveryagencywhowasinterviewedidentifiedissueswiththereportingcapabilitiesofFLAIR.


AgencyResearch:AgenciescurrenthavemultipleexternalsystemstheyuseforreportingbecausetheycannotgetdesiredreportsfromFLAIR.

MarketResearch:ReportingagainstmultipledataelementsisstandardfunctionalityinallofthecommercialERPsystems.

18. Storageofdevelopedqueries,views,andreports

LimitationsoftheExistingSystem:FLAIRlackstheabilitytosaveandstoreusergeneratedreports,creatingaproliferationofextrareports.


StateResearch:AllstatesinterviewedeitherhaveorareimplementingthiscapabilitywiththeirERPimplementations.

MarketResearch:Allcommercialsoftwarepackagesinconsiderationhavetheseabilities.

19. Modernsetofreportingtoolsforexportandanalysisofdata

MissionoftheCFO.Requiredtoprovideaccuratestatewidereportingofexpenditures.

LimitationsofExistingSystem:Userscannotexportdatainaformatwhichcanbeeasilymanipulatedinasecondarytool,(e.g.MSExcel)


AgencyResearch:AlloftheagenciesinterviewedhavetheirowntoolsandprocessestoaddresslimitationswithexportingformatteddataintoExcel.

StateResearch:Allstatesinterviewedhadadataanalysiscapabilitywithsomeusingtoolswithintheirsoftware,andothersusingexternalBusinessIntelligence(BI)reportingtools.

MarketResearch:Allcommercialsoftwarepackagesinconsiderationhavetheseabilities.



20. Self‐servicereporting LimitationsofExistingSystem: AllagenciesintervieweddevelopedseparatereportingcapabilitiesbecausethedataavailablefromFLAIRreportscouldnotbeusedbyaverageemployees.


AgencyResearch:AgenciesspendsignificanttimeandresourcesestablishingreportingtoolsbecausetheycannotgetdesireddatafromFLAIR.

StateResearch:AlloftheinterviewedstateshavesomeuserqueryandreportingcapabilitieswithintheirERPtools.

MarketResearch:AlloftheERPsystemshavetheabilityforuserstogeneratereports,queries,andexportdataasneededforexternalanalysis.

21. Asset,Project,ContractandGrantsAccounting

MissionoftheCFO: AccountingforalltheseitemsispartofmanagingtheaccountsoftheState.

LimitationsofExistingSystems:FLAIRlacksthisfunctionality,requiringagenciestouseexternalsystemsfortrackingkeyinformation.


AgencyResearch:DEPandDOTnotedthelimitationsofFLAIR’sgrantsmanagementcapabilitiesandhaveimplementedtheirownsystemsandprocessestotracktheirgrants.

StateResearch:NewYork,Texas,andOhiohaveaddedspecificgrantsmanagementapplicationsinadditiontotheircorefinancialmanagementsystem.

MarketResearch:SomelevelofthisfunctionalityisstandardinalloftheavailableERPpackages.



22. Modern,user‐friendlyinterfaces

LimitationsofExistingSystem:FLAIRhasatextbasedinterfacewhichislimitedandhasnotbeenchangedinovertwentyyears.


AgencyResearch:AllagenciesinterviewedexpressedadesireforamodernwebinterfacewithDEPindicatingtheycreatedadataentryapplicationspecificallysotheiremployeeswouldnothavetousetheFLAIRinterface.

AgencyResearch:InanexerciseconductedintheVisioningSessionon12/4/2013,manyparticipantsfromDISagreedanewwebinterfaceshouldbeapartoftheNewFLAIR.

StateResearch:NewYork,Ohio,andVirginiawereabletouseweb‐basedtrainingtoteachusershowtousebasicfunctionsofthenewsystemwithoutneedingclassroomtraining.

MarketResearch:Thisisaninherentfeatureinallcommercialsoftwarewhichwasconsidered.

23. Electronicdocumentstorageandattachments

MissionofCFO: RecordsmanagementispartofmaintainingtheaccountsoftheState.

LimitationsofExistingSystem:FLAIRcannotmaintainanyattachmentsforworkfloworonlinerecordmanagement.


AgencyResearch:DEPandDOTrecognizedelectronicdocumentstorageasacapabilitywhichwouldimprovetheiroperations.

StateResearch:DocumentattachmenthelpstheefficiencyofbusinessprocessesandisinuseinNY,TX,andVA.


24. DirectinterfacewithproductivitytoolssuchasMicrosoftExcel

LimitationsofExistingSystem: UserscanaccesssomeFLAIRdatafromtherepository,butitisnotformatted.Thereisnoabilitytoimportdatafromspreadsheetsintoatransactionscreen.


AgencyResearch:DOTandDEPwouldlikethenewsystemtoexportreportsanddataintoExcelsotheycanbuildandmanipulatepivottables.


Exhibit2‐45:RequiredSystemCapabilityJustification


2.5.5 RISKJUSTIFICATIONS

ThissectioncontainsadditionaldetailexplainingthelikelihoodandimpactratingsgiventoeachriskinSection2.4.4.

Option1:EnhanceFLAIR

RISK IMPACTEXPLANATION LIKELIHOODEXPLANATION

Lossofpolitical/executivesponsorship Lossofexecutivesponsorshipcouldimpactsupportforfunding,staffing,anddecisionmakingwithimpactsincluding:

Failedimplementation Benefitsnotrealized

Longtimelineforprojectimplementationandslowbenefitsdeliverytimelinemakesitmorelikelytheprojectwillloseexecutivesupportovertimethanwithotheroptions.


Ineffectivedecisionmakingduringtheimplementationprocesscouldhaveimpactstoallfacetsoftheprojectincluding:


FLAIRiscontrolledbyasingledepartmentmakingcross‐agencygovernancelessofanissuethanwithotheralternatives.

Fundingnotavailable Iffundingisnotmadeavailable,itmaybeimpossibletocompletekeyaspectsoftheproject.BecausetheelementsofFLAIRaretightlyinterconnected,missingonepieceoffunctionalityhasadominoeffectontherestofthesystemandcouldpreventimplementationresultingin:


Longimplementationtimeframeandhighcostscouldresultinproblemsfundingtheproject.


Therightskilledresourcesarecriticaltosuccessfulcompletionoftheprojectwithimpactsincluding:


Thedevelopmentofanewenterprisefinancialmanagementsystemwillrequirehighlevelarchitectswhichmaynotbeavailabletothestate.




Ifusersdonotadaptandusethesystem,therewillbesignificantnegativedownstreamimpactsthatcouldresultin:


Therewillbeasignificantchangeinbusinessprocessandsystemfunctionalityimpactingusers’daytodaylives.

Lackofagencybuy‐inandsupport Positiveagencyparticipationwillgreatlyimprovetheimplementation,butDFScanupdateFLAIRandforcechangesonthestate.Potentialimpactsare:

Failedimplementation Benefitsnotrealized Failuretomeetimplementationtimeline

IfFLAIRismodifiedinawaywhichisunpopularwiththeagencies,theymayslowlyreducetheirrelianceonthesystem.


Agencyresources(includingDFS)arenecessarytocompletetheproject.Someresourcescanbecontractedifnecessary.Impactsinclude:


Thelongtimeframeandthepotentialforlackofsupportatbothexecutiveandagencylevelcouldresultinaninadequatenumberofresourcesbeingassignedtotheproject.

DFSmaynothavetheskills,experienceorstafftodesign,develop,test,androlloutthesolution



Thedevelopmentofanewenterprisefinancialsystemwillrequirehighlevelarchitectswhichmaynotbeavailabletothestate.

Businessprocessesnotchanged Businessprocesschangeisrequiredtoachieveanyoftheidentifiedbenefits.Impactsinclude:


Custombuildingsoftwareincreasesthelikelihoodthesystemwillbebuilttoexistingrequirementsratherthanmakingprocessimprovements.




InterfacesarerequiredforFLAIRtofunctionandwillbeanimportantpartofthenewsystemarchitecture.Impactsinclude:


Integrationwithothersystemsshouldimprovewiththedevelopmentofanewsystem.

Similartothegovernanceissue,FLAIRiscontrolledbyasingledepartmentmakingintegrationissueswithotheragencieslesslikelythanwithotheralternatives.


Ongoingmaintenanceisnecessarytoenablethesystemtosupportbusinessoperations.Impactsinclude:

Increasedsupportcosts Shortenedsolutionlifespan

Withcustombuiltsoftware,thedevelopmentofallbugfixes,upgradesandresearchanddevelopmentmustbehandledinternally.AswasthecasewiththeoriginalFLAIR,theseupgradesareoftennotperformedandovertimesystemsbecomeoutofdateandneedtobereplaced.

Exhibit2‐46:Option1RiskExplanations

Option2:ReplaceFLAIR




Phasedapproachtoprojectincludingpre‐implementationworklimitexposuretolossofpolitical/executivesponsorship.






FLAIRiscontrolledbyasingledepartmentmakingcross‐agencygovernancelessofanissuethanwithotheralternatives.

Fundingnotavailable Iffundingisnotmadeavailable,itmaybeimpossibletocompletekeyaspectsoftheproject.BecausealloftheelementsofanERPareinterrelated,missingonepieceoffunctionalityhasadominoeffectontherestofthesystem.


Phasedapproachtoprojectincludingpre‐implementationworklimitsexposuretolossoffunding.




Identifyingandhiringresourcestoimplement/supportanyofthemajorpublic‐sectorERPpackagesshouldnotbeachallenge,therebyminimizingexposuretothisrisk.









ReducesexposuretopushbackbyotheragenciesislimitedgivenFLAIRiscontrolledbyasingledepartment.




Thecompactimplementationtimelineandlimitedscopereducethelikelihoodthatresourcesassignedbytheagencieswillbeanissuewiththisoption.

DFSmaynothavetheskills,experienceorstafftodesign,develop,testandrolloutthesolution



Identifyingandhiringresourcestoimplementanyofthemajorpublic‐sectorERPpackagesshouldnotbeachallenge,therebyminimizingexposuretothisrisk.

Businessprocessesnotchangedtoincreaseefficiencies

Businessprocesschange isrequiredtoachieveanyoftheidentifiedbenefits.Impactsinclude:


GivenonlyFLAIRwillbereplacedinthisoption,itispossibletheorganizationwillnotlooktomodifyexistingbusinessprocessesortakeadvantageofnewcapabilities.

CMSmaintenancetakesadditionalresourcesormaintenanceisnotkeptupandCMSbecomesobsolete





SinceFLAIRiscontrolledbyasingleagency,itreducestheriskofintegrationissues.






ResearchanddevelopmentofupgradesarehandledbyERPsoftwarevendors,therebyreducingthenumberofstateemployeesrequiredtosupportthistaskandlimitingrisk.

Exhibit2‐47:Option2RiskExplanation

Option3:ReplaceFLAIRandCMS




Phasedapproachtoprojectincludingpre‐implementationworklimitexposuretolossofpolitical/executivesponsorship.




SomegovernanceissuesmayariseintegratingFLAIRwithCMS.



Phasedapproachtoprojectincludingpre‐implementationworklimitsexposuretolossoffunding.





ByreplacingonlyFLAIRandCMS,systemswhicharecontrolledbyasingleagency,exposuretopushbackbyotheragenciesisreduced.









Agencystaffunabletosupportnewsolution

Ifunabletosupportthenewsystem,additionalresourceswillberequired,orkeyfunctionalitymaynotfunctionproperly.Impactsinclude:


Identifyingandhiringresourcestosupportanyofthemajorpublic‐sectorERPpackagesshouldnotbeachallenge,therebyminimizingexposuretothisrisk.

Existingstaffdoesnothaveexposuretothesolutionsavailableandwillneedtobere‐trained,therebyincreasingrisk.




Thecompactimplementationtimelineandlimitedscopereducethelikelihoodresourcesassignedbytheagencieswillbeanissuewiththisoption.








Businessprocesschangeisrequiredtoachieveanyoftheidentifiedbenefits.Impactsinclude:


Becauseofthelimitedscopeofimplementationwiththisoption,itispossibletheorganizationwillnotlooktomodifyexistingbusinessprocesseswhichintegrateittotakeadvantageofnewcapabilities.





SinceFLAIRandCMSarecontrolledbyasingleagencyitreducestheriskofintegrationissues.




ResearchanddevelopmentofupgradesarehandledbyERPsoftwarevendors,therebyreducingthenumberofstateemployeesrequiredtosupportthistaskandlimitingrisk.



Option4:ReplaceFLAIR,CMS,MFMPandPeopleFirst




Extendedprojecttimelineandtheall‐encompassingprojectscopeincreasethelikelihoodoflossofpolitical/executivesponsorship.




Thisoptionwillreplacemultiplesystemscontrolledbydifferentdepartments–thereforegovernanceissuesmayarisewhenaddressingthecompetingdemandsofeachagency.



Sincethisoptionrequiresthereplacementofkeysystemscontrolledbymultipledepartments,thereisariskoneoftheagencieswillnotsupportthenewsystemiftheirparticulardemandsarenotmet.



Highcostandextendedimplementationtimeframeincreaseexposuretofundingissues.














Theextendedimplementationtimelineandall‐encompassingprojectscopeincreasethelikelihoodresourcesassignedbytheagencieswillnotbesustainedandwillbecomeanissuewiththisoption.






Businessprocesschangeisrequiredtoachieveanyoftheidentifiedbenefits.Impactsinclude:


BecausethisoptionreplacesallkeyFFMISsystems,itisunlikelybusinessprocesschangeswillberemainunaddressed.







Someintegrationissuesmayariseintegratingsystemscontrolledbymultipleagencies.




Researchand developmentofupgradesarehandledbyERPsoftwarevendors,therebyreducingthenumberofstateemployeesrequiredtosupportthistaskandlimitingrisk.



2.5.6 LISTOFSOURCES

2.5.6.1 MARKETRESEARCH

GeneralMarket

Gartneranalystreferencecall,December9,2013.

PeopleSoft

OraclePeopleSoftApplicationsOverview.http://www.oracle.com/us/products/applications/peoplesoft‐enterprise/overview/index.html.

MeetingwithPeopleSoftRepresentatives,December17,2013.

SAP

SAPforPublicSectorOverview.http://www.sap.com/solution/industry/public‐sector.html.

MeetingwithSAPRepresentatives,December11,2013.

CGIAdvantage

CGIAdvantageERPOverview.http://www.cgi.com/en/solutions/cgi‐advantage.

CGIManagedAdvantageOverview.http://www.cgi.com/sites/default/files/brochures/cgi‐managed‐advantage‐erp.pdf.

MeetingwithCGIRepresentatives,December17,2013.

2.5.6.2 STATERESEARCH

General

NationalAssociationofStateBudgetOfficer’sExpenditureReport:ExaminingFiscal2011‐2013StateSpending.(http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf)

PNNarayan,MartinBenison,andNaomiWyatt,“TheStateofERPintheStates,”TheNationalAssociationofStateChiefInformationOfficers2008AnnualConference(Milwaukee,WI),September2008.(http://www.nascio.org/events/2008Annual/presentations/StateOfERP.pdf)

MassimilianoClapsandIvyI.Anderson,“TrendsinStatewideERPImplementations,”Gartner,October5,2009.


(http://starproject.wi.gov/Documents/Trends_StatewideERP_Implementations_GartnerIndustr_ResearchReport2009.pdf)

NewYork

NewYorkInterview,December10,2013.

NewYorkStatewideFinancialSystemProjectSite.http://www.sfs.ny.gov/.

Texas

TexasInterview,January15,2014.

TexasProjectONESite.http://www.txprojectone.org/.

Pennsylvania

PennsylvaniaInterview,December6,2013.

WilliamWagnerPh.D.andYvonneLedererAntonucciPh.D.,AnAnalysisoftheImaginePAPublicSectorERPProject(Proceedingsonthe37thHawaiiInternationalConferenceonSystemSciences,2004)1‐8.(http://pdf.aminer.org/000/248/644/an_analysis_of_the_imagine_pa_public_sector_erp_project.pdf)

“TheCommonwealthofPennsylvaniatoImproveStateGovernmentThroughPartnershipwithSAPPublicSectorandEducation,”SAP,pressrelease.June14,2000.(http://global.sap.com/press.epx?pressID=167)

Ohio

OhioInterview,December23,2013.

“AccenturetoDesign,Implement,andSupportOhio’sNewStatewideERPSystem,”Accenture,pressrelease.May4,2005.(http://newsroom.accenture.com/article_display.cfm?article_id=4213)

HiltonCollinsandMattWilliams,“OhioSharedServicesUsesEnterpriseSystemtoConsolidateStateFinancials,”August31,2010.(http://www.govtech.com/featured/Ohio‐Shared‐Services‐Uses‐Enterprise‐System.html)

OhioAdministrativeKnowledgeSystem,“OutsourcingProgramOverview,”November9,2011.(http://www.devoutsourceing.com/app/assets/files/pdf/Rob%20%20Nov_110911_OI_Deck_v102111.pdf)


Virginia

VirginiaInterview,December4,2013.

VirginiaCardinalProjectSite.http://www.cardinalproject.virginia.gov/.

VirginiaEnterpriseApplicationsDivisionSite.http://www.vita.virginia.gov/EAD/default.aspx?id=9976.

Georgia

GeorgiaInterview,December9,2013.

“DespiteOdds,GeorgiaHitsItBigWithERPSystem”Computerworld,October9,2000.

“StateofGeorgiaImplementsOracle’sPeopleSoftApplicationstoStreamlineFinancialManagementandHumanResourcesProcesses,”OracleCorporation,pressrelease.June20,2007.(http://www.oracle.com/us/corporate/press/015542_EN)

“GeorgiaStatePurchasingDivisionImprovesStatewideStrategicSourcingwithOracle’sPeopleSoftEnterpriseApplications,”OracleCorporation,pressrelease.August8,2011.(http://www.oracle.com/us/corporate/press/453595)

Alabama

AlabamaInterview,December20,2013.

GetSMARTStateBusinessSystemsProjectBriefing,May29,2008.(http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=10&cad=rja&ved=0CHsQFjAJ&url=http%3A%2F%2Fwww.sbs.alabama.gov%2Fppt%2F052908_‐_SMART_Business_Systems_‐_Briefing.ppt&ei=BnvdUrTpBqTisATq0IC4Dw&usg=AFQjCNEIdVj75ykZjU9s8XrgJobHkUDlfA)

ThomasL.White,“StateofAlabama:HowanERPProjectbecameaSegmentedApproach,”TheNationalAssociationofStateAuditors,Comptrollers,andTreasurersAnnualConference(Seattle,WA),March22,2012.(http://www.nasact.org/conferences_training/nasc/conferences/AnnualConferences/2012AnnualConference/PresentationsHandouts/white.pdf)

NorthCarolina

InterviewwithformerNorthCarolinaStateComptroller,December6,2013.

NorthCarolinaProjectBEACONSite.http://www.ncosc.net/beacon/.


“StateofNorthCarolina:StandardizingtheProcessofDeliveringGovernmentServices,”August,2008.(http://global.sap.com/japan/industries/publicsector/pdf/State_of_North_Carolina_‐_Business_Transformation_Study_(A4)%5b1%5d.pdf)

California

CaliforniaFI$CalProjectSite.http://www.fiscal.ca.gov/.


CHAPTER3 RECOMMENDATION

3.1 SUPPORTFORTAKINGACTIONNOW

AlthoughmodificationstoCMShavebeenmadeinrecentyears,significantmodificationshavenotbeenmadetothecoreFLAIRenvironmentoverits30plusyearlife.Actionshouldbeinitiatednowtoavoidtheseriousrisksofobsolescencethatfacesanysolutionofthisage.TherearetwoprimarycategoriesofriskstheStatemustbeginnowtomitigate:

SystemArchitecture

LackofNecessaryFunctionality

3.1.1 SYSTEMARCHITECTURE

Althoughimpossibletoaccuratelymeasure,theriskofacatastrophicfailureincreasessignificantlyinsystemstheageofFLAIR–thesefailurescansourcefrommultiplepointswithinthesolution.Thesystemhasbeenextensivelypatchedoverthepast30yearsandlacksadequatesystemdocumentationtofullyevaluatetheimpactofanyrevisions.


AninadequatesystemarchitectureandlackofnecessaryfunctionalitytomeetthemissionoftheCFOnecessitatethatactionisinitiatedtoreplacetheState’sagingfinancialmanagementsystem.

BasedontheanalysiscompletedinChapter2OptionsAnalysis,therecommendationistheStateofFloridashouldreplaceFLAIRandCMSwithanERPsolution(Option3).

Fouroptionswererequiredtobeanalyzedandtherecommendedoptionwasselectedbasedoninformationcollectedfromthemarketconditionsandtrendsandtheanalysisofbothqualitativeandquantitativefactors,including:

AlignmenttoGoalsandObjectives

CostComparison

BenefitsComparison

RiskAnalysis

Option3hasanestimatedtotalimplementationcostof$224.6Millionandcanbefullyimplementedwithin7years.Thesolution’sestimated15‐yeartotalcostofownershipis$667.6Million.


ThecurrentFLAIRandCMSarchitectureisneitherflexiblenoradaptable.The“siloed”designbetweenFLAIRcomponentspresentschallengesinmakingmodificationsandtherecurrentlyisnotarobusttestingenvironment.

3.1.2 LACKOFNECESSARYFUNCTIONALITY

Withoutaflexibleandadaptablesolution,agenciescontinuetodeveloptheirownbusinesssystemstomeettheirneeds.TheInventory(seeAttachment2)documentsandcategorizestheover400suchsystemswhichcurrentlyexist(approximately300systemswereinplacewhenlastinventoriedin2000).Amongtheotherbusinessprocessessupported,theagencybusinesssystemsincludeadditionalreporting,costallocationsupport,assetmanagement,accountsreceivable,andmid‐yearforecastingandscenarioplanningfunctionalitycurrentlynotavailablethroughFLAIR.Thetruetotalcostrequiredtomaintainagencybusinesssystemsisnotcurrentlycompiled.Thetotalcostisdistributed,andinmanycasesduplicative,acrossagencies.Theagencysysteminventoryalsoidentifiedawiderangeofsystemfunctionalitysupportingsimilarbusinessprocesses.Thelackofstandardizationforthelargenumberofdifferentapplicationtypesresultsinfurtherinefficienciesandrisk.MultipledisparatesystemsalsointroduceadditionalrisktotheStatesincetheyhavebeendevelopedwithoutanenterprisemasterdatamanagementplan.

BasicinformationonStatespending,includingbothhistoricalandtrenddata,isnotreadilyavailable.Thelackofasingleintegratedplatformalsonecessitatestheextensiveuseofmanualreconciliationprocedures(e.g.,cashbalances,payrollprocessing).Movingtoasingleintegratedplatformwouldalsoeliminatethecurrentinherentsystemlimitations(e.g.,lackofautomatedworkflowandcashreconciliationtools).

3.2 RECOMMENDATION–OPTION3:REPLACEFLAIRANDCMSWITHANERPSOLUTION

Provisolanguageincludedinthe2013GAArequiredDFStoanalyzefourpotentialfutureoptionsforFLAIRandrelatedsubsystems.Therequiredoptionsevaluatedincluded:


BasedontheanalysisdocumentedinChapter2,therecommendationistoreplaceFLAIRandCMSwithanERPsolution(Option3).ThecostanalysisinChapter2,Section2.4representsthatOption3canbefullyimplementedfor$224.6Million.Theestimatedimplementationcostsforalloptionsrangefrom$219.4‐$467.4Million(todeliverthesameleveloffunctionality).

TherecommendationofOption3factorstheinformationgatheredandanalyzedinChapter2fromtrendsinpublicsector,interviewswithotherstates,interviewswithselectstateagencies,aninterviewwithamarketanalystspecializinginpublicsectorERPandincludedthereviewandanalysisofanumberofreportscompletedonProjectAspireandpreviouslargescaleITprojectsattemptedbytheStateoverthelastdecade.Theanalysisalsoincludedacostcomparisonofeachoption.


InChapter2,Section2.4.5,eachoptionwasrankedagainstaqualitativeandquantitativeframeworkwhichconsideredthefollowingdimensions:

AlignmenttoVisionandGoals

TotalCostofOwnership

AchievementofBenefits

Risk

Theratingutilizeda3.0scale,with3.0representingthehighestandpositivecorrelation.

REVIEWCATEGORY

OPTIONSCONSIDERED

OPTION1:

ENHANCEFLAIR

OPTION2:

REPLACEFLAIR

OPTION3:REPLACE

FLAIRANDCMS

OPTION4:R

EPLACEFLAIR,

CMS,MFM

P,A

NDPEOPLEFIRST

AlignmenttoVisionandGoals 1.6 1.8 2.8 3.0

TotalCostofOwnership 2.5 3.0 2.9 2.4

AchievementofBenefits 1.8 2.9 3.0 2.7

Risk 1.7 2.5 2.5 2.1

CombinedComparison 1.9 2.6 2.8 2.6

Exhibit3‐1SummaryOptionComparison

InadditiontotheanalysiscompletedinChapter2,thereareobservationsthatfurthersupporttherecommendationofOption3.TherewasnoevidencetosupportthatadditionalinvestmentinenhancingorrewritingFLAIR(Option1)wouldbeinthebestinterestoftheState.TheimplementationcostsinChapter2forOption1werethehighestofthefouroptionsat$467.4Millionandwerelimitedtocapturingthedevelopmentofthedescribedfunctionality.TheanalysisdidnotattempttomeasuretheamountofresearchanddevelopmentinvestmentthatcurrentERPvendorsannuallymaketomeetcustomerdemandsandasimilarinvestmentwouldbenecessaryfortheStatetopreventarecurrenceofthecurrentFLAIRenvironment.

Option4presentsthebestalignmentwithestablishedvisionandgoals;and,thegovernancerequiredtosuccessfullymanageatruestatewide“enterprise”solutionneedstobewell


establishedacrosstheenterpriseandworkingeffectivelybeforethisshouldbeattempted.ThecontractualcommitmentsforMFMPandPeopleFirstalsoprecludeOption4frombeingviableatthepresenttime.

AkeydifferentiatingfactorinfavorofOption3overOption2isthereductionincomplexity,riskoferrorsandenhancedcashmanagementresourcesresultingfromthesinglebookbalanceforstatewidecashthatOption3provides.

TheactualtimingandscopeofimplementingpayrollwilldependontheimpactofdecisionsanticipatedwhenthePeopleFirstcontractisscheduledtorenewinAugust2016.Theactivitiesandestimatedresourcesassumethereplacementofthecurrentpayrollfunctions.ThiscouldbefurthermodifiedbyDFSbasedonotherfactorsincludingotherimplementationactivitiescurrentlyscheduledforthesametimeframeasthepayrollimplementation.

Therecommendedphasedimplementationstrategyisacentralcomponentofmanagingtheoverallprojectrisk.Similarly,eachphaseintheprojectlifecyclecontributesanimportantpartinachievingtheexpectedresults.AbriefdescriptionofeachphaseisdescribedbelowwhileadditionaldetailontheimplementationapproachandtimelinecanbefoundinChapter4ImplementationStrategy.

Pre‐Design,Development,andImplementation(Pre‐DDI)Phase:Thisphaseisthecatalystandfoundationforthefuturesuccessoftheproject.Itincludessuchactivitiesas:

o EstablishingthePMOandProjectGovernancestructure

o ConductingBusinessProcessRe‐Engineering(e.g.,establishingbaselineandtargetperformancemetrics,currentandfuturestateprocessflows,updatedfunctionalrequirements)

o Definingorganizationaltransitionandchangemanagementscopeandapproach

o DevelopingtheSystemsandDataStrategy(e.g.,agencybusinesssysteminterfacestrategy,masterdatamanagementplan,anddataconversionplan)

o Developingandprocuringthe“right”ERPsolutionandimplementationservicesprovidertoachievethedesiredendresultoftheprogram.AdditionaldetailontheprocurementstrategycanbefoundinChapter5ProcurementandContractManagement

DDIPhase1:ImplementERPSolution:ThisphaseisfocusedonimplementingtheprocuredERPsolutionanddeployingtheInformationWarehouse(IW).Itincludessuchactivitiesas:

o ContinuingBPRactivitiestoalignwithprocuredsoftware

o ExecutingOrganizationalChangeManagementstrategies(includingERPtraining)

o Designingcorefunctionality

o Configuringandtestingthesolution

o Interfacing/integratingthesolutionwithexternalsystems

o Pilotingandrollingoutthesolutiontoremainingagencies


DDIPhase2:ExpandERPFunctionality:Thefocusofthisphaseistoidentifythenextphaseofbeneficialfunctionalityandimplementtheenhancementsacrosstheuserbase.

Post‐DDI:OperationsandMaintenance:Thefocusofthisphaseinvolves:

o ContinuingtomonitorandadjusttargetperformancemetricsestablishedduringthePre‐DDIphase

o SupportingtheexistingFLAIRandCMSsolution(untilretired)

o SupportingthenewERPsolution

o PerformingERPupgrades

o Re‐evaluatingthecontinuingneedforagencybusinesssystems


Thefollowing,Exhibit3‐2,providesanoverviewoftheimplementationphases,timeline,annualcostestimatesandresourcebreakdownforOption3:

Exhibit3‐2:ImplementationTimeline,AnnualCostEstimatesandResourceBreakdownforOption3

Activities




PilotERPSolution

CMSRollout

FLAIR/IWRollout




SupportERPFLAIR

UpgradeERP



‐ ‐ ‐165 165 125

27 52 95 135 150 165 165 165 165 165 165 165 165

‐ ‐ ‐ ‐ ‐

$37,199

91 120 91 57 59 9 43 42 25 36 ‐ ‐ ‐

‐ ‐

165

43

$0 $0 $0

$16,870

$0 $0

$17,123 $17,380 $17,641 $14,169 $10,077 $5,157 $0 $0 $0 $0


$0 $0 $0

$10,686 $6,349 $6,573



29

165

$0

$4,944 $6,838 $16,235 $22,923 $31,642 $29,783 $32,422 $30,585 $35,496 $32,388 $31,835 $32,264

83 42

$6,753 $9,846 $40,407 $31,666 $38,897 $32,362 $32,179 $3,183 $5,738



Pre‐DDI

FY23‐24

FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23


CentralFLAIRRetired

CMSRetired





3.3 PROJECTCRITICALSUCCESSFACTORS

Withaprojectofthisscale,therearecriticalsuccessfactorstomonitorcloselyandadheretothroughouttheproject.ConsiderationwasgiventothelessonslearnedfromProjectAspireandtheinformationsummarizedinChapter2,Section2.2MarketConditionsandTrends.SixkeyfactorsareidentifiedtosupportthesuccessfulreplacementofFLAIRandCMSwithanERPsolution:

1. EstablishaComprehensiveMulti‐TieredGovernanceModel2. ConfirmProjectFundingSource3. ManageSystemCustomizations4. InitiallyDeployaLimitedScopeofFunctionality5. UtilizeaControlledPilottoValidatetheSolution6. LeveragePhasedRollouttoAgencies

Items1,2,and3shouldbecompleted–oragreedto–beforeproceedingwiththeprocurementforthereplacementsolution.

3.3.1 ESTABLISHACOMPREHENSIVEMULTI‐TIEREDGOVERNANCEMODEL

Eachoperatingenvironmentcontainsuniquecharacteristicssuchthatthereisno“one‐size‐fits‐all”governancesolution,andeveryeffectivegovernancemodelshouldconsiderthefollowingelements:

Establishdecisionmakingauthorityforeachlevelofgovernance

Developprojectvision,mission,andvalues

Securefundingforbothimplementationandoperations

Definecorebusinessprocessesimpacted

Developdatagovernancestandards

DefineandenforcestandardITarchitectureandenvironments

Defineissueescalationandissueresolution

Identifyandprovidefornecessaryorganizationalchangemanagement

3.3.1.1 EXISTINGGOVERNANCECHALLENGES

AsreviewedinChapter1,theexistingenterprisegovernanceisdefinedthroughtheFFMISActestablishedinSection215.90‐.96,F.S.Thisexistinggovernanceframeworkprovidesforagoverningboardandcouncil;however,bothbodieshavebeeninactivesinceFebruary2005.Asaresult,nooperationalplans,policiesandprocedure,orFFMISsubsystemmodificationshavebeenreviewedatanenterpriselevelasanticipatedinthegoverningstatute.Therehavebeen,andcontinuetobe,decisionsmadeatthesubsystemfunctionalownerlevelfurtherfragmentingtheenterpriseaccountingandreportingcapabilitiesoftheState.


AprojectofthesizeandmagnitudeoftheFLAIRandCMSreplacementwillrequirestronggovernanceacrossthreedimensions:

Enterprise–responsibleforestablishingandenforcingtheoverallvisionoftheproject,securingprojectfundingthroughouttheprojectlifecycle,makingoverallpolicydecisionsandresolvingissuesbetweenjurisdictions.

OverallProject–afocusedprojectgovernanceteamwillmakeprojectresource,scope,budget,andtimelinedecisionsalongwithaddressingandresolvingprojectissues.

FunctionalProjectAreas–bothduringandaftertheimplementation,manyofthedecisionsrequiredbytheprojectarerelatedtohowspecificbusinessfunctionsareperformed.Anexampleofafunctionalareagovernanceteamwouldbeastatewideaccountspayableworkinggroupwhoproviderecommendationsandinputtotheprojectsteeringcommitteeonwhatdatashouldbeinavendorfile,orhowtorecordandmanagevendorpaymentterms.

3.3.1.2 ENTERPRISEGOVERNANCERECOMMENDATIONS

ThefollowingmodificationstotheFFMISAct(Section215.90‐96,F.S.)shouldbeconsideredtostrengthenandtoenhancethegovernancemodeloverFFMIS:

DevelopavisionandmissionforenterpriseprocessesandtheirmanagementfortheState.

DefinetheintentoftheFFMISActtomoreclearlyalignwiththedevelopmentandoperationofanenterprisesolutionfortheState.

ProvidetheFFMISBoardwiththeauthoritytoaddandremoveprocessesand/orsystemstheydetermineserveanenterprisepurpose.

Shifttheoverallenterprisegovernancefocustooversightofbusinessprocessesvs.underlyingFFMISsubsystemsandensureallresponsiblepartiesarerepresented(SeeExhibit3‐3,ProposedEnterpriseGovernanceModel).

PrecludeoverlappingmembersbetweentheFFMISBoardandCouncil.

RequireagenciestoobtainapprovalfromtheFFMISCouncilforrequestsforanynewfinancialorrelatedsystemsormodificationstoexistingfinancialsystems.

EstablishanachievabletimelineformandatoryadoptionofthenewERPsolutionbyallagencies.

DevelopastatutoryrequirementrequiringchartersforalllevelsofFFMISgovernance.Thecharterswouldincludeproceduresforhowtheywilloperate.

IdentifyarecurringfundingsourceforstaffingandsupportingFFMISCouncilactivities.


