Modernizing Legacy in the Public Sector

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Modernizing Legacy in the Public Sector
Ted Venema – Director, Modernization Solutions
  Oracle Modernization
• We are a team of Modernization SMEs available to help you – at no charge
   • We understand modernization and have extensive modernization experience in Public
     Sector
   • We help you develop your modernization roadmap
   • We provide product independent:
      • Modernization Discoveries (conf calls, half day sessions) and Insights (more formal
         2 day sessions). Examples include:
          • State: New Mexico, Colorado, Delaware, California, Minnesota
          • Other PS: Hennepin County, Miami Dade County, Dade County
   • We know the partner eco-system that provides the means to get there
   • We understand the need to modernize incrementally to avoid project risk
   • We bring together shared experiences from other states

• Manage the Oracle Modernization Alliance (www.oracle.com/goto/oma)
   • System Integrators
      • Work with them on their Modernization Practices
   • Specialty modernization vendors
      • Advise you on who to check out
   • Advise on product vendors that add value to provide a complete Modernization
     Architecture
  Why Governments Need to Modernize
       Business factors are forcing public sector to modernize!

• To increase agility
   • Slow better address ongoing legislative changes
   • To improve service and access for the general public – Citizen at the Center
   • To improve and automate interaction with other other government departments, external
     agencies, and other levels of government

• To reduce risk
   •   Eliminate complex environment created through years of island development
   •   Eliminate reliance on critical legacy skills in an aging workforce that is retiring soon
   •   Eliminate proprietary infrastructure – encourage re-use and “plug and play”
   •   Eliminate reliance on unsupported products and technologies

• To decrease cost
   • Eliminate legacy software on proprietary O/S and expensive hardware
   • Reduce massive operational and maintenance costs (80% of budget)
   • Avoid need for high cost legacy skills and “hire back” consultants
  How Did We Get Here?
• Not aligning IT with Business
    •   Worry about data models instead of process models
    •   Monolithic solutions that are hard to change.
    •   Not externalizing those things that change most – legislation

• The RFP Process
    •   Lack of balance in function (users) and architecture (IT)
    •   One of everything
    •   Bad short term vs. long term cost evaluation


• Funding issues
    •   Color of money created strange application separation

• Misunderstanding of COTS and COTS Applications
    •   COTS is excellent, but modified COTS (MOTS) may be the worst way to go
    •   Just because you can buy it doesn’t make it good
         • Buying someone else’s way of doing things may not fit
         • Buying someone else’s poor or old design

• Over-outsourcing - attempt to outsource responsibility for key components
    •   Architecture
    •   Re-Use/Shared Services
    •   Technology choices
        3 Main Modernization Requirements

                                                                       3) The Means to Get There

                                          VMS
                    ADSO
          Natural                       Z/OS
                                                    OS/400
                                             TPM
                CSP
                                                                                                        Portals                    Work Flow           Orchestration
      COBOL
                        Top Secret                  IMS/DB

                 PL/1                                      ISAM/VSAM
“C”                                  RACF
                                                RMS




                                                                                   Intelligence
                                                                                                               Legacy          COTS       MOTS         Re-Arch




                                                                                                                                                                              Engine
                                                                                                                                                                              Rules
          PowerBuilder
                               Legacy




                                                                                   Business
 RPG




                                                                                                                Content




                                                                                                                                Content



                                                                                                                                           Content



                                                                                                                                                         Content
          ISPF                 Datacom
                                      IDMS           CA/7




                                                                                   Management
                                 Adabas




                                                                                                                                                                              Engine
                                                                                                                                                                              Integration
                                                                                   Identity
                                                     IMS/DC
                        3270
        VT100                     JES                CICS
                                                                                                                          Shared Content Services
                                                   LU6.2
                                        APPC
                                                                                                  Content                    Shared Technology                     Database
                                                                                                  Management                      Services


                                                                                       1) Open Target                                                2) Proper
                                                                                        Architecture                                                 Content
Public Sector Modernized Architecture


            Web                                       Portals
                           User Interface
              3270            Identity Mgmt            Mobile


             Workflow           Security          Orchestration
                              Process
           Process Rules                   Agency-to Agency

                                                  DMV
              Tax
                             Function
                  HHS                                 Labor


           Relational                      Non-Relational
                                Data              Unstructured
            Documents
                             GIS

           Computers                           Networks
                           Hardware/OS
         Operating Systems                      Security
  Why Architecture is Important
• Needed as the basis for any cost savings
   • Cost savings through shared services re-use
      • Of purchased COTS Technology
      • Of purchased COTS or MOTS Content
      • Of re-architected Content
   • Cost savings though business/IT alignment
      • Better citizen service (web driven, flexible access, etc.)
      • Faster reaction to legislative change (externalizing rules, workflow, etc.)

