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									Enterprise Applications
   Program Review
   Modernizing the Commonwealth’s
 Administrative Processes and Systems

              July 19, 2007

             Executive Summary
At the April 2007 ITIB, the following questions
  were asked:

• What is the vision for EA?

• What revenues will be spent after the planning
  dollars are expended?

• What value have you achieved so far?

        What is the Vision for EA?
• Program (based on projects) to provide the
  Commonwealth with modern, effective and efficient
  business processes and systems

• Data Centric vice Application Centric
   – Near term focus on Financials business processes
      • Performance Budgeting
      • Financial Management

   – Common Reporting tools
   – Data Consolidation

• Long term, continuous upgrades of the systems

Enterprise Applications Objective

        CoVA Enterprise Programs
                           (Future State)


      Service         Service           Service          Service
      Center          Center            Center           Center

                  CoVA Business Applications
                     Center of Excellence
      (Functional and Technical Expertise within the Commonwealth)

           Contractor support to supplement CoVA team

Benefits Streams will support the Life Cycle Costs of the EA Program
       What Revenues will be Spent after the
         Planning Dollars are Expended?
Benefits / Revenue Stream
• Stand alone projects that can be accomplished within the
       Working Capital Advance (Line of Credit)
   • Projects that can spiral to the larger Enterprise
           • Possibilities: Budgeting, reporting, portals
           • Projects that will lower the FM ERP risk

• Long term maintenance of the EA program
General Assembly
• Complete FM ERP planning phase in April 2008
   • No scope change, complete PMD requirements for entrance
     into development phase
   • Coincide with the consideration of the 2008-2010 Biannual Budget
   • Determine if sufficient dollars are available for successful development
                            EA Projects and Benefits Timeline
 Jan                       Jul           Oct           Jan                  Apr         Jun                            Jan                        Jun
 2007                      2007          2007          2008                 2008        2008                           2009                       2009

                                                   Recoveries                        Recoveries                      Recoveries
                                                   Checkpoint                        Checkpoint                      Checkpoint

                                                       GA in Session

                          Jul            Oct            Jan                 Apr
                          2007           2007           2008                2008                         Future TBD Milestones

                                      Planning Phase                                           Projects Development Phase

                                           costs     Business           Benefits
                                                      Cases             Projects
                                                      Signed           Authorized

             Jul 07 ITIB                           OCT 07 ITIB                                                                    Apr 08 ITIB
                                                                                              JAN 08 ITIB
         Vision / Strategy                  Projects priorities and costs                                                         Spiral Status
                                                                                        Authorization for projects
       High level Concepts                      Project Milestones
                                                                                    within Working Capital Advance
 Authorization to continue planning               Planning Status
                                        FM ERP Planning Timeline

                     General Assembly - $11M for EA Planning                              General Assembly funding for FM ERP Development

        FY07 - $5.5M                                FY08 - $5.5M

Dec                        Jul                             Jan                          Jun                        Dec                           Jun
2006                       2007                            2008                         2008                       2008                          2009
                                                          GA in Session

                            Jul            Oct             Jan             Apr                                     Dec                           Jun
 Jan                                                                                                               2008
                            2007           2007            2008            2008                                                                  2009

                                   Planning Phase                                                     FM ERP Development Phase

                                                               FM ERP
                 SW Integrator             3rd Party             costs
                 RFP proposals               Cost             fine tuned
                    Out / In               Estimate                          FM ERP       FM ERP
                                                                             Planning    Authorized

               Jul 07 ITIB                                                                                              Apr 08 ITIB
           Vision / Strategy                         OCT 07 ITIB
                                                                                    JAN 08 ITIB                Funds available for development
                 Status                           3rd party Estimate
                                                                                  Planning Status                  FM ERP authorization
   Authorization to continue planning              Planning Status
         What value have you achieved so far?

  Business Processes
  Planning Framework          Commonwealth

  • Requirements
  • Process Improvements
  • Organizational changes

                                      FY07          FY08

                                       Technical Planning
                                       • Conversion
                                       • Interfaces
                                       • Data Management
FY07                         FY08      • Infrastructure

                                 FY07 EA Planning
                     (ITIB Approval for Planning to June 30, 2007)

Functional                                          Change Management
    8 Future State Business Process documents       •   Change Management Plan
•     To-be business process flows                  •   Stakeholders matrix development
•     Detailed business requirements
                                                    •   Change Impact Survey
•     Draft Business Process Improvements
•     Procurement Assessment / Industry Best        •   Facilitator training for functional validation
      Practices                                     •   Implementation training strategy