AnillustrationoftheproposedEnterpriseGovernanceModelisintheExhibitbelow:

Exhibit3‐3:ProposedEnterpriseGovernanceModel

3.3.1.3 FLAIRANDCMSREPLACEMENTOVERALLPROJECTGOVERNANCERECOMMENDATIONS

TheoverallprojectgovernancestructurecannotstandaloneandmustfitwithinthebroaderEnterpriseGovernanceframework.Thisiscriticalsincedecisionsbeingmadeattheprojectlevelscouldhavenearandlong‐termimpactonhowtheotherFFMISsubsystemsoperateandaremanaged.Toensurecoordination,theproposedOverallProjectGovernancestructureestablishedfortheFLAIRandCMSreplacementmusthaveadirectconnectiontotheFFMISCouncil.TheFFMISCouncilmustbekeptapprisedoftheproject(i.e.,progresstowardsmajormilestonesanddeliverables,majorissuesandrisks,keydecisionsmadeorneeded,etc.).TheFFMISCouncilcan,inturn,provideprojectupdatesandraiseissues,risksanddecisionstotheFFMISBoardforawarenessandguidance.AnillustrationoftheproposedOverallProjectGovernancestructureisintheExhibitbelow:

FLAIR

CMS

LAS/PBS

MyFloridaM

arketPlace

PeopleFirst

FFMISSubsystem

s

Finance&Accounting

AR/CashManagem

ent

Budgeting

ProcuretoPay

HRAdministration&

Payroll

BusinessProcesses


Exhibit3‐4:ProposedFLAIRandCMSReplacementOverallProjectGovernance

SpecificrecommendationsfortherequiredOverallProjectGovernanceinclude:

AssignanddedicateasingleexecutiveleaderfromDFStobethefulltimeProjectDirector.

o Thiscannotbeapart‐timerole.Thispersonisaccountablefortheoverallproject,includingfunctionalprojectareas.

o Thispersonshouldbeaseniorleaderandhaveanunderstandingof,andexperiencewith,thebusinessfunctionsbeingreplacedbytheERPsolution.

o Thispersonshouldhavetherespectofkeyagenciesandstakeholdersandhavedemonstratedtheabilitytomanagedifficultsituations.

IncludeseniorrepresentativesfromagenciesinvolvedinthecurrentwaveofimplementationsasmembersoftheSteeringCommitteeoverseeingtheFLAIRandCMSreplacementproject.Thiswillforceengagement,facilitateawarenessarounddesigndecisionsandimplementationtimelines,andenableagenciestoprovideinputondecisionspriortothembeingmadeorpresentedtotheFFMISCouncilorFFMIS

Finance&Accounting

CashManagem

ent

Budgeting

ProcuretoPay

HRAdministration&

Payroll

….

….

….


Board.Agencyinvolvementiscriticaltoachieving“buy‐in”andrealizingtheexpectedbenefitsofundertakingthisinitiative.

Establishacommonandconsistentfoundationfortheoversightandmanagementoftheproject,workstreamsandfunctionalprojectteams.

o Establishaconsistentframeworkandcadencesforhowprojectstatusandprogressarereportedandhowissues,risksanddecisionsareidentified,trackedandmanaged.

o Useacommonsetoftoolsandtemplatesforallprojectdocuments(e.g.,projectcharters,financialtracking,businessrequirementsdocument,etc.)–noexceptions.

o Leverageasingularrepositoryforallprojectdocumentation.

Defineaconsistenthierarchyandorganizationalstructureforworkstreams(ProjectTracks)andprojectstoconformtoandworkunder.

Maintainasingle,comprehensiveissues,risks,anddecisionslogtoprovidemaximumvisibility.

o Classifyallissues,risks,anddecisionsasenterprise‐level,overallproject‐level,orfunctionalprojectarealeveldependingonthenatureoftheirimpact.Thelevelandcorrespondingstatus(e.g.,highprobability/highimpact,etc.)willdictateatwhatleveltheissue,riskordecisionisreportedandresolved.

Determineaconsistentmethodforscoringissuesaslow,mediumandhighandthetimeframeeacharerequiredtoberesolved.

Documentaconsistentdefinitionforhowprobabilityandimpactwillbedeterminedforallrisksandthetimeframeforriskmitigationplanstobedeveloped.

Documentaconsistentdefinitionofhowdecisionswillbeevaluated/categorizedanddeterminethetimeframeinwhichdecisionshavetobemade.

Clearlydefineanddocumenttheroles,responsibilities,andexpectationsofeachleveloftheenterprise/projectgovernancestructure(i.e.,involvement,decisionmakingauthority,etc.).

o Identifyasingleleader(businessortechnical)foreachfunctionalprojectareatopromoteaccountability.Projectleadersmustspeaktoanysignificantopenprojectorfunctionalarea‐levelissue,riskordecision.

OverallProjectGovernancemustbeestablishedfromtheoutsettoprovidestructureanddisciplineandensureastrongstarttotheproject.TheProjectGovernanceFrameworkwillbedevelopedandexecutedaspartoftheProjectManagementOfficeactivityunderthePre‐DDIphase(Chapter4ImplementationStrategy).


ThefollowingExhibit3‐5isanexampleofthedifferentOverallProjectGovernancelevels,theirresponsibilities,andrecommendedmembers:

GOVERNANCELEVEL DESCRIPTION RESPONSIBILITIES RECOMMENDEDMEMBERS

ExecutiveSteeringCommittee

Providesoverallleadershipanddirectionfortheproject

Establishesprojectdirection Responsiblefordevelopingandsupporting

necessarybudgetrequests Ensuresadequateresourcesareprovided

throughoutallprojectphases Guidesoverallscopeandensuresproject

remainsontracktomeetobjectives Servesasanescalationpointforoveralland

functionalareaprojectsissues,risksanddecisions(includingdesigndecisions,resourceneeds,etc.)

HoldstheProjectDirector,PMO,andfunctionalprojectteamsaccountableforprojectprogress

Promotesinformationsharing Actsasfinalapproveronallmajorproject

deliverables(e.g.,selectedsoftware,go/no‐go,etc.)

ProvidesprojectupdatestoFFMISCouncilandFFMISBoard,asneeded

Approveschangerequests,asneeded

CFO orDesignee (ExecutiveSponsor)

ProjectDirector DFSLeadership(A&A,DIS,

Treasury,HR,etc.) 5‐6SeniorLeadersfrom

Agenciescurrentlyscheduledforimplementation

OtherKeyStakeholders(e.g.,AuditorGeneral,OPB,AgencyforEnterpriseIT)

IV&VRepresentative(Advisoryrole)

SoftwareVendor(Advisoryrole)



OverallProjectManagementOffice

Developsthestructure,processes,andtoolstocompletetheproject

Establishestheinfrastructureandcommonsetoftools,templatesandprocessestocompletetheproject

Facilitatesfunctionalareainformationsharing Monitorsandreportsonfunctionalarea

projectprogress(e.g.,scope,schedule,budget,andquality)

Producesprojectrelatedreports(status,budgettracking,issuelog,etc.)

Ensurescontracteddeliverablesareappropriatelymet

Managesissue,riskanddecisionmakingprocessesandsupportsfunctionalareateamsinresolvingissues,risksandopendecisions

DevelopsmaterialstosupportSteeringCommittee,FFMISCouncilandFFMISBoardmeetings

Supportsallprojectexecutionrelatedcommunications

Servesasanescalationpointforprojectissues,risksanddecisions(includingdesigndecisions,resourceneeds,etc.)

Manageschangerequestprocess

DFSProjectDirector DFSContractManager DFSProjectManager DFSTeamLeads Keyagencyrepresentatives OrganizationalChange

ManagementLead CommunicationsLead SoftwareVendor/Systems

Integrator(AdvisoryRole)



VariousFunctionalProjectAreaTeamsNote:Afunctionalprojectareacanbeoneormoresimilarworkeffortswhicharebestmanagedtogether

Managesandcoordinatesoverallfunctionalareaactivitiesanddeliversprojectwithintheprojectconstraints(e.g.,scope,schedule,budget,andquality)

Providesoversightanddirectiontothefunctionalarea

Monitorsprogressoffunctionalareaprojects,includingtimelinessofresolvingissues,risksandopendecisions

Coordinatesprojectactivitieswithinfunctionalarea

Ensuresappropriateagencyandstakeholderrepresentationonfunctionalareaprojectsandactivities

CommunicatesfunctionalareainformationtotheoverallPMO

Ensuresfunctionalareaprojectsareexecutedusingprescribedtools,templatesandprocesses

Submitsfunctionalareaupdatestoleadership Developsrequiredprojectdeliverablesand

artifacts Presentandapprovechangerequests,as

needed Develops,executesandmanagesprojectwork

plantoachieveprojectscopeandquality Managesandtracksprojectbudget Engageskeystakeholdersindeveloping

projectdeliverablesandworkproducts Managesandcoordinatesprojectactivitiesand

tasks Identifiesdependenciesonotherfunctional

areas Communicateprojectstatusandsubmit

accurateweeklystatusreports‐highlightingprogress,issues,risks,opendecisions,etc.

FunctionalProjectAreaTeamLead

SystemIntegratorLead(fortherespectivefunctionalarea)

FunctionalProjectAreaStaff(asneeded)

Exhibit3‐5:VariousLevelsofProjectGovernance


3.3.2 CONFIRMPROJECTFUNDINGSOURCE

Itisnecessarytosecurethecommitmentofafundingsource(s)whichadequatelyaddressboththeimplementationandongoingoperationsandmaintenance.

ImplementationCosts‐Implementationcostsforthisprojectincludeandarenotlimitedto:

Contractualservices

Statepersonnelsupportingtheproject

Hardware

Software

Training

OperationsandMaintenance‐O&Mcostsconsidertheongoingoperationsoncethesystemhasbeenimplementedandcaninclude:

Staffing

Hardwarehostingandmaintenance

Softwarelicensing

Contractualservices

KeyfundinggoalsforbothimplementationandO&Minclude:

Fundingsourcesmustbesecuredfortheentireproject

Fundingshouldbestructuredsothatunspentfundscanbepreservedandcarriedforwardtosupportfutureupgradesandenhancements

3.3.2.1 FUNDINGOPTIONSANDMODELS

Somestateshaveoptedtoutilizefinancingvehiclestopayfortheimplementationcostsforprojectsofthismagnitude.Althoughprovidedforinstatute,thereiscurrentlynosupporttoconsiderfinancingtheFLAIRandCMSreplacement.

Eliminatingafinancingstrategyfromconsideration,theremainingfundingoptionsincludesecuringfundsfromGeneralRevenueresourcesorthroughtheuseofTrustFunds.

FundingOptions

GeneralRevenueFund–Unlessspecificallyexempted,agenciesarecurrentlyassessedan8%servicechargeoncertainincomeandtrustfundspursuanttoSection215.20,FloridaStatutes.Thesefunds–referredtoasthegeneralrevenueservicecharge(GRSC)–aredesignedtosharethecostsofgeneralgovernmentactivitiesandaredepositedintotheGeneralRevenueFund.Althoughcurrentlynotadequatetocovertheanticipated


implementationcosts,GRSCcouldbeincreasedandusedtosupportO&M.AnyannualamountnotsatisfiedthroughtheGRSCwouldbedirectlyappropriated.

TrustFunds–Anupfrontassessmentforanticipatedimplementationcostscouldbesecuredbysweepingeligibleagencytrustfunds.Utilizingthismethodandidentifyingandincreasinganexistingtrustfundmechanism(e.g.,TreasuryAdministrativeandInvestmentTrustFundand/or1%MFMPTransactionFee)couldcontributetothenecessaryimplementationandO&Mfunding.

FundingandAllocationModels

ThetwofundingandallocationmodelsoutlinedbelowcompareapproachesforallocatingthecostsforbothimplementationandO&MforthereplacementofFLAIRandCMS.

InternalServiceFund‐InternalServiceFundsareestablishedtoaccumulatecosts,invoice,andcollectforservicesprovidedtoothergovernmentalunits.Thebasisforchargesvariesandcanrangefromastraightcostrecoverymethodtoactualcostsplusafactorforhistoricalexpendituresandfutureupgradesandenhancements.

DirectAppropriation‐DirectappropriationreferstoanappropriationmadedirectlytoDFStocoverthecostsofimplementingandoperatingtheFLAIRandCMSreplacement.

FUNDINGMODEL ADVANTAGES DISADVANTAGES

InternalServiceFund(ChargeBackorCostRecoveryMethod)

Canbestructuredtobetterrespondtoagencyneeds

Establishedproperly,thismethodbestalignsthecostwiththeserviceprovided

Morerepresentativeofprivatesectormodels

Couldtakemultipleyearstodevelopandimplementtheallocationmethodology(e.g.,mayrequirestatutoryconsiderationandspecificappropriationforthetransferoffunds)

Establishingapredictablemodelforassessingusagecanmakeagencybudgetingachallenge

RequiresanimpactanalysisontheStatewideCostAllocationPlan

DirectAppropriation

Noresultingtransitionissueswhencomparedtotheexistingmodel

Fasterimplementationtime(whencomparedtotheInternalServiceFundOption)

Agenciesarenotrequiredtoshareinthecostofimplementingandoperatingthestatefinancialaccountingsystem

Exhibit3‐6:FundingModelComparison

FundingRecommendation

Duetothetimerequiredtodevelopandobtainapprovalforacostallocationmethodology,itisrecommendedthePre‐DDIactivities(approximatelyfirsttwoyears)arefundedthroughadirectappropriationtoDFSfromGeneralRevenue.


Thisapproachwillallowfortheadditionalanalysisrequiredtoevaluatethefeasibilityofadministeringacostrecoverymethodforeither(orboth)theprojectimplementationandoperationsandmaintenancecost.

3.3.3 MANAGESYSTEMCUSTOMIZATIONS

ManagingsystemcustomizationsisoneofthemostchallengingareaswhenimplementinganERPsolution.Today’sERPsolutionscontainhighlyintegratedprocessesmeetingalargeportionofthecoretransactionsoftheStatewithoutmodification.Thestatesinterviewedforthisprojectwhichestablishedanapproachtominimizecustomizationsreportedthatmorethan80%oftheirneedscouldbemetoutoftheboxwiththeprovidedfunctionality.Thestatesthatdidnotestablishthisgoal–andallowedforsignificantsolutioncustomization–arenowgoingthroughthedifficultprocessofremovingthecustomizationssotheycanreturntoregularandlowerrisksoftwareupgrades.Customizationsalsotendtobebothtimeconsumingandexpensive,andtheyintroducecostandcomplexitytonecessaryupgradesoverthelifeofthesoftware.

TolimitcustomizationsthisrecommendationincludesBusinessProcessRe‐engineeringeffortswouldbeinitiatedearlyinthePre‐DDIphase–seethedetailedimplementationplaninChapter4ImplementationStrategy.Customizationsshouldbelimitedtothoserequiredby:

Statestatute

Federalregulation

Uniquebusinessprocessnotcontemplatedbythesoftware

Therisksassociatedwithsystemcustomizationscanbebestmitigatedby:

Alignboththeenterpriseandoverallprojectgovernancetosupportstandardizationofbusinessprocesses

Modifystatestatuteswhereverpossibletosupportstandardizedbusinessprocesses

Requireagenciestojustifyreasonsfornotconformingtostandardprocesses

3.3.4 INITIALLYDEPLOYALIMITEDSCOPEOFCOREFUNCTIONALITY

TherequiredminimumsetoffunctionalityidentifiedearlierinChapter2wasspecificallylimitedinscopetohelpreducetheoverallriskandcontributetoasuccessfulimplementation.Itisrecommendedthatadditionalfunctionalitybeintroducedonlyafterthelimitedscopeofcorefunctionalityhasbeensuccessfullyproven.

3.3.5 UTILIZEACONTROLLEDPILOTTOVALIDATETHESOLUTION

Inadditiontoinitiallylimitingthescopeoffunctionality,acontrolledpilotisrecommendedtoassistinfurtherprovingthesolutionviability.TheimplementationplaninChapter4identifiesthepilottoencompassanentirefiscalyearandyearendcloseoutcycle.


3.3.6 LEVERAGEPHASEDROLLOUTTOAGENCIES

Itisrecommendedtherollouttoadditionalagenciesonlybeinitiateduponthecompletionofasuccessfulpilot.TofurtherreducetheoverallrisktotheState,thereareuptofourphasesofagencymigrationsidentifiedintheimplementationplantobettermanagetheoverallimpactwithinagenciesandontheStateasawhole.

3.4 CHANGESINSTATUTEANDFINANCIALBUSINESSPRACTICES

Section3.3.1.2EnterpriseGovernanceRecommendationsoutlinesspecificmodificationstotheFFMISAct(Section215.90‐96,F.S.)whichshouldbeconsideredtoprovidethenecessarygovernanceovertheState’senterprisefinancialsystemsandprocesses.Therecommendedstrengtheningofboththeenterpriseandoverallprojectgovernancestructureprovidesthefoundationtosupportthenecessarystandardizationofstatewidebusinessprocesses.AprimarygoalofbusinessprocessstandardizationisthereductionintherequiredcustomizationoftheselectedERPsolution–andacorrespondingreductionofoverallprojectcostandrisk.Theextentofmodificationstotheexistingfinancialbusinesspracticeswillnotbeknownuntilboththebusinessprocessre‐engineeringandthesolutiondesigntasksarecomplete.

3.5 OUTSOURCINGCONSIDERATION

Atthepresenttime,therearenoservicesoractivitieswhichhavebeenidentifiedforoutsourcing.Oncethebasefunctionalityhasbeensuccessfullydeployed,futureconsiderationshouldbegiventooutsourcingthepayrollprocessingfunction.

FloridaDepartmentofFinancialServices FLAIRStudy Chapter4Page1

CHAPTER4 IMPLEMENTATIONSTRATEGY

TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFloridaStatutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter4ImplementationStrategy.

FLORIDASTATUTE

287.0571(4)(n)

Astateagency’stransitionplanforaddressingchangesinthenumberofagencypersonnel,affectedbusinessprocesses,employeetransitionissues,andcommunicationwithaffectedstakeholders,suchasagencyclientsandthepublic.Thetransitionplanmustcontainareemploymentandretrainingassistanceplanforemployeeswhoarenotretainedbythestateagencyoremployedbythecontractor.

Exhibit4‐1:FloridaStatuteDescription

ThegeneralassumptionforthisimplementationstrategyisDFSandagencyresourcesareretrainedandredeployedduringtheoveralltransitionfromtheexistinglegacyFLAIRandCMSenvironmenttothenewERPFLAIRandCMSenvironment.

TheimplementationapproachpresentedwithinthisChapterisfoundedonaddressingfourcriticaldimensions:process,people(organization),technology,andprojectmanagement(governance).Eachdimensionmustbeaddressedtorealizethenewsolution’sbusinessobjectivesandexpectedoutcomes.Strongprojectmanagementcreatesthecommonfoundationfortheentireproject.Thefollowinggraphic,Exhibit4‐2,depictsthefourdimensionsalongwithexamplesoftheassociatedactivities.


ThereplacementofFLAIRandCMSwithanERPsolutionisalarge,multi‐year,complexproject(TheFLAIRReplacement“Project”).Acomprehensiveimplementationstrategyandapproachmustbedevelopedpriortoexecutinganyimplementationactivities.ThisChapterpresentsatimelineandtheimplementationphasesnecessarytoimplementthenewsolutionsuccessfully.

TheFLAIRReplacementProjectisaverylarge,vastlycomplexinitiative.Itinvolveschangestolongstandingbusinesspractices,affectsemployeeduties,jobfunctionsandrolesandinvolvesmultipleorganizations.Effectiveorganizationalchangemanagement(OCM)requiresacarefullyplannedimplementationwhichiscollaborativeandhighlyleveragedwithstateresourcesineachagency.TheOCMStrategypresentedinthisChapterisonemodeltousetoensureagencyparticipationandeffectivemanagementoftheemployees’journeythroughoutthelifeoftheproject.


Exhibit4‐2:ImplementationFrameworkDimensions

Theoverallimplementationframeworkacrossthedifferentdimensionsincludesthefollowingfiveimplementationstages:

PlanandAssess

Design

Develop

Implement

Post–Implement(OperationsandMaintenance)

Eachimplementationstagehasactivitiesacrosseachoftheimplementationdimensionsasoutlinedinthegraphic,Exhibit4‐3below:


Exhibit4‐3:ImplementationStagesandDimensions

KeyactivitiesacrossthefourimplementationdimensionsforeachimplementationstageareillustratedinExhibit4‐4below:

STAGE DIMENSION KEYACTIVITIES

Plan&Assess

Process Analyzecurrentstateprocesses(review1100existingfunctionalrequirements)

Reviewindustrystandards(agenciesandotherstates)

Identifyopportunitiesforimprovement Prioritizetargetedbusinessprocesses Identifyfutureperformancemetricsandlevels

People Analyzecurrentstateorganizations(DFSOnly) Analyzecurrentstaffinglevelsandworkallocation

(DFSOnly) Identifykeystakeholders Establishorganizationalchangemanagementplan

Technology Identifycurrentstatetechnologyandarchitecture Identifyexternalinterfacesin‐scopeforreplacing

thelegacytechnologysolution Performqualityassessmentofthelegacydatatobe

converted Procurenewtechnologysolutionandsystem

integrator



ProjectManagement

Defineandconfirminitialprojectgovernancestructureandframework

Clarifyandmodifystatutestoenforceprocessstandardization

EstablishProjectManagementOffice(PMO) Determineon‐boardingrequirements Createandreviewprojectcharter Performstagegate“Go/NoGo”decision

Design

Process Defineprocessre‐engineeringguidelines Designfuturestateprocesses Identifyintegrationpoints Identifygaps(currentandfuture) Definefuturestatefunctionalrequirements

People Definefutureorganizationguidelines(DFSOnly) Definefutureorganizationstructure(DFSOnly) Identifyimpactonexistingorganization Identifygaps(currentandfuture)(DFSOnly) PerformOCMactivities Defineresourceplan Designabusinessplanforreadiness

Technology Designfuturestatearchitecture Definefuturestatetechnologyrequirements Identifygaps(currentandfuture) Designinitialtechnologysolutionandprocesses Designdatamodelandinterfacerequirements Designanalyticsandreportingstrategy Designteststrategy

ProjectManagement

Buildprojectperformancedashboards Updateprojectgovernanceframeworkand

processes ReviewandprovideQualityAssurance(QA)project

deliverablesandartifacts Monitorandreportprojectperformanceand

progress Reviewandconfirmriskmitigationstrategyand

escalationprocedures Performstagegate“Go/NoGo”decision

Develop

Process Definedetailedprocesses(includinganalyticsandreporting)

Buildandrunsimulationcasesandmodels Defineandupdateprocedures Pilotprocesses Confirmmetricsandreportingprocesses Defineandconfirmtransitionplan(usersupport

plans) Definebusinessreadinessplan



People Confirmorganizationmodel(DFSOnly) Definenewjobdescription(DFSOnly) Identifyimpactonexistingorganization Updateresourceplan(DFSOnly) PerformOCMactivities Buildtrainingstrategy Createorganizationtransitionplan Developbusinessreadinessplan

Technology Buildtechnicalprocesses Builddatamodel Buildtechnologysolution(infrastructureand

applications) Testtechnologysolution(unit,system,performance,

etc.) Testdataconversionandinterfaces Createcutoverplan

ProjectManagement

Monitorandreportprojectperformance ContinuePMOandgovernanceprocessesand

escalationevents Reviewandupdateriskmitigationstrategy ReviewandQAprojectdeliverables Performstagegate“Go/NoGo”decision

Implement

Process Confirmperformanceindicatorsandmetrics Deploybusinessprocesses Establishusersupport(helpdesk) Conductuseracceptancetesting(UAT) Completetransitionandcutover Trackandreportprocessmetrics

People Implementbusinessreadinessplan PerformOCMactivities Executeorganizationtransitionplan Executetrainingplan SupportERPdeployment Identifyadditionaltrainingneeds

Technology Implementusersupport(helpdesk) Executefinaltesting Completetransitiontonewtechnologysolution Completecutovertonewtechnologysolution Monitorandreportperformance

ProjectManagement

Provide“Go/NoGo”decisiononimplementation Updatebusinesscaseifneeded Transitiontoproduction Implement“GoLive”governanceprocesses Completereviewofallprojectdeliverablesand

artifacts Conductlessonslearned Performstagegate“Go/NoGo”decision



Post–Implement(OperationsandMaintenance)

Process Generateperformanceanalyticsandreportsonkeyprocessindicatorsandmetrics

Identifyprocessimprovementopportunities Designanddevelopprocessimprovements Implementprocessimprovements

People(DFSOnly) Collectfeedbackfromemployees(lessonslearned) Updateorganizationdevelopmentandrequired

skills Developsuccessionplanforkeyroles Conductfollow‐uptrainingtocloseskillgaps

Technology Generateperformanceanalyticsandreportsontechnologysolutionindicatorsandmetrics

Identifyopportunitiesfortechnologysolutionimprovements

Implementtechnologysolutionimprovements Performvendorupgradestotechnologysolutionas

neededProjectManagement

Generatefinalprojectreportsandupdateprojectrepository

Updatebusinesscaseifneeded Continuetransitiontoproduction Continuetoimplement“GoLive”governance

structureandprocesses Reviewnextphase(Phase‐2)ofproject

Exhibit4‐4:KeyActivitiesbyImplementationStagesandDimensions

4.1 IMPLEMENTATIONTIMELINE

Thefollowingpreliminary,high‐levelprojecttimeline,Exhibit4‐5wasdevelopedandisbasedontherecommendedtechnologysolutionOption3:ReplaceFLAIRandCMSwithanERPSolution.

ThetechnologysolutionisdefinedastheERPsystemandanyothertechnologytools(i.e.,InformationWarehouse)andproductswhichareneededtorenderacompletetechnologysolutionplatform.

Activities


ImplementandRolloutERPSoluiton


SupportExistingFLAIRSupportERPFLAIRUpgradeERP



FY26‐27

FY27‐28

FY28‐29

Pre‐DDI


FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20



Exhibit4‐5:ImplementationSummaryTimeline

TheimplementationtimelineisstructuredaroundthesequencingofProjectPhasestosupporttheoverallDesign,DevelopandImplementation(DDI)oftherecommendedtechnologysolution.EachProjectPhaseiscomprisedofanumberofProjectTrackswhichdefinethekeyactivitiesandrolesneededtocompletethePhase.ThenumberofresourcesforeachProjectTrackisdefinedbythelaborassumptionsincludedinAttachment1andisbasedonthenumberspresentedinChapter2Section2.3.3.3“Option3:ReplaceFLAIRandCMS”.Exhibit4‐6belowdescribesthefourkeyimplementationphases.


PHASES DESCRIPTION

Pre‐DDI ThePre‐DDIPhaseincludesactivitieswhichsupporttheinitiationoftheprogramaswellasactivitiesprovidingon‐goingcontrol,monitoringandsupportfortheoverallproject.TheProjectTracksincludedinthisPhaseare:

BusinessProcessRe‐Engineering(BPR)–Developfuturebusinessprocessmodelsfromanalyzingcurrentbusinessprocessesandidentifyprocessgaps(inefficiencies)whichneedtobeaddressed.Createaninitialsetoffunctionalrequirementswhichsupportsthefuturebusinessprocessmodels.

Procurement–Executeprocurementandcontractmanagementstrategyandactivitiestoidentify,evaluateandselectboththetechnologysolutionandSystemIntegrator(SI)toimplementthetechnologysolution.

OrganizationalChangeManagement–Developanoverallchangemanagementstrategyfortheentirelife‐cycleoftheproject.Executetherequisitechangemanagementactivitiesacrosstheappropriateprojectphasesandtrackscoveringorganizationalimpact.

ProjectManagementOffice–Establishtheoverallprojectgovernanceframework,structureandactivitiesacrossallprojectphasesandtasks.Performon‐goingmonitoring,controlling,andissueresolutionandescalationactivitiesfortheproject.

WorkforceTransition–Mapcurrentworkforce(FunctionalandTechnical)intothefuturebusinessoperatingmodelwhichincludesthefuturebusinessprocessesandtechnologysolutions.Thisincludesthemappingofrolesandtherequiredskillsetneeded.Developstrategyforhandlingandaddressingexistingsysteminterfacesanddataqualityissues.

Systems&DataStrategy–AssesssysteminterfaceswhichneedtobeaddressedwiththereplacementofFLAIR/CMSwithERPsolutionanddevelopoverallstrategyandplantoaddress.PerformassessmentoflegacyFLAIR/CMSDataanddevelopMasterDataManagement(MDM)plantoaddressmajordataissues.


PHASES DESCRIPTION

DDIPhase‐1 DDIPhase‐1coversthechangestothetheexistingin‐scopebusinessfunctionsbasedonthereplacementofthelegacyFLAIR/CMSplatformwiththenewtechnologysolution.ThenewtechnologysolutionsmayincludeadditionalfunctionssuchasworkflowanddocumentmanagementbasedontheBPRoutcomesandthecorrespondingsetoffunctionalrequirements.ThisphasealsoaddressesthedeploymentofthenewtechnologysolutionacrosstheexistingFLAIR,CMSandIWcommunities.TheProjectTracksincludedinthisPhaseare:

ImplementERPforFLAIR(CentralandDepartmental)/CMS–Design,DevelopandImplementERPtoreplacelegacyFLAIRandCMSplatformstoenablefuturebusinessprocessesandfunctions.

ImplementInformationWarehouse(IW)‐Design,DevelopandImplementnewDataWarehousetooltoreplacelegacyIWplatformtoenablefutureanalyticandreportingprocessesandfunctions.

DFSPilot–PilotthenewERPFLAIR,CMS,andIWsolutionwithDFSandselectagencies.

Migrate(Rollout)AgenciestoERP/IW‐SupportthemigrationofagenciestothenewERP/IWtechnologysolutionandfuturebusinessprocessesandfunctions.

Migrate(Rollout)AgenciestoCMSinERP‐MigrationofagenciestothenewcashmanagementsystembusinessprocessandfunctionsbuiltwithintheERP.

ImplementPayrollinERP–ImplementpayrollbusinessprocessesandfunctionswithinthenewERP.

PeopleFirst(PF)Integration‐DevelopinterfacestrategybetweenPFandERPfortheeventualdisconnectofPFfromlegacyFLAIR

MFMPIntegration–DevelopinterfacesbetweenMFMPandERPfortheeventualdisconnectofMFMPfromthecurrentFLAIR.

LAS/PBSIntegration‐DevelopinterfacebetweenLAS/PBSandERPforbudget,appropriation,andencumbrancetracking.

OCM‐Teamresponsibleforensuringorganizationalacceptanceofbusinessprocessandtechnologysystemchanges.

WorkforceTransition(WFT)‐Conductend‐userFLAIR/CMStrainingandmeasureoutcomes.Deployorganizationanduserrolesalignments.

PMO‐Projectmanagementteamwhowillmanageotherresourcesareapartofthisphaseoftheproject.

IndependentVerification&Validation(IV&V)‐IndependentteamofcontractorsassignedtoevaluatetheworkproductoftheSystemIntegratortominimizerisk.


PHASES DESCRIPTION

DDIPhase‐2 DDIPhase‐2addressesthefutureassessmentofadditionalERPmodulesorfunctionswhichcanbeleveragedbytheStatetofurtherimproveoperations.ThisphasefollowsthesamefiveimplementationstagesasDDIPhase‐1:

Plan&Assess–Analyzestandardizationopportunities,prioritizingprocessesforinclusionandidentifyprocessoptionswithperformancemetrics.Analyzeexistingorganizations,workallocationandstaffing.Analyzecurrenttechnology,identifyingopportunitiesandchallengesalignedtonewprocesses.

Design–Designprocessesbasedonnewprocessmodelanddefinereportingandassociatedmetrics.Designnewfunctionalorganizationandassessimpactonexistingorganization,createchangemanagementplanandorganizationaltransitionplan.Designupdatedtechnicalarchitecture.

Develop–Buildandpilotprocessesandsystembasedonnewprocessmodelandbuildreportingprocessesandassociatedmetrics.Buildnewfunctionalorganizationandassessimpactonexistingorganization,createchangemanagementplanandorganizationaltransitionplan.Buildupdatedtechnicalarchitecture.

Implement‐Deployprocessesandtransition.Trackandreportmetrics,identifyingandimplementingprocessimprovements.Executechangeplan,transitionorganizationandsupportdeployment.Conducttrainingandidentifyadditionaltrainingneeds.Completecutoveranddeploynewtechnology.Identifyopportunitiesforperformanceimprovement.


TheOperationsandMaintenancePhasecoverstheon‐goingoperationsandsupportofboththelegacyFLAIR/CMSplatformandthenewERPFLAIR/CMSplatform:

OperationsandMaintenanceLegacyFLAIR/CMS‐SupportlegacyFLAIR/CMS&IWinfrastructure(hardwareandsoftware)untilretirement.

OperationsandMaintenanceNewERP/IWSolution‐SupportERPFLAIR/CMSinfrastructure(hardwareandsoftware)andsupportnewIWInfrastructure.PerformERP/IWupgradesasneeded.

Exhibit4‐6:ImplementationPhaseDescription

EachoftheProjectTrackswithinthePhasesnotedabovehasitsowntimelinewithkeyactivitiesandresourcerolesfromthelaborassumptionsinAttachment‐1.AdditionalexamplesofProjectTrackactivitiesarereflectedinthisChapter’sAppendix.ThePre‐DDIactivitiesareincludedinthisSectionwhiletheremainingDDIworkstreamsareaddressedinSection4.2SystemsDevelopmentandImplementation.

4.1.1 PRE‐DDIPHASE&PROJECTTRACKS

ThekeyPre‐DDIProjectTracksandassociatedtimelinearedescribedbelowinExhibit4‐7:


Exhibit4‐7:Pre‐DDIProjectTrackTimelines

ThePre‐DDIProjectTracksandassociatedresourcerolesarenotedbelowinExhibit4‐8.TheestimatednumberofresourcesforeachrolecanbefoundinAttachment–1Section1.3.4.1.

TRACK KEYTASKS KEYOUTCOMES

BusinessProcessRe‐EngineeringResourceRole:BusinessProcessRe‐Engineering

EstablishworkingDFSandAgencyAdvisoryGroupforbusinessimpactandfeedback

Updatecurrentstate(CS)processmaps

Establishbaselineprocessmetrics

Reviewindustrystandardsfortargetedprocesses

Definefuturestate(FS)processesandmetrics

PerformgapanalysisbetweenCSandFSprocesses

Developinitialsetofusecases Assessreportingandanalytic

requirementsforInformationWarehouse

PrioritizeProcessImprovements(PIs)

Updateandconfirmfunctionalrequirements

UpdatedCSprocessmapsandmetrics

FSprocessmapsandmetrics

ListofPIs Usecases Updatedfunctional

requirements

Activities

BusinessProcessReengeneering

Procurement

OrganizationalChangeManagement(OCM)

ProjectManagementOffice(PMO)

WorkforceTransition(WFT)

System&DataStrategy

ImplementandRolloutERPSoluiton





FY26‐27

FY27‐28

FY28‐29

Pre‐DDI


FY20‐21

FY21‐22

FY22‐23

FY23‐24

FY24‐25

FY25‐26

FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

IntenttoAward

StakeholderAnalysis

ProjectGovernaceFramework

TechnologyRequirements

FunctionalRequirementsStandardizeProcesses

OrganizationImpactAssesment

ProjectCharter



ProcurementResourceRole:Procurement

ReferenceChapter5 ITN Vendorselection

OrganizationalChangeManagementResourceRole:OrganizationalChangeManagement

Assesschangemanagementneedsandefforts

Developandconductstakeholderanalysis

Developandimplementprojectvisionandgoals

Developandimplementcommunicationstrategyandplan

Developandimplementorganizationimpactanalysisandmanagementplan

Developandimplementtrainingplan

Developandimplementchangereadinessplanandmanagementplan

Changeprogramcharter

Projectvision Changemanagement

assessment Stakeholderanalysis Changemanagement

strategyplan Communicationplan Changereadinessplan Organizationimpact

analysis Trainingstrategyplan

ProjectManagementOfficeResourceRole:ProjectManagementOffice

EstablishinitialgovernanceframeworkincludingprocessandStructure

Provideprojectoversightasneeded

Facilitateissueresolution Developandmonitordetail

projectplanandschedule Performinitialprojectrisk

assessmentwithriskmitigation

PerformQAonprojectdeliverables

Establishprogramplanningframework

Supportprojectstart‐upactivities

Set‐upprojectlogistics(facilities,systemaccess,administrativesupport,etc.)