• Needed as the basis for any consolidation goals
   • Lack of common architecture caused the current problems
   • Stop making the problem worse

• Needed as the foundation for shared services
   • Grid Computing
   • Cloud Computing

• Needed to provide a way to “stage” the way to savings

• Architecture is NOT about J2EE or .net – it IS about SOA and shared services
   • Therefore also a key to consolidation efforts
 Example – State of Colorado

• Is mandated by legislation to consolidate and
  has developed a “high level” plan and basic architecture
   • Savings increase as you move “up the architecture stack”
   • Gets harder as you move “up the architecture stack”


• Issued RFI for “shared services” environment
   • Recognize that shared services are the root of cost reduction and
     use of modern environments such as grid and cloud computing
   • Shared services further expanding on architecture needs
   • Recognize that shared services are not just about data


• Has worked with Oracle on developing a roadmap for their
  modernizing their extensive NATURAL/ADABAS environment
    Modernizing Public Sector Content


 COTS Technology                                                                                                             COTS Content is
   Can Replace                                                                                                              Superb – provided
  Legacy Content                                                                                                            it is “off-the-shelf”




                                          Portals                    Work Flow         Orchestration

                                                                                                                                Be careful with
 Shared services                                                                                                                MOTS – it isn’t
 save cost – but                                                                                                               COTS and can be
                     Intelligence




                                                 Legacy          COTS       MOTS       Re-Arch




                                                                                                              Engine
                                                                                                              Rules
 only if you have                                                                                                             the most expensive
                     Business




      them!                                                                                                                       alternative
                                                  Content




                                                                  Content



                                                                             Content



                                                                                         Content
                     Management




                                                                                                              Engine
                                                                                                              Integration
                     Identity




                                                                                                                              Re-Architecting is
                                                                                                                                not “Rip and
   Modernization                                                                                                              Replace” and less
Environment needs                                           Shared Content Services
                                                                                                                               costly than you
 to include Legacy                                                                                                                  think
                                    Content                    Shared Technology                   Database
                                    Management                      Services
 Three Main Things to Consider for
 Content Replacement
• What you have
  • Its driving the business today
  • It can’t be “left behind”


• What architecture you need to save money
  • Technical consolidation, cloud computing, etc.
  • Process and SOA architecture for ease of change


• What functionality you need
  • Compared to what you have
COTS Driven Modernization
                                            3) Replace/Re-factor
                                                 content
    2) Recover content and needs


                    Legacy Processes


                    Legacy Dialogs


Legacy              Legacy Online


                    Legacy Batch


                    Legacy Data Model




                                        1) Define New Architecture (wide)
 COTS Driven Modernization Benefits

• Understand what you have – “no requirement left behind”

• Maximize the value of COTS Technology and COTS Content
  with the right architecture and shared services

• Make the right content choices

• Evaluate RFPs in the right context
   • Cover functionality
   • Address architecture
   • Don’t make the problem worse
   Nova Scotia Registry of Motor Vehicles
•NS RMV provides vehicle registrations,
drivers’ licenses, and related services
via 19 offices across the province.
CHALLENGES/OPPORTUNITIES:
• Comply with the Canadian Drivers’
  License Act (CDLA) which is equivalent
                                           Legacy Profile:                 Completely new
  to the US Real ID Act in requirements     • 2.4m lines
                                           RESULTS of Natural code          design based on SOA
• Provide increased self-serve               • 4,100+ green screens
  capabilities                               • 1,100 legacy reports        Used COTS properly
• Provide single driver record               • 332 batch jobs
  visualization including systems such
  as alcohol conviction tracking             • 100+ external interfaces
• Modernize business processes and           • $330K/mo operating cost
  technical environment
  (NATURAL/ADABAS, COBOL, green                                           Java/J2EE Outcome:
  screen moved to Java/Oracle)                                             •Single Driver Record
• Reduce Cost
                                            60% cost savings              • 450K LOC Java

SOLUTIONS                                                                  •190K LOC XHTML
                                            Half the cost of              • 650 screens (~16%)
• Oracle Modernization Advising
                                             “MOTS”                        • 490 BI reports
• Tool Driven Re-Architecting: MAKE
                                                                           • 0 batch jobs
  Technologies
                                                                           • 100+ external interfaces
• 2 year project with 2 year payback
 Summary
• Modernization is something every public sector organization needs to
  be concerned about

   • You can’t successfully modernize what you don’t understand – assessment is
     important

   • There is a cost to doing nothing

• What to consider?

   • An architecture based on shared services is necessary – start now

   • COTS is about both technology and content

   • Evaluate closely the cost/benefits of MOTS

   • COTS Driven Modernization is an approach that works well for Public Sector
       Thank You!

                            Q
                            &A
For more information, contact:   joe.mudroch@oracle.com (314-984-5312)
                                 ted.venema@oracle.com (604-637-4460)
                                 www.oracle.com/goto/modernization