  Enterprise Wide Participation
•  30 Core team members from across the state       Project Management Office
•  43 Agencies participating in validation          •   Project plan
   workshops                                        •   Project management methodology
•  Over 120 agency staff validation future state
   documents via workshops                          •   Deliverables/work products repository
                                                    •   Risk management and issue resolution process
•    Current state systems architecture             Data Gathering
•    Current state interfaces (integration)
                                                    •   Lessons learned from our research
•    High level conversion requirements
•    Future State Architecture (conceptual model)   •   RFP process
•    Business Intelligence model / approach         •   Agency interactions and requirements
       –   Database, data warehouse & data store    •   Agency phasing data
       –   Reporting
•    Test Strategy
                                                                                                     AR Example
                                   FY08 EA Planning
Functional                                                Change Management and Communications
•   QA 8 Future State Business Process document           •   Policy and Legislative Actions
•   QA Agency data and reporting requirements             •   Continued stakeholder management through
•   Enterprise wide participation                             leadership action plans
•   Business Process Improvements Impacts                 •   Change management preparation and training
•   FM SW / Implementation RFP evaluations                •   Solutions training plan through multiple delivery
•   Data Cataloging and Reporting Plan                        means--classroom, self-study, Web
                                                          •   Populate and maintain an informative and
Technical                                                     interactive program Web site
•   Future state technical architecture                   •   Communication outreach efforts
•   Future state application architecture, requirements
    & costs                                               Project Management Office
•   Future state integration architecture, requirements
    & costs                                               •   FM SW / Implementation RFP execution
•   Future state business intelligence architecture,      •   Performance Budget implementation plan
    requirements & costs                                  •   Risk and Issues Management
      – Database, data warehouse & data store             •   Work Plan Management
      – Reporting
•   Future state conversion requirements/costs
                                                          Data Gathering
•   Technical training plan
                                                          •   Agency interactions and requirements
•   Legacy disposition plan
                                                          •   Lessons learned research
               Request Approval of FY08 Budget

                                      Approved Budget    New Budget      Total Budget        Administrative   (Financials)
                                          to Date         Request          Request              Budget           Budget

Personnel                                      906,894        400,406            1,307,300
       EA Project Management Office            256,894         40,092              296,986           40,092
                 CoVA Project Team             650,000        360,314            1,010,314                         360,314
Operational Costs                               15,000         29,093               44,093                          29,093
Other                                            7,881          3,200               11,081                           3,200
Contracts                                    5,830,949      3,370,077            9,201,026                       3,370,077
Office Supplies                                  8,000          8,500               16,500                           8,500
Travel/Business Meals                            3,000          2,000                5,000                           2,000
PMO Contingency                                      0        415,000              415,000          415,000
Total:                                       6,771,724      4,228,276           11,000,000

Budgets                                                                                            455,092      3,773,184

Budget Request Total                                                                                           4,228,276

                             FY07 Budget                 Detailed FY08 Budget                                                Motion

Application Centric to Data Centric

         data                                  App
        App                                             Reports
data             data
       App App          Moving to   data

                                     App CoVA Data
   App App                                                App   data

  data                                     Reports

 Application                                   Data
   Centric                                    Centric


                                         Human                Supply
             Financials                                                  Administration
                                        Resources             Chain

 Financial                Performance
Management                 Budgeting

                                                               Current Effort
               Phase 1
                                                   • All Agencies
                                               •Financial Management Phase 1
               Phase 2
                                                   • All CARS users
                                                     • VITA, VEC, VDOT, DGS,DOA
            Future State Documents

• Functional blue prints for the future state
   – Define improved business processes
   – Outline organizational structure to support the processes
   – Identify functional software solution requirements

                   Functional Business Areas
         Performance Budgeting        Accounts Receivable
         General Accounting           Purchasing
         Cost Accounting              Fixed Assets
         Accounts Payable             Time and Attendance

            Future State Documents
• Guiding principles used in the development
   – Incorporate best business practices

   – Look for opportunities to gain efficiency and effectiveness

   – Ensure business needs are met

   – Challenge “status quo”
       • Ensure adequate internal controls remain in place

   – Take advantage of technology
       • Workflow
       • Security
       • Consolidation opportunities

                 Future State Documents
• Validation (Internal)
      –   Build in direction/vision from the Commonwealth business owners
      –   Obtain input/verification from the Commonwealth subject matter experts
      –   Incorporate feedback from consulting experts
      –   Ensure process integration across business areas
      –   Employ lessons learned from other similar initiatives
      –   Reconcile against proven “best business practices”

• Validation (External)
      –   The Hackett Group (Best Practices)
      –   Forrester (Procurement (eVA) study on integration)
      –   Gartner (Total Cost Ownership, Maintenance strategies)
      –   Other States Lessons Learned
           • Ohio, Florida, Pennsylvania, New York, Tennessee
      – North Highland (IV&V)

  .            Validation is a continuous process!!!
       FY 08 Functional Planning Areas
                                      Enterprise Outreach
                                       July – October 07