Developon‐boardingprocessforstakeholders,teammembers,contractors

EstablishinitialprojectgovernanceandPMOstructure

Developprojectcharter Maintainprojectartifacts

Governancestructure Governanceprocesses

andescalation Detailprojectplan Riskassessment Governancereporting Projectplanning

workbook Defineprojectsupport On‐boardingprocess InitialPMOplanand

processes Projectcharter



WorkforceTransitionResourcesRole:WorkforceTransition

AssessInformationTechnology(IT)readinessformigrationtonewERPplatformandinfrastructure

IdentifynewITskillsandknowledgerequirements

EstablishITaskeybusinessadvisorandpartnerincollaborationwithFLAIRstakeholdersinleveragingthenewERPplatform

AssessfinancialmanagementreadinessformigrationtonewERPplatformandinfrastructure

Identifynewfinancialmanagementskillsandknowledgerequirements

EstablishfinancialmanagementaskeybusinessadvisorandpartnerinthepursuitofoperationalimprovementsacrossallstakeholdersusingFLAIR

LeveragethetransitiontonewERPFLAIR/CMStoattract,develop,andretainkeyITresources

ITtransitionstrategy ITskillandknowledge

profilematrix Talentdevelopment

program Financialmanagement

transitionstrategy Financialmanagement

skillandknowledgeprofilematrix

SystemandDataStrategyResourceRoles:System&DataStrategy

ConfirminventoryofStateagencyfinancially‐relatedsystemsandinterfacestoFLAIR

PerforminitialdataqualityassessmentofexistingdatainlegacyFLAIR

DeterminechangesinFLAIRsystemarchitecture,infrastructure,datastructuresandanydataconversionrequirements

DevelopdataconversionplantomigraterequiredlegacyFLAIR/CMSdata

Agencysystemandinterfacestrategy

Masterdatamanagementplan

Dataconversionplan

Exhibit4‐8:Pre‐DDIProjectTrackswithKeyTasksandOutcomes


4.1.2 PRE‐DDIINTEGRATIONWITHDDIPHASE

ThreeofthesixProjectTrackswithinthePre‐DDIPhasecontinuethroughthelifecycleoftheproject.ThefourProjectTrackswhichcontinuethroughPhase‐1DDIERPFLAIR/CMSCoreFunctionalityandpotentiallycontinueonthroughPhase‐2ExpandERPFunctionalityare:

OrganizationalChangeManagement

ProjectManagementOffice

WorkforceTransition

BusinessProcessReengineering

TheremainingProjectTrackshaveinputstotheDesignstageforcertainPhase‐1DDIProjectTracks.Thesehand‐offs(outputswithcorrespondinginputsbetweenphases)betweenthePre‐DDIProjectTrackstothePhase‐1DDIProjectTracksarenotedinthefollowingExhibit4‐9:

Exhibit4‐9:IntegrationofPre‐DDIProjectTrackswithPhase‐1DDI


4.2 SYSTEMDEVELOPMENTANDIMPLEMENTATION

4.2.1 DESIGN,DEVELOPANDIMPLEMENT‐PHASES

Phase‐1DDIfocusesonFLAIR’scoreprocessesandselectCMSfunctionswithatransitionofthoseprocessesandfunctionsfromthelegacyFLAIRenvironmenttothenewERPandIWtechnologyplatform.TheFLAIRcoreprocessesandCMSfunctionswhicharein‐scopeforPhase‐1DDI(asreferencedinChapter2Section2.3.1)are:

ImplementCentralFLAIRFunctionsinERP

o InterfacewithexistingDepartmentalFLAIRandbringalltransactionstonewERPplatform

o CashLedger

o ElectronicFundTransfer(EFT)

o Warrants

o InterfaceswithLAS/PBS,MFMPandPF

o InterfacewithnewInformationWarehouseplatform

ImplementDepartmentalFLAIRFunctionsinERP

o GeneralLedger(GL)

DepartmentswillcontinuetouseexistingDepartmentalFLAIRuntiltransitionedovertotheERP

SincetransactionsareallsenttothenewERPitwilleffectivelybetheGLforthestateevenbeforealldepartmentsaretransitionedtothenewERP

o AccountsReceivables(AR)

o AccountsPayables(AP)

o ProjectAccounting

o AssetAccounting

o GrantsAccounting

BuildCMSFunctionsinERP

o Verifies

o Receipts

o Chargebacks

o TrustFundAccounting

o Disinvestments

o BankAccounts

o StateAccounts


o ConsolidatedRevolvingAccount

o AgencyRepository(documentandreportingmanagement)

o WarrantProcessing

o InvestmentAccounting

o InterfaceswithInvestmentsTradingandSpecialPurposeInvestmentAccounts

BuildPayrollFunctionsinERP

Phase‐2DDIfocusesonexpandingERPfunctionalitytousemoreofthecapabilitiesoftheERPsystemandimprovebusinessoperations.Potentialprocessesin‐scopeforPhase‐2DDI(asreferencedinChapter2Section2.3.3)are:

TransitionfromGrantAccountingtofullGrantManagementfunctionality

TransitionfromProjectAccountingtofullProjectManagementfunctionality

TransitionfromAssetAccountingtofullAssetManagementfunctionality

ImplementContractManagementfunctionality

OtherFunctionalitybasedonbusinessprocessreengineering

TheoveralltimelinefortheDDIPhasetoaddressFLAIR’scoreprocessesandCMSfunctions,inadditiontoexpandedERPfunctionality,arenotedbelowinExhibit4‐10.Sections4.2.1.1–4.2.1.15highlightthekeyactivitiesassociatedwitheachProjectTrackinExhibit4‐10.

Exhibit4‐10:DDIProjectTrackTimelines

Activities




PilotERPSolution

CMSRollout

FLAIR/IWRollout


MFMPIntegration(AsNeeded)

PeopleFirstIntegration(AsNeeded)

LAS/PBSIntegration(AsNeeded)

PMO(ContinuedFromPre‐DDIPhase)

OCM(ContinuedFromPre‐DDIPhase)

WFT(ContinuedFromPre‐DDIPhase)



Pre‐DDI

FY23‐24


FY24‐25

FY25‐26

FY26‐27

FY27‐28

FY28‐29



FY14‐15

FY15‐16

FY16‐17

FY17‐18

FY18‐19

FY19‐20

FY20‐21

FY21‐22

FY22‐23


CentralFLAIRRetired

CMSRetired




Go/NoGoDecision

Go/NoGo Decision


4.2.1.1 IMPLEMENTFLAIR/CMSERPPROJECTTRACK

ThekeyImplementFLAIR/CMSERPProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐11:

Exhibit4‐11:ImplementFLAIRERPTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforImplementFLAIR/CMSERPProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

ImplementFLAIRinERP(Central&Departmental)‐Functional

ImplementFLAIRinERP(Central&Departmental)‐Technical

ImplementCMSinERP


Testingandqualityassurance

AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundintheAppendix(ReferenceSection4.4.1)


4.2.1.2 IMPLEMENTINFORMATIONWAREHOUSE(IW)PROJECTTRACK

ThekeyImplementIWProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐12:

Exhibit4‐12:ImplementIWTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforImplementInformationWarehouse(IW)ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

ImplementInformationWarehouse(IW)


4.2.1.3 PILOT‐FLAIR/CMSREPLACEMENTPROJECTTRACK

ThekeyPilot–FLAIR/CMSReplacementProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐13:


Exhibit4‐13:Pilot(FLAIR/CMSReplacement)TimelineandActivities

Theexpectedresourceroles,withassociatedtimeframes,forPilot(FLAIR/CMSReplacement)ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:



ImplementCMSinERP

ImplementInformationWarehouse(IW)

TestingandQualityAssurance


4.2.1.4 CMSROLLOUTPROJECTTRACK

ThekeyCMSRolloutProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐14:


Exhibit4‐14:CMSRolloutTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesCMSRolloutProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

RolloutCMSERPtoAgencies


4.2.1.5 FLAIR/IWROLLOUTPROJECTTRACK

TheFLAIR/IWRolloutProjectTrackwillconsistoffourwavestostaggertherolloutofFLAIRERPandthenewIWplatformtothedepartmentandagencies.TheassignmentofaparticularagencytooneofthefourwavesisdeterminedduringthePre‐DDIPhase.

ThekeyFLAIR/IWRolloutProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐15below:


Exhibit4‐15:FLAIR/IWRolloutTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforFLAIR/IWRolloutProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

RolloutFLAIRERP/IWtoAgencies


4.2.1.6 IMPLEMENTPAYROLLERPPROJECTTRACK

ThekeyImplementPayrollERPProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐16:

POSTIMPLEMENT(FLAIR/IWRollout)

FY:19‐ 20Qtr1

FY:19‐ 20Qtr2

FY:19‐ 20Qtr3

FY:19‐ 20Qtr4

FY:20‐ 21Qtr1

FY/Qtr

ConductFLAIRERP&IWEnd‐UserTrainingforAgencies

UpdateOCMandWorkForceTransformationTasks

UpdateERP/IWForAnyChangesandInterfaces

ConductFinalSystemandAgencyVerificationTest

Conduct“Go/NoGo”DecisiononRollout

MonitorFLAIR/IWPilotandReportFLAIRBaselinePerformanceMetrics

FY:20‐ 21Qtr2

FY:20‐ 21Qtr3

FY:20‐ 21Qtr4





Conduct“Go/NoGo”DecisiononRollout

MonitorWave1RolloutandReportFLAIRBaselinePerformanceMetrics







Wave1‐ Agencies Wave2‐ Agencies Wave3‐ Agencies


Exhibit4‐16:ImplementPayrollERPTimelineandActivities

ThetimingoftheImplementPayrollTrackwilldependondecisionsmadeforthePeopleFirstcontractrenewalinAugust2016.Theactivitiesandestimatedresourcesassumethereplacementofthecurrentpayrollfunctions.IfPeopleFirsttakeonanyadditionalpayrollfunctionstheseactivitiesandresourceswillneedtobereviewedandupdated.Theexpectedresourceroles,withassociatedtimeframesforPayrollImplementationProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

Plan,Design,andImplementPayrollinERP



4.2.1.7 MFMPINTEGRATIONPROJECTTRACK

ThekeyMFMPIntegrationProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐17:


Exhibit4‐17:MFMPIntegrationPhaseTimeline

Theexpectedresourceroles,withassociatedtimeframesforMFMPIntegrationProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

MFMPLiaison


4.2.1.8 PEOPLEFIRST(PF)INTEGRATIONPROJECTTRACK

ThekeyPFIntegrationProjectTrackactivitiesandassociatedtimelinearedescribedbelowintheExhibit4‐18:


Exhibit4‐18:PFIntegrationTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforPayrollImplementationProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

PeopleFirstLiaison


4.2.1.9 LAS/PBSINTEGRATIONPROJECTTRACK

ThekeyLAS/PBSIntegrationProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐19:


Exhibit4‐19:LAS/PBSIntegrationTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforLAS/PBSIntegrationProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

LAS/PBSLiaison

4.2.1.10 INDEPENDENTVALIDATIONANDVERIFICATIONPROJECTTRACK

ThekeyIV&VProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐20:


Exhibit4‐20:IV&VTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforIV&VProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

IndependentValidation&Verification


4.2.1.11 PROJECTMANAGEMENTOFFICEPROJECTTRACK

ThekeyPMOProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐21:


Exhibit4‐21:PMOTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforPMOProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:


4.2.1.12 ORGANIZATIONALCHANGEMANAGEMENTPROJECTTRACK

ThekeyOCMProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐22:


Exhibit4‐22:OCMTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforOCMProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:


4.2.1.13 WORKFORCETRANSITIONPROJECTTRACK

ThekeyWFTProjectTrackactivitiesandassociatedtimelinearedescribedbelowareinExhibit4‐23:


Exhibit4‐23:WFTTimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforWFTProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

WorkforceTransition

End‐UserTraining

4.2.1.14 PHASE‐2EXPANDEDERPFUNCTIONALITYPROJECTTRACK

ThekeyPhase‐2DDIactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐24:

WorkforceTransition(WFT)

FY:16‐ 17Qtr1‐ 2

FY:16‐ 17Qtr3‐ 4

FY:17‐ 18Qtr1‐ 2

FY:17‐ 18Qtr3‐ 4

FY:18‐ 19Qtr1‐ 2

FY:18‐ 19Qtr3‐ 4

FY:19‐ 20Qtr1‐ 2

FY/Qtr

DevelopTrainingStrategy

DefineEnd‐UserNeedsAssessment

DefineEnd‐UserSupportStrategy

DefineEnd‐UserRolesandRequiredSkills

DefineOrg.AlignmentPlan

DesignandConductOrganization(Org.)ImpactAnalysis

KeyActivities

FY:19‐ 20Qtr3‐ 4

FY:20‐ 21Qtr1‐ 2

FY:20‐ 21Qtr3‐ 4

DeployOrganization/UserRolesAlignments

AssessBusinessTransitionandIdentifyGaps

DeployEnd‐UserSupport(HelpDesk)

IdentifyGapsinUserAdoption/TrainingRoles

SustainandImproveWorkforcePerformance

ConductEnd‐UserFLAIR/CMSTrainingandMeasureOutcomes

KeyActivities

DeployOrganization/UserRolesAlignments

AssessBusinessTransitionandIdentifyGaps

DeployEnd‐UserSupport(HelpDesk)

IdentifyGapsinUserAdoption/TrainingRoles

SustainandImproveWorkforcePerformance

ConductEnd‐UserFLAIR/CMSTrainingandMeasureOutcomes

KeyActivities

DevelopTrainingStrategy

DefineEnd‐UserNeedsAssessment

DefineEnd‐UserSupportStrategy

DefineEnd‐UserRolesandRequiredSkills

DefineOrg.AlignmentPlan

DesignandConductOrg.ImpactAnalysis

KeyActivities

ImplementERP/IW* Pilot&CMSRollout* FLAIRRollout* Payroll/KeyInterfaces*

*MajorMilestones(KeyInterfacesareMFMP,PF&LAS/PBS)


Exhibit4‐24:Phase‐2DDITimelineandActivities

Theexpectedresourceroles,withassociatedtimeframesforPhase‐2ExpandedERPFunctionalityProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.3andconsistof:

Plan&AssessExpandedERPFunctionality

Design,Develop&Implement–ExpandedERPFunctionality

RolloutExpandedERPFunctionalitytoAgencies

EndUserTraining


4.2.1.15 OPERATION&MAINTENANCEPROJECTTRACK

ThekeyOperations&MaintenanceProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐25:


Exhibit4‐25:Operations&MaintenancePhaseTimeline

Theexpectedresourceroles,withassociatedtimeframesforOperations&MaintenanceProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.5.



4.3 ORGANIZATIONALCHANGEMANAGEMENTANDWORKFORCETRANSITION

Whenanychangeoccurswithinanorganization,stressandlossofproductivityisfullyexpected.Thegreaterthechange,thelongerittakestoregainstabilitywithinthenewenvironment.Extensiveresearchprovesastructuredandproactiveapproachtochangemanagementwillminimizethereductioninproductivityandenhanceresultsfasterthanifchangemanagementisnotengaged.MigratingDFSandstateagenciestoanERPsolutionforFLAIR/CMSreplacementwillultimatelybenefittheStateofFlorida;thetransitionrepresentsasignificantchangetotheStateandwillcertainlybechallenging.

AcombinationofarobustOCMandWFTframeworkandstrategyisdesignedtoproactivelytransitionDFSstaffandotherstateagencyemployeesthroughthesechanges.Thisconsolidatedstrategyprovidesacomprehensiveapproachtopreparingfor,managing,andreinforcingtheimpactofthechangeswhichwilloccurinthetransitiontoanewERPplatformandstandardizedprocesses.Developmentofthisstrategyintoanexecutablecommunicationplan,escalationprocessandclearlyarticulatedstakeholderanalysiswillpromotesuccessfulandtimelyimplementationandsustainmentoftheState’stransitiontoanERPsolutionforFLAIRcoreprocessesandselectCMSfunctions.

4.3.1 ORGANIZATIONALCHANGEMANAGEMENT

OrganizationalChangeManagementisacomprehensivesetofpracticalandprovenstrategies,toolsandtacticsdesignedtomitigatethebusinessandhumanrisksassociatedwithmajororganizationalchanges.Itistheprocessofaligningpeoplewithchangesinstrategy,businessprocesses,andtechnologytohelpanorganizationachievegoalsassociatedwithaparticularchangeinitiative.EffectiveOCMisassociatedwithanimprovedprobabilityofprojectsuccess,increasedmanagementbuy‐in,andhigherend‐useracceptancethanifOCMwerenotapplied.

Exhibit4‐26belowdemonstrateshowperformancedeclineswiththeimplementationofanychangeandhowwell‐managedchangedecreasesboththedepthanddurationofproductivityloss.


Exhibit4‐26:ProductivityImprovementwithManagedChange

Theconceptthatchangecanbeeffectivelymanagedisbasedontheassumptionscertainstrategiescanbeappliedtoinfluencehumanandorganizationalbehavior.Thesestrategiesincludesuchthingsasongoingtwo‐waycommunication,visibleandconsistentleadershipcommitment,andinvolvementfrompeopleimpactedbythechange.ActivitiesoftenassociatedwithOCMinclude:

Clearlystatingthevisionandarticulatingbenefitsofthechange

Identifyingandcoachingkeyleadershipandmanagementsponsorstosupportandsanctionthechange

Identifyingstakeholdergroupsimpactedbythechange

Planningandexecutingcommunicationstosupportkeystakeholderneeds

Identifyingandproposingopportunitiesforstakeholderinvolvement

Planningforandexecutinganeducationandtrainingprogramforstakeholdersbasedonnewsystem,processes,policiesandprocedures,andresponsibilities

Assessingtheimpactofprocess,organizationandjobchangesandaligningtheorganizationthroughperformancemeasures,incentives,managementpoliciesandinternalprocesses

Assessingandmanagingresistancetochange

TheGoalof“ManagedChange”

The“Value”ofChange

Management

TimeChange

Implementation

UnmanagedChange


4.3.1.1 OCMFUNCTIONALMODEL

TheFLAIRReplacementProjectisaverylarge,vastlycomplexchangeinitiative.Itwillinvolvechangestolongstandingbusinesspractices,willaffectemployeeduties,jobfunctionsandrolesandwillinvolvemultipleorganizations,eachworkingtoachievedifferentmissions.Effectivechangemanagementrequiresacarefullyplannedimplementationwhichiscollaborativeandhighlyleveragedwithstateresourcesineachagency.TheOrganizationalStrategypresentedbelowinExhibit4‐27isonemodeltousetoensureagencyparticipationandeffectivemanagementoftheemployees’journeythroughoutthelifeoftheproject.

Exhibit4‐27:OCMFunctionalModel

TheOCMstrategycanbeusedtodrivesuccessfulchangeandcommunicationsfortheFLAIRReplacementProjectandachievethefollowingobjectives:

AgencyDirectororDepartmentSecretary

AgencyChangeCoordinators

ExternalStakeholdersEOG,Cabinet,

SenateandHouse,FFMISCouncil,

Other

StateofFloridaDepartmentsand

Agencies

FLAIRReplacementOrganizationalChangeManagementTeam

Communication

Communications,OCMMaterials,

StrategicDirection,&Coaching

Feedback

Feedback

OCMActivities,Training&Resistance

Management,etc.

Communication,SponsorshipRequests&Support

ExecutiveCommunication&Sponsorship

ChangeAgentNetwork

StakeholderAwareness

ChangeCommunication

Team

DepartmentandAgency

Staff

OtherStakeholders

ProjectTeamPMO,IV&V,WorkForceTransformation,SI,OtherVendors

ProjectCommunication


EstablishascalablestructuretosupportchangemanagementfortheFLAIRReplacementProjectandprovidefortheabilitytoprioritizeandmanagecommunicationsandchangeacrossmultipleagencies.

Createconsistent,efficientmessagingandcommunicationforsystemendusersregardingtheFLAIRReplacementProjectandtheroletheywillplayinthetransition.

Createawarenessandunderstandingamongsystemendusersregardingnewpoliciesandproceduresandlong‐termbenefitsofconvertingtoanERP.

CommunicatetheprojectplanfortheFLAIRReplacementProjectimplementation,overalltimingfordeployment,andtheimpacttostaff.

EnsureallagencyleadershipandstaffareawareofprogramandpolicychangesoccurringwiththeimplementationofFLAIRReplacementProject.

Securebuy‐infromagencyleadershiptoensuretheyaresupportiveoftheprojectandprovideresourcesneededtoachieveenduseracceptanceandadoptionofthechanges.

ChangeManagementobjectivesareaccomplishedby:

EstablishingaStrategicOCMTeamconsistingofrepresentationfromalloftheaffectedareasandstakeholders.

EstablishinganOrganizationalChangeManagementandCommunication(OCM&C)ChangeAgentTeamacrosstheagencies.Theseagency‐basedOCM&Cteamsareresponsiblefordirectcommunicationtoagencystaffandotheragencystakeholdergroups.

EmpoweringtheOCM&CteamwiththeabilitytomanageFLAIRReplacementProjectrelatedmessagecontent,senders,receiversandtiming.Providingconsistentcommunications,toolsandresourcestoChangeAgents.

Addressingissuesandsettingprioritiesformattersarisingastheprojectprogresses.

Leveragingexistingstructuresandcommunicationchannelswhileidentifyingnewapproachestomaximizecommunications.

4.3.1.2 OCMANDWFTFRAMEWORKANDDELIVERABLES

TheOCMandWFTstrategyandassociatedframeworkshouldalignwiththeoverallimplementationstrategyandtheassociatedimplementationstagesasdescribedinthebeginningofthisChapterunderImplementationStrategy.

ThefollowingExhibitillustratesthefivekeystageswiththeirassociatedOCMandWFTdeliverablesandtasks.


Exhibit4‐28:ConsolidatedOCMandWFTFramework

Itisimportanttonote,toexecuteprojectsrightthefirsttime,changemanagementmustplayacoordinatedrolewithintheprojectmanagementteam.Tohaveasuccessfultransition,synchronizationbetweentheOCMactivitiesandotherworkstreamsisimperative.

ThepotentialdeliverablesassociatedwiththeoverallOCMeffortaredetailedinExhibit4‐29below.TheOCMframeworkissuitedtotheFLAIR/CMSReplacementProjectandshouldbeconsideredasageneralguideandstartingpoint,supplementedwithadditionaltoolkitsandbestpracticesasneeded.

Deliverablesmarkedwithanasterisk(*)identifyitemsrequiringahighdegreeofcoordinationandcollaborationacrosstheOCMworkstreams.SomeofthesedeliverablesaredrivenbyindividualsintheotherworkstreamsandtheyareincludedtoshowhowtheycoordinatewiththeoverallOCMefforts.

DELIVERABLE PURPOSE

PLAN&ASSESSSTAGE

ChangeProgramCharter Confirmthescopeandobjectivesofthechangemanagementeffort

Ensuretheprojectteamsharesacommonunderstandingofthechangemanagementeffort

ProjectVision Laythegroundworkformovingforward Ensureallstakeholdersknowtheorganization’schangegoals


DELIVERABLE PURPOSE

Provideabasisforconsistentcommunicationregardingthechange

ChangeManagementAssessment

Identifybarrierstochange Learnfromchangehistory Determinemajorchangemanagementfocusareas Begindevelopingbuy‐inandinvolvement ServeasaninputtotheChangeManagementPlan

StakeholderAnalysis Ensureunderstandingandinclusionofallimpactedstakeholders;stakeholdersincludeanyoneimpactedbyorwithavestedinterestinthechange

Plantraining Serveasthebasisforchangemanagement,communication,

involvement,andaninputintodevelopmentofspecificindividualstakeholderlistsfortraining,communication,andinvolvementpurposes

ChangeManagementStrategyPlan

Guidechangemanagementactivities,incorporatingoverallchangemanagementobjectivesandapproach

ServeasabasisforcommunicationamongchangeleadersCommunicationPlan* Serveasaguideforplanning,developing,anddelivering

communicationstostakeholders Buildcommitmentandbuy‐inthroughkeepingstakeholders

informed Provideamechanismtocommunicateandcelebratesuccesses

ChangeReadinessPlan,PeriodicChangeReadinessAssessment

Developtheapproachforgaugingaffectedstakeholderreadinessfortheupcomingchangeastheprojectprogresses

Ensuretheorganizationispreparedforthechange Proactivelyidentifyareasofriskorwherereadinessdevelopment

isofftrackandadjustmentstothechangemanagementapproachiswarranted

DESIGNSTAGE

OrganizationImpactAnalysis*

Understandtheeffectsofthechangeontheorganizationandcommunicatethoseimpacts

Actasinputtotrainingstrategy,involvementplan,andorganizationalignmentplan

ProviderecommendationstoserveasthebasisfordevelopmentoftheOrganizationAlignmentStrategyandPlan

OrganizationAlignmentRecommendationsStrategy*

Serveasaguideforplanning,developing,anddeliveringorganizationalignmentactivities

Ensureallelementsoftheorganizationsupportperformanceofthedesiredbehaviors

TrainingStrategyPlan* Serveasaguidetotrainingdevelopmentanddeliveryactivities Providedetailedinformationregardingtrainingneeds,audiences,

courses,deliverymethods,etc. Serveasthebasisforplanningtraininglogistics,acquiringand

preparingtrainingandsupportresourcesInvolvementPlan&SummaryChart*

Providethebasisforbuildingbuy‐inandcommitmenttochangethroughinvolvementinthechangeprocess

Ensurestakeholdersareappropriatelyinvolvedinchangeandprojectactivities

Providestakeholdersavoiceinthechangeprocess


DELIVERABLE PURPOSE

DEVELOPSTAGE

TrainingProgram* Developatrainingprogramandsupportmaterialstoenableeffectiveskillandknowledgeacquisitionrequiredforsuccessfuljobperformanceandachievementofchangegoals

Prepareinstructorsandcoachesfortheirtrainingandusersupportroles

DevelopChangeNetworkandChangeAgents

Createaninternalnetworkofrespectedresourceswhocanassistinimplementingandintegratingthechangeintotheirareas

Buildcredibilityandcommitmenttothechangethroughdeliveryofchangemessagesandactivitiesbyknownandrespectedinternalresources

Gainadditionalinsightsintorequirementsforchangesuccessbythosewhoarelivingwiththechangelong‐termandarerepresentativesoftheimpactedstakeholdergroups

OrganizationAlignmentPlan*

Serveasaguideinimplementingspecificorganizationalignmentactivities

Serveasacommunicationtooltoresourceswhomustbeinvolvedinorganizationalignmentactivities

SponsorActionPlans Provideaguideforsponsorstoeffectivelyexecutetheirroles Ensureappropriatesponsorshipisoccurringtosupportproject

andchangemanagementimplementationneedsandachievementofthechangegoals

Provideeachsponsorwithaspecificsetofactivitiesanddefinedtimescheduletoenabletheirplanningandparticipation

IMPLEMENTSTAGE

Deliver&MeasureTraining*

Preparestakeholderstoperformeffectivelyfollowingimplementation

Ensurestakeholdershavedevelopedtheskillsandknowledgerequiredtosuccessfullyperformtheirjobsfollowingimplementation

CommunicateImplementationDetails*

Ensureallstakeholdersknowwhatwillhappenduringtheimplementationprocess

Ensureresourcesknowtheirspecificrolesandresponsibilitiesduringimplementation

Prepareforasmoothchangeimplementation Ensuremanagersandsponsorsarepreparedfortheirrolesand

knowwhattoexpectduringandfollowingimplementationImplementOrganizationalChanges*

Beginimplementationofappropriatechangesidentifiedintheorganizationalignmentplantoenableandsustaineffectiveperformancefollowingimplementation

ConductImplementationReadinessAssessment

Ensuretheorganizationandresourcesarepreparedfortheimplementation

Ensureeveryoneknowstheirrolesandeventtimingduringimplementation

Ensureallpeople,process,andtechnologyelementsarepreparedforimplementation

POSTIMPLEMENTATIONSTAGE

RefresherTraining&PerformanceSupport*

Providesupporttohelpstakeholderscontinuetodeveloptheirskillsandknowledgewithregardtothechangedenvironment


DELIVERABLE PURPOSE

Provideorganizationalsupportforcontinuedrefinementandcontinuousimprovement

AdHoc&Follow‐onCommunication*

Ensurestakeholdersareinformedregardingimplementationprogress,status,successes,andnextsteps

ProvideongoingupdatesrelatedtothechangeOn‐SiteSupport&Coaching

Providehands‐onsupportduringandfollowingimplementationtoassistsponsorsandstakeholdersinworkingthroughissuestheyencounterwiththechange

Ensuresponsorsandmanagersareabletoeffectivelyhandleissueswhicharise

Sustain&ImprovePerformance

Ensurethedesiredchangegoalsarebeingachieved Implementadditionalrefinementstofurtherpromoteeffective

performanceandtheabilitytosustainandexceedtargetgoals

Exhibit4‐29:OrganizationalChangeManagementDeliverables

4.3.1.3 COMMUNICATIONPLANNING&IMPLEMENTATION

Frequentandopencommunicationwhichestablishesclearandcompellingreasonsforchangeisacriticalsuccessfactorinchangemanagementinitiatives.Communicatingchangerequirestheaudiencetounderstandtheirroleinthechange,theimpactofthechange,andwhattoexpectfromthechange.Whenthisisaccomplished,userstransitiontothenewprocessesandtechnologyassociatedwiththeprojectwithlessresistanceanddisruptiontonormaloperations.

Coremessagesmustdemonstratehowtheprojectisalignedwithagencystrategy,beeasytounderstand,andfitconsistentlywithDFS’valuesandculture.Messagesarebestreceivedwhentheyfocusonthebenefitsforeachstakeholdergroupandrelaythebenefitsofthechangefortheorganization.

Tomaximizetheeffectiveness,thecommunicationstrategyfocusesonthefollowingobjectives:

Promoteownershipandacceptanceoftheprocess,technology,andorganizationalchangeswhichwillaccompanytheproject

Guideprojectsponsorsandleadersinthecommunicationdevelopmentanddeliveryprocess

Ensurestakeholdersreceiveappropriatecommunicationregardingtheproject

Promoteconsistentandregularcommunication

Reducefearandresistance

Communicatewins

Ensurepeoplereceiveandunderstandthemessagessent

Promotetwo‐waycommunicationregardingtheproject


Thecommunicationsapproachincludesthreeoverlappingphases:PreparetoCommunicate,DevelopthePlan,andImplementandAssessthePlan.Exhibit4‐30isarepresentationofthiscommunicationapproach.Itisimportanttorealizethephasesofthecommunicationapproachareinterdependentanditerative.

Exhibit4‐30:CommunicationApproach

PreparetoCommunicate

Thisphaseinvolvesidentifyingstakeholdersandanalyzingtheenvironmentalandorganizationalaspectspriortodevelopingthecommunicationplan.Itistightlyintegratedwithchangemanagement.

Understandingwhoisimpactedandthedegreeofimpactenablescommunicationstomeettheneedsofindividualstakeholders.Startingwiththeorganizationalstructure,andanalyzingthetargetedgroups,astakeholderanalysisidentifiestheimpactedgroups,includingthoseoutsidetheorganizationsuchasvendorsorcustomers.Inaddition,thestakeholderanalysisidentifiestheworkstream(s)impactingthegroup,levelofimpact(high,mediumorlow),typeofchange,anticipatedreactionandactualreactiontothechange(positiveornegative),andanticipatedchangemanagementneeds.


Communicationsmusttakeintoaccountthechannelsused.ThecommunicationsteamwillanalyzetheAgency’schannelsalreadyinplacetoeffectivelytakeadvantageoftheexistingchannelswherepossible.Additionaltargetedcommunicationmayalsoberequiredtosupportthecommunicationneedsoftheaffectedstakeholders.

DevelopthePlan

Acommunicationplaniscreatedtodefineandcoordinatethevariouscommunicationswhichwilltakeplacerelatingtotheinitiative.Thecommunicationplanisamatrixoutliningtheobjectives,keymessages,timingofmessages,audienceandcommunicationvehicles.Thismatrixprovidesanactionplanforcommunicationevents,andsupportscoordinationofkeymessagedateswiththemajorprojectphases.Thenthisplanistrackedandmanagedsothevariouspiecesofcommunicationaredevelopedanddeliveredtotheappropriatestakeholdergroupsinaccordancewiththedeliveryoftheproject.

Thecommunicationplanoutlinesthefollowingelements:

Objective–thegoalofthemessageand/orwhyitisbeingconveyed

KeyPoints–themajormessagepointstobecoveredinthecommunication

Audience–thespecificgrouptowhomthecommunicationeventistargeted

Schedule–approximatetimingforwhenthemessageisdelivered

Dependencies–dependencieswhichmayaffectwhenandhowamessageiscommunicated

Owner–thecommunicatorwhodeliversthemessageandensureitsdelivery

Vehicle–thedeliverymethods

Status/Comments–progressofcommunications;othernotesorinformationregardingthecommunicationevent

Thedelivererofthemessageisanimportantconsiderationofcommunications:impactedemployeesprefertoreceivepersonalmessagesofchangefromtheirimmediatesupervisor,andtheyprefertoreceivebusinessmessagesofchangefromleadership.The“owner”isdefinedasthepersonwhoensuresmessagingissuccessfullytransmittedtotheappropriateaudiences;however,theownerisnotnecessarilythecreatorofthecommunicationmessage.

Duringthisphase,thecommunicationsteamalsodevelopsfeedbackmechanisms.Thisimportanttoolisusedduringtheimplementationformeasuringtheeffectivenessofcommunicationsandallowsfeedbacktobeincorporatedbackintotheplan.

ImplementandAssessthePlan

Thisphaseproducesanddeliversinformationtoorfromthetargetedaudiences.Thecommunicationplanprovidesaroadmapforcommunicatingwiththevariousaudiences.Severalstepstakeplaceinordertocarryoutthecommunicationplan.


Totrackcommunicationactivitiesfortheproject,acommunicationstrackingtool(CommunicationEventLog)isused.Athoroughrecordofcommunicationsisessentialtomanagingfuturephasesofprojectimplementations.

Utilizingthefeedbackmechanismsdevelopedduringthe“DevelopthePlan”phase,theaudienceandmeansofcommunicationisreviewedperiodicallytoensuremessagesconveythenecessaryinformationinthemostappropriateformat.Checkpointsactasamechanismtogaugetheeffectivenessofcommunicationsanddirectimprovementactivity.Followingthestrategy,implementingtheplan,andmonitoringthecommunicationeffectivenessoffersthebestopportunityforthechangeefforttosucceed.

TheDetailedPlanforsupportingtheDepartment’scommunicationduringthetransitionperiodisreferencedinAppendix4.5.14.

4.3.2 WORKFORCETRANSITION

Apowerfuldifferentiatorofhighperformingorganizationsistheyleveragetheirpeople.AdetailedWorkforceTransitionPlanhelpsDFSremainfocusedonaligningitspeoplewithitsbusinessstrategy,managing,developing,andmotivatingitstalentandensuringanymajorbusinessandtechnologychangeseffectivelyservesitsbusinessneedsandsupportsitsemployeesthroughtheimplementationoftheFLAIR/CMSReplacementProjectandbeyond.

WorkforceTransitionshouldbeusedtoinformthedevelopmentofaworkplantoidentifythestepsnecessarytoalignandupdatethefuturebusinessprocesseswiththenewfunctionalmodelandorganizationchart.Theplanshoulddefinethepriority,sequenceanddependenciesofthetransitiontothenewoperatingmodel.Inotherwords,considerthepriorityandsequenceofthetransitiontothenewbusinessprocessesinordertominimizetheimpacttotheorganizationalunit,department,oragency.ThisallowsthecompletionofeachorganizationalandworkforcetransitionactivitytoalignwiththelargerFLAIR/CMSReplacementProjectimplementationactivitieswiththegoalofachievingasmoothtransitionforimpactedstakeholders.

Examplesofcriteriaforprioritizingthetransitionoffunctionalactivitieswithintheorganizationalunitare(1)havingalowimpactonthecurrentoperatingprocessesandjobpositions,(2)engaginginhighvolumetransactions,(3)supportingsystemssunset,(4)requiringasubstantialdegreeofre‐engineeringduetotheimplementationofnewtechnology,and(5)requiringasubstantialchangeinrolesandcompetencies.

4.3.2.1 WORKFORCETRANSITIONSTRATEGY

ThisapproachcoordinatescloselywithagenciesandassociatedhumanresourcestafftocreateorganizationaldesignsappropriateforDFStodeliveronthedesiredprocessandfunctionaloutcomesoftheproject.Organizationaldesignalsoensuresalignmentwithgoalsandprocessestoensurethechangeissustainablelong‐term.Ithasbeenshownthesoonerthehumanresourcesgroupisengaged,themorelikelythenewdesignwillbeimplemented.Theapproachalsobringsinlegalteamsandotherkeystakeholdersduringthedesignprocesstoensureanyorganizationalshiftsarebothfullyunderstoodandpermissible.Thisapproach


allowstheagenciestobringtogethertherightgroupofstakeholderstoaddresstheparticularneedsofanyorganizationaldesigneffort.

Theorganizationaldesignisaformal,guidedprocess.Atitsbest,itintegrateshowpeopleworktogethertosolveproblemswiththeavailabletechnologyandprocessdefinitioninawaywhichmaximizesdeliveryonthestrategicgoalsofthebusiness.Thislevelofintegrationrequiresparticipationfromtheorganizationalmembersduringthedesignprocess–withoutparticipation,anydesignwillmostlikelyfail.However,itisalsoahighlysensitiveprocess,asdiscussionsaboutjobs,roles,andorganizationalgoalsarerequiredtodeterminetheoptimaldesign.

Thesuggestedapproachincludesfivecoresteps,asoutlinedbelow:

Exhibit4‐31:WorkforceTransitionApproach

Thefirsttwosteps,theCurrentState&OrganizationalAssessmentandGoalsandObjectivesforChange,areoftenperformedintandemwithprocessandtechnologychangeprogramswhicharebeingdevelopedanddelivered.

TheConceptualDesignphaserequiresDFStodeterminetheirorganizationalpriorities,inparticularrelativetotheircustomers.Itincludesidentifyingthecustomersanddetermininghowtobestprovidethemwithservices.Ifnecessary,theconceptualdesignphasealsoincludescomingtoagreementregardingwhatservicesaredeliveredbytheorganization.

ConceptualDesignChallenges:Itcanbedifficultforindividualswhoareaccustomedtojumpingdirectlyto‘movingboxes’onorganizationalchartstoworkinconceptualdesign.Theconceptualworkhasthepotentialtobefrustratingwhenindividualsdonotunderstanditspurpose.

ConceptualDesignSuccessCriteria:Theconceptualdesignismostsuccessfulwhenthepeoplewhoareinvolvedinthedesigneffortunderstandthetradeoffsbeingmadeandwhytheconceptualdesigndevelopedisrightfortheorganizationatthistime.


UponcompletionofConceptualDesign,theDetailDesignphasebegins.DuringDetailDesign,thecurrentorganizationalstructureiscomparedtotheagreeduponconceptualdesign,andgapsareidentified.WithintheDetailDesignphase,anewDFSandagencyorganizationalchartisbuiltandadesigndevelopedwhichwilldetermineprioritiesforsuccessfuldelivery.Additionally,thedetaildesignworkestablishesscopeandscalefortheorganization.Thishelpsdeterminehowmanypeopleareneededtosupportorganizationalobjectivesgiventheproposedalignmentandstructure.Finally,jobdescriptionsaredraftedwithenoughdetailtoensurethehumanresourceteamcanworkwiththebusinessunittocreatedocumentationwhichalignswiththeinternalstandards.

DetailDesignChallenges:WithintheDetailDesignphase,itisimportanttofocusonthedesignaspectsoftheorganizationalstructureandresistthetemptationtodesignjobsforcertainindividuals.Itcanbeinherentlychallengingforfacilitatorstohelpimpactedindividualsworkthroughthisprocesswithoutfocusingontheirownjobsorthoseoftheirfriendsandcolleagues.

DetailDesignSuccessCriteria:TheDetailDesignissuccessfulwhentheoutputincludesagreedupondetailedorganizationalcharts,jobdescriptions,andsizingestimatesfortargetedstaffing.

TheImplementationPlanningphaseisthepointatwhichtheleadershipoftheorganizationmustcommitnamestoidentifiedroles,andissuejobopeningsforpositionswhereaninternalpersonisnotavailable.DuringtheImplementationPlanningphase,theDepartment’sstaff,otherstakeholderrepresentativesandhumanresourcesgroupshelpdefinetheapproachtomappingjobstostaffincludingidentifyingtheneededskills,planningthetransition,anddeterminingtrainingforindividualstopreparethemfortheirnewroles.However,theDepartment’sleadershipteamandhumanresourcesstaffhavethefinalresponsibilityforassigningstafftoroles.

Oncethedetaildesigniscompleted,rushingintoimplementationcanbetempting.However,thereareoftenrequirementsrelativetohumanresourcespoliciesandguidelinesandevenlegalreview,dependingonthescopeofthechanges.

ImplementationPlanningchallenges:WithintheImplementationPlanningphase,thereareafewcriticalweekswhereconfidentialityisimportantbutalsodifficulttomaintain.Duringthisperiod,thefinaldesignispopulatedwithresourcenamesandrolelevels.Alsoduringthistime,thehumanresourcesdepartmentmaybeworkingonactivitieslikere‐levelingofstaff,compensationpackages,andotherstaff‐impactingcomponentsofthejobdefinitions.

ImplementationPlanningSuccessCriteria:TheImplementationPlanningphaseissuccessfuliftheDepartment’steam,includingbusinessunitleadersandhumanresourcestaff,isabletomoveforwardwithimplementingtheneworganizationaldesigninathoughtful,effective,andimpactfulway.

4.3.2.2 WORKFORCETRAINING

Basedonthescopeandneedsoftheindividualinitiative,theprojectwillindicatewhichrolesareabletomoveforwardwith:trainingleads,trainingdevelopers,trainersand/ortraining


coordinators.Onmanyprojectsoneindividualwillperformmorethanonetrainingroleduringtheprojectlifecycle.

Specializedtrainingandcoachingisessentialtocloseanyperformance,knowledge,skill,cultural,orcompetencygapswhichcouldpreventasuccessfulimplementationofanewsystem,organizationalredesign,orprocesschange.Thereisaclosetiebetweentrainingandcommunications.Bothworkstreamsstrivetoincreaseawarenessandunderstandingofthechange.Thisapproachensurescollaborationamongthechangemanagementworkeffortsexistsandprovidesconsistentmessagingandperformancesupport.

Thetrainingapproachstartswithdevelopingthetrainingstrategytoensurewhenthetrainingisdelivered,itmeetstheneedsoftheproject.

Exhibit4‐32:WorkforceTrainingApproach

Thedesignanddeliverysolutionsshouldconsidercomputerbasedorwebbasedtraining,onlinemeetings,facilitatedworkshops,instructorleadtraining,trainthetrainer,audiorecordings,jobaids,experientialexercisesandstrategygaming.

Anotherkeyelementisidentifyingtrainingmetricstodeterminetrainingeffectivenessandcreatingatrainingscorecard.Evaluationsandsurveysconductedduringandafterthetrainingcapturethemetricsappliedagainstthisscorecard,andtrainingcanberevisedandimprovedasneeded.

SeetheAppendix4.5.13formoredetailsontrainingandperformancesupportactivitiesanddeliverables.

4.3.2.3 DETAILEDDEPARTMENTALIMPACTSANDTRANSITIONIMPLEMENTATIONPLANS

ThefollowingTransitionFrameworkandPlanoutlinesthekeycomponentstoaddressapotentialre‐deploymentofresources.ThesecomponentsconsistofkeyInputs,Tools,ProcessesandRelatedActivities:


Exhibit4‐33:TransitionalImplementationPlan

DESIGNPHASE


ID INPUTS/TOOLS: PROCESS: RELATEDACTIVITIES:

High‐levelorganizationaldesign

Chartertemplate Draftcharters Missionfacilitation

guide

Developorganizationalunitmission

FutureStateProcessdesign

MapexistingorganizationunitstoFSprocessdesign

Identifygaps High‐level

organizationaldesign Chartertemplate Draftcharters

Identifykeybusinessfunctions

Identifyandresolvebusinessfunctionissueswithotherunits

Chartertemplate Draftcharters Processinventory

spreadsheet

Identifykeyprocessesandactivitiesforeachfunction

Developprocessinventory

Gatherexistingprocessdocumentation

Identifyprocessimpacts Prioritizeprocess

impactsforreengineering

ExistingFloridajob

families

Analyzechartersforlogicaljobdesigns

Identifyoverlapandreuseopportunitieswithotherunits

Developjobfamiliesandtitlesfornewunit

Identifyanddevelopand updatejobfamiliesandtitleswithHR

Identifyreuseopportunitiesacrossunits

Currentorganizationalcharts

High‐levelorganizationaldesign

Charter Guidingprinciples

Developorganizationalstructuretothelowestlevels

Developnewdetailedorganizationalcharts

TransitionCharters(Movingexistingpositionstodifferentfunctions)

Staffmappingprocessandtoolset

Jobpostingandinterviewprocess

Requiredstaffinglevels

Identifystaffforjobsthroughmappingorposting

IdentifyHRimpacts–titles,paygrades

Identifyskillgapsandtheneedtohirenewstaff

Employeecommunicationsandcoaching

Exhibit4‐34:TransitionalImplementationActivity

1

2

3

4


4.4 APPENDIX

4.4.1 PHASE–1DDIIMPLEMENTERPFORFLAIR/CMS(EXAMPLES)

ACTIVITY

KEYTASKS KEYOUTCOMES

InstallERPEnvironments(Software/Hardware/Database)&ConfirmSet‐upIncludingNewDataModel

PreparesitefordeliveryofERPrelatedhardwareandsystemconnectivity

Performset‐upofhardwarewithconnectivity,runinitialdiagnosticsandremediate

Performinitialset‐upofdatabase,runinitialdiagnosticsandremediate

LoadERPpackagewithselectedmodulesontoserverandrunset‐updiagnostics

ConfiguredatabasebasedontheERPmodulesanddatamodeldevelopedduringPre–DDIInformationmanagement

Establishandtestrequiredconnectivitypoints

EstablishERPinitialinstancesandenvironmentsfordevelopment,testingandtraining

OperationalERPinfrastructure

Configureddatabase

ERPplatformwithselectedmodules

PerformInitialConfigurationofERPPlatform&PerformStressTestingofPlatform/Connectivity

Performinitialset‐upconfigurationoftheselectedERPmodules

Runinitialtestscriptstoconfirmconfigurations

PerforminitialperformanceandstresstestingofERPplatform

SelectedERPmodulesareconfiguredbasedonSystemIntegrator’sspecifications


ACTIVITY


ReviewFSProcessMaps,ProcessImprovementsandFunctionalRequirements&PerformInitialMappingToInitialConfigurationforFLAIR/CMS

Conductwalk‐throughsofFSprocessflows,PIsandfunctionalrequirementsformappingtoinitialmoduleconfigurations

Configurein‐scopemodulesbasedoninitialmappingoutcomes

Conductsimulationsessionsusingtheconfiguredin‐scopeusecasescriptsandcollectfeedback

Updateconfigurationsbasedonsimulationfeedback

Conductfollow‐upsimulationsessionasneededtoconfirmchanges

Simulation(conferenceroompilot)scriptsandresults

1stiterationofconfiguredin‐scopemodules

ConductInternalERPTrainingofDFS/DISresourcesassignedtosupportERPPlatform&AssignERPTeams(DFS/SI)forFLAIR/CMS

Developtrainingmaterialsbasedonin‐scopebusinessprocessesandsupportingERPmodules

Developtrainingusecasesforeachofthein‐scopeERPmodules

PilottrainingsessionsforgeneralERPandparticularprocessmodelknowledgedelivery

Conducttrainingsessionsandconfirmrequiredknowledgeandskill

Providefeedbackontrainingsessions

Conductanyfollowuptrainingsessionsasneeded

Developusecasescriptsforin‐scopemodules

Documenttrainingmaterials

On‐linetrainingscriptsforERPplatformandin‐scopemodules

Supporton‐demandERPtrainingforin‐scopemodulesintraininginstance

DevelopBaselineTestScriptsfromBPRUseCases&ExecuteInitialRegressionTest(ResolveExceptions)

Updateinitialtestscriptsfromsimulationsessions

Establishtestingofinboundandoutboundinterfacestotestagencies

Automatetestscriptstosupportregressiontesting

UpdatedERPtestscripts

Initialinboundandoutboundinterfaces


ACTIVITY


ConductEnduserERPTrainingforTargetedProcesses/FunctionswithinFLAIR/CMSforPilot

Developendusertrainingmaterialsforin‐scopeERPmodulesandbusinessprocesses

Developonlineendusertrainingscriptsforin‐scopeERPmodules

Updatetraininginstancewithtrainingdata

Conductendusertrainingforin‐scopeERPmodulesandbusinessprocessesandassessresults

Collectfeedbackonendusertrainingsessionsandremediateasneeded

Conductanyfollow‐upendusertrainingsessionsasneeded

Endusertrainingonin‐scopeERPmodulesandbusinessprocesses

PerformInitialIterationofEndUserERPTestingofTargetedProcesses/FunctionsWithinFLAIR/CMS

UpdateERPtestscripts Updatedataintest

instance Updateconfigurationof

interfacetestingforinboundandoutboundinterfaces

Conduct1stiterationofendusertestingandcollectresults

Collectneededconfiguration,dataorbusinessprocesschanges

1stiterationofendusertestingforin‐scopebusinessprocess,ERPmodulesandinterfaces

Basedon1stIterationTestResultsUpdateConfigurations/Environment,ConfirmRemediation&UpdateTestScripts

Updateconfigurationsandbusinessprocessesbasedonresultsfrom1stiterationofendusertesting

Updatetestscripts Updateinterfacescripts Establishproduction

instance Migratetesttoproduction

instance

2nditerationofERPandinterfaceconfigurationsforpilot


ACTIVITY


ConductUserAcceptanceTestingofERPforTargetedProcesses/FunctionsWithinFLAIR/CMS&Determine“Go/NoGo”DecisiononPilot

Confirmproductioninstance(dataandconfigurations)

FinalupdatetoUATscripts

ConductUATandcollectresultsonperformanceandexceptions

PerformreviewofUATresultsfor“Go/NoGo”decisiononpilot

UATforpilot

UpdateProjectArtifacts(Process,Training,Testing,Technology)FromUATResults

Updateallprojectdocumentation

Updatedprojectdocumentation

AssessOrganizational,CommunicationandChangeManagementImpactsFromUATResults&PilotDecision

AssessimpactofUATonpendingpilotorganizations

Performcommunicationcheck‐point

UpdateOCMplanandactivities

Assesspilotreadiness

Exhibit4‐35:ImplementERPforFLAIR/CMSReplacementTrackExamples

4.4.2 IMPLEMENTINFORMATIONWAREHOUSE(IW)PROJECTTRACKS(EXAMPLES)

ACTIVITY


InstallIWEnvironments(Software/Hardware/Database)&ConfirmSet‐up

Confirmtechnical(hardwareandsoftware)requirementsforselectedIWtool

InstallselectedITtoolintoDFS’senvironment

Confirmset‐upofIWtool

InstallnewIWtool

EstablishMetadataLevelforNewReporting&AnalyticsRequirementsfromBPRandDevelopETLRules

BasedonFLAIR/CMSreportandanalyticrequirementsandBPRoutcomesdevelopmetadatalayerfornewIWtool

DevelopinitialExtract,TransformandLoad(ETL)RulesfornewIW

TestETLRulesandModel

ConfigureNewIWtool


ACTIVITY


ReviewFLAIR/CMSReportingandAnalyticsrequirements&performpreliminarymappingofrequireddatasourcing

Mapdatasourcestometadatamodel

Confirmmetadataattributes(frequency)

Developanysourceinterfacesneededtocompletedatasourcing

InitialsourcedatamappingtoIWtool

PerformdataassessmentandQAkeydataelementsin–scopeforFLAIR/CMS

Performdataassessmentoftherequireddataelementsandattributesforin‐scopeIWdata

HighlightdataqualityissueswithkeydataelementstobeusedwithinthenewIWtool

IWdataassessment

RemediatedataqualityissuesfromdataassessmentandQAresults

CorrectkeydataqualityissuesatsourceorwithinthenewETLprocess

CleanIWdata

Develop1stIterationofIWReportsandAnalyticViewsbasedonFLAIR/CMSrequirements

Develop1st iterationreportingandanalyticviewsbasedonrequirements

EstablishtestdataforIWtool

DevelopIWtestscripts Conductinitialtestofthe

IWview

1stiterationIWprototype(reportsandanalytics)

ConductSimulationSessionsusing1stIterationIWReportsandAnalyticViewsforPilotParticipantsdonfeedbViews

ConductsimulationsessionsofIWprototype

CollectfeedbackandIWchanges

IWsimulationsessionusingIWprototype

BasedonfeedbackfromSimulationSessionperform2ndIterationofIWReports&AnalyticsViewsperform2nIterationofIWReports&AnalyticsViews

Using1st iterationfeedbacktomakechangestoIWtool(metadata,ETLrules,reports)

ReviewIWchangesandtest2nditerationofIWtool

2nditerationIWtool

ConductIWToolTraining DevelopIWtooltrainingmaterials

DevelopIWtooltrainingscripts

ConductIWtooltrainingforpilotparticipants

CollectfeedbackonIWtrainingandremediateasneeded

IWtooltrainingforpilotparticipants


ACTIVITY


ConductUATonIWToolbasedonFLAIR/CMSReporting&AnalyticsRequirements

UpdateIWtestenvironment

UpdateIWtestscripts ConductIWUAT Assessresultsanddecide

onpilot

IWUATforpilot

MigrateIWTooltoProduction&DeploytoPilotUsers

MigrateIWenvironmenttoproductioninstance

Provideenduseraccesstopilotparticipants

IWproductionforpilot

Exhibit4‐36:Pilot–FLAIR/CMSReplacementProjectTrackActivities‐Examples

4.4.3 PILOT–FLAIR/CMSREPLACEMENTPROJECTTRACK(EXAMPLES)

ACTIVITY KEYTASKS KEYOUTCOMES

ConductPilotParticipantTrainingforERPFLAIR/CMS

UpdateERPtrainingenvironmentanddocumentation

Identifypilotparticipantsfortraining

Conducttraining Assessresultsandremediateas

needed

TrainedpilotparticipantonERPandbusinessprocess

ConductPilotParticipantTrainingforIW‐Tools

UpdateIWtrainingenvironmentanddocumentation

Identifypilotparticipantsfortraining

Conducttraining Assessresultsandremediateas

needed

TrainedpilotparticipantonIWreportingandanalytics

ConfirmEndUserAccess&RolesforERP&IW

ConfirmalluserrolesandaccessrulesforpilotparticipantsusingERP/IW

ConfirmeduserrolesandaccessforERP/IW

ConductChangeReadiness

AssessorganizationalunitreadinessforFLAIR/CMSReplacementdeploymentandreporttheresultstotheOCM&CTeam

ReportprojectOCManddeploymentreadiness;includingthestatus,progressandresultsofalllocalchangemanagementactivities

Changereadinessassessment



StartPilotmonitor1stQuarterERP/IWPerformance&RemediateAsNeeded

ConfirmERP/IWSupportteams Conductkickoffofpilotand

reviewhowperformanceandresultsaretobemonitored

Scheduleweeklyfeedbacksessions

1stQuartermonitoringresultswithkeyexceptions

Monitor2ndQuarterERP/IWPerformance&RemediateAsNeeded

UpdateERP/IWsupportteams Continuepilotandreviewhow

performanceandresultsaretobemonitored


2ndQuartermonitoringresultswithkeyexceptions

Monitor3rdQuarterERP/IWPerformance&RemediateAsNeeded

UpdateERP/IWSupportteams Continuepilotandreviewhow



3rdQuartermonitoringresultswithkeyexceptions

Monitor4thQuarterERP/IWPerformance&RemediateAsNeeded

UpdateERP/IWsupportteams Continuepilotandreviewhow



4thQuartermonitoringresultswithkeyexceptions

ReviewLessonsLearnedFromPilotfor1stAgencyGroup

Documentkeylessonsregardingprocess,organizationortechnologyfrompilot

KeylessonslearnedFromPilot

Exhibit4‐37:PilotPhaseActivityDescription

4.4.4 CMSROLLOUTPROJECTTRACK(ACTIVITYEXAMPLES)


ConfirmCMSFunctionalityTestedinERP

ReviewUATresultsforimplementERPandpilot

Re‐confirmCMSfunctionalityviaasampleofCMSusers

ConfirmedCMSERPfunctionality

ConfirmCMSInterfacesTestedforInbound/OutboundTraffic

ReviewUATresultsforCMSinterfaceandpilot

Re‐confirmCMSinterfacesviaasampleofCMSusers

ConfirmedCMSinterfaces

AssessPerformanceResultsofCMSFunctionalityinPilotfor“Go/NoGo”DecisiononCMSRollout

AssessperformanceofCMSfunctionalityandinterfacesduringthePilotandnoteanypotentialrisks

BasedondemonstratedperformanceandriskassessmentmakefinaldecisiononCMSrollout

AssessmentpilotperformanceofCMSfunctionalityandinterfaces

CMSrolloutdecision



ConductERPCMSTrainingforAllCMSEndUsers

UpdateCMSERPtrainingmaterialsandscriptsfrompilot

UpdateERPtrainingenvironment

IdentifyallCMSusersacrossallCMSusers

TrainedCMSusersacrossallCMSusers

ConductCMSUATAcrossAllIn‐scopeCMSusers

UpdateCMSUATscriptsfrompilot

UpdateERPandinterfacetestenvironment

ConductCMSUATforallnon‐pilotCMSusers

AssessCMSUATresultsfor“Go/NoGo”decisiononCMSrollout

CompletedUATforCMSrollout

CutoverFromLegacyCMStoERPCMS

TransitionallcurrentandrequiredhistoricalCMSrecordsandtransactions

CutoverfromlegacyCMStoERPCMS

CMSfunctionalityonERPCMS

MonitorCMSPerformance MonitorCMSperformancefor

6monthsaftercutover CMSperformancereport

Exhibit4‐38:CMSRolloutPhaseActivityDescription

4.4.5 FLAIR/IWROLLOUTPROJECTTRACK(ACTIVITYEXAMPLES)


MonitorFLAIRPilot DetermineFLAIRperformanceduringthepilot

AssessanyimpactstoFLAIRrolloutschedules

FinalizeFLAIRrolloutschedule

Performthefollowingforall3ERPFLAIRrollouts

PerformBPRUpdates Determineanychangestoin‐scopebusinessprocessesforaparticularAgencyneed

Updateanychangeinrolesandpositionsforin‐scopebusinessprocesses

Noteanyfutureprocessimprovementsforcurrentorfuturerollouts

BPRupdates Processimprovements



UpdateERPConfigurations/Interfaces

DetermineanyERPmoduleconfigurationchangesbasedonBPRupdates

DetermineanyinterfacechangesbasedonBPRupdates

Systemtestanychanges

UpdatedERPconfigurationsandinterfaces

ApplyChangeManagementProcess

AssesseachagencyanddetermineoverallreadinessformovingtoERPplatform

ConfirmcoverageforallrequiredusersrolestooperateERPplatform

EstablishinitialperformancegoalsforuseradoptiontoERPplatform

Changemanagementplanbyagency

EndUserTrainingwithUAT(ifneeded)

UpdateFLAIRtrainingmaterialsandscripts

RefreshFLAIRtrainingenvironment

Identifyallenduserparticipantsbyagency

ScheduleandconductERPendusertraining

Collecttrainingfeedbackandconductremediationasneeded

UpdateFLAIRUATscripts RefreshUATERPandinterface

testenvironments PerformUATbyagencyifneeded

TrainedERPendusers ERPvalidationifneeded

DeployFLAIR ConfirmuserrolesandaccesstoERPFLAIRbyagency

ConfirmmigrationoflegacyFLAIRdataasneeded

DeterminecutoverscheduleforERPFLAIR

CutovertoERPFLAIR CloseoutaccesstolegacyFLAIR

CutovertoERPFLAIR

Exhibit4‐39:FLAIRRolloutPhaseActivityDescription


4.4.6 MFMPINTEGRATIONPROJECTTRACK(ACTIVITYEXAMPLES)


DetermineMFMPupgrade/futuredirectionandpotentialimpactwithERPFLAIR

ReviewwithMFMPprojectteamtoconfirmfuturedirectionofMFMP

Determinetheinterfacehigh‐levelrequirementsbetweenMFMPandERPFLAIRbasedonfuturedirection

IdentifyschedulingandtimingrequirementsforthenewMFMP/ERPFLAIRinterfacetobeoperational

DeterminebusinessneedsforMFMP/ERPFLAIRinterface

AnalyzeMFMPfuturerequirementneedsforERPFLAIRInterface

AnalyzedetailrequirementsrequiredfortheMFMPinterface

MFMPinterfacerequirements

DesignMFMPInterfacetoFLAIR

DesignnewMFMPinterfacebasedonthedetailrequirements

Confirmkeydataelements

MFMPinterfacedesign

DevelopMFMPInterfacetoFLAIR

DevelopMFMP interfacebasedondesign

DevelopedMFMPinterface

TestMFMPInterfacetoFLAIR

Performsystemandintegrationtestingoninterface

ReviewwithMFMPProjectTeamandobtainsign‐offontestresults

TestedMFMPinterface

PreparetoDeployMFMPInterfacetoFLAIRasneeded

CoordinatewithMFMPprojectteamtodetermineimplementationdateforMFMPinterface

DeployMFMPinterface

Exhibit4‐40:MFMPIntegrationPhaseActivityDescription

4.4.7 PFINTEGRATION/IMPLEMENTPAYROLLINERPPROJECTTRACK(ACTIVITYEXAMPLES)


DeterminePFupgrade/futuredirectionandpotentialimpactwithERPFLAIR

ReviewwithPFprojectteamtoconfirmfuturedirectionofPF

DeterminepotentialPayrollimpactsandfuturerequirementsbasedonfuturedirection

IdentifyschedulingandtimingrequirementsforthenewPayrollprocessandanyotherenhancements

DeterminefuturebusinessneedsforPFandPayrollprocess



AnalyzePFfuturerequirementneedsandanyBPRforPayrollProcess

AnalyzedetailrequirementsforthePFandPayrollprocess

PF/Payrollprocessrequirements

DesignERPFLAIRfornewPayrollProcess

DesignnewPFenhancementsandPayrollprocessbasedonthedetailrequirements


PF/Payrollprocessdesign

ConfigureERPFLAIR&ModifyInterfacestosupportnewPayrollProcess

ConfigureERPFLAIRforanyPFenhancementsandPayrollprocess

Developinterfacesasrequired

DevelopedPFenhancements/Payrollprocess

ConfigureERPFLAIR&ModifyInterfacestosupportnewPayrollProcess

ConfigureERPFLAIRforanyPFenhancementsandPayrollprocess


DevelopedPFenhancements/Payrollprocess

TestnewPayrollProcessinERPFLAIRandInterfaces

PerformsystemandintegrationtestingonPFenhancementsandPayrollprocess

ConductUATforPFenhancementsandPayrollprocess

TestedPFenhancementsandPayrollprocess

DeploynewPayrollProcessandInterfacesperPFProjectPlan

CoordinatewithPFprojectteamtodetermineimplementationdateforPFenhancementsandPayrollprocess

DeployPFEnhancementsandPayrollprocess

Exhibit4‐41:PF/PayrollImplementationPhaseActivityDescription

4.4.8 PHASE–1DDIINDEPENDENTVERIFICATIONANDVALIDATION

ACTIVITY


DevelopIV&VProjectWorkPlanandSchedule

WorkwithprojectsponsorsandPMOtoplanandconductIV&Vprojectkick‐offmeeting

FacilitateameetingwithPMOtodefineprojectmanagementplanforIV&Vproject

UpdateIV&Vprojectschedule

IV&Vprojectplan IV&Vproject

schedule

Establishkeyprojectmetrics

ConductameetingwithprojectsponsorsandPMOtoestablishkeyprojectmetrics

Documentkeyprojectmetrics

Keyprojectmetrics


ACTIVITY


ReviewProjectManagementPlanandComponents

ReviewPMOprojectmanagementplan

ProvidecommentstoPMO

Revisedprojectmanagementplan

ReviewProjectSchedule

ReviewPMOprojectschedule

ProvidecommentstoPMO

Revisedprojectschedule

ReviewProjectDeliverables

Reviewprojectdeliverableso Requirementsdocumentso TestPlanso DesignDocumentso TrainingPlanso ImplementationandCut

OverPlan

Revisedprojectdeliverables

Reviewusecaseandsimulationmodelresults

Reviewusecaseandsimulationmodelresults

Inputformonthlydashboardreport

Trackprogressagainstprojectschedule

Monitorprojectprogressagainstprojectschedule


Reviewperiodicstatusreports

ReviewPMOstatusreports Identifyadditional

recommendationandfindings

ProvideadditionalrecommendationandfindingstoprojectsponsorsandPMO

Developmonthlydashboardreports

Trackdataonkeyprojectmetrics

DocumentmonthlyIV&Vactivities

Producemonthlyprojectdashboardreport

Monthlydashboardreport

ReviewUATtestresults

ReviewUATtestreports Inputformonthlydashboardreport

MonitorFLAIRRolloutprogressandFLAIRBaselinePerformanceMetrics

ReviewFLAIRRolloutprogressreports


Exhibit4‐42:IndependentVerificationandValidationExamples


4.4.9 PHASE–2:EXPANDEDERPFUNCTIONALITY(FLAIR/CMS)PROJECTTRACK


PerformBPA/BPRAssessmentofState’sFinancialBusinessProcesses&DevelopFunctionalRequirements

ReviewwithDFSmanagementtoconfirmfuturedirectionofState’sfinancialprocesses

DeterminepotentialERPmodulesandfunctionsbasedonfuturedirection

DeterminefuturebusinessneedsforERPFLAIRandState’sfinancialbusinessprocesses

MapBPRResultstoPotentialERPFunctions

AnalyzeBPA/BPRresultstoperformpreliminarymappingtoadditionalERPfunctions

PreliminarymappingofFSfinancialprocessesandfunctionalrequirement

ConductSimulationSessionwithTargetedERPFunctions

DesignnewFLAIRenhancementsandprocessesbasedonFSrequirements


Phase‐2FSfinancialprocessdesign

ConfirmFutureState(FS)BusinessProcessDesign

Configure ERPFLAIRforanyPhase‐2FSfinancialprocessesandenhancements


DevelopedPhase‐2ERP–FLAIRenhancementsandFSfinancialprocesses

ConfigureERPModules&DevelopInterfacesAsRequiredToSupportFSBusinessProcessDesign

PerformsystemandintegrationtestingforPhase‐2ERPFLAIRenhancementsandfinancialprocesses

ConductUATforPhase‐2ERPFLAIRenhancementsandFSfinancialprocesses

TestedPhase‐2ERPFLAIRenhancementsandFSfinancialprocesses

ConductPhase‐2ERPModules/BPRTraining

DeveloptrainingmaterialandScripts

RefreshPhase‐2ERPFLAIRtrainingenvironments

ConductPhase‐2ERPFLAIRtraining

AssessPhase‐2ERPFLAIRtrainingresults

CompletePhase‐2ERPFLAIRtraining

ConductPhase‐2Testing Developtestingmaterialandscripts

RefreshPhase‐2ERPFLAIRtestingenvironments

ConductPhase‐2ERPFLAIRsystemandintegrationtesting

AssessPhase‐2ERPFLAIRtestingresults

CompletePhase‐2ERPFLAIRtesting

CompleteUAT

ConductOCMSupport ProvideongoingOCMsupportforPhase‐2ERPFLAIRenhancementandFSfinancialprocesses

OCMsupportplanforPhase‐2ERPFLAIR



DeployPhase‐2ERPFLAIR

DeployPhase‐2ERPFLAIRasneeded

DeployPhase‐2ERPFLAIR

Exhibit4‐43:Phase‐2DDIPhaseActivityDescription

4.4.10 OPERATIONSANDMAINTENANCEPROJECTTRACK(EXAMPLES)


SupportingLegacyFLAIR

SupportlegacyFLAIR/CMSandIWinfrastructure(hardwareandsoftware)

SupportedlegacyFLAIR/CMS/IW

SupportERPFLAIR/CMS&NewIWTools

SupportERPFLAIR/CMSinfrastructure(hardwareandsoftware)

SupportnewIWInfrastructure

SupportedERPFLAIR/CMS SupportednewIWtool

ERPUpgrades PerformERPupgrades UpgradedERPplatform

Exhibit4‐44:Operations&MaintenanceActivityExamples

4.4.11 OCMMODEL

OCMactivitiesareallstructuredtoreachindividuals.Thisisbecausechangehappensonepersonatatime.TheADKAR©97modelisjustoneframeworkformanagingindividualchangemanagement.Itoutlinesthefivebuildingblocksofsuccessfulchange,whetherthechangeoccursinbehaviorsathome,inthecommunityoratwork.Thename"ADKAR"isanacronymbasedonthefivebuildingblocksillustratedbelow.

A‐Awarenessoftheneedforchange

D‐Desiretoparticipateandsupportthechange(theWILL)

K‐Knowledgeonhowtochange

A‐Abilitytoimplementrequiredskillsandbehaviors(theSKILL)

R‐Reinforcementtosustainthechange

Thefivebuildingblocksaresequential.Successfulchangebeginswithawareness.Afterawarenesscomesthepersonaldecisiontoparticipate(desire).Afterdesirecomesthe

97:http://www.prosci.com/adkar‐model/overview‐3/


knowledgeandabilitytomakethechange.Andfinally,forthechangetostayinplace,reinforcementisneeded.

WhentheADKARelementsareachieved,employeesbecomeengagedandmotivated.Thechangeisadoptedfaster.Employeescontributeideasandseekoutnewwaystosupportthechange.Employeeshavetheknowledgeandabilitytoimplementthechangesothebusinessgoalsarerealizedorexceeded.

Well‐structuredOCMprogramsemploymanytoolsandtechniquestoguidepeoplealongtheirjourneyfromthecurrentstate,throughthetransitionstateandintothefuturestate.Mostoftenmanagersrelyonfivebasicplanstomanageandinfluencechange.TheseplansincludetheCommunicationsPlan,SponsorRoadmap,TrainingPlan,ResistanceManagementPlanandaCoachingPlan.ThesefivetoolssupportdifferentelementsoftheADKARmodelasnotedinExhibit4‐45below.

Exhibit4‐45:ChangeManagementToolsUsedtoManageChange

4.4.12 OCMFUNCTIONALMODELROLES&RESPONSIBILITIES

Inadditiontothespecificrolesandresponsibilitiesoutlinedbelow,eachmemberbringssubjectmatterexpertisetothechangeprocess.Pendinginput,discussionanddecisionmakingamongtheteammembers,thechangemanagementstrategymaybecustomizedormodifiedtofittheneedsoftheDepartment.