                                           April – May 07

                                           Core Team
                                       January – March 07
                                     DOA    VEC    DHRM   APA      Judicial
               Legislative           DPB    VDOT   VITA   DGS
                                        33 Participants
                                       Across 7 agencies

                                        120 Participants
                                       Across 43 agencies

                             Remaining Executive Branch Agencies

• Refine Future State Business Process documents
   – Enterprise wide participation
• FM SW / Implementation RFP evaluations
• Business Process Improvements Impacts
• Data Cataloging and Reporting Plan                                          19
              COTS Procurement
• RFP 2007-17 cancelled on May 25
  – Procurement Scope Change
     • Team agreed with VITA Supply Chain Management (SCM)
       that expanding the scope to incorporate Fit/Gap and other
       related activity would be in the Commonwealth’s best interest

• Currently discussions underway with VITA SCM
  on ERP RFP way forward
  – Financials application (software and implementation)
  – Options

             Current Technical State

• Manual, inefficient and
  redundant business            Financial

• Approaching end-of-life                                         CARS

  supportability                                                                     FAACS

• Limited (or no) business         Metafile (Client)
                                   Reportline (Web)

  intelligence (reporting)         Mantissa (Mainframe)                  FINDS

  capability                    Budgeting

• Lacks enterprise capability       Budget Wise

  (workflow, integration,           (Query Tool)

                                                          ProBud    FATS
  analysis)                                                        Budget Dev.
                                    Web Bears                                    Expend Wise

• Application Centric                                                            (Query / Reporting Tool)

                  Current State
       Financial Management and Budget
• 409 Interfaces
   – 261 involve manual intervention (64%)
   – 148 fully automated (36%)
• 316 are “flat files”
• Over 80 identified as unnecessary with an ERP (and
• Many interfaces are in support of a reporting requirement
• Current transfer methods include email, FTP, magnetic
  tape, database to database
• Current file formats include text, Excel, Access, paper

               Current State
      Financial Management Reports
• Tools in use today vary by agency, but include:
   – EasyTrieve                  - MS Analytical Service
   – nVision                     - Crystal
   – Mantissa                    - Viador
   – Cognos                      - Business Objects
   – SQR

• Requirements gathering underway

• Analysis in August

               Current State
 Financial Management and Budgeting Tools
                              (DOA, DPB, DGS, VEC, VDOT & VITA )
 DBMS                          Total                           Operating System                 Total
                                                               MS Windows Server                  13
 MS SQL Server                   12
                                                               Mainframe                            9
 Oracle                          10
                                                               MS Windows Desktop                   6
 VSAM                              5
                                                               Unix                                 3
 ADABAS                            4
                                                               AIX                                  1
 Oracle 7.x                        1
                                                               Sun Solaris                          1
 Grand Total                     32
                                                               Grand Total                        33

Reporting                      Total                             D&R Environment            Total
EasyTrieve                         3                             COBOL                          7
nVision                            3                             ColdFusion                     6
Crystal                            4
                                   1                             MS Access                      6
Mantissa                           2                             PeopleTools                    5
MS Analytical Services             1                             Natural                        2
Viador                             1                             Oracle Forms                   2
Business Objects                   1                             VisualBasic                    2
Cognos                             1                             .Net/C#                        1
SQR                                2
                                                                 Powerbuilder                   1
Grand Total                      15
                                                                 PeopleTools 6.1                1
                                                                 Grand Total                  33

              Denotes “transitional / contained” technology*

              Denotes “obsolescent / rejected” technology*           * ITRM Standard EA225-00           24
                 Future Technical State

• Standardization –
  reduced reporting and       Transactional
  analysis costs              Engine

• Increased control – lower                  DB
  operational expenses
                                                   BI Tool        BI Tool

• Improved service
  delivery – increases        Phase I&II
                                                  Data Store
                                                               Data Warehouse
  customer satisfaction         Flat Files
                                  Other DBs

• Data Centric

  Current vs Future State Comparison

                         Current   Future
Enterprise Service Bus
Business Intelligence
Data warehouse
Content Management
Integrated Data View
Operational Data store

Technical Architecture: Conceptual Model Diagram

                                                                      Enterprise Security

                       Presentation                                                                                 Internal/External
                                                                                Identity            Content
                                                                                                                       Systems and
                                                                               Management          Management         Data Sources
                                            Process Server


                                                                                                                                                                                  Business Transformation Methodologies
                                      Business Process Integration                            Search
                                                                                     Infrastructure Services

                                                                                                                                        Development Framework

                                                                                                                                                                Platform, Tools
                                          PB       FM                                                                  App’s
                                                              SCM                        BI Tool
                          ERP                                                                             Tool
                                        ADMIN       HR
End                                                                                       Business Intelligence        External
                                                         ERP                                                          Interfaces
                         Self                                        Enterprise Service Bus
                                                                       Integrated Data View