TheOCMFunctionalrolesandresponsibilitiesareusuallydevelopedbasedonthefollowingassumptions:

OCMactivitiesoccurthroughouttheProject’slifecycle

ResourcesareallocatedtoconducttheseactivitiesduringtheentireProject

Communications

SponsorRoadmap

Training

ResistanceMgmt

Coaching

ChangeManagementTools BuildingBlocksofChange

Awareness

Desire

Knowledge

Ability

Reinforcement


Duetothehighdegreeofinterdependency,delaysand/orchangestoprojectactivitiesandschedulesimpactOCMactivitiesandschedules

ProjectteamandotherkeystakeholderresourcesareavailableforinputtotheOCMTeaminatimelymannertoallowexecutionoftheOCMactivities

CriticalProjectsponsorsandstakeholdersareidentifiedtosupporttheOCMPlan

ThefollowingExhibitoutlinespotentialDFSOCMrolesandresponsibilities.

FLAIRREPLACEMENTDFSOCMRESPONSIBILITIES

OCM&CROLE RESPONSIBILITIES

DFSProjectDirector ActivelyandvisiblysponsorstheFLAIRReplacementProject DeliversseniorexecutivelevelstatementsabouttheProject

objectivesandoutcome ChairstheOCM&CTeamandadvisestheworkstreamforthe

developmentofContentandKnowledgeTransfer.Providesdirectionwhennecessary

Activelyparticipatesintheidentification,crafting,andapprovalofprojectOCMmessagesandworkproductswhereverappropriate

UpdatestheExecutiveSponsoronOCM&Cactivities;communicatesdirectlywithseniorexecutivestakeholders,whenappropriateandnecessary,regardingprojectOCM&Cmatters

AgencySponsors ActivelyandvisiblysupportsagenciesOCMstrategiesandpractices

RepresentstheinterestsoftheagenciesattheOCM&Cteammeetings

Activelyparticipatesintheidentification,craftingandapprovalofprojectOCM&Cmessagesandworkproducts,whereverappropriate

ReviewsOCM&Cmessages,tutorialsandtechniques,deliversfeedbacktotheProjectOCM&CTeamandrequestsadditionalmaterialsonothertopics

ContributesandadvisestotheworkstreamresponsiblefordistributionofOCM&Cmaterialsandmessages

OCMDeputyProjectDirector EnsurescoordinationofOCM&Cmessagingwithfunctionalandtechnicaldirectors


ProvidesleadershipandsupporttotheProjectOCM&CStrategicTeam

Activelyparticipatesintheidentification,crafting,andapprovalofprojectOCMmessagesandworkproductswhereverappropriate

AssistswithprojectOCM&Cstakeholderanalysisandcommunicationsplanning

ActivelysupportsdepartmentsandagencyOCMstrategiesandpractices

Representstheinterestoftheexternalstakeholders




DFSFunctionalDeputyProjectDirector

EnsurescoordinationofOCM&CmessagingwithDFSprogrampolicy,proceduresandtraining


Assignsprojectstaffasneededtodevelopmessagecontentconsistentwithpolicyandprocedures

ActivelysupportsDFS&agencyOCMstrategiesandpracticesDFSTechnicalDeputyProjectDirector

EnsurescoordinationwithandawarenessofotherDFSprojects

Activelyparticipatesintheidentification,craftingandapprovalofProjectOCM&Cmessagesandworkproducts,whereverappropriate

ActivelysupportsChangeManagementstrategiesandpractices ProvidesinputregardingtechnicalaspectsoftheProject

DFS/AgencyChangeAgents Takesaleadroleinexploringandmanagingchangeresistanceissuesamongcoworkers

ReferswidespreadandparticularlychallengingresistanceissuestotheProjectOCM&CTeamtobeformallyaddressedonabroaderscalebyDFSandAgencyexecutives

Sponsorsandfullysupportsanorganizationalchangemanagementeffortattheirorganization

EnsuresDFSandAgencystaffarefullypreparedtotransitiontothenewTechnologySolutionwhendeployed

Holdsin‐scopestaffaccountableforpreparingforProjecttransition,includingworkingthroughchangeresistanceissuesandcompletingallavailableusertraining

Astheprojectprogresses,assemblesateamofchangeagentsofsufficientsizetoreacheveryin‐scopestaffmember

ReviewsandappliesOCM&Cmessages,toolsandtechniques,providesfeedbacktotheOCM&CTeamandrequestsadditionalmaterialsonothertopics,ifneeded

AssessesorganizationalunitreadinessforFLAIR/CMSReplacementdeploymentandreportstheresultstotheOCM&CTeam

ServesasaprimaryliaisonbetweentheirDepartmentorAgencyandtheProjectteam

ServesasastrongandvisibleProjectChampionandprimarychangeagentwithintheirdepartmentandlocation

CoordinatesupporttodepartmentmanagementonmattersconcerningProjectOCManddeploymentreadiness;includingthestatus,progressandresultsofalllocalchangemanagementactivities

Receives,reviewsandmakesuseofallrelevantProjectOCM&Cmessages,tutorialsandtechniquesprovidedbytheProjectOCM&CTeam;providestimelyandcandidfeedbackonthequalityandusefulnessofeach

ProjectOCM&CSME CoordinatesandparticipatesintheactivitiesoftheOCM&CTeam

CoordinatesthecreationanddeliveryofProjectOCM&C




messagesandcontent ProvidesOCMstrategiesandtoolstotheDFS/Agency

Champions;leadsChangeManagementactivities Hostsandfacilitatesconferencecalls,webinarsonFLAIR/CMS

ReplacementProjectOCM&Cmatters RespondstoinquiriesandProjectOCMsupportrequestsby

DFS/AgencyChampions CollaborateswithDFSandAgencystaffandProjectSMEsto

ensureProjectOCMinformationiscorrectandcurrent Collaborateswiththesystemsintegratortoensureeffortson

theProjectaremutuallysupportiveandthereisasteadyflowofaccurateandcurrentinformationbetweenparties

SystemIntegratorImplementationManager

RepresentstheSIattheOCM&C Teammeetings ProvidesanupdateonSIOCMandtrainingactivities FacilitatescoordinationbetweenSIandtheOCM&CTeam Overseestheplanning,developmentandexecutionoftheSI

OCMandtrainingtasks,including:o SystemChangeReadinesso SystemChangeImpactAnalysis SystemUserTraining

ProjectCommunicationsLead ActivelyparticipatesinthecraftinganddeliveryofprojectOCM&Cmessagesandworkproducts

ParticipatesinandcontributestoProjectOCM&CTeammeetings

Solicitsstakeholderfeedbackandaddressesstakeholderquestions

EstablishesandmaintainsFAQstoprovidestandardplannedresponsestocommonquestions

EnsuresprojectOCM&Cmessagesandmaterialsarehighquality,consistent,alignedwithothermessagesfromtheorganization,properlybranded,anddepartmentpolicies

CoordinatescommunicationwithStateagencypartners ActsastheOCM&Cteamliaisonbetweenprojectandother

teamsandparties

Exhibit4‐46:FLAIRReplacementDFSOCMResponsibilities

ThefollowingExhibitoutlinespotentialAgencyOCMrolesandresponsibilities.

FLAIRREPLACEMENTAGENCYOCMRESPONSIBILITIES


AgencyProjectDirector ActivelyandvisiblysponsorstheProject ParticipatesinandcontributestoProjectOCM&CStrategic

Teammeetings Providessubjectmatterexpertiseandknowledgetransfer Activelyparticipatesinidentifyingmessagecontent,audiences

andvehiclesforcommunication;providessupport,guidance,andreviewofProjectOCM&Cmessagesandworkproducts,




whereverappropriate AssignsProjectstafftoassistwiththedevelopmentofOCM&C

Teammessagecontent,asneededAgencyOCMLead ParticipatesinandcontributestoProjectOCM&CStrategic

Teammeetings Advisesonagencyoperationsissues

AgencyOCM/DFSSME HelpsensureOCM&Ccontentandmessagingisconsistentwithdepartmentpolicies

ProvidesknowledgetransfertotheProjectstaffasneededDFS/AgencyChangeAgents Takesaleadroleinexploringandmanagingchangeresistance

issuesamongcoworkers Referswidespreadandparticularlychallengingresistance

issuestotheProjectOCM&CTeamtobeformallyaddressedonabroaderscalebyDFSandAgencyexecutives

Sponsorsandfullysupportsanorganizationalchangemanagementeffortattheirorganization

EnsuresDFSandAgencystaffarefullypreparedtotransitiontothenewTechnologySolutionwhendeployed

Holdsin‐scopestaffaccountableforpreparingforProjecttransition,includingworkingthroughchangeresistanceissuesandcompletingallavailableusertraining

Astheprojectprogresses,assemblesateamofchangeagentsofsufficientsizetoreacheveryin‐scopestaffmember

ReviewsandappliesOCM&Cmessages,toolsandtechniques,providesfeedbacktotheOCM&CTeamandrequestsadditionalmaterialsonothertopics,ifneeded

AssessesorganizationalunitreadinessforFLAIR/CMSReplacementdeploymentandreportstheresultstotheOCM&CTeam

ServesasaprimaryliaisonbetweentheirDepartmentorAgencyandtheProjectteam

ServesasastrongandvisibleProjectChampionandprimarychangeagentwithintheirdepartmentandlocation

CoordinatesupporttodepartmentmanagementonmattersconcerningProjectOCManddeploymentreadiness;includingthestatus,progressandresultsofalllocalchangemanagementactivities

Receives,reviewsandmakesuseofallrelevantProjectOCM&Cmessages,tutorialsandtechniquesprovidedbytheProjectOCM&CTeam;providestimelyandcandidfeedbackonthequalityandusefulnessofeach

AgencyPartner AttendsOCM&CTeammeetingsasneededtofacilitatecommunicationandcoordinationwithDFSregardingFLAIR/CMSReplacementimplementation

ReceivesmaterialsandcontentcreatedbytheOCM&CTeamforusebytheAgencyPartner,asneeded

ProvidesAgencyPartnerperspectivestotheOCM&CTeamasneeded

AgencyProfessionalDevelopmentSME

ProvidesstatusontheProjectandrelatedpolicyandproceduraltrainingactivities




RepresentsprofessionaldevelopmentandtrainingattheOCM&CTeammeetingsasneeded

AgencyLiaisonsforProject CommunicatesProjectprogressandstatus HelpsensureOCM&Ccontentandmessagingisconsistent

withtheProjectgoalsandobjectives TransfersKnowledgetotheProjectstaffasneeded

Exhibit4‐47:FLAIRReplacementAgencyOCMResponsibilities

4.4.13 TRAININGANDPERFORMANCESUPPORTACTIVITIES

ThetrainingandperformancesupportactivitiesanddeliverablesareoutlinedintheExhibitbelow:

STEPS TRAININGANDPERFORMANCESUPPORT DELIVERABLES

1.DevelopTrainingStrategyandPlan

Definethetrainingobjectivesthroughdiscussionswithprojectsponsor,changemanagementlead,keystakeholders,andimpactedbusinessend‐users

Identifythetrainingaudience Assessthetrainingneedsfortherolesthrough

reviewofimpacts,existingdocumentation,andinterviews

Documenttrainingneedsassessment Assessdesignanddeliveryoptions(e.g.,

instructorlead,web‐basedtraining) Identifysuccesscriteria

TrainingStrategy TrainingScorecard TrainingPlan Trainingestimates

fordevelopmenteffortandbudget

2.DevelopTrainingCurriculum

Developcurriculumrecommendationsfortrainingintheareasofbrand,business,cultureandanyjobspecifictraining

Determinethemosteffectivedeliverymethodologies

Developlearningobjectivesforeachrole

Curriculumoutlineincludingcoursedescriptionsanddeliverymethods

CourseObjectives CourseAudience

3.DevelopTrainingMaterials

Documentthetrainingcontent,specificdeliverymethod,timingandschedule,supportingmaterialsandend‐userevaluationmethods

Compareinventoryofexistingmaterialswiththecurriculumforjob‐specific,brand,culture,businesstrainingandidentifygaps

Design,develop,anddrafttrainingcontentandincorporatemeasurementplan

Conductpilottrainingcourse UpdatetrainingbasedonpilotandSME

feedback Reviewandrevisethecurriculum

recommendations Reviewandrevisetrainingcontent

TrainingMaterialsinclude,butarenotlimitedto(dependingondeliverymethod):

Studentguide Facilitatorguide Traininglesson

plan Trainingmodules Evaluationsurvey Trainingscorecard

template Training

presentation CBTcontent


STEPS TRAININGANDPERFORMANCESUPPORT DELIVERABLES

Presenterscript(ifrecorded)

Train‐the‐trainerguide

JobAids4.DeliverTraining

TrainingSchedule Train‐the‐trainersession Conductclasses Conducttrainingevaluation Reviewandrevisethetrainingcontentbased

onstudentfeedback

Classschedule Evaluations TrainingScorecard Actionplanbased

onfeedback Revisedtraining

materials

Exhibit4‐48:WorkforceTrainingandPerformanceSupportActivities

4.4.14 COMMUNICATIONPLAN

TheDepartmentalongwiththeSystemIntegratorwillimplementaCommunicationPlanwhichidentifiesandaddressestheconcernsofallkeystakeholdersduringtheTransitionperiodandthelifeofthecontract.TheCommunicationPlanoutlinesthefollowing:

Communicationpurposeandobjective

Keypointsofthecommunication

Stakeholderaudience

Deliveredby

Communicationvehicle

ThepurposeoftheCommunicationPlanistodocumentidentifiedcommunicationneedsandthestructuredprocesstoaddressthoseneeds.Theoverallgoalofthecommunicationeffortistoprovideallstakeholders,internalandexternaltotheproject,withtheinformationtheyneedinatimely,effectivemanner.Thecommunicationobjectivesareto:

Identifykeystakeholderaudiences

Communicateinwaysandonaschedulewhichmeetseachaudience‘suniqueneeds

Providefeedbackmechanisms,withmeasureswherepossible,todeterminetheeffectivenessofthecommunicationsdeliveredtoeachaudience

Adjustthecommunicationplanandstrategiestobettermeetstakeholderneeds,basedonfeedback

TheExhibitbelowisapotentialCommunicationPlanwhichmaybeimplemented.

FloridaDepartmentofFinancialServices FLAIRStudy RequiresCover,linkforAttach2CoverandQAPage69

COMMUNICATIONEVENT PURPOSE/OBJECTIVE KEYPOINTS AUDIENCE DELIVEREDBY VEHICLE

ThroughoutPre‐DDI Determinethedegreeofprojectchangereadiness

Determinethedegreeofresistancelikely

Provideinputtoclassifyingandprioritizingbusinessunitsforrollout

Determinelevelofawarenessoftheproject

Determinegeneralemployeereceptivitytochange

ProjectTeam DFSManagement

ConversationsandSteeringCommitteePresentations

ProjectKick‐off Kickofftherevisedproject Createawarenessofthe

project,itspurpose,goals,approach,andtimelines

Gainbuy‐intoimplementationschedule(andorderofagenciestoberolledout)

Shareprogramscope,goals,andobjectives

Createandshareacompellingcaseforchange

Shareapictureofthesolution(ERPBaseline)

Setexpectationsforprojectparticipationandsupport

Reviewprojectapproach,rolloutorder,andhigh‐leveltimelines

SteeringCommittee,AdvisoryGroup,ProjectTeam,Agencies

SteeringCommittee(ExecutiveSponsor)

Face‐to‐FaceMeeting(SupportProject/AgencyKickoffMeetings)Followupwithperiodicnewsletters(e‐mail)reinforcingthemessageandexpectationsforsupport

ProcessImpactWorkingSessions

EnsuretheProjectdeliverablesarebeingcompleted

Assistwithdeliverablecompletion

Removeroadblockstoprojectsuccess

Demonstratecontinuedmanagementsupportandcommitmenttoprojectsuccess

CreateProjectnameandidentityhelpingpeopleidentifyandremembertheproject;

DFS/Agencyemployees

Project&OCMTeam

Face‐to‐FaceMeetings(ProcessImpactWorkingSessions)



Project/PhaseKick‐off Createawarenessoftheproject,itspurpose,goals,approach,andtimelineswithineachSupportCenter

Shareexpectationsforprojectparticipation

Generateprojectinterest Identifycandidatesfor

newroles Prepareemployeesforthe

changeprocess

Shareprogramscope,goals,andobjectives

Sharethecompellingcaseforchangeandpictureofthesolution

Setexpectationsforprojectparticipationintheimplementation

Acknowledgeissuesinvolvedwithmajorchangeandwhatisrequiredforsuccess

Reviewprojectapproachandhigh‐leveltimelines

Identifyissuesorroadblocks

Reviewprojectrolesandresponsibilities

Askemployeestoconsidertakingontheseroles

DFS/Agencies BPRTeam/OCM Face‐to‐FaceMeeting(SupportProject/AgencyKickoffMeetings

Project/PhaseKick‐off ProvideoverviewofProcessImpactSessions(BPR)

IdentifyparticipantsforProcessImpactSessions

ShareProcessWorkshopschedule

Identifycriteriaforparticipants

ShareWorkshopgoalsandagenda

Provideinitiallogisticsinformation

BPRWorkshopParticipants

BPRTeam/OCM Face‐to‐FaceMeeting(SupportProject/AgencyKickoffMeetings)Followupwithperiodicnewsletters(e‐mail)reinforcingthemessageandexpectationsforsupport



ProcessImpactWorkingSessions

Communicatetraininginformation,schedulesandparticipationexpectations

Provideadditionallogisticsinformation

Communicationpreparationrequired

BPR/OCM/PilotParticipants

ProjectTeam Face‐to‐FaceMeetings(ProcessImpactWorkingSessions)

ProjectPhasedRollout

ProvidesupportastheIWToolandassociatedprocessisimplemented

Buildcomfortwiththetoolandprocess

Showmanagementinterestandsupportinprojectandworkshopsuccess

Shareexpectationsforworkshopparticipationandoutcomes

BPR/OCM/PilotParticipants

ProjectTeam/PMO

E‐mail,withpotentialfollow‐upphonecalls

ThroughoutProject FLAIRProject‐specificmessages

Communicateadhocmessages

ProvideeducationonProjectbackgroundandgoals

Emphasizecriticalityofownershipandparticipationindeliverabledevelopment

DFS/Agencyemployees

DFS/AgencyManagement

E‐mailwithfollow‐upphonecalls

ThroughoutProject Gainandmaintainsupport,buy‐in,andparticipationfromalllevelsofFinancialManagement

Highlightaccomplishments,celebratesuccesses

Shareprogressthroughtheimplementationplan

Outlinenextsteps

DFS/Agency(throughTeamLeadlevel)

OCMChampionandProjectTeam

Face‐to‐FacediscussionswithworkshopparticipantsfromtheirDepartment



ProjectPhasedRollout

Provideenduserswiththeopportunitytoseethesystem

Provideenduserswiththeopportunitytocontributetoandprovidefeedbackontheprocessandtool

Buildendusercomfortwiththenewprocessesandtool

ReinforceimportanceofKnowledgeManagementinitiative

Reinforcethebenefitstobeachieved

Emphasizetheimportanceofmanagementparticipationandsupport

Share,clarify,andreinforcemanagementrolesandresponsibilitiesthroughouttheproject

Reinforceneedforculturechangeandtheirroleinachievingit

Emphasizeaccountabilityforsuccess

AllIn‐ScopeParticipants

OCMChampion,PMO,ProjectTeam

Face‐to‐facethroughKnowledgeWorkshops;possiblyone‐on‐onewithverysmallcenters

Exhibit4‐49:CommunicationPlan

4.4.14.1 STAKEHOLDERS

KeystakeholdersincludetheDepartmentofFinancialServices,agencies,theLegislature,theGovernor’sOffice,andtheSystemIntegratorteammembers.

4.4.14.2 COMMUNICATIONEVENT

AcommunicationeventisatopictheDepartmentandSystemIntegratoraddressinordertoinformthestakeholders.Acommunicationeventcanbeaone‐timeoccurrenceoraregularlyscheduledevent.Thefrequencyofthecommunicationisdependentuponthetopic,audiencebeingaddressed,andthevehicleofcommunication.


4.4.14.3 VEHICLESOFCOMMUNICATION

Acommunicationvehicleisthemethodusedtodeliverthecommunication.Severalcommunicationvehiclesshouldbeused:formalpresentations,meetings,brownbaglunches,andemail.Dependentuponthecommunicationevent,theappropriatecommunicationvehicleshouldbedeterminedandimplemented.Thisincludesnewslettersandwebsites.

4.4.14.4 MANAGEMENTOFCOMMUNICATIONS

Toensureeffectivecommunication,theDepartmentandserviceprovideridentifiescommunicationleads.Thecommunicationleadsareresponsibleforcreatingcommunicationtemplatesandreviewingandapprovingallcommunicationspriortodistribution.Thecommunicationsshouldbedeliveredfrequentlyatalllevelsintheorganization.


CHAPTER5 PROCUREMENTANDCONTRACTMANAGEMENT

TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFloridaStatutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter5ProcurementandContractManagement.

FLORIDASTATUTE

287.0571(4)(j) Adescriptionofthespecificperformancestandardsthatmust,ataminimum,bemettoensureadequateperformance.

287.0571(4)(k) Theprojectedtimeframeforkeyeventsfromthebeginningoftheprocurementprocessthroughtheexpirationofacontract.

287.0571(4)(l) Aplantoensurecompliancewiththepublicrecordslaw.

287.0571(4)(m)Aspecificandfeasiblecontingencyplanaddressingcontractornonperformanceandadescriptionofthetasksinvolvedinandcostsrequiredforitsimplementation.

287.0571(4)(o) Aplanforensuringaccessbypersonswithdisabilitiesincompliancewithapplicablestateandfederallaw.

Exhibit4‐50:Chapter5FloridaStatutes


Basedonlessonslearned,guidingprinciples,goals,andrisks,theFLAIRStudyTeamrecommendsaprocurementstrategyallowingfortheindependentselectionofsoftwarebeforemakingafinalselectiononthesystemintegrator.DFSwilldeterminethemethodofprocurementonceplanningbeginsfortheFLAIRreplacementproject.DFShasthefollowinggoals:

OneITNandonecontract

AprocurementprocessgivingDFStheabilitytochoosethesoftwarefirst

Theabilitytoworkdirectlywiththesoftwarevendor

Fixedpricecontract

DFShasaprocurementandcontractmanagementprocessdocumentedinitsContractManagementLifecycleandProcurementGuide.Thisguideisfollowedwhendevelopingsolicitations.

Intheeventthecontractordoesnotmeettheperformancestandardsthroughouttheprojectlifecycle,contractlanguagehasbeendevelopedallowingDFStheabilitytocollectcostsneededtoeitherre‐procuretheprojectorallowDFStotakeovertheproject.


5.1 SUMMARYOFTHEFLAIR/CMSREPLACEMENTPROJECT

BasedontheanalysiscompletedinChapter2,therecommendationinChapter3,andtheimplementationstrategypresentedinChapter4,Chapter5discussespotentialprocurementapproaches,performancestandardsandmeasures,andcontractinglanguageaswellasaresponsetotherequirementsoftheFloridaStatutesinExhibit5‐1above.

Whendealingwithaprojectofthismagnitude,therearevariousactivitiesneededforsuccessinthereplacementofFLAIRandCMS.ManyoftheseactivitiesarespecifictothePre‐DDI,DDI,andPost‐DDIphaseswhicharediscussedinChapter4.Exhibit5‐2illustratesthosetoplevelphaseswiththespecifictracksofworkrequiredfortheFLAIRandCMSreplacementproject.

Exhibit5‐51:ERPImplementationTrackswithProcurementsandContracts

Inthesectionstofollow,theFLAIRStudyTeamdiscussescurrentprocurementprocessesandlooksattheprocurementapproach,keyevents,performancestandards,andcontractuallanguageneededtosupportthePre‐DDI,DDI,andPost‐DDIphases.

5.2 GENERALTIMELINEWITHPROCUREMENTSINDICATED

Exhibit5‐3belowprovidesthetimelineofthephasesandtheprocurementtracksassociatedwitheachphase.ThisgraphicprovidesthetimeframethetracksbeginoverthecourseoftheFLAIR/CMSreplacementproject.SomeofthePre‐DDItracksextendintotheDDIphaseasdiscussedinmoredetailinChapter4.


Exhibit5‐50:ProcurementApproach

5.3 GENERALPROCUREMENTDISCUSSION

DFSmaintainsaprocurementandcontractmanagementprocessdocumentedintheContractManagementLifecycleandProcurementGuide(DFSGuide),lastmodifiedNovember2013.ThisguidedescribesadisciplinedprocessfortheDepartmentwhenprocuringforservicesandmanagingcontracts.

TheDFSGuideoutlinesaclearprocesswhenplanningtheprocurementwiththegoalofselectingasolutiontohelpDFSachieveitsgoalsandobjectives.ThisstudyfocusesonadditionalrecommendationstosupporttheprocessesdescribedwithintheDFSGuide.

Oncethegoalsandobjectivesofthepotentialprojectaredetermined,theDepartmentconductsariskassessmentandincludesthefollowingcontractspecificplanningelements:

Reviewpriorcontracts

Identifyfundingsource

Determineprovidertype

Preparebusinessneedsanalysis

Conducttechnologyassessment

Conductbuildorbuyanalysis

Determinecontracttype

Basedonthebusinessneedsanalysis,listedintheplanningelementsabove,DFSperformsapurchasingassessmentonthefollowingprocurementapproachesillustratedinExhibit5‐4todeterminetheprocurementapproachtouseforapotentialproject.


PROCUREMENTAPPROACH DEFINITION

InformalQuote(InformalSolicitation)

Whenapurchaseisunder$35,000, thepriceisconsideredplusthevendor’sabilitytodeliver:

o Upto$2,499‐minimumof2writtenquotes(discretionary)

o $2,500‐34,999–minimumof3writtenquotes(informalquote)

RequestforQuote(RFQ)

ArequestforpricingfromaStateTermContractvendorforagoodorservice(contractswithvendorswhohavebeenapprovedbytheDepartmentofManagementServices)

InvitationtoBid(ITB)(FormalSolicitation)

Used whenitisknown what iswantedandthereisthewillingnesstoselectavendorbasedonprice,theresponsivenesstoITBspecifications,andabilitytodeliver

Usedwhenspecificationsarewell‐definedandfirm Theleastflexibleoftheformalsolicitationprocesses

RequestForProposal(RFP)(FormalSolicitation)

Used whenthereisnota definedscopeandtherearegeneralspecificationsofwhatisneeded

Usedwhenaskingvendorstoproposeorrecommendacommodityorservicetomeetstatedneeds

Contractmustnotmateriallydifferfromthespecificationsinordertomaintainfairnessandequitythroughoutprocurement

MoreflexiblethanITBbecauseconsiderationcanbemadebasedonvendorprice,responsivenesstoRFPspecificationsandthevendorsabilitytodeliver

InvitationtoNegotiate(ITN)(FormalSolicitation)

Usewhenthereisa desiredoutcome anditisnotknownhowtoexplaintheneed

Usedwhenitmaybenecessarytonegotiatetoreceivethebestvalue

AllowsforgreaternegotiationflexibilitythantheITBorRFP

SingleSource

CanbeusedONLYwhenproductorserviceisnecessaryorunique.Forexample,wherethedeliverableiscopyrighted,patentedorproprietary(e.g.,technology)(Seesection838.22,F.S.)

Postingisrequiredifthetotalcostisover$35,000 Requirestheattestationofnoconflictofinterestbe

signedbyallDFSprogramareaparticipantsinthevendorevaluation/selectionprocessforallnon‐competitivepurchases$35,000orgreater(seesection287.057(19))

Exhibit5‐51:ProcurementTypes

TheFLAIRStudyTeamtooktheaboveprocurementapproachesintoconsiderationwhenselectingtheprocurementapproachforallprojectsneededtocompletethereplacementofFLAIRandCMS.TwoprocurementapproacheswereidentifiedtouseduringtheFLAIR/CMSreplacementproject.TheprocurementapproachfortheprojectsprocuredwilluseeitheranITNorRFQastheseapproachesbestmeettheneedsoftheDepartment.Sections5.5.1,5.5.2,


and5.5.3discusstheidentificationoftheprocurementapproachforthePre‐DDI,DDI,andPost‐DDIphases.

5.3.1 PROCUREMENTRISKS

Whenconsideringtheprocurementapproach,theFLAIRStudyTeamidentifiedthebelowaspotentialriskstothereplacementofFLAIRandCMS:

Inadequatestaffingtosupporttheprocurementprocessduetopoorplanningwouldcauseprojectdelays

Aggressivetimeframeforprocurementincreasingtheriskofpoordecisionsandcuttingcornersleadingtoanunsuccessfulprocurementandimplementation

Deficientprocurementprocessesleadingtoexposuretopotentialprotestsanddelayingtheprocessorjeopardizingtheentireprocurementevent

Receiptofpoorresponsesandtheprocurementofabadproductduetoinsufficientprocurementprocess

Weakcontractwithinsufficientcontrolsandproceduresleadingtopoorpartnershipsbetweenthesoftwarevendor,systemintegratorandDFS

Thefollowingaremitigationstrategiesfortheriskslistedabove:

BegintheestablishmentofaPMOearlyduringthePre‐DDIphase

Establishcleartimelinesandqualityguidelinesforeachstepintheprocurementprocess

Obtainthesupportofprocurementsubjectmatterexperts,suchasaconsultancyfirm,throughouttheprocurementprocess

Begingovernanceattheonsetoftheproject

5.4 GENERALCONTRACTINGINFORMATION

TocomplywiththeFloridaStatutesinSections287.0571(4)(j),287.0571(4)(l),287.0571(4)(m)and287.0571(4)(o)generalcontractinglanguageisusedwithinthecontractandissupportedbytheDFSGuide.Thesectionsbelowoutlinethelanguagewhichsupportseachofthesestatutes.

5.4.1 PERFORMANCESTANDARDS

PerformancestandardsforthePre‐DDI,DDIandPost‐DDIphasesarediscussedinSections5.5.1.1,5.5.2.5and5.5.3.1.Allcontractswillcontainfinancialconsequencesappropriateforspecifictrackswithineachphasealongwithgeneralacceptancecriteriaforeachdeliverable.ThecontractwillrequirebothDFSandthecontractortodevelopawell‐defineddeliverableexpectationdocumentforeachdeliverablecontainingalistofminimumacceptancecriteria.


5.4.2 PUBLICRECORDSPOLICY

TheDFSITNandRFQtemplatesincludethelanguagerequiredforthecontract.ThecontractwillclearlystateanyandallrecordsproducedaresubjecttoChapter119oftheFloridaStatutesorthe“PublicRecordsLaw”.Thislawrequiresanyrecordsmadeorreceivedbyanypublicagencyinthecourseofitsofficialbusinessareavailableforinspection,unlessspecificallyexemptedbytheFloridaLegislature.TheserviceprovidershallallowtheDepartmentaccesstoalldocuments,papers,letters,orothermaterialsubjecttoChapter119,F.S.forwhichpublicrecordrequestsaremadeorreceivedbytheDepartment.

5.4.3 PERSONSWITHDISABILITIESCOMPLIANCE

ThereisspecificlanguagewithintheDepartment’scurrentITN(October2013)andRFQ(July2013)templateacknowledgingaccommodationsforthosewithdisabilities.ThelanguagecanbefoundinSection1.5ofeachtemplateandstatesthefollowing:

AnypersonrequiringaspecialaccommodationduetoadisabilityshouldcontacttheDepartment’s(languagecompletedatcontract).Requestsforaccommodationformeetingsmustbemadeatleastfiveworkdayspriortothemeeting.

ThisisstandardpracticeusedbyDFSandDFSunderstandsandcomplieswithSection287.0571(4)(o),F.S.inallprocurements.

TheAmericanswithDisabilitiesAct(ADA)prohibitsdiscriminationonthebasisofdisabilityinemployment,Stateandlocalgovernment,publicaccommodations,commercialfacilities,transportation,andtelecommunications.ToensurecompliancewithStateandFederalADAlaws,thecontractwillrequesttheserviceprovideroutlineadetailedplantoidentifyandaddressanyADAconcerns.

5.4.4 CONTRACTORNON‐PERFORMANCECONTINGENCYPLAN

Aplanisoutlinedforallcontracts,subjecttothenegotiationprocess,toaddresscontractornon‐performance.AppropriatecontractlanguageisdraftedinconsultationwithDFSlegalcounselandDFSprocurementandcontractmanagementstaff.AcontingencyplanisdevelopedtoallowtheDepartmenttheabilitytoeffectivelycontinueoperationsduetononperformance.

5.4.4.1 NON‐PERFORMANCECOSTS

Specificlanguageshouldbeincludedwithinthecontractforcontractornon‐performance.ThelanguagewillstatethecontractorwillreimburseDFSforanycostsincurredduetonon‐performancebythecontractor.DFSwillincorporatelanguageallowingDFStostepinandtakecontrolofallworkanddeliverablesuntilthecontractorisabletoshowtheyareabletocorrecttheirperformancedeficiencies.Duringthistime,thecontractorwillreimburseDFSforanycostsincurredtocoversuchdeficienciesandperformtheworkofthecontractor.

Ifitisdeterminedthecontractorisunabletomeettheperformancestandardswithinthecontract,DFSwilleithercompletetheworkinternallyorre‐procuretheworktoanothercontractor.Ineithercase,thecontractlanguagewillholdthecontractoraccountableforany


costsincurredasaresultofthecontractornon‐performance.ThecontractorissolelyresponsibletocoveranytransitionalcoststoDFSaswellasanycostsassociatedwithre‐procurementoftheproject.

5.4.4.2 NON‐PERFORMANCE,TERMINATIONANDFINANCIALCONSEQUENCES

Thecontractshouldcontainprovisionstoaddresstheterminationforcauseintheeventofnon‐performancebythecontractor.Inadditiontoremediesinthecontract,adefaultremedyfornon‐performancebyacontractorisalsoavailableinRule60A‐1.006,F.A.C.

Provisionsinthecontractforfinancialconsequencesintheeventthecontractordoesnotmeetmeasuredexpectationsareprovidedbelow.Theprovisionsshouldprovideincentivesforacontractortocureanyproblemswithperformancebeforeaneventofdefaultoccurs.

SuggestedRemediesforDefaultandObligationsuponTerminationfortheStateofFlorida:

o Terminatethecontractbyprovidingthecontractorwithanappropriatewrittennoticeoftheeffectivedateoftermination

o SeekEquitableReliefand/orinstitutelegalproceedingsagainstthecontractortocollectpaymentofanymoneyowedincluding,butnotlimitedtore‐procurementcosts,systemreplacementcosts,andfinancialconsequences.TheDepartmentshouldalsoinitiateproceedingstohavethecontractorplacedontheSuspendedVendorlist

o OnceplacedontheSuspendedVendorlist,StateagenciesareadvisednottodobusinesswiththecontractorwithoutwrittenapprovalfromStatePurchasinguntiltheStatereceivesreimbursementforallre‐procurementcosts

o Uponpriornoticetothecontractor,aftertheexpirationofanycureperiods,performanyterm,condition,orcovenantwhichhavebeenbreachedbythecontractoratthereasonableexpenseofthecontractor

TerminationrightsforSoftwareVendorandSystemIntegrator:

o Allright,titleandinterestintheFLAIRandCMSreplacementaretransferredtotheState

o Transferalllicensesobtainedfromsubcontractorsandsuppliersforallintellectualproperty,technology,andsoftwaredeveloped,acquired,orutilizedforthesystemtotheState

o ThecontractorwilllicensetotheStatethenon‐exclusiveperpetualuseofallintellectualproperty,technology,andsoftwaredeveloped,acquired,orutilized

o Thecontractorwilltransferallright,title,andinterestinthehardware,equipmentleases,andrealpropertyleasesusedforFLAIRandCMSreplacementandarenecessaryfortheStatetocontinuetooperateandmaintainthesystem


o Allrights,titles,interestsandlicensestransferredtotheStatemustbeusedfortheexclusivebenefitoftheStateofFlorida

o ProvidetheabilitytoterminateindividualserviceareastoallowtheDepartmenttoinsourcecomponentswhentheyareabletoperformthoseduties

o Thecontractormustprovideterminationassistanceservices,detailedbelow

Languageisincludedstatingthecontractorisresponsibleuptoacertaintime,asdeterminedwithinthecontract,toprovidetheterminationassistanceservicesfollowingtheterminationofthecontract.BelowaretherecommendedterminationassistanceservicesfortheSoftwareVendorandSystemIntegrator:

o ContractormustcooperatefullywiththeStateofFloridaandanycontractortoperformtheservices

o Allprocessesandproceduresperformedbythecontractortooperatethesystemmustbedocumented

o Providealistofequipment,proprietarysoftware,andsoftwarelicensesusedtooperatethesystemandprovideservices,ifapplicable

o ReturnallState‐ownedmaterialsbeingusedbythecontractor

o TransferallpropertyreferredtointheGeneralTerminationRightsandthedocumentationtousetheequipment

o Answerquestionsrelatedtothemigrationandtransitionofservicesandthesystem

o TerminationAssistanceServicesrenderedpriortotheterminationdateofthecontractareatnoadditionalcosttotheState.Servicesrenderedafterterminationofthecontractareatareasonablerateandestablishedinwriting.

FinancialConsequencesSuggestionfortheSoftwareVendorandSystemIntegrator:

o FinancialconsequencelanguageincludingdamageamountsshouldbeincludedintheITNandawardedcontract.ThislanguageshouldbedevelopedinconsultationwiththeDFSlegalcounselandDFSPurchasingandContractManagementstaff.

o Shouldthecontractorfailtoachieveinitialoperationalacceptancebythetransitiontimeframeprescribedinthecontract,asaresultoffactorsdirectlywithinthecontractor’scontrol,thenthecontractorshallpayanappropriateamountforeachcalendardayaftersuchdateuntilinitialoperationalacceptanceisachieved

o Shouldthecontractorfailtoachievetheperformancemetricsprescribedinthecontract,asaresultoffactorsdirectlywithincontractor’scontrol,thenthecontractorshallpayDFSfinancialconsequencesforeachperformancemetricnotmet


5.4.4.3 PHASEGATEREVIEWS

AphasegatereviewprocesswillbeconductedwhenspecificmilestonesoccurthroughouttheentireimplementationofthenewERPsystem,includingtherolloutandmigrationtoparticipatingagencies.

Duringcontractdevelopment,acceptancecriteriaisdevelopedforeachofthecontractor’sdeliverablestodetermineifthedeliverablesmeettheexpectationsofDFSandiftheprojectshouldmoveontothenextphase.Itisimperativetoestablishmultiplego/no‐godecisionpointstiedtodevelopmentandtestingphasesoftheprojectinsteadofrelyingonafinaldecisionshortlybeforetheplannedgo‐livedate.AnexampleofaphasegatereviewcanbefoundinSection5.5.2.8.ThisphasegatereviewisspecifictotheimplementationofthenewERPforFLAIR(CentralandDepartmental)andCMSfunctions.

5.5 FLAIR/CMSREPLACEMENTPROJECTANDPROCUREMENTAPPROACHES

ThesectionsfollowingdescribethoseactivitiesoccurringwithineachphaselistedaboveinExhibit5‐2.Eachtrackwithineachphaseisdiscussedandtheprocurementapproachalongwithsomepotentialperformancestandardsandperformancemeasuresislisted.SomeofthetrackswithinthePre‐DDIphasewillcrossoverintotheDDIProcurementandPost‐DDIphases.ForthepurposesofthisChapter,theactivitiesareonlydiscussedwheretheyfirstbegin,whetheritbeinthePre‐DDIphase,theDDIProcurementPhaseorPost‐DDI.DescriptionsonthosetrackswhichcrossoverintootherphasesarediscussedinChapter4.

5.5.1 PRE‐DDIPROCUREMENT

TheFLAIRStudyTeamheldsessionstodiscusslessonslearnedandprocurementgoalsbasedonpreviousattemptstoreplaceFLAIR.Theteamidentifiedthoseactivitiesneededtosupportthenextphase,DDI.SomeoftheactivitiesareneededtosupporttheITNdocumentandpreparetheDepartmentfortheprocurementofaSoftwareandSystemIntegrator.Also,someoftheactivitieswillcontinueintotheDDIphaseasdiscussedinChapter4.ThissectioncontainsthosePre‐DDIactivitieswhichsupporttheFLAIR/CMSreplacementproject.

Pre‐DDIincludestheactivitiestocompletepriortotheprocurementfortheERPsoftwareandservicesandthoseactivitieswhichbeginandcontinueintotheDDIProcurementphase.PlanningactivitiesareconductedbytheProjectManagementOfficeoncetheprojectisapprovedandcontinuethroughthePre‐DDIPhase.ThePMOactivitieswillthenmoveintotheDDIphaseuntilcompletionoftheproject.

ProcurementSupportactivitiesbeginandendinPre‐DDI.TheprocurementsupportisneededthroughtheevaluationandnegotiationphaseswhichoccurduringPre‐DDI.

TheBusinessProcessRe‐engineeringportionofPre‐DDIprovidesthefunctionalandtechnicalrequirementswhichbecomepartoftheprocurementdocumentation.ThedevelopmentoftheprocurementdocumentationfortheselectionofthesoftwareandsystemsintegratorispartofthePre‐DDIactivities.Amarketanalysisandmarketscanshowingthesoftware(s)abilitytomeettheneedsofDFSandascanshowingthose


integratorsqualifiedtoimplementthenewERPsystemispartoftheprocurementplanning.ThisinformationhelpsDFSdeterminetheprocurementoptionfortheFLAIRandCMSreplacement.BPRwillthenbehandedofftothesystemintegrator,intheDDIphase,whereavalidationoftherequirementswilloccurbytheintegrator.

BasedontheneedtomovetowardsanewERPsystem,currentstaffandtheirfuturecapabilitiesareevaluated.Tocompletethechangeseffectively,OrganizationalChangeManagementandWorkforceTransitionisconductedearlyintheprocess,throughouttheprojectandintoPost‐DDI.Andfinally,animportantPre‐DDIactivitytooccurearlyintheprojectisthecompletionofanassessmentoftheexistingdatainFLAIRandCMS(theSystemsandDataStrategy).

Exhibit5‐5belowlistsallthesuggestedPre‐DDIactivitiesneededtosupportthereplacementofFLAIRandCMS.Theactivitiesarebrokendownbystaffsourcingneeds,theprocurementapproachandabriefscopedescriptionofeachactivity.

PRE‐DDI

ID# ACTIVITYSTAFFINGSOURCE

PROCUREMENTAPPROACH SCOPEDESCRIPTION

1 BusinessProcessReengineering

Internaland/orContractedServices

RFQ Updatecurrentstateprocessmaps Establishbaselineprocessmetrics Reviewindustrystandardsfor

targetedprocesses Definefuturestateprocessesand

metrics Performgapanalysisbetween

currentstateandfuturestateprocesses

Developinitialsetofusecases Assessreportingandanalytic

requirementsforInformationWarehouse

Collectfunctionalrequirementsfrompastassessment/projects

UpdatefunctionalrequirementsfromBPR

Prioritizefunctionalrequirements Coordinate/leadmeetingsand

documentfunctionandtechnicalrequirements

2 ProcurementSupport


RFQ ProvidesupportinthedevelopmentoftheITN

Provideprocurementsupportthroughtheevaluationandnegotiationphases

3 OrganizationalChangeManagement


RFQ Provideastructuredmethodology,process,andsetoftoolsforleadingthepeoplesideofchangeduringimplementation

Conductcommunicationactivities


PRE‐DDI



4 ProjectManagementOffice


RFQ Establish projectplanningandmanagementframework

Provideoverallindependentprojectmanagementservices

Conductoverallprojectmanagementmonitoringandreporting

Developprojectcharter,detailedprojectmanagementplanandprojectschedule

Documentrisks,issues,actionitemsanddecisions

Performinitialprojectriskassessmentwithriskmitigation

Maintainprojectartifacts Set‐upprojectlogistics(facilities,

systemaccess,administrativesupport,etc.)

Developon‐boardingprocessforstakeholders,teammembers,contractors

Establishinitialgovernanceframeworkwithprocessandstructure

Facilitategovernanceprocesses&escalationincludingreporting

Coordinate,lead,analyzeanddocumentthedefinitionofimplementationstrategiesandapproaches

CoordinateanddocumentthedevelopmentofrequiredRFQ’s/ITN’sincludingpreparationofdraftversionsofpertinentdocuments

SupporttheevaluationandnegotiationphasesoftheITN


PRE‐DDI



5 WorkforceTransition


RFQ AssessDFSreadinessformigrationtonewERPplatform&infrastructure

Identifynewskills/knowledgerequirements

AssistDFSindevelopingandaligningstrategicinitiativeswiththeDepartment’svision

FacilitatecollaborationsessionswithDFSstafftodefinefunctionalalignmentandclarifyaccountabilitiesandresponsibilities

AssistDFSindefiningoperatingprocesses,interfacesandgovernanceamongstaff

Defineorganizationalstructure Developcompetencymodels,career

paths,learninganddevelopmentopportunitiesforstaff

AssistasaliaisonbetweenDIS,Finance,CMSandDFSHumanResources

6 SystemsandDataStrategy


RFQ ConfirminventoryofstateagencyfinanciallyrelatedsystemsandinterfacestoFLAIR

AssessdatahealthinlegacyFLAIR DeterminechangesinFLAIRsystem

architecture,infrastructureanddatastructures

Exhibit5‐52:Pre‐DDIProcurementActivities

5.5.1.1 PRE‐DDIPERFORMANCESTANDARDS

Exhibit5‐6containsadescriptionofthosestandarddeliverablesforconsiderationforthePre‐DDItracks(showninbulletsbelow),alongwithperformancemeasures,Exhibit5‐7,foreachofthetracks.

BusinessProcessRe‐Engineering

ProcurementSupport



WorkforceTransition

SystemsandDataStrategy


Asalloftheabovetracksaredeliverablebased,theperformancemeasuresconsiderqualityandtimelinessofthedeliverables.Theperformancemeasuresforeachofthedeliverableslistedandanyotherdeliverablesdevelopedatalaterdatearelistedwithinthetable.Theremainingdeliverablesforeachtrackaredevelopedastheprocurementdocumentationiscompleted.

REF# DELIVERABLE DESCRIPTION PERFORMANCESTANDARD

1 StatusReports ComprehensiveStatusReportsonprojectprogress

Submittedweeklyforallprocurementtypes

Containsoverallprojecthealth;risks,actionitems,issues,decisions,changelog,accomplishmentstodate,accomplishmentsfornextperiod,percentcompleteonprojectmilestones

2 ProjectManagementPlan(PMP)

ManagementPlanfortheprojectdescribinghowthevendorplanstomanagetheproject

PMPisdeliveredtimelyandearlybasedonagreedupontimewithincontract

PMPcontainsallmaterialrequestedwithincontract

3 ProjectSchedule Thescheduleliststheprojectmilestones,activitiesanddeliverableswithanintendedstartandfinishdate

CreatedinMicrosoftProject Includesalltasks,durations,

resources(isresourceloaded)anddependencies

Scheduleisdeliveredtimelybasedonagreedupontimewithincontract

Exhibit5‐53:GeneralPerformanceStandards

PERFORMANCEMEASUREFORDELIVERABLES

MEASUREDESCRIPTION MEASUREMETRIC

80%oftheProject’sdeliverabledocumentationshallbeapprovedbasedonthequalityofthecontentwithinthefirstiterationofastandardreviewcycle

Theremaining20%oftheProject’sdeliverabledocumentationshallbeapprovedbasedonthequalityofthecontentwithintheseconditeration

Calculatedas“[(Numberofdeliverablesapprovedwithinthefirstiterationofstandardreviewcycle)/(Totalnumberofdeliverablessubmitted)]*100%”

100%oftheProject’sdeliverabledocumentationshallbeapprovedbasedonthetimelinessofthedeliverable

Calculatedashavingmetthepredeterminedtimestandardsforsubmissionofthedeliverable

Exhibit5‐54:PerformanceMeasures


Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractsforeachPre‐DDItrackisprovidedintheChapter5Appendixbelow.

5.5.2 DDIPROCUREMENT

Beforedeterminingthepotentialprocurementapproaches,theFLAIRStudyTeamheldsessionstodiscusslessonslearnedandprocurementgoalsbasedonpreviousattemptstoreplaceFLAIR.ThissectioncontainsrecommendedprocurementneedsandformulatestheapproachandstrategyfortheFLAIR/CMSreplacementproject.

5.5.2.1 PREVIOUSPROCUREMENTLESSONSLEARNED

Whendevelopingtheprocurementprocess,theFLAIRStudyTeamconsideredthelessonslearnedfrompreviousprojects.Lessonslearnedhelppreventrepeatablemistakesandcalloutthoseactivitiesworthrepeatingandthoseactivitiesandoutcomestoavoid.Inthiscase,thefollowingarethoseactivitieswhereDFScanavoidpitfallsandrealizebenefitswhenmovingforwardwiththereplacementofFLAIR:

Developaclearandpreciseprocurementprocessanddonotveerorgo“offscript”

Donotuselanguageallowingforanunbundledapproachbetweenthesoftwarevendorandsystemintegratorduringtheprocurementprocess

Developarequirementscomplianceandtraceabilitytool

RefertopreviousAspireprocessesonhowthevendoridentifieshowtheirsoftwarefitswithfunctionalandtechnicalrequirements(e.g.,outofthebox,customizations,configurations,inabilitytomeetrequirements)

PlanandschedulesitevisitstootherstateswhoimplementedERPfinancialsolutions

5.5.2.2 PROCUREMENTGOALS

TheFLAIRStudyTeamdevelopedprocurementgoalsbasedonlessonslearnedfromthepreviousFLAIRreplacementprojectandtheyareasfollows:

DevelopaprocurementprocesswhichfollowsFlorida’sprocurementlaws

Developandconductaclearlywrittendocumentandtransparentprocurementprocesstominimizetheriskofprotest

DevelopasoundprocurementprocessgivingDFStheabilitytochoosetherightsoftwareandsystemintegratorwhoformtherightpartnershipresultingintheimplementationofasuccessfulFLAIRandCMSreplacement

CompletetheprocurementprocessinareasonabletimeframetoallowDFStheabilitytoselectthesoftwarevendorwhomeetstheneedsofDFSaswellasasystemintegratorwhowillsuccessfullyimplementthesoftware

DevelopaprocurementprocesscontainingthepropertoolstofacilitatetheDepartment’sabilitytomanageahighvolumeofresponsesfromthevendorcommunity


Negotiatestrongperformancemeasureswhichcanindicatewhentheprojectisonapathtosuccessortofailure

ConsiderthefunctionalityofthesoftwareandhowthesoftwaremeetstheDepartment’srequirementsduringtheevaluationphaseoftheprocurement

Secureonecontractwithboththesoftwarevendorandthesystemintegratorwhileretainingtheabilitytohavedirectcontactwiththesoftwarevendortoinclude:

o ObtainingdirectinputfromthesoftwarevendorwhenthereisadiscrepancybetweenwhatthesoftwareintegratorrepresentsthesoftwarecandoandwhatDFSunderstandsthesoftwarecando

o Creatingseparatecontractrequirementsforthesoftwarevendortoconfirmrequiredcustomizations

o Accessingthesoftwarevendor’strainingtoolkits

o Leveragingeconomiesofscalethesystemintegratorcanbringforsoftwarelicensing

o RequiringthesoftwarevendortoconfirmtheirproductsmeettheDepartment’srequirements

Requirethesystemintegratortoconductthedemonstrationandorpresentationofthesoftwareproposedandshowtheirabilitytomodifythesoftware

DevelopafixedpricecontractwithcheckpointstoevaluatethevendorsprogressandoptimalprotectiontotheState

5.5.2.3 SOFTWAREANDSYSTEMINTEGRATORPROCUREMENTAPPROACH

DDIProcurementisthephasewheretheselectedvendorbeginsimplementationactivitieswiththeselectedERPsoftware.ThesolicitationofanIndependentVerificationandValidation(IV&V)vendorwhoprovidesqualitychecksofthesystemduringthedevelopmentlifecycleoccursduringthisphase.ThedecisiononwhentodevelopandprocuretheIV&VserviceswillbedeterminedbytheDepartmentoncetheprojectmovesintothePre‐DDIphase.IftheDepartmentchoosestosolicitservicesfortheInformationWarehouse,theseservicesarealsobeingprocuredduringtheDDIprocurementphase.

Exhibit5‐8belowliststhesuggestedDDIprocurementactivitiesneededtosupportthereplacementofFLAIRandCMS.Theactivitiesincludestaffsourcingneeds,theprocurementapproach,andabriefscopedescriptionofeachactivity.


DDI



1 Procurement(SoftwareandSI)

ContractedServices

ITN Implemententerprisesoftwareselectedduringprocurement

SupporttheStateinthedesign,configuration,andimplementationoftheselectedsoftware

2 IndependentVerificationandValidation

ContractedServices

RFQ Validateprojectisadheringtogoodprojectmanagementprocesses

Verifythenewsystemiswellengineered

Validatethesoftwaremeetsuserneeds

Providequalitychecksduringthesoftwarelifecycle

3 InformationWarehouse

ContractedServices

ITN ProvidetechnicaltoolsetandinfrastructuretosupporttheIW

Supportdesign,development,androlloutsupportforthenewIWincludingITandendusertraining

Exhibit5‐55:DDIProcurementActivities

TheFLAIRStudyTeamrecommendstheformalsolicitationofanITNwhenselectingthesoftwareandsystemintegratorservicesforthenewERPsystem.Thisrecommendationisduetothecomplexityandcostsassociatedwiththeprocurementaswellastheneedtohaveflexibilityduringnegotiationswiththegoalofnegotiatingbestvaluewhenselectingavendor.

TheTeamalsorecommendsDFSfollowtheDFSGuidewhendevelopingthesolicitationprocessforboththeIV&VandInformationWarehouseprocurements.Forthepurposesofthissection,amorein‐depthdiscussionisprovidedastotheapproachwhenprocuringthesoftwareandsystemintegrator.

WhenpreparingfortheprocurementofservicesforthenewERPsystemaswellastheresultingcontractviaanITN,amulti‐stage,disciplinedprocurementprocessshouldbefollowed.ThischaptertouchesonsomeoftheproposedprocurementphasesshowninExhibit5‐9belowasthischapterdoesnotdescribetheprocurementprocesseswhicharecontainedwithintheDFSGuide.

TheExhibitbelowsummarizesthephasedprocurementandcontractprocessesusedduringtheITNprocess.TheseprocessescomplementandsupporttheDFSGuide.


Exhibit5‐56:Procurement/ContractPhases

ThedevelopmentoftheimplementationstrategyisdiscussedwithinChapter4.ThissectionfocusesontheFLAIRStudyTeam’srecommendedprocurementapproachfortheselectionofthesoftwareandsystemintegratorservicesforthenewERPsystem.

Severaloptionswereconsideredwhenlookingathowthesolicitationforboththesoftwareandthesystemsintegratorwouldbeprocured.Basedonmarketscansandlessonslearnedwithotherstates,Gartneranalysis,analysisofotheragencyprocurements,andprocurementswithinDFS,informeddiscussionswereheldandtheFLAIRStudyTeamdeterminedtoconsidertwoprocurementapproaches:(1)Separateprocurementforsoftwareandimplementationservices(2)Singleprocurementforsoftwareandimplementationservices.

Option1–Unbundled

Theunbundledoption,shownintheprocessflowsinExhibit5‐11and5‐13below,involvesthesolicitationoftwoseparateITN’sincludingonefortheselectionofthesoftwareandonefortheselectionofasystemintegratorforimplementationservices.TheITNprocessshownintheExhibitsbelowfollowwhatisconsideredthenormwhencompletingtheevaluationandnegotiationphaseswithinanITNandisdescribedindetailwithintheDFSGuide.BoththesoftwareITNandthesystemintegratorITNwillcontainmandatoryrequirementswhichmustbemettomoveintotheevaluationphase.

TheunbundledoptionprovidesDFStheabilitytofirstselectthesoftwarewhichmeetsthedesiredtechnicalandfunctionalneedsofthenewERPsystem.Oncethesoftwarehasbeenselected,anITNwouldfollowwiththeinclusionoftheselectedsoftware.TheITNwouldspecifylanguagestatingtheintegratorwouldprovideaproposalforimplementationservicestosupporttheselectedsoftware.Belowaresomeprosandconswiththeunbundledapproach:


Pros:

o Allowsapureselectionofthesoftware(thismeetstheDepartment’sgoalofselectingthesoftwarefirst)

o EnsuresDFShastheabilitytoworkdirectlywiththesoftwarevendorthroughoutthesolicitationprocess

o Providescosttransparencybetweensoftwareandservices

Cons:

o Therearetwocontractstomanage

o Multipleprocurementsincreasetimelineforselection

o Significantincreaseinresourcebandwidthrequirements

o Removestheabilitytoleveragethesystemintegratorsnegotiatingpositionwithsoftwarecompany

o Thereisnocontractualconnectionbetweensoftwarecapabilitiesandthesystemintegratorsolution

Option1‐A:SoftwareSelection

Exhibit5‐10describestheactivitiesintheselectionofanunbundledsoftwareprocurementstrategy.EachactivitydescribedbelowintheExhibitcorrespondstoaprocessstepinExhibit5‐11.

# ACTIVITY DESCRIPTION

1 ITN ITNdevelopedcontainingclearevaluationandnegotiationlanguage

2 InitialPost TheITN is postedontheState’spublicwebsite 72hourprotestperiod(Chapter120)

3 EvaluationPhase Theevaluationofsoftwareonly Representsthescoringphaseofthe

procurement4 Q&A Representsthevendorconferenceand

QuestionandAnswer(Q&A)period 72hourprotestperiod(Chapter120)

5 Vendor(s)SubmitResponse(s)

Responsesarereceivedfromthevendor(s)

6 EvaluateResponse(s)

Responsesareevaluated DFSevaluatesthesoftwarecapabilities

againstfunctionalandtechnicalrequirementsbyconductingFit‐GapAnalysis

Potentialdemoswiththesoftware7 ShortList Thosevendor(s)existinginthecompetitive

rangeareselectedtomovetothenegotiationsphase

72hourprotestperiod8 NegotiationPhase Negotiationsareheldwithvendor(s)



9 SoftwareVendor(s)Presentations

Softwarevendor(s)willpresenttheirsoftwarecapabilities

10 NegotiationSessions

Iterativenegotiationsessionscouldbeheld InterimRevisedResponsesmayberequested

11 BAFO BestandFinalOfferisrequested BestandFinalOfferisreceivedfromvendor

12 IntenttoAward Theintenttoawardwithselectedvendorisposted

72hourprotestperiod13 ContractAward Contractsignedwithselectedsoftwarevendor

Exhibit5‐57:ProcurementOption1‐ADescription


Exhibit5‐58:ProcurementOption1‐A–SoftwareSelection


Option1‐B:SystemIntegratorSelection

BelowisadescriptionofthoseactivitiesoccurringinProcurementOption1‐B.EachactivitydescribedbelowisdepictedinExhibit5‐13.OncethesoftwareisselectedinOption1‐A,thesystemintegratorswillpresenttheirproposalsbasedontheirabilitytoimplementthesoftwarechosenbyDFS.Theprocurementprocessendswiththeselectionofthesystemintegrator.


1 ITN ITNdevelopedcontainingclearevaluationandnegotiationprocesslanguageandincludesrequirementtouseselectedsoftwarefromOption1‐A


3 EvaluationPhase TheevaluationofthesystemintegratorwiththeDFSselectedsoftware

Representsthescoringphaseoftheprocurement

4 Q&A RepresentsthevendorconferenceandQuestionandAnswer(Q&A)period

72hourprotestperiod(Chapter120)5 Vendor(s)Submit

Response(s) Responsesarereceivedfromthevendor(s)

6 EvaluateResponse(s)

Responsesareevaluated DFSevaluatesthesystemintegrator(s)

capabilitiestoimplementthesoftware PotentialDemoswithvendor

7 ShortList Thosevendor(s)existinginthecompetitiverangeareselectedtomovetothenegotiationsphase


9 SoftwareVendor(s)Presentations

KeystaffwhorepresenttheteamDay1arepresent

Systemintegrator(s)conductpresentationswithselectedsoftware

Softwarevendorispresent10 Negotiation

Sessions Iterativenegotiationsessionscouldbeheld InterimRevisedResponsesmayberequested


12 IntenttoAward Theintenttoawardwithselectedvendorisposted

72hourprotestperiod13 ContractAward Contractsignedwithselectedsystemintegrator

Exhibit5‐59:ProcurementOption1‐BDescription


Exhibit5‐60:ProcurementOption1‐B–SystemIntegratorSelection


Option2–Bundled

Thebundledoptionconsidersasingleprocurementtoselectthesoftwareandthesystemintegrator.Withinthisscenario,thesystemintegratorhastheabilitytoproposemorethanonesoftware,bysubmittingmultipleproposals.Thebundledoptionhastwopartswithintheevaluationphase.Partoneconsidersonlythetechnicalresponse(alongwiththetechnicalcostresponse).ThismeetstheDepartment’sgoaltochoosethesoftwarefirst.Parttwooftheevaluationphaseconsidersthemanagementresponseandtheremainingcostresponse.ThesoftwareandsystemintegratorITNwillcontainmandatoryrequirementswhichmustbemetinordertomoveintotheevaluationphase.

Prosandconsconsideredwiththebundledapproachinclude:

Pros:

o ProvidesDFSwithasinglecontractwithonlyonevendortomanageandthereforeonlyonevendortoapplyfinancialconsequencesto

o AllowsDFStochoosethedesiredsoftwaremeetingbothfunctionalandtechnicalrequirements

o Providestheabilityforthesystemintegratortopresentthesoftware

o Thereisacontractualconnectionbetweensoftwarecapabilitiesandthesystemintegratorsolution

Cons:

o Mayrestrictnumberofresponsesassoftwarecompaniesmayelecttochoosetopartnerwithasinglesystemintegrator

o Mayrestrictnumberofresponsesasintegratormayelecttorespondwithonlyonesoftware

o DFScouldpotentiallypreferonesoftwareandnotpreferthesystemintegratorproposingthesoftware


1 ITN ITNdevelopedcontainingclearevaluationandnegotiationlanguage


3 EvaluationPhase Evaluationphasewillhavetwoparts: EvaluationofTechnicalResponse;leadstoselection

ofsoftwareo Costofsoftwarearepartoftechnicalresponsescore EvaluationofManagementResponseandthe

remainingcosts4 Q&A RepresentsthevendorconferenceandQuestionand

Answer(Q&A)period 72hourprotestperiod(Chapter120)



5 BundledResponse Responsesreceived fromsoftwareintegratorsandsoftwarevendors(bundledresponse)

Morethanoneresponsecanbereceivedfromsystemintegratorproposingmorethanonesoftware

6 AnalyzeRequirements(FitGap)

ResponsecontainsaresponsetoDFSrequirements(FitGap)basedondegreeoffitasfollows:

o Cannotsupportrequiremento Customizationrequiredo Configurationrequiredo Includedinbaseproduct Analysisofrequirementsareconductedpriorto

softwarepresentations7 Software

Presentations Softwarepresentationsheldandscoredo BasedonscriptspreparedbyDFSinclude

presentationsofminimumfunctionalandfuturefunctionalrequirements

Systemsintegratorconductspresentation8 Technical

ResponseScored Technicalresponse(softwareandtechnicalcosts)is

scored

9 SoftwareSelection

Thesoftware(s)meetingthescoringcriteriamovesforward

Thosesystemintegrator(s)whoproposedthesoftware(s)areaskedtopresenttheirproposalbasedonthemanagementsectionoftheproposalandremainingcostsectionoftheproposal

72hourprotestperiod10 Team

Presentations KeystaffwhorepresenttheteamDay1arepresent Softwarevendor(s)present

11 EvaluatorsCompleteScoring

Finalscoreiscompletedbyevaluatorsbasedontechnicalscore,managementscoreandcostscore

TotalscoreisbasedonanestablishedcriterionwithintheITN

12 ShortList Thosevendor(s)existinginthecompetitiverangeareselectedtomovetothenegotiationsphase


14 NegotiationSessions

Iterativenegotiationsessionscouldbeheld InterimRevisedResponsesmayberequested


16 IntenttoAward Theintenttoawardwithselectedvendorisposted 72hourprotestperiod

17 ContractAward Contractsignedwithselectedvendor

Exhibit5‐61:Option2Description


Exhibit5‐62:ProcurementOption2


ProcurementApproachRecommendation

TheFLAIRStudyTeamdevelopedaprocurementtimelinebasedontheassumptionoftheselectionofOption2–BundledasthisapproachbestmeetstheneedsoftheDepartment.However,theDepartmentreservestherighttomodifyorchangetheprocurementapproachoncetheprojectbeginsandmayopttochooseadifferentprocurementapproachmovingforward.

5.5.2.4 PROCUREMENTTIMELINE

TheFLAIRStudyteamestimatedtheDepartmentwillneed21monthstodrafttheprocurementdocument(ITN)throughtheexecutionofthecontract.ThisisbasedontheassumptionoftheselectionofprocurementOption2–Bundledandwillincludethefollowingactivities:

ITNDevelopment

o ITNpre‐releasepreparation

o ITNSolicitationDocumentDevelopment

EvaluationandNegotiation

o ITNReleaseandQ&Aactivities

o ITNRepliesReceived

o Evaluation/Demonstrations/Negotiations

o VendorSelection/FurtherNegotiations

ContractDevelopment

o FinalContractApproval

Exhibit5‐16showskeyactivitiesoccurringduringtheprocurementoftheFLAIRandCMSreplacement.ThisassumestheselectionofOption2.Thefinalselectionoftheprocurementapproachwilloccurduringthedevelopmentoftheprocurementdocument.

Exhibit5‐63:ProcurementTimeline


5.5.2.5 DDIPERFORMANCEDELIVERABLESANDPERFORMANCESTANDARDS

Thebelow,Exhibit5‐17,aregeneraldeliverablestobeconsideredforDDIProcurementalongwithperformancestandardsforthosedeliverables.TheremainingdeliverablesforDDIprocurementcontractsaredevelopedastheprocurementdocumentationiscompleted.ThesampleperformancemeasuresforDDIprocurement(SoftwareVendorandSI,IV&VandInformationWarehouse)arelistedinSection5.5.2.6below.














5.5.2.6 DDIPERFORMANCEMEASURES

PerformancestandardsusedduringtheDDIphasearedescribedinthesectionswhichfollow.

SoftwareVendorandSIPerformanceMeasures

BasedonthemarketscanperformedwithvariousstatesandresearchonperformancemeasuresusedinsimilarsolicitationswithinFlorida,thefollowingaredetailedexamplesofperformancemeasuresconsideredduringthedevelopmentoftheITN.TheseperformancemeasuresarespecifictotheperformanceoftheSI.


REF# MEASUREDESCRIPTION MEASUREMETRIC(S)FREQUENCYOFMEASUREMENT

IMPLEMENTATION

1 80%oftheProject’sdeliverabledocumentationshallbeapprovedbasedonthequalityofthecontentwithinthefirstiterationofastandardreviewcycleTheremaining20%oftheProject’sdeliverabledocumentationshallbeapprovedbasedonthequalityofthecontentwithintheseconditeration


Quarterly

2 100%ofthefunctionalandnon‐functionalrequirementsshallbetraceablethroughoutthesoftwaredevelopmentlifecycle(i.e.RequirementsValidation,FunctionalDesign,TechnicalDesign,Coding,UnitTesting,SystemIntegrationTesting,UserAcceptanceTesting,Implementation)

Calculatedas“[(Numberofrequirementsincludedinthelifecyclephase)/(Numberofrequirementsscheduledforthelifecyclephase)]*100%”

Attheendofeachphasewithinthesystemdevelopmentlifecycle(SDLC)

SYSTEMCUTOVER

3 100%ofanydataneededfromthelegacysystemsdatabasesshallbeconvertedandloadedaccuratelyintothenewsystem.Dataconvertedshallbemutuallyagreedupon.

Calculatedas“[(Numberofrecordsconvertedfromthelegacysystemsandloadedintothenewsystem)/(Totalnumberofrecordsconvertedwithinthelegacysystems)*100%]”

Priortoimplementationduringfinalmockconversionandatfinalloadpriortoimplementation

4 99.5%oftheconverteddatafromthelegacysystemshallbeavailabletotheuserswithinthenewsystemonthedayofgo‐live.Remaining0.5%oftheconverteddatafromthelegacysystemshallbeavailabletotheuserswithinthenewsystemwithin10businessdaysofgo‐live.Dataconvertedshallbemutuallyagreedupon.

Calculatedas“[(Numberofconvertedrecordsavailableinthenewsystem)/(Totalnumberofconvertedrecords)*100%]”.

Priortogo‐liveduringfinalmockconversionRemainingdata–aftergo‐live



5 TheSolutionshallhave0(Zero)“Fatal”defectsforentering“go‐live”.Theassignmentofdefecttypeshallbemutuallyagreedupon.Note:For“Severe”and“Trivial”defects,thedecisionforentering“go‐live”shallbemutuallyagreedupon.

Calculatedas“TotalnumberofdefectsclassifiedasFatal”

Priortogo‐live

ONGOINGSYSTEMSUPPORT

6 100%ofSolutionSupportrequestsclassifiedas“High”shallberesolvedoranagreeduponplanofactionisinplace(i.e.fixed,closed,readyforimplementation)within4businesshours.Forissuesnotresolvedwithin4hoursofsuchoutage,statusupdatesshallbeprovidedevery2businesshoursuntilresolvedandaRootCauseAnalysisshallbeprovidedwithintwo(2)businessdays.

Calculatedas[(Numberof“High”issuesresolvedwithinthestipulatedtime)/(Totalnumberof“High”issues)]*100%

Monthly

7 100%ofSolutionSupportrequestsclassifiedas“Medium”shallberesolvedorhaveanagreeduponplanofactioninplacewithin1(one)businessday.Forissuesnotresolvedwithin1(one)businessdayofsuchoutage,statusupdatesshallbeprovidedevery4hoursuntilresolvedandaRootCauseAnalysisshallbeprovidedwithinthree(3)businessdays.

Calculatedas[(Numberof“Medium”issuesresolvedwithinthestipulatedtime)/(Totalnumberof“Medium”issues)]*100%

Monthly

8 100%ofSolutionSupportrequestsclassifiedas“Low”shallberesolvedorhaveanagreeduponplanofactioninplacewithinfive(5)businessdays.

Calculatedas[(Numberof“Low”issuesresolvedwithinthestipulatedtime)/(Totalnumberof“Low”issues)]*100%

Monthly



9 95%ofSolutionSupportrequestsclassifiedas“Trivial”shallberesolvedwithineight(8)businessdaysoronanagreeduponplanofaction.Remaining5%ofSolutionSupportrequestsclassifiedas“Trivial”shallberesolvedwithintwo(2)additionalbusinessdays(afterthe8businessdaysaboveoragreeduponplanofaction)

Calculatedas[(Numberof“Trivial”issuesresolvedwithinthestipulatedtime)/(Totalnumberof“Trivial”issues)]*100%

Monthly

Exhibit5‐65:Software/SIITNPerformanceMeasures

Thefollowingarestipulationsincludedinthecontractandfinancialconsequenceswillbeappliediftheyarenotadheredtobythecontractor:

Thesoftwarevendorandsystemintegratorwillconfirmandvalidatethecustomizationsandtheirabilitytodevelopsaidcustomizations

Thesoftwarevendorwillvalidatethesoftwarebasedontherequirements“fitgap”conductedduringprocurement

ThekeyteamispresentatthepresentationsandtheexpectationistheproposedkeyteambeginsworkonDay1.Ifthecontractorswitchesanyoftheproposedkeyteammembers,financialconsequencesareapplied

DFShastherighttorecommendandapproveinwritingtheinitialassignmentorproposedreassignmentorreplacementofkeystaff

ThecontractorshallnotremoveanykeystafffromtheirassignedrolesortheprojectwithoutthepriorwrittenconsentofDFS

IV&VPerformanceMeasures

Exhibit5‐19belowcontainsadescriptionofperformancemeasurestobeconsideredfortheprocurementofanIV&Vvendor.