                                                                                     Business Intelligence Data       External
                                            Enterprise Data
                                                                                            Repository               Data Sources

                                                                        System Management

                                                               Hardware and Software Platform                                                                                                                  27
Technical Architecture: Implementation Model Diagram

                                                   Corporate Data Center
                                       Integration Broker                 Enterprise Servers
                         Web Servers

                                           Business                                                              Data Warehouse
                                            Rules                                                 PB
                           Web                                                        Servers   Servers

                                                                                                              Enterprise     Report
                                       Policy                App            Batch                              Servers       Servers
        User                                                Servers        Servers
      Interface                        Server


                          Border                                                                                            Auto
                                                                                                          Real Time         Tape
                          Security          Aggregation
                                                                      Enterprise                           Server          Storage
Disaster Recovery Site                                                  Data
                                            Root Cause
      “Hot” Site
                                        System Monitoring
                                                                  Data Storage                       Backup and Recovery
                     Application vs. Data Centric
   Old – Application Centric
                                                                                               New – Data Centric
Management                                                                ERP



   Metafile (Client)
   Reportline (Web)
                                                                                                     BI Tool        BI Tool
   Mantissa (Mainframe)                FINDS

                                                                                                    Data Store
                                                                            Phase II                             Data Warehouse
    Budget Wise                                                              Flat Files
    (Query Tool)
                                                                              Other DBs
                       ProBud     FATS
                                 Budget Dev.
   Web Bears                                   Expend Wise
                                               (Query / Reporting Tool)

         FY 07 Change Management and
         Communications Planning Area
• Change Management Plan
   –   Change Impact Assessment
   –   Stakeholder Map
   –   Communications
   –   Training Strategy

• Facilitator training

    Change Readiness Assessment
• Focus group exercises with Future State
  Business Process workshop teams
• Leadership interviews
• Change readiness survey of Phase 1 users
• Agency information review
• Agency focus groups

      Stakeholder Engagement Matrix
•   Type of influence
•   Needs and expectations
•   Success criteria
•   Key challenges, issues, or concerns
•   Risk if not addressed
•   Level of interest (low, medium, high)
•   Action required, when, and by whom
•   Status and action taken

•   Message development
•   Audience analysis
•   Delivery methods
•   Name, logo, and tag line
•   Web site

• Comprehensive training plan
• Influenced by software solution selected
• Agency information review

     Enterprise Standards and Mandates
• From an Enterprise perspective, standardization and
  mandated processes and tools benefit the Commonwealth

 Direct benefits of standards        Indirect benefits of standards
 • Reduced project costs             • Higher end-user acceptance
 • Reduced technical
    infrastructure costs             • Greater IT user satisfaction
 • Greater leverage with vendors     • Better use of the application
 • Reduced reconciliation costs      • Better data analysis

• EA program will mandate the enterprise standard
   – CIO will execute the toolset standards
   – Business owners will execute the process standards

      Revenues for the EA Program
• A number of CGI initiatives have been discussed
  to generate resources for the EA Program

• Enhanced Tax Collection is the most viable
  revenue stream at this time

• Two possible candidates are:
  – Spend Management Initiatives
  – Revenue Reimbursement Initiatives

                                 Enhanced Tax Recoveries

                       Year 1             Year 2          Year 3         Year 4           Year 5         Year 6            Year 7

Total Net
                       $40,357,931       $42,862,913      $43,545,051     $44,912,853     $45,581,404      $45,757,206     $46,091,570   $309,108,900

Current VATAX
Net Baseline           $34,029,000        $34,029,00      $34,029,000     $34,029,000     $34,029,000      $34,029,000     $34,029,000   $238,203,000
Variance Above
Baseline               $6,328,931         $8,833,913      $ 9,516,051     $10,883,853     $11,552,404      $11,728,206     $12,062,570   $ 70,905,900

    1. Each Series is $230M in new tax delinquencies
    2. Payfile estimate and Returns (2nds) derived from accounts now in repayment, those not in repayment returned to VA Tax to
    be reworked as 2nd placements
    3. Uncollectible pool contains $310M in accounts designated presently as uncollectible per VATAX

    4. Project year 1 begins March 1, 2007 (this is flexible)
    5. Current VATAX Net Baseline calculated as $39.8M gross collections minus 14.5% average fee per VATAX

    6. Servicing fee at 20% for Series I through VII, 22% for Returns (2nds), and 35% for Uncollectible Accounts

    7. Liquidation rates of 21.6% for Series I and II, 25.0% Series III through VII, 6% for Returns (2nds), and 3% for Uncollectible                    37

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