AsstatedabovewiththePre‐DDItracks,theIV&Vsolicitationisdeliverablebasedandtheperformancemeasureslistedbelowconsiderqualityandtimelinessofthedeliverables.










Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractforIV&VisprovidedintheChapter5Appendixbelow.

InformationWarehousePerformanceMeasures

Exhibit5‐20belowcontainsadescriptionofperformancemeasurestobeconsideredfortheprocurementofanInformationWarehousevendor.

AsstatedabovewiththePre‐DDItracks,theInformationWarehousesolicitationisdeliverablebasedandtheperformancemeasureslistedbelowconsiderqualityandtimelinessofthedeliverables.










Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractfortheInformationWarehouseisprovidedintheChapter5Appendixbelow.

5.5.2.7 DDIPHASEGATEREVIEW

AsmentionedinSection5.4.4.3,phasegatereviewsaredevelopedtodeterminethereadinessofthecontractorthroughouttheimplementationofthenewERPsystem.Exhibit5‐21showsaphasegatereviewprocessforthenewERPforFLAIR(CentralandDepartmental)andCMSfunctionsphase.Thesamephasegateprocesswouldbefollowedforallimplementationtracks.Itisnoted;thesoftwaresolutionforthenewERPsystemmayormaynotincludetheIWandreporting/analyticssoftware.

ThefirstphasegatereviewbeginswithDFSconductingago/no‐godecisionbasedonthereleaseoftheprocurementdocumentation.Priortoreleasingtheprocurement,DFSwilldetermineifthePre‐DDIactivitiesneededtomoveforwardhavebeensuccessful.Thisincludestheestablishmentofgovernance,thereceiptofproperprojectfundingandthefunctionalrequirementsneededtosupporttheprocurementdocumentation.

Exhibit5‐68:PhaseGateReviewProcess

Attheconclusionofeachphase,aformalreviewiscompletedwiththecontractortoreviewthedeliverables,discussanyrisksandmakeago/no‐godecisionastotheabilitytomoveintothenextphase.PriortoGo‐Live,aspecificgo/no‐godecisionismadeduringthetestingphasetodetermineifthecontractor’sproposedGo‐Livedateisreasonablebasedontestingresultswithinthesystem.

5.5.3 POST‐DDIPROCUREMENT

Post‐DDIreflectstheoperationsandmaintenancesupportneededforthenewERPsystem.DFSwillconducttheoperationsandmaintenanceservicesafterreceivingknowledgetransferfromthecontractor.Thecontractorwillcontinuetoprovideservicesasagreeduponduringthewarrantyperiodandfurtherlanguageisdefinedastoanydesiredsupportfromthecontractor.Forexample,thecontractorshallprovidesupportforfutureupgradestostayinsyncwithfuturereleases.ThereisalsotheoptionforDFStoprocuresomeofthissupportorallofthesupport.


Exhibit5‐22belowshowsthePost‐DDIactivityperformedtosupportthereplacementofFLAIRandCMS.Theactivityisbrokendownbystaffsourcingneeds,theprocurementapproach,andabriefscopedescriptionoftheactivity.ThisExhibitisbeingprovidedtoshowtheprocurementapproachforoperationsandmaintenanceshouldDFSdecidetoprocuresomeoralloftheservices.

POST‐DDI

ID# ACTIVITY

STAFFINGSOURCE


1 OperationsandMaintenance


ITN Supportongoingoperationsandmaintenance

Exhibit5‐69:Post‐DDIProcurementActivities

5.5.3.1 POST‐DDIPERFORMANCE

Exhibit5‐23isthegeneraldeliverablesandperformancestandardsforconsiderationshouldDFSprocureservicesforoperationsandmaintenance.Exhibit5‐24isthoseperformancemeasuresforconsiderationformeasuringthedeliverablesinExhibit5‐23.























Exhibit5‐18above,underongoingsystemsupport,providesfurtherpotentialperformancemeasuresforoperationsandmaintenancesupport.Thesemeasuresareusedifthedecisionismadetoprocureservicesforoperationsandmaintenance.

5.6 CHAPTER5APPENDIX

Thefollowingarepotentialknowledge,skillsandabilitiesfortracksinthePre‐DDIphaseandfortheIV&VandtheInformationWarehousetrackswhicharebothdiscussedintheDDIProcurementPhase.Theycanbeusedforconsiderationwhendevelopingprocurementdocuments.

5.6.1 BUSINESSPROCESSRE‐ENGINEERINGKNOWLEDGEAREAS

Demonstratedabilitytocorrectlyselectprocessesforconsideration

IdentifiedproperteamtoconductBPRwiththeabilitytoleadandfocustheteamandproperlyfacilitatingtheas‐isandto‐beprocesses

Facilitatedcorrectidentificationofcoreprocesses

Submitteddeliverablestimely

Submitteddocumentationisaccurateandclearlypresented,freeofspellingerrorsorclericaldefects

5.6.2 PROCUREMENTSUPPORTKNOWLEDGEAREAS

ExperiencewithapplicableprocurementlawswithintheStateofFlorida

Experiencewithandabilitytoincludelessonslearnedfromotherstatesandagencies

Toolsandsamplecontenttocreateaclear,definitivesolicitation

Facilitatedcorrectidentificationofkeystakeholderstosupportprocurement


Developedaframeworkforprojectworkproducts

CoordinatedwiththeDepartmentanappropriateprocurementstrategy

Assistedwiththemanagementoftheproposalevaluationphase

Supportedvendorselectionandaward

Archivedprojectartifacts

5.6.3 ORGANIZATIONALCHANGEMANAGEMENTKNOWLEDGEAREAS

Providedanorganizationalchangemanagementplanwhichincludesandcontainsallrequiredcontractualrequirements

Completedwelldocumentedstakeholderanalysis

Identifiedspecificactivitiescompletedfortheimplementation,andscheduledcompletiondates

Equippedthe“agentsofchange”withtimelyinformationandthetoolsneededtopreparefortheimplementation

5.6.4 PROJECTMANAGEMENTOFFICEPERFORMANCEANDKNOWLEDGEAREAS

InitiationoftheProject

o Definedtheprojectandsecuredauthorizationtostart;establishingoverallscope

PlanningtheProject

o Establishedthetotalprojectscope,settingobjectives,developingtheplantoachievethegoals(includesre‐planning,iterative,andotherformsofplanning)

ExecutingtheProject

o Executingtheworkdefinedintheprojectmanagementplanandtheprojectscheduletoachievetheprojectobjectives

MonitoringandControllingtheProject

o Abilitytooverseetheprogressandperformanceoftheproject,adaptingtheplanasneeded

ProjectClose

o Finalizingallprojectactivities;creatinglessonslearned;applyingknowledgetransfer

IntegrationManagement

o Project'sworkelementsarecoordinated–thisareaincludesprojectplanning&executionprocesses

ScopeManagement


o Processeswhichlimitandcontroltheworkincludedinaprojectarefollowed;theworkincludedinthestatementofworkisincluded;scopecreepisnotallowedandchangeordersarehandledproperly

TimeManagement

o Processesrequiredensuringtimelycompletionoftheproject,includingactivity(task)definitionandsequencingprocessesarefollowed

CostManagement

o Planning,estimating,andcontrollingcostsareconductedsotheprojectcanbecompletedwithintheapprovedbudget;includesresourceplanningandcostbudgeting

QualityManagement

o Theresultsoftheprojectmeettheneedsforwhichtheprojectwasexecuted;includesqualityplanning,assurance,andcontrol

HumanResourceManagement

o Organizingandmanagingtheprojectteam;includestraining,aligningonprojectobjectivesandgoals,definingrolesintheprojectandassigningprojectteammemberstothoseroles

CommunicationsManagement

o Usingpropercommunicationstolinkpeople(includingteammembersandstakeholders),ideas,andinformationthroughouttheprojectlifecycle;includestimelygenerationandcollectionofinformationalongwithitsproperdisseminationandarchival

RiskManagement

o Identifying,analyzing,andproperlyrespondingtoprojectrisks(opportunitiesandthreats)

5.6.5 WORKFORCETRANSITIONKNOWLEDGEAREAS

ProvidetoolsnecessarytocompleteorganizationaldiagnosticsclarifyingwhatDFSistryingtoachieve;linkingvisionandprioritiestoahighlevelfunctionaldesign

Facilitatecollaborationsessionstodefinethe‘how’behindthefunctionalalignment

Facilitatecollaborationamongteams

DefineaccountabilitiesandresponsibilitieswithintheDFSworkforceandplantheworkforcetransition.

Designthecompetencymodel,careerpaths,andlearninganddevelopmentcurriculumtooperateinlinewithindustrygoodpractices

Serveasabridgebetweentheworkforce(businessandIT)andhumanresources


5.6.6 SYSTEMSANDDATASTRATEGYKNOWLEDGEAREAS

KnowledgeandunderstandingofFloridaAgencysystemswithrelationtoFLAIR

Providetoolstoconductinventoryvalidation

Providetoolstoconductdatahealthassessment

5.6.7 IV&VKNOWLEDGEAREAS

CorrectidentificationofcriticalsystemfunctionstoenablefocusingonareaswhichbenefitthemostfromIV&V,especiallycriticalforrapidapplicationdevelopment

Staffdemonstratesdomainknowledge

Rigorousimplementationofwell‐definedanalysisprocessesandprocedures

Structuredandthoroughassessments

ClearandtimelycommunicationofIV&Vresults

Seniorstaffwithindustrycertificationsintheappropriatesubjectmatter

Contributedtothereductionofrisk,identifiedrisks,andformulatedriskmitigationplans

Identifiedandappliedresourcesrequiredtomeetschedulerequirements

Assignedresponsibilityfortasks/actionsasexpected

Providedbestpracticesorlessonslearned

Documentationisaccurateandfreeofspellingerrorsorclericaldefects

Reportsdeliveredeitheronoraheadofschedule

Programplanning/managementadequate–assignmentofpersonnel,recognitionofcriticalproblemareas,cooperativeandeffectiveworkingrelationships,effectiveresourceuse,responsetonewtasks,andnotificationofpersonnelchangeswasadequate

IV&Vpersonnelinteractprofessionallywithstakeholders,includingStatepersonnel

5.6.8 INFORMATIONWAREHOUSE(IW)KNOWLEDGEAREAS

Developtoolsnecessaryandinfrastructureneededtosupporttheinformationwarehouse

Provideproperdesignanddevelopmentoftheinformationwarehouse

AbilitytoprovideknowledgetransfertoDFSstaff

AbilitytoprovidetrainingtoDFSstaff

FloridaDepartmentofFinancialServices FLAIRStudy Attachment1:Page1

ATTACHMENT1 ASSUMPTIONS

ThisAttachmentcontainsthecostassumptionsusedforcalculationofcostforthefouroptionswithintheFLAIRstudy.Italsoincludesauser’sguidetotheExcelcostmodelbuiltusingtheassumptions.

1.1 METHODOLOGY

Buildingdetailedcost‐benefitmodelsforaprojectofthisscaleandcomplexityisaninexactscience.Therearehundredsofvariablestoconsiderwhenpricingandthelengthyprojecttimelinemeansunforeseenorganizationalandindustrychangesarelikelytooccurpossiblyimpactingthefinalresult.

Toaddressthesechallenges,theFLAIRStudyTeamdefinedabasicfourstepmethodologytoguidetheconstructionofthecostbenefitmodels:

1. Understandcurrentstate,basecoststructures,andongoinginitiatives2. Estimatecostsofthenewsolution3. Identifycostsavoidedbyimplementingthenewsolution4. Describequantitativeandqualitativebenefitsofthenewsolution

TheteammaderepresentativeassumptionsforeachofthesestepsbasedontheneedsoftheStateofFloridaaswellasinformationobtainedfromindustryandotherstateswhohaverecentlyimplementedenterprisefinancialmanagementsystems.

1.2 COSTMODELASSUMPTIONS

1.2.1 GENERALSUPPORTINGASSUMPTIONSAPPLICABLETOALLOPTIONS

Thefollowinggeneralassumptionsapplytoallfouroftheoptionsanalyzed:

AnalysisTimeline

Fortheoptionsanalysis,theFLAIRStudyTeammodeledcostsovera15yearwindowstartinginJuly2014(FY14‐15).Thistimeframewasselectedforanumberofreasons,including:

Inalloptionsanalyzed,therequiredminimumcapabilitiescanbeachievedduringa15yearwindow.98

98Implementationoftheminimumcapabilitieswillbecompletebytheendofyear15forOption1,butsomeoftheenhancedfunctionalitymaynotbecomplete.


Ineachcase,a15yearwindowprovidesvisibilityintonotonlythecostsofimplementationbutalsosupportcostsforthesystemonceitreachesasteadystate.

Itisimportanttonotethattheselectionofa15yearwindowisnotinanywayindicativeofthelifespanofthenewsystem.Inallcasesitshouldfaroutlivethetimelinesbuiltintointhemodelsifproperlymaintainedandupgraded.

PayrollReplacementApproach

AllfouroptionsassumethatthelegacyFLAIRpayrollfunctionalitywillbereplaced.TherearemultipleoptionsforupgradingPayroll,includingcustomdevelopment(option1),configurationofpayrollfunctionalitywithintheERPsystemusedtoreplacetherestofFLAIR(foroptions2,3and4),orthepossibilityofimplementingpayrollfunctionalityaspartofthePeopleFirstupgrade,andinterfacingthefinancialdatabackintoFLAIR.Forpurposesoftheoptionanalysis,thisstudyassumesthatpayrollfunctionalitywillbeimplementedinthesamesystemastherestofFLAIR.AdecisionpointhasbeenincludedineachtimelinetocorrespondwiththePeopleFirstcontractrenewal.DFSshouldworkcloselywithDMSduringthePre‐DDIPhasetodeterminethebestapproachforimplementingthepayrollreplacement.

GeneralCostModelAssumptions

ThisstudyestimatesthecostsforDFSrelatedtoeachoption.TheremaybeadditionalcostsincurredbyagenciestomakechangestotheirsystemsaswellastheotherFFMISsystemstointegratewiththenewFLAIRsolution.Thesecostscannotbeestimateduntilafteradetaileddesignhasbeencreated.

ThestudyestimatesonlyDFScostsrelatedtoeachoption.Forpurposesofcomparingeachoption,thestudyassumesDepartmentofManagementServiceswillcontinuetooperatePeopleFirstandMFMPandthoseoperationalsupportcostsarenotconsideredinthecostmodel.

Anaveragehourlyrateforcontractedconsultantshasbeensetat$160($6,400/week).ThisrateisbasedonDepartmentofManagementServicesStateTermContractforITConsultingServicesrates.Aspartoftheprocurementsolicitation,actualcontractratesmaybelowerthantheseassumptions.99

Thereisgenerallya1:1relationshipbetweenthenumberofinternalemployeesandexternalemployeesrequiredtoexecuteaProjectTrack.ThisratiomaychangefortheactualimplementationbasedonstaffingdecisionsmadebyDFSandproject

99ThisrateisgenerallybasedonERPconfigurationconsultingsupport(foroptions2‐4).ThisrateisalsoavalidaggregateforOption1,astherewillbearequirementforafewhighlyskilled(andexpensive)architectsrequired,buttheircostwillbeoffsetbyalowercostforgeneraldevelopers.


management.TheprojectstaffingplanwillbedevelopedduringthePre‐DDIPhaseandevolveastheprojectprogresses.100

Foreveryeightexternalemployeesassignedtotheproject,anexternalprojectmanagerwillberequiredtoperformoversightandcoordinationatarateof$225/hour($9,000/week).ThisrateisbasedonDepartmentofManagementServicesStateTermContractforITConsultingServicesrates.Aspartoftheprocurementsolicitation,actualcontractratesmaybelowerthantheseassumptions.

Currentinternalemployeecostshavebeenestimatedat$37.50/hour.Thiswascalculatedassuminganaverageannualsalaryof$60,000,adding30%tocoverbenefitsandoverheadresultinginacostof$1,500/week.

Laborcostsforinternalemployeessupportingthenewsystemareexpectedtoincreaseto$76,000/yearbecauseoftheexpandedskill‐setrequired.Afteradding30%tocoverbenefitsandoverhead,thisresultsinacostof$1,900/week.

Anannualinflationrateof1.5%hasbeenincludedforbothinternalandcontractedresources.

Inthemodels,existingFLAIRoperationalsupport,FLAIRtechnicalsupportandCMSoperationalsupportresourcesrepresentacombinationofemployeesworkingforDFS.

Toderivelaborrelatedcosts,themodelsestimatethenumberofresourcesrequiredforeachtaskduringagivenyearaswellasthenumberofweeksperyearthoseresourceswillberequired.

Ingeneral,resourceestimatesarederivedfromacombinationofresearchintoprojectscompletedbyotherstatesandtheprofessionalexperienceoftheFLAIRStudyTeaminevaluatingsimilarprojectsinthepublicsector.

Itisimportanttonotetheresourcerequirementsrepresentedinthemodelare‘pure’–meaningtheyrepresenttheamountofworktoperformtheidentifiedactivityannualizedovera52weekyear,anddonotaddressthehowpeopleareassignedtotheactivityandwherethepeoplecomefrom.

Thebudgetaryresourcerequirementsmaynotdirectlymatchstaffrequirementsduetotimingandmixofstaffingassignments.DFSmayberequiredtohireorarrangetoallocateadditionalpeoplefromexternalsourcestomeettheactualdemandofeffort.

Softwarepricingwasestimatedusingabottom‐upapproachwithasimplifiedversionofa‘peruser’pricingmodel.Themodelignoresexistingorpastpurchasesandotherfactorsthatmayultimatelyimpactthefinalprice.TheresultingcoststhemodelproducedarecomparabletothoseseeninothersimilarstatesandshouldserveasareasonableproxytothepricetheStatepays.

100The1:1ratioisaconservativeestimateforprojectsofthissizeandcomplexity.Assuch,itisassumedthatanyinternalprojectmanagers,executiveleadershiporotherresourcesrequiredtoexecutetheprojectwillbeincludedinthematchedinternalemployee.


1.2.2 OPTION1:ENHANCEFLAIRCOSTASSUMPTIONS

1.2.2.1 OPTION1:LABORASSUMPTIONS–PRE‐DDI

TheExhibitbelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsforOption1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.


PRE‐DDITASKS/ROLES

DESCRIPTIONEXTERNALRESOURCES

REQUIRED


Teamresponsibletosupportandensureorganizationalacceptanceofbusinessprocessandtechnologysystemchanges

4(1)1015

Y1Q2–Y1Q4Y2Q1–Y2Q4

WorkforceTransition

TeamresponsibletoidentifyrequiredorganizationalchangeswithintheFinanceandITdepartmentstosupportthenewsystemmappingofcurrenttechnologystaffintofuturerolessupportingthenewsystem

2*102 Y2Q1–Y2Q4

Systems&DataStrategy

TeamresponsibletoconfirminventoryofStateagencyfinanciallyrelatedsystemsandinterfacestoFLAIRResponsibilitiesincludeperformingdataqualityassessmentofexistingdatainlegacyFLAIR,migratingrequiredlegacyFLAIR&CMSdata(transactions/records)IncludesdeterminingchangesinFLAIRsystemarchitecture,infrastructure,datastructures,andanydataconversionrequirements

5* Y1Q3–Y2Q2


Groupresponsibletoestablishandmaintainappropriategovernancestructurestosupporttheproject

3 Y1Q1–Y2Q4

BusinessProcessRe‐engineering

Teamresponsibleforanalyzingexistingbusinessprocessandrecommendingnewfuturestateprocessestomaximizebenefitsandminimizingsoftwarecustomizationwithinthenewsystem

6(2) Y1Q2–Y2Q4

Procurements

Teamresponsibletocoordinateselectionofsoftware,systemintegrator,PMOandinformationwarehousecontractorsrequiredtosupportfutureprojectphases

3 Y1Q2–Y2Q4

ExhibitA1‐1:Option1Pre‐DDILaborAssumptions

AdditionalNotesandAssumptions

ItwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterofFY14‐15tomanagetheprocurementofPre‐DDIresources.

101TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusinessProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitiallyplannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeledcosts.Theplannedcontingencycouldbeusedtocoverthiscostincrease.102Anasterisk*denoteshalftimeresources


Researchintosimilarprojectslargescalepublicenterprisesoftwareprojectsinotherstatesandthefederalgovernmenttheprocurementphase(scopeclarification,technologyplatformselection,andSIselection)typicallytakesbetween12and24monthstocomplete.

Ifthisoptionischosen,theWorkforceTransitiontrackofthePre‐DDIphasewillrequiremoreresourcesthantheotheroptionsbecauseitwillincludetheevaluationandselectionoffuturestatetechnologyplatformsaswellasorganizationalre‐design.

1.2.2.2 OPTION1:LABORASSUMPTIONS–DDIPHASE1

TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsforOption1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonly.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.

DDIPHASE1TASKS/ROLES


REQUIRED


Independentteamofcontractorsassignedtoevaluatetheworkproductofthesystemintegratortominimizerisk

2 Y3Q1–Y13Q2

RewriteFLAIR(CentralandDepartmental):FunctionalDesign

ResourcesrequiredtocreatefunctionalsystemrequirementsanddesignfuturestatebusinessprocessesNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y3Q1–Y5Q4

RewriteFLAIR(CentralandDepartmental):TechDesign

ResourcesrequiredtocreatetechnicalsystemrequirementsResourcesrequiredtodesignthetechnologyinfrastructurenecessarytosupportanenhancedversionofFLAIRNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y3Q1–Y5Q4

RewriteFLAIR(CentralandDepartmental):TechBuild

SoftwaredevelopmentteamrequiredtobuildasystemtosupportthetechnicalandfunctionalrequirementsidentifiedduringtheirrespectivedesignphasesIncludesthedevelopmentofnewinterfaceswithexistingsystemsIncludesthebuildoutofalltechnologyinfrastructurerequiredtosupporttheenhancedversionofFLAIRIncludesthedevelopmentofaprototypedeploymenttobeusedforfunctionaltestingpriortothepilotNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

24 Y5Q3–Y10Q2




REQUIRED

RewriteFLAIR(CentralandDepartmental):FunctionalBuild

FunctionalteamrequiredtoworkwithTechBuildteamtosupportprototypetestingResponsibilitiesalsoincludedocumentingandimplementingchangestoexistingbusinessprocessesinsupportoftheenhancedsystem,completingunitandfunctionaltestingandthedevelopmentoftestscriptsNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y5Q3–Y10Q2

AgencyOnboarding:PilotandUpdates

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthepilotResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetoissuesidentifiedduringthepilotNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y10Q1–Y11Q2

AgencyOnboarding:Rollout

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthephasedrolloutoftheenhancedFLAIRsystemtodifferentagenciesNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y11Q1–Y13Q2

EnhancePayroll:TechDesign

ResourcesrequiredtobuildtechnicalsystemrequirementsforaddingenhancedfunctionalitytoPayrollResourcesrequiredtodesignthetechnologyinfrastructurerequiredtosupportanenhancedPayroll

6 Y9Q1–Y9Q4

EnhancePayroll:FunctionalDesign

ResourcesrequiredtobuildfunctionalsystemrequirementsanddesignfuturestatebusinessprocessesforthenewlyenhancedPayroll

6 Y9Q1–Y9Q4

RewriteFLAIR(CentralandDepartmental):TechBuild

SoftwaredevelopmentteamrequiredtobuildasystemtosupportthetechnicalandfunctionalrequirementsidentifiedduringtheirrespectivedesignphasesIncludesthedevelopmentofnewinterfaceswithexistingsystemsIncludesthebuildoutofalltechnologyinfrastructurerequiredtosupporttheenhancedversionofFLAIRIncludesthedevelopmentofaprototypedeploymenttobeusedforfunctionaltestingpriortothepilotNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

24 Y5Q3–Y10Q2




REQUIRED

RewriteFLAIR(CentralandDepartmental):FunctionalBuild

FunctionalteamrequiredtoworkwithTechBuildteamtosupportprototypetestingResponsibilitiesalsoincludedocumentingandimplementingchangestoexistingbusinessprocessesinsupportoftheenhancedsystem,completingunitandfunctionaltestingandthedevelopmentoftestscriptsNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y5Q3–Y10Q2

AgencyOnboarding:PilotandUpdates

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthepilotResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetoissuesidentifiedduringthepilotNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y10Q1–Y11Q2

AgencyOnboarding:Rollout

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthephasedrolloutoftheenhancedFLAIRsystemtodifferentagenciesNote:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

12 Y11Q1–Y13Q2

EnhancePayroll:TechDesign

ResourcesrequiredtobuildtechnicalsystemrequirementsforaddingenhancedfunctionalitytoPayrollResourcesrequiredtodesignthetechnologyinfrastructurerequiredtosupportanenhancedPayroll

6 Y9Q1–Y9Q4

EnhancePayroll:FunctionalDesign

ResourcesrequiredtobuildfunctionalsystemrequirementsanddesignfuturestatebusinessprocessesforthenewlyenhancedPayroll

6 Y9Q1–Y9Q4

EnhancePayroll:TechBuild

SoftwaredevelopmentteamrequiredtobuildanapplicationtosupportthetechnicalandfunctionalrequirementsidentifiedduringthedesignphaseIncludesthebuildoutofalltechnologyinfrastructurerequiredtosupporttheenhancedPayrollIncludesthedevelopmentofaprototypedeploymenttobeusedforfunctionaltestingpriortothepilot

12 Y10Q1–Y11Q4




REQUIRED

EnhancePayroll:FunctionalBuild

FunctionalteamrequiredtoworkwithTechBuildteamtosupportprototypetestingResponsibilitiesalsoincludedocumentingandimplementingchangestoexistingbusinessprocessesinsupportoftheenhancedapplication,completingunitandfunctionaltestingandthedevelopmentoftestscripts

6 Y10Q1–Y11Q4

EnhancePayroll:PilotandUpdates

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthepayrollpilotResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetoissuesidentifiedduringthePayrollpilot

6 Y12Q1–Y12Q4

EnhancePayroll:Rollout

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthepayrollrolloutResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetostandardpracticesfromthepilot

6 Y13Q1–Y13Q2

UpgradeInformationWarehousetoSupportNewFLAIR

ResourcesrequiredtoupdatetheexistinginformationwarehousetosupporttheenhancedFLAIRSpecifictasksincludedataloading,conversionandvalidation,reportdevelopment,etc.Note:TaskisassociatedwiththeenhancementofCentralFLAIR,DepartmentalFLAIRandPayroll

6 Y5Q3–Y9Q2


TechnicalandfunctionalresourcesrequiredtoensuresmoothintegrationofenhancedFLAIRwiththeotherFFMIScomponents

8 Y8Q1–Y10Q2

PeopleFirstLiaison

ContractorresponsibleforovercomingthechallengesinterfacingwithPeopleFirstforemployeepayments,G/Ldata,etc.,andtheeventualdisconnectofPFfromcurrentCentralFLAIR

1 Y3Q1–Y13Q2

MFMPLiaison

ContractorresponsibleforovercomingthechallengesinterfacingwithMFMPforvendorpayments,G/Ldata,etc.andtheeventualdisconnectofMFMPfromthecurrentCentralandDepartmentalFLAIR

1 Y3Q1–Y13Q2

LAS/PBSLiaison

ContractorresponsibleforovercomingthechallengesinterfacingwithLAS/PBSforbudget,appropriation,encumbrancetrackingandtheeventualdisconnectofPBSfromthecurrentCentralFLAIR

1 Y3Q1–Y13Q2




REQUIRED


CombinationoftechnicalandfunctionalresourcesresponsibleforvarioustestactivatesassociatedwiththeimplementationoftheenhancedFLAIRsystemTasksmayincludeunittesting,functionaltesting,testscriptdevelopmentaswellasdataloading,conversionandvalidation

8 Y5Q3–Y13Q2



5 Y3Q1–13Q2



5 Y3Q1–Y13Q2

WorkforceTransition

TeamresponsibletomonitorFLAIR/IWpilotandreportFLAIRbaselineperformancemetricsFunctionalresourceswhoconductFLAIR/IWendusertrainingforagenciesandperformOCMandworkforcetransitiontasksAlsoresponsibletoconductfinalsystemanduseracceptancetestingandsupportthe“Go/NoGo”decisionforrollout

2 Y3Q1–Y13Q2

EndUserTraining(DDIPhase‐1)(TrainersandConsultants)

TeamresponsibleforcreationoftrainingmaterialsandotherdocumentationAlsoresponsibleforteachinginternaltrainerswhowillperformend‐usertraining

4103 Y10Q1–Y13Q2

ExhibitA1‐2:Option1DDIPhase1LaborAssumptions

103Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduringtherolloutphase.



ProjectTeamTraining

o Forthemaximumnumberofinternalemployeesontheprojectteam(~100),assumefourclassesperyearforY1–2andoneclassperyearthroughY15($1,500/classwitha1.5%annualinflationfactor)

End‐UserTraining

o Assumetwelvefull‐timetrainerswillberequiredtoteachnewsystem(StartinY10)

o Assumefourconsultantswillberequiredtobuildtrainingmaterialsduringallbuild/testphases

o Assumethreeweeksoftrainingwillberequiredforeachemployeeusingthenewsystem

o Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthesystemonceon‐boarded

ForthisOption,themodelassumes“user‐based”softwarelicenseswillnotneedtobepurchasedtosupportthefuturetechnologyplatformsselected.


TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsforOption1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.



REQUIRED

EnhanceUpgradedFLAIR:FunctionalDesign

ResourcesrequiredtocreatefunctionalsystemrequirementsanddesignfuturestatebusinessprocessesforthenewlyupgradedFLAIR

6 Y10Q1–Y12Q4

EnhanceUpgradedFLAIR:TechDesign

ResourcesrequiredtocreatetechnicalsystemrequirementsforaddingenhancedfunctionalitytothenewlyupgradedFLAIRResourcesrequiredtodesignthetechnologyinfrastructurenecessarytosupportanenhancedversionofFLAIR

12 Y10Q1–Y12Q4




REQUIRED

EnhanceUpgradedFLAIR:TechBuild

SoftwaredevelopmentteamrequiredtobuildasystemtosupportthetechnicalandfunctionalrequirementsidentifiedduringthedesignphaseIncludesthebuildoutofalltechnologyinfrastructurerequiredtosupporttheenhancedversionofFLAIRIncludesthedevelopmentofaprototypedeploymenttobeusedforfunctionaltestingpriortothepilot

12 Y12Q1–Y15Q4

EnhanceUpgradedFLAIR:FunctionalBuild

FunctionalteamrequiredtoworkwithTechBuildteamtosupportprototypetestingResponsibilitiesalsoincludedocumentingandimplementingchangestoexistingbusinessprocessesinsupportoftheenhancedsystem,completingunitandfunctionaltestingandthedevelopmentoftestscripts

6 Y12Q1–Y15Q4

EnhanceUpgradedFLAIR:PilotandUpdates

CombinationoftechnicalandfunctionalresourcesrequiredtosupportpilotResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetoissuesidentifiedduringthepilot

4 Y15Q1–Y15Q4

EnhanceUpgradedFLAIR:Rollout

CombinationoftechnicalandfunctionalresourcesrequiredtosupportrollouttoagenciesResponsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetostandardpracticesduringthepilot

0 WouldoccurafterY15

EnhanceUpgradedFLAIR:EndUserTraining(DDIPhase‐2)

TeamresponsibleforcreationoftrainingmaterialsandotherdocumentationofnewfeaturesfromtheupgradeAlsoresponsibleforteachinginternaltrainerswhowillperformend‐usertraining

4 Y15Q1–Y15Q4



2 Y13Q3–Y15Q4



Time‐frameandresourceestimatesforindividualprojectsduringthisphasehavebeenderivedbasedonacombinationofexperiencewithlargescalesoftwaredevelopmentandresearchintosimilarprojectscompletedinthepublicsector.


Formalestimationmodels,suchasCOCOMO,SLIM,SEER‐SEM,etc.werenotusedtodeveloptheestimatesbecausethesemodelsrequiredataelementsthatarenotavailableuntilmoredetailedrequirementsaredevelopedduringthePre‐DDIphaseoftheproject.

1.2.2.4 OPTION1:REQUIREDPURCHASEASSUMPTIONS

Approximately$2.5millioninhardwarewillberequiredtosupportthenewsystem

o Thisincludesalltestanddevelopmentenvironments

o Thisincludesalldisasterrecoveryenvironments

o Thisincludes3rdpartyinstallationcosts

o Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport)

o Therewillbeaonetime20%hardwaresupportandmaintenancecontractcosttheyearthehardwareisrefreshed

Approximately$5.0millionofinfrastructurerelatedsoftwarewillberequiredtosupportthenewsystem

o Examples:OperatingSystem/SQLlicenses;DirectoryServices;SecuritySoftware;etc.

o Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)

o Therewillbeaonetime20%infrastructuresoftwaresupportandmaintenancecontractcosttheyearthehardwareisrefreshed

DataCenterFacilitiesandEquipment

o TheequipmentrequiredtosupporttheenhancementofFLAIRisestimatedtorequiretendataracksofequipmentwithinanenterpriseclassdatacenter

o Inindustry,theaveragecosttosupportonedatarack–includingpower,coolingandfloorspace–is$1,500/month

o Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–bothWANandInternet–fromthedatacenterhousingthenewsystembacktotheState’snetwork.Thesecostsareestimatedat$2,000/monthfortheWANconnectionand$1,500/monthfortheinternetconnectivity

1.2.2.5 OPTION1:ONGOINGSUPPORTASSUMPTIONS

ItwillrequirethesamenumberoftechnicalsupportemployeestomanagetheenhancedFLAIRsystemasitdoesthecurrentFLAIRsystem

ItwillrequirethesamenumberofoperationalsupportemployeestomanagetheenhancedFLAIRsystemasitdoesthecurrentFLAIRsystem

ItwillcostapproximatelythesameamounttoadministertheinfrastructuresupportingtheenhancedERPasitdoestoadministertheinfrastructuresupportingthecurrentFLAIRsystem


Endusertrainingcostsafterimplementationareassumedaspartofsupport.Employeestafftimetoparticipateintrainingat1dayperyearisexplicitlyincludedforeverysystemuser.

1.2.3 OPTION2:REPLACEFLAIRWITHANERPSOLUTIONCOST–BENEFITMODEL





REQUIRED



4(1)1045


WorkforceTransition

TeamresponsibletoidentifyorganizationalchangeswithintheFinanceandITdepartmentsrequiredtosupportthenewsystemAlsomapscurrenttechnologystaffintofuturerolessupportingthenewERPsystem

2 Y2Q1–Y2Q4



2 Y2Q3–Y2Q2


Establishappropriategovernancestructurestosupporttheproject 3 Y1Q1–Y2Q4

104TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusinessProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitiallyplannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeledcosts.Theplannedcontingencycouldbeusedtocoverthiscostincrease.




REQUIRED



6(2) Y1Q2–Y2Q4

Procurements


3 Y1Q2–Y2Q4



ItwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterofFY14‐15tomanagetheprocurementofPre‐DDIresources

Researchintosimilarprojectsinotherstatesshowstheprocurementphasetypicallytakesbetween12and24monthstocomplete(e.g.,NY,TX,PA)


TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsforOption2.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentssubjectmatterexpertsonly.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetaskortheassociatedexternalprojectmanagers.



REQUIRED



2 Y3Q1–Y7Q4


Functionalteamresponsibleforvarioustasksincludingbusinessprocessimplementationanddocumentation,reportgeneration,functionaltestingandtestscriptdevelopment

128

Y3Q1–Y4Q4Y5Q1‐Y5Q4


Technicalimplementationteamresponsibleforinfrastructuredeployment,systemconfiguration,developmentofinterfaceswithotherapplicationsandanyrequiredsoftwarecustomizations

86

Y3Q1–4Q4Y5Q1–Y5Q4

ImplementInformationWarehouseinERP

Technicalteamresponsibleforthedevelopmentofanewinformationwarehouse,dataconversionandloading,andreportgeneration

42





REQUIRED

RollOutFLAIRERP/IW(Central&Departmental)toAgencies

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthemigrationofagenciestothenewERPsystem.Specifictaskscouldincludesystemandsecurityconfiguration,interfacedevelopment,functionaltestingandtestscriptdevelopment,andsoftwarecustomization

6 Y6Q1–Y7Q4

PeopleFirstLiaison

ContractorresponsibleforovercomingthechallengesinterfacingPeopleFirstwithERPforemployeepayments,G/Ldata,etc.andtheeventualdisconnectofPeopleFirstfromcurrentCentralFLAIR

1 Y3Q1–Y7Q4

Plan,DesignandImplementPayrollinERP

CombinationoftechnicalandfunctionalresourcesfortheconfigurationofpayrollwithinthenewERP

1*10523

Y3Q1–Y4Q4Y5Q1–Y6Q4Y7Q1–Y7Q4


TechnicalandfunctionalresourcesrequiredtoensuresmoothintegrationoftheERPsystemwiththeotherFFMIScomponents

10 Y4Q1–Y4Q4

MMFPLiaison

ContractorresponsibleforovercomingthechallengesinterfacingMFMPwithERPforvendorpayments,G/Ldata,etc.andtheeventualdisconnectofMFMPfromthecurrentCentralandDepartmentalFLAIR

1 Y3Q1–Y7Q4

LAS/PBSLiaison


1 Y3Q1–Y7Q4


CombinationoftechnicalandfunctionalresourcesresponsibleforvarioustestactivatesassociatedwiththeimplementationofthenewERPTasksmayincludeunittesting,functionaltesting,testscriptdevelopmentaswellasdataloading,conversionandvalidation

48*4*

Y3Q1‐Y3Q4Y4Q1–Y5Q4Y6Q1–Y7Q4



5 Y3Q1–Y7Q4



55*


105Anasterisk*denoteshalftimeresources




REQUIRED

WorkforceTransition


22*


EndUserTraining(DDIPhase‐1)


4106 Y5Q1–Y7Q4



OneinternalemployeewillberequiredparttimetoplanandscopePayrollthroughY3–7

ProjectTeamTraining

o Forthemaximumnumberofinternalemployeesontheprojectteam(~50),assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500/classwith1.5%annualinflationfactor)

End‐UserTraining

o Assumefull‐timetrainerswillberequiredtoteachnewsystem(4inY5and12inY6–Y7)

o AssumefourconsultantswillberequiredtobuildtrainingmaterialsinY5–7


o Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthesystemfromY8andbeyond


TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsforOption2.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot



includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.



REQUIRED

PlanandAssessResourcesdedicatedtodeterminingsystemenhancementrequirements 4 Y8Q1–Y8Q4

Design,Develop,andImplement

ResourcesrequiredtodeploytheenhancedfunctionalityinthenewERPsystem 8 Y9Q1–Y10Q4

RollOutExpandedERPFunctionality

Resourcesrequiredforagenciestotakeadvantageoftheenhancedfunctionalitybuiltintothesystem

4 Y10Q1–Y12Q4


TeamresponsibleforcreationoftrainingmaterialsandotherdocumentationofnewfunctionalityAlsoresponsibleforteachinginternaltrainerswhowillperformend‐usertraining

4 Y10Q1–Y12Q4



2107 Y8Q1–Y12Q4



ERPsoftwarelicensesareassumedataninflationadjustedcostof$1500peruserwithanannualmaintenancecostof20%ofthelicensecost









o Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)107Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduringtherolloutphase.




o TheequipmentrequiredtosupportthereplacementofFLAIRwithanERPsolutionisestimatedtorequire8dataracksofequipmentwithinanenterpriseclassdatacenter

o Inindustry,theaveragecosttosupportaonedatarack–includingpower,coolingandfloorspace–is$1,500/month

o Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–bothWANandInternet–fromthedatacenterhousingthenewsystembacktotheStateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthfortheWANconnectionand$1,500/monthfortheinternetconnectivity


Softwaremaintenancewillcost~20%oftotalpurchasedlicensecost

ItwillrequirethesamenumberoftechnicalsupportemployeestomanagethenewERPsystemasitdoesthecurrentFLAIRsystem(~100today)

ItwillrequirethesamenumberofoperationalsupportemployeestomanagethenewERPsystemasitdoesthecurrentFLAIRsystem(~60today)

TechnicalandoperationalsupportforFLAIRwillberampeddownduringY5–7withcostsdecliningat25%,50%and75%respectively;SupportforFLAIRwillbediscontinuedduringY8

TechnicalandoperationalsupportforthenewERPsystemwillrampupduringyearsY3–5at25%,50%and75%oftotalcostsrespectively

ItwillcostapproximatelythesameamounttoadministertheinfrastructuresupportingERPasitdoestoadministertheinfrastructuresupportingFLAIR


1.2.3.6 OPTION2:UPGRADEASSUMPTIONS

AminorupgradeofthesystemwillbeperformedduringY5oftheprojectrequiringateamofapproximatelytenexternalcontractors(andtheirinternalcounterparts)toexecute

AmajorsystemupgradewillbeperformedinY8inconjunctionwiththeplanningforthePhase‐2implementationrequiringateamofapproximately12externalcontractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillbeperformedduringY12oftheprojectrequiringateamofapproximatelytencontractors(andtheirassociatedinternalcounterparts)toexecute


1.2.4 OPTION3:REPLACEFLAIRANDCASHMANAGEMENTSYSTEMSWITHANERPSOLUTIONCOST–BENEFITMODEL


ThetablebelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsforOption3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’columncorrespondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivitiesaredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio(unlessotherwiseindicated),ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.

PRE‐DDITASKS/ROLES TRACK DESCRIPTION

EXTERNALRESOURCESREQUIRED


OrganizationalChange

Management


4(1)1085


WorkforceTransition

WorkforceTransition


2 Y2Q1–Y2Q4



PRE‐DDITASKS/ROLES TRACK DESCRIPTION





2 Y1Q3–Y2Q2


ProjectManagement

Office


3 Y1Q1–Y2Q4




6(2) Y1Q2–Y2Q4

Procurements Procurement


3 Y1Q2–Y2Q4



ItwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterofFY14‐15tomanagetheprocurementofPre‐DDIresources



TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsforOption3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’column


correspondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivitiesaredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.

DDIPHASE1TASKS/ROLES TRACK DESCRIPTION



IndependentValidation&Verification(IV&V)


2 Y3Q1–Y7Q4



PilotFLAIR/

CMSReplacement

Functionalteamresponsibleforvarioustasksincludingbusinessprocessimplementationanddocumentation,reportgeneration,functionaltestingandtestscriptdevelopment

128


ImplementFLAIRinERP(Central&Departmental)–Technical


PilotFLAIR/

CMSReplacement

Technicalimplementationteamresponsibleforinfrastructuredeployment,systemconfiguration,developmentofinterfaceswithotherapplicationsandanyrequiredsoftwarecustomizations

86


ImplementInformationWarehouse

ImplementInformation

Warehouse(IW)

PilotFLAIR/CMS

Replacement

Technicalteamresponsibleforthedevelopmentofanewinformationwarehouse,dataconversionandloadingandreportgeneration

42


RollOutFLAIRERP/IW(Central&Departmental)toAgencies

FLAIR/IWRollout

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthemigrationofagenciestothenewERPsystemandthenewIW.Specifictaskscouldincludesystemandsecurityconfiguration,interfacedevelopment,functionaltestingandtestscriptdevelopment,reapportiongenerationandsoftwarecustomization

6 Y6Q1–Y7Q4

ImplementCMSinERP


PilotFLAIR/

CMSReplacement

CombinationoftechnicalandfunctionalresourcesfortheimplementationofexistingcashmanagementsystemfunctionswithinthenewERP.

31





RollOutCMSinERPtoAgencies

CMSRollout

CombinationoftechnicalandfunctionalresourcesforthemigrationofagenciestothenewcashmanagementsystembuiltwithintheERP

2 Y6Q1–Y6Q4

Plan,DesignandImplementPayrollinERP


CombinationoftechnicalandfunctionalresourcesfortheconfigurationofpayrollwithinthenewERP

1*10923




TechnicalandfunctionalresourcesrequiredtoensuresmoothintegrationofthenewFLAIRsystemwiththeotherFFMIScomponents(MFMP,PeopleFirstLAS/PBS,etc.)

8 Y4Q1–Y4Q4

PeopleFirstLiaison

PeopleFirstIntegration

ContractorresponsibleforovercomingthechallengesinterfacingPeopleFirstwithERPforemployeepayments,G/Ldata,etc.andtheeventualdisconnectofPeopleFirstfromcurrentCentralFLAIR

1 Y3Q1–Y7Q4

MFMPLiaisonMFMP

Integration

ContractorresponsibleforovercomingthechallengesinterfacingMFMPwithERPforvendorpayments,G/Ldata,etc.andtheeventualdisconnectofMFMPfromthecurrentCentralandDepartmentalFLAIR

1 Y3Q1–Y7Q4

LAS/PBSLiaison

LAS/PBSIntegration


1 Y3Q1–Y7Q4

109Anasterisk*denoteshalftimeresources






PilotFLAIR/

CMSReplacement

Implement

PayrollinERP

CombinationoftechnicalandfunctionalresourcesresponsibleforvarioustestactivatesassociatedwiththeimplementationofthenewERPTasksmayincludeunittesting,functionaltesting,testscriptdevelopmentaswellasdataloading,conversionandvalidation

488*4*110

Y3Q1–Y3Q4Y4Q1–Y4Q4Y5Q1–Y5Q4Y6Q1–Y7Q4


OrganizationalChange

Management


66*



ProjectManagement

Office


5 Y3Q1–Y7Q4

WorkforceTransition

WorkforceTransition


22*



WorkforceTransition


4111 Y5Q1–Y7Q4



OneinternalemployeewillberequiredparttimetoplanandscopePayrollY3‐Y7

ProjectTeamTraining

110ThetestingandQAtimeduringyears6and7istosupportthePayrollbuildandrollout.111Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduringtherolloutphase.


o Forthemaximumnumberofinternalemployeesontheprojectteam(~50),assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500/classwitha1.5%annualinflationfactor)

End‐UserTraining

o Assumefourfull‐timeinternalresourcewillberequiredtoteachthenewsysteminY5,andtwelveinY6‐Y7

o AssumefourconsultantswillberequiredtobuildandsupporttrainingmaterialsinY5–Y7




TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsforOption3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’columncorrespondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivitiesaredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.

DDIPHASE2TASKS/ROLES TRACK


REQUIRED


ProjectManagement

Office


2 Y8Q1–Y12Q4

PlanandAssess

ExpandedERPFLAIR

Functionality

Resourcesdedicatedtodeterminingsystemenhancementrequirements 4 Y8Q1–Y8Q4


ExpandedERPFLAIR

Functionality

ResourcesrequiredtodeploytheenhancedfunctionalityinthenewERPsystem

8 Y9Q1–Y10Q4


ExpandedERPFLAIR

Functionality

Resourcesrequiredtoagenciestakeadvantageoftheenhancedfunctionalitybuiltintothesystem

4 Y10Q1–Y12Q4


DDIPHASE2TASKS/ROLES TRACK


REQUIRED


WorkforceTransition


4112 Y10Q1–Y12Q4





o Thisincludesalltestanddevelopmentenvironments.

o Thisincludesalldisasterrecoveryenvironments.

o Includedwithinthis$2.5millionare3rdpartyinstallationcosts.

o Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport).


$1.25millionofinfrastructurerelatedsoftwarewillberequiredtosupportthenewsystem


o Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport).



o TheequipmentrequiredtosupportreplacementofFLAIRandCMSwithanERPsolutionisestimatedtorequire10dataracksofequipmentwithinanenterpriseclassdatacenter.

o Inindustry,theaveragecosttosupportaonedatarack–includingpower,coolingandfloorspace–is$1,500/month.

o Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–bothWANandInternet–fromthedatacenterhousingthenewsystembacktothe



StateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthfortheWANconnectionand$1,500/monthfortheinternetconnectivity.




ItwillrequirethesamenumberofoperationalsupportemployeestomanagethenewERPsystemasitdoesthecurrentFLAIRsystem(~60today)






AminorupgradeofthesystemwillbeperformedduringY5oftheprojectrequiringateamofapproximatelytenexternalcontractors(andtheirinternalcounterparts)toexecute

AmajorsystemupgradewillbeperformedinY8inconjunctionwiththeplanningforthePhase‐2implementationrequiringateamofapproximately12externalcontractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillberequiredduringY12oftheprojectrequiringateamofapproximatelytencontractors(andtheirassociatedinternalcounterparts)toexecute

1.2.5 OPTION4:REPLACEFLAIR,CMS,MFMPANDPEOPLEFIRSTWITHANERPSOLUTIONCOSTMODELASSUMPTIONS

1.2.5.1 OPTION4:PRE‐DDILABORASSUMPTIONS



PRE‐DDITASKS/ROLES DESCRIPTION




4(1)1135


WorkforceTransition


2 Y2Q1–Y2Q4



2 Y1Q2–Y2Q2


Establishappropriategovernancestructurestosupporttheproject 3 Y1Q1–Y2Q4



8 Y1Q2–Y2Q4

Procurements


3 Y1Q2–Y2Q4



ItwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterofFY14‐15tomanagetheprocurementofpre‐DDIresources





ThetablebelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsforOption4.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.

DDIPHASE1TASKS DESCRIPTIONEXTERNALRESOURCES

REQUIRED


Independentteamofcontractors assignedtoevaluatetheworkproductofthesystemintegratortominimizerisk.

2 Y3Q1–Y12Q2

ImplementERPforFLAIRandProcurement(Central&Departmental)‐Functional

Functionalteamresponsibleforvarioustasksincludingbusinessprocessimplementationanddocumentation,reportgeneration,functionaltestingandtestscriptdevelopment.

1610


ImplementERPforFLAIRandProcurement(Central&Departmental)‐Technical

Technicalimplementationteamresponsibleforinfrastructuredeployment,systemconfiguration,developmentofinterfaceswithotherapplicationsandanyrequiredsoftwarecustomizations.

128


ImplementInformationWarehouseinERP

Technicalteamresponsibleforthedevelopmentofanewinformationwarehouse,dataconversionandloadingandreportgeneration.

42


RollOutFLAIRERP,Procurement,andIW(Central&Departmental)toAgencies

CombinationoftechnicalandfunctionalresourcesrequiredtosupportthemigrationofagenciestothenewERPsystem.Specifictaskscouldincludesystemandsecurityconfiguration,interfacedevelopment,functionaltestingandtestscriptdevelopment,reapportiongenerationandsoftwarecustomization.

8 Y7Q1–Y9Q2

ImplementCMSinERP

CombinationoftechnicalandfunctionalresourcesfortheimplementationofexistingcashmanagementsystemfunctionswithinthenewERP.

31


RollOutCMSinERPtoAgencies

CombinationoftechnicalandfunctionalresourcesforthemigrationofagenciestothenewcashmanagementsystembuiltwithintheERP.

2 Y5Q1–Y6Q4

DesignHRandPayrollinERP

ResourcesrequiredtobuildtechnicalsystemrequirementsforaddingtheHRandPayrollfunctionstothenewERPsystem.ResourcesrequiredtodesignthetechnologyinfrastructurerequiredtosupportthisfunctioninthenewERPsystem.

8 Y8Q3–Y10Q2



REQUIRED

AddHRandPayrollDatatoInformationWarehouse

TechnicalteamresponsiblefortransferringnecessaryHRandPayrolldatatotheinformationwarehouse.

8 Y8Q3–Y10Q2

PilotHRandPayrollinERP

CombinationoftechnicalandfunctionalresourcesrequiredtosupportimplementationoftheHRandPayrollfunctionalityinthenewERPsystemforpilotagencies.Responsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetoissuesidentifiedduringthepilot.

4 Y10Q3–Y11Q2

RollOutHRandPayrolltoAgencies

Combinationoftechnicalandfunctionalresourcesrequiredtosupportrollouttoagencies.Responsibilitiesincludemakingcodeorbusinessprocessmodificationsinresponsetostandardpracticesduringthepilot.

4 Y11Q3–Y12Q2


ResourcerequiredtoensuresmoothintegrationofthenewFLAIRsystemwiththeotherFFMIScomponentsleftoutsidetheERPsystem.

1 Y5Q1–Y5Q4

PeopleFirstLiaison

ContractorresponsibleforovercomingthechallengesinterfacingPeopleFirstwithERPforemployeepayments,G/Ldata,etc.andtheeventualdisconnectofPeopleFirstfromcurrentCentralFLAIR.

1 Y3Q1–Y7Q4

MFMPLiaison

ContractorresponsibleforovercomingthechallengesinterfacingMFMPwithERPforvendorpayments,G/Ldata,etc.andtheeventualdisconnectofMFMPfromthecurrentCentralandDepartmentalFLAIR.

1 Y3Q1–Y7Q4

LAS/PBSLiaison

ContractorresponsibleforovercomingthechallengesinterfacingwithLAS/PBSforbudget,appropriation,encumbrancetrackingandtheeventualdisconnectofPBSfromthecurrentCentralFLAIR.

1 Y3Q1–Y7Q4


CombinationoftechnicalandfunctionalresourcesresponsibleforvarioustestactivitiesassociatedwiththeimplementationofthenewERP.Tasksmayincludeunittesting,functionaltesting,testscriptdevelopmentaswellasdataloading,conversionandvalidation.

6106



Teamresponsibletosupportandensureorganizationalacceptanceofbusinessprocessandtechnologysystemchanges.

8 Y3Q1–Y12Q2


Groupresponsibletoestablishandmaintainappropriategovernancestructurestosupporttheproject.

52




REQUIRED

WorkforceTransition

TeamresponsibletomonitorFLAIR/IWpilotandreportFLAIRbaselineperformancemetrics.FunctionalresourceswhoconductFLAIR/IWendusertrainingforagenciesandperformOCMandworkforcetransitiontasks.Alsoresponsibletoconductfinalsystemanduseracceptancetestingandsupportthe“Go/NoGo”decisionforrollout.

2 Y3Q1–Y12Q2


Teamresponsibleforcreationoftrainingmaterialsandotherdocumentation.Alsoresponsibleforteachinginternaltrainerswhowillperformend‐usertraining.

4444114

Y5Q1–Y8Q4Y9Q1–Y10Q4Y11Q1–Y11Q4Y12Q1–Y12Q4



ProjectTeamTraining

o Forthemaximumnumberofinternalemployeesontheprojectteam(~60),assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500/classwith1.5%annualinflationfactor)

End‐UserTraining

o Assumefourfull‐timetrainerswillberequiredtoteachthenewsysteminY5,andtwelveinY6‐Y12

o AssumefourconsultantswillberequiredtobuildtrainingmaterialsinY5–Y12




ThetablebelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsforOption4.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresentsexpectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnotincludethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.




REQUIRED

PlanandAssessResourcesdedicatedtodeterminingsystemenhancementrequirements 4 Y9Q1–Y10Q4


ResourcesrequiredtodeploytheenhancedfunctionalityinthenewERPsystem 8 Y10Q1–Y11Q4


Resourcesrequiredfor agencies to takeadvantageoftheenhancedfunctionalitybuiltintothesystem

4 Y11Q1‐Y12Q4



4115 Y9Q3–Y12Q4


Groupresponsibletoestablishandmaintainappropriategovernancestructurestosupporttheproject.

2 Y10Q1–Y12Q4












o Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)

o Therewillbeaone‐time20%infrastructuresoftwaresupportandmaintenancecontractcosttheyearthehardwareisrefreshed




o TheequipmentrequiredtosupportthereplacementofFLAIR,CMS,MFMP,andPeopleFirstwithanERPsolutionisestimatedtorequire14dataracksofequipmentwithinanenterpriseclassdatacenter.

o Inindustry,theaveragecosttosupportaonedatarack–includingpower,coolingandfloorspace–is$1,500/month.

o Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–bothWANandInternet–fromthedatacenterhousingthenewsystembacktotheStateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthfortheWANconnectionand$1,500/monthfortheinternetconnectivity.




ItwillrequirethesamenumberofoperationalsupportemployeestomanagethenewERPsystemasitdoesthecurrentFLAIRsystem(~60)






AminorupgradeofthesystemwillbeperformedduringY9oftheprojectrequiringateamofapproximately12externalcontractors(andtheirinternalcounterparts)toexecute

AmajorsystemupgraderequiredinY9oftheprojectrequiringateamofapproximately14externalcontractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillberequiredduringY12oftheprojectrequiringateamofapproximately12contractors(andtheirassociatedinternalcounterparts)toexecute


1.3 USERGUIDE:BUSINESSCASEMODELS

ThisguideprovidesanoverviewoftheExcelmodelusedtocreatethecostmodelsforeachoftheoptions.Itismeanttoprovidereaderswithanunderstandingofthemodel’sdesignandanexplanationoftheinputsforgeneratingthemodel’sresults.Changesshouldbemadewithcautionduetotheextensivelinkageofdatainthespreadsheet.Thevaluesinvariablefieldsfeedthecostmodelforthevariousprojectphases(Pre‐DDI,DDIPhase‐1,DDIPhase‐2,andupgrades)aswellasthe15–Yr.CostSummarygraphic.

Note1:Foranoverviewofthemodel’sconstruction,pleaserefertoExhibitA1‐14

Note2:CellreferencesrefertoOption3.Somesmalldiscrepanciesincelllocationmayexistbetweendifferentoptions

1.3.1 MISCELLANEOUSVARIABLEDEFINITIONS

ThefollowingExhibitprovidesthedefinitionsforvariablesusedthroughoutthebusinesscase.Thereissomevariationintherowsincludedbyoption,sotherowreferencemaychange,butthecellnamesremainconstant.

CELL#116 CELLNAME DEFINITIONS

LABORRATES

D7 InternalRate(Weekly)–FLAIR

HourlycostforStateofFloridaemployeesinvolvedwithsupportingtheexistingsolutionmultipliedbya40hourworkweek

D8 InternalRate(Weekly)–ERP

HourlycostforStateofFloridaemployeesinvolvedwithsupportingthenewsolutionmultipliedbya40hourworkweek

D9 ConsultantRate(Weekly)

Averagehourlyrateforconsultantsworkingonthenewsolutionmultipliedbya40hourworkweek

D10 ProjectManagementRate(Weekly)

Averagehourlyrateforexternalprojectmanagersworkingonthenewsolutionmultipliedbya40hourworkweek

FACILITIESRATES

D11 FacilitiesSpace:YearOneCostPerResource

Averagetotalcostperresourceforthefirstyeartheresourceisrolledontotheproject.Takesintoaccountpurchasesofnewfurniture,supplies,movingcosts,etc.

D12FacilitiesSpace:AdditionalCostPerResource(Yr.One)

Calculatedfield.Thestartup(non‐recurring)costforaresourcewhichcoverspurchaseofnewfurniture,movingcosts,etc.

116PleasenotethatthecellreferencesidentifiedinthissectioncorrespondtotheOption3model.Thecellnamesareconsistentbetweenthemodels,butthecolumnorrowreferencemayvaryslightlybetweenthefourmodels.



D13 FacilitiesSpace:CostPerResource

Averagefacilitycostperresource

D14 FacilitiesSpace:InternalResourcesCost

AverageadditionaloverheadcostforinternalStateresources

SYSTEMUSERS

D15 ERPSystemAdministrators

Estimatednumberofsystemsadministratorsforthenewsystem

D16 ERPAdminDeltaCalculatedfield.NumberofNEWsystemadministratorsaddedeachyear

D17 ERPSystemUsers EstimatednumberofusersoftheERPsystemD18 ERPSystemUsers(NEW) Calculatedfield.NumberofnewuserseachyearD19 ERPCMSUsers EstimatednumberofERPCMSusers

D20 ERPCMSUsersDeltaCalculatedfield.NumberofNEWERPCMSusersaddedeachyear

SYSTEMSUPPORT

D21 FLAIROperationalSupport

Estimatednumberofoperationalresourcesrequiredtosupporttheexistingsystem

D22 FLAIRTechnicalSupportEstimatednumberoftechnicalresourcesrequiredtosupporttheexistingsystem

D23 CMSOperationalSupportEstimatednumberofresourcesrequiredtosupporttheexistingCMSsystem

D24 TotalSupportResources–ExistingSystems

Calculatedfield.SumofestimatednumberofresourcesrequiredforFLAIROperationalSupport,FLAIRTechnicalSupport,andCMSOperationalSupport

D25 ERPOperationalSupport Estimatednumberofoperationalresourcesrequiredtosupportthenewsystem

D26 ERPTechnicalSupportEstimatednumberofresourcesrequiredtosupportthenewsystem

D27 ERPCMSOperationalSupport

EstimatednumberofresourcesrequiredtosupporttheERPCMSfunctionsinthenewsystem

D28 TotalSupportResources–ERP

Calculatedfield.SumofestimatednumberofresourcesrequiredforERPOperationalSupport,ERPTechnicalSupport,andERPCMSOperationalSupport

PROJECTTEAM

D29 InternalProjectTeam(PersonYears)

TotalinternalresourcesrequiredforoverlappingprojectworkstreamsduringthedifferentprojectphasesareinlinewiththoseinputsfromtheVariables:ResourcesSection.(i.e.ifaresourceisonlyneededfor½year,thisrowwouldshow0.5)

D30 ExternalProjectTeam(PersonYears)

Calculatedfield.Estimatednumberofrequiredconsultantprojectteammembers

D31 ExternalProjectManagers(PersonYears)

Calculatedfield.Estimatednumberofoversightresourcesrequiredforfunctionalconsultants

D32 TotalImplementationEffort(PersonYears)

Calculatedfield.SumofInternalProjectTeammembers,ExternalProjectTeammembersandProjectManagers



STAFFPLANNING

D33 TotalInternalResources(Roles)

Thetotalnumberofindividualstaffrolesidentified.(i.e.ifaresourceisonlyneededfor½year,thisrowwouldshowafullinternalresourceregardlessofthefractionofuse)

D34ProjectTeamMembersBorrowedFromExistingStaff

Blankfield.Canbeupdated withnumberofinternalprojectteammemberstobepulledfromexistingpositions

D35 TotalOPSResourcesBlankfield.Canbeupdated withnumberofOPSstafftobeusedfortheprojectteam

D36 AdditionalPersonYearsRequired

Calculatedfield.SumsthetotalresourcesrequiredlessthenumberofOPSResources

D37 BaselineSupportTeamEffort(PersonYears)

ThebaselineeffortintechnicalandoperationalresourcesrequiredtosupporttheFLAIRsystem

D38 TotalSupportTeamEffort(PersonYears)

ThetotaleffortintechnicalandoperationresourcesrequiredtosupportFLAIRandthenewsystemasbothareinuse

D39 SupportDeltaResourceeffortrequiredforsupportofbothsystemsoverBaselineSupportTeamEffort

D40 SupportDelta(NewResources)

AnnualincrementalnewresourceeffortrequiredtosupportbothsystemsovertheBaselineSupportTeamSize

D41 Internal(NotBorrowed) Calculatedfield.InternalProjectTeamlessProjectTeamMembersBorrowedFromExistingStaff

D42 Internal(NotBorrowed)‐New

IncrementalInternal(NotBorrowed)ProjectTeameffortrequiredfromthepreviousyear

D43 ExternalTotal Calculatedfield.SumofExternalProjectTeamandExternalProjectManagers

D44 ExternalTotal‐NewIncrementalExternalProjectTeamresourcerequiredfromthepreviousyear

TRAINING

D45 TechnicalTrainingClassCost CostofonedayoftechnicalERPsoftware

D46TechnicalClassesPerProjectTeamMemberPerYear

Numberofclassesrequiredbyeachtechnicalteammembereachyear

D47WeeksofTrainingPerNon‐TechnicalUserPerYear

Numberofweeksoftrainingrequiredeachyearforusersofthenewsystem

D48WeeksofTrainingPerNon‐TechnicalUserPerYear(NEW)

Numberofweeksoftrainingrequiredeachyearforusersofthenewsystemwhoarenewresources

SOFTWARELICENSES

D49 AverageUserLicense:ERP

AveragecostperlicenseforcoreERPfunctionality

D50 AverageCMSLicense:ERP

AveragecostperlicensefortheCMSfunctionalityinERP



D51 TotalSoftwareLicenseFees

Calculatedfield.Sumofthelicensecostabove

ExhibitA1‐13:MiscellaneousVariableDefinitions

1.3.2 VARIABLES:RESOURCES(ROWS52–150)

Thissectionofassumptionsprescribesthenumberofresourcesrequiredforeachworkstreamatdifferentphasesoftheproject.Thesenumbersarelinkedtocostcalculationsthroughoutthemodel.Makingalterationstothesenumberswillchangethetotalcostoftheoptionandimpactthedifferentcostbreakdownsthathavebeenprovidedinthemodel.

1.3.3 VARIABLES:WEEKS(ROWS151–250)

Thissectionofassumptionsdisplaysthenumberofweeksduringthespecifiedyearduringwhichallprojectresourceswillbeengaged.Internalandexternalprojectresourceswillbeappliedacrossthevariousworkstreamsofthedifferentprojectphases.Thesenumbersarelinkedtoresourcecostcalculationsthroughoutthemodel.Makingalterationstothesenumberswillchangethetotalcostoftheoptionandimpactthecostbreakdownsprovidedinthemodel.

1.3.4 REQUIREDPURCHASES(ROWS251–258)

Thissectionoutlinestherequiredpurchasesinagivenyearfortheoperationofthenewsystem.Thecomponentsofthiscostare:

SoftwareLicenses:FLAIRinERP–CalculatedbymultiplyingtheERPUsersDeltadataofaspecificyear,whichisthenumberofnewlicensepurchasesrequiredforthatyear,bytheAverageUserLicense:ERPdataforthesameyear.

SoftwareLicenses:CMSinERP–CalculatedbymultiplyingtheERPCMSUsersDeltadataofaspecificyear,whichisthenumberofnewlicensepurchasesrequiredforthatyear,bytheAverageCMSLicense:ERPdataforthesameyear.

ComputerHardware–Calculatedbasedonassumptions.

SupportingInfrastructureApplications–Calculatedbasedonassumptions.

DataCenterFacilitiesandEquipment–Calculatedbasedonassumptions.

1.3.5 COSTTAGGING(COLUMNE)

HiddeninColumnE,therearemanyrowstaggedwithanidentifiertoindicatewhichcostbuckettoaccumulatecostsrelatedtoaparticularactivity.Thecostbucketsare:

Implement–Other

Implement–External


Implement–Internal

Maintain–FLAIR

Maintain–ERP

Upgrades

Thesecostbucketsarethentotaledforeachyeartocalculatethetotalannualcost.Theannualcostsofeachcostbucketitemandthetotalannualcostareplottedonthe15–Yr.CostSummarygraph.Thepointsonthesegraphsarelinkedwiththedatainthemodel.Makingchangestodatainthemodelwillresultinchangestothe15–Yr.Costsummarygraph.

1.3.6 INFLATIONRATES

InRow3,theinflationratesforbothinternalandexternalresourcecostsareidentified.Themodelcurrentlyassumesa1.5%inflationrateforinternalresourcesanda1.5%inflationrateforexternalresourcesandotherrecurringcosts.Toaltercoststoreflectdifferentinflationrates,simplymakethechangestocellI3fortheinternalrateand/orJ3fortheexternalrate.

HiddeninColumnF,thereisamultiplierforthedifferinginflationratesappliedtointernalandexternalresourcecosts.ItislinkedtoCellsI3andJ3,andisusedfortheinflationcalculationofapplicablecosts.

1.3.7 OPTIONDESCRIPTION

TheExcelbasedmodelsusedtocreatecostestimatesforeachoftheoptionsisdepictedbelow,Exhibit14,withallrowsunhidden.Explanationsforeachcomponentofthemodelaregiventoaidauserinmakingadjustmentstothemodelasassumptionschange.

HiddensectionsofthemodelarecoloredinGREY


ExhibitA1‐14:ModelOverview

1.3.8 SCHEDULEIV‐BCROSSWALK

ForOption3,hiddeninColumnF,theassociatedScheduleIV‐BterminologyislabeledfortheapplicablecostcomponentstoalignwiththeScheduleIV‐Brequirements.

CostcomponentsofthemodelaremappedtooneofthefollowingtheScheduleIV‐Bcostcomponents:

A‐1.a.StateFTEs(Salaries&Benefits)

Assumptionsinclude:InternalandexternalemployeecostsFacilitiesCostsNumberofnewsystemusersNumberofresourcesrequiredforFLAIRandnewERPtechnicalandoperationalsupportProjectteamsize(Internal,External,OPS)TrainingcostsNumberofrequiredsoftwarelicensesandassociatedcosts

Assumptionsinclude:NumberofinternalandexternalresourcesrequiredforthedifferentcomponentsofthePre‐DDI,DDI,DDI,andUpgradephasesbyyear

Assumptionsinclude:Numberofweeksperyearthatallinternalandexternalresourceswillbeengaged

Detailsthecostsperyearforsoftwarelicenses,hardware,supportinginfrastructureapplications,anddatacenterfacilitiesandequipment

DetailsthecostsperyearforallcomponentsofDDIPhase2

Detailsthecostsperyearforrequiredsystemupgrades

Detailsthecostsperyearforongoingsystemsupport

TOTALCumulativeCostsDetailscostsperyearwiththefollowingbreakdown:

Implement– OtherImplement– ExternalImplement– InternalImplement– TotalMaintain– FLAIRMaintain– COTSUpgrades

Detailscostsperyearfor:MaintainingFLAIRw/inflationAdditionalRequiredExpendituresforProject

UsingtheSUMIFcommand,costswiththeappropriatetagsaretotaledhereandusedtocreatethegraphbelow

DetailsthecostsperyearforallcomponentsofthePre‐DDIphase

DetailsthecostsperyearforallcomponentsofDDIPhase1

InflationRate Variablethatsetstherateatwhichwagesincreaseannually

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15


A‐1.b.StateFTEs(#FTEs)

A‐2.a.OPSFTEs(Salaries)

A‐2.b.OPSFTEs(#FTEs)

A‐3.a.StaffAugmentation(ContractCost)

A‐3.b.StaffAugmentation(#ofContractFTEs)

B.DataProcessing–Costs

B‐1.Hardware

B‐2.Software

B‐3.Other

C.ExternalServiceProvider–Costs

C‐1.ConsultantServices

C‐2.Maintenance&SupportServices

C‐3.Network/HostingServices

C‐4.DataCommunicationsServices

C‐5.Other:Non‐SIConsulting

D.Plant&Facility–Costs(includingPDCservices)

E.Others–Costs

E‐1.Training

E‐2.Travel

E‐3.Other

1.3.9 EXISTING/NEW

ForOption3,hiddeninColumnG,thecross‐walkedcostcomponentsarelabeledasexistingornewcoststoalignwiththeScheduleIV‐Brequirements.

FLORIDADEPARTMENTOFFINANCIALSERVICES

FLAIRSTUDY

ATTACHMENT2:AGENCYBUSINESSSYSTEMINVENTORY

Date: 4/09/2014Version: 100