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What Every Finance Professional Should Know About Large
Complex Technology Implementations2017 CSMFO Annual Conference
Pre-Conference SessionFebruary 7, 2017
Agenda♦9:30 AM – 10:00 AM Introductions and Opening Comments♦10:00 AM – 10:30 AM Technology Overview♦10:30 AM – 11:00 AM Cloud Overview♦11:00 AM – 11:15 AM Break ♦11:15 AM – 11:30 AM Technology and Project Governance ♦11:30 AM – 12:00 AM Procuring Complex Technology♦12:00 PM – 12:45 PM Lunch♦12:45 AM – 1:15 PM Implementing Complex Technology♦1:15 PM – 2:15 PM Real Life♦2:15 PM – 2:30 PM Break♦2:30 PM – 3:30 PM Real Life (continued)♦3:30 PM – 4:00 PM Wrap Up - Takeaways
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 3
Who Are We?
♦ Phil Bertolini• Deputy County Executive/CIO, Oakland County, Michigan
♦ Terry Hackelman• Managing Principal/Founder, NexLevel Information Technology, Inc.
www.oakgov.com/it/presentations
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 4
Why are we here?
♦ Technology is expensive and risky to implement and maintain♦ Agency technology portfolios are complex♦Change is constant…technology is not going anywhere!
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 5
Finance leaders must take a proactive role in procuring, implementing, and maintaining
technology
WHY does Government
exist?2/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 6
ProvideServe
Help2/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 7
Do what others will Not Do
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 8
What some people think of government
Government is so much more!2/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 9
Government Quote
“Government exists to protect us from each other. Where government has gone beyond its limits is in deciding to protect us from ourselves.”
-Ronald Reagan40th President of the United States of America
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 10
Doing MoreWith Le$$
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 11
Doing LessWith Le$$
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 12
Requires Change2/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 13
People don’t like change2/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 14
Technology Overview
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 15
Common Technology Acronyms♦COTS - Commercial-off-the-shelf♦BPR – Business Process Re-engineering♦SaaS – Software-as-a-Service♦OCM – Organizational Change Management♦ETL – Extract, Transform, and Load♦DRP/BCP – Disaster Recovery Plan/Business Continuity Plan♦SLA – Service Level Agreement♦API – Application Programming Interface♦HTML5 – HyperText Markup Language Revision 5♦MDMS - Mobile Data Management System ♦IoT – Internet of Things
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 16
Common Enterprise Application Acronyms
♦ERP - Enterprise Resource Planning♦LMS – Land Management System♦EAMS – Enterprise Asset Management System♦CMMS – Computerized Maintenance Management System♦EDMS – Electronic Document Management System♦GIS – Geographic Information System♦SCADA – Supervisory Control and Data Acquisition♦CMS – Content Management System♦CAD/RMS – Computer Aided Dispatch/Record Management System♦CAD – Computer Aided Design
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 17
Common Technology Terms
♦Premise-based♦Cloud♦Managed services♦Hosted services♦Workflow♦WebAPI♦Configuration vs. customization♦Agile vs. waterfall♦Zero vs. thin vs. thick client
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 18
Technology Foundation
© 2016 NexLevel Information Technology, Inc. All Rights Reserved
Technology InfrastructureData CenterUPS/Generators Network StorageCyberSecurity Virtualization
♦Infrastructure layer♦Functions Backup Disaster Recovery Monitoring (servers and network) Virus/Spam Security Performance Capacity Planning
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 19
Enterprise Enabling Technologies
© 2016 NexLevel Information Technology, Inc. All Rights Reserved
Technology Infrastructure
Enterprise Enabling Technologies
Data CenterUPS/Generators Network Storage
Email GISDocument ManagementIntranetWebsite
CyberSecurity
Reporting /Dashboards Social Media MS Office
Virtualization
♦Email♦Document Management♦Geographic Information Systems (GIS)♦Website♦Intranet♦Reporting/Analytics/Dashboards♦Mobile Platforms
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 20
User Access Devices
© 2016 NexLevel Information Technology, Inc. All Rights Reserved
Technology Infrastructure
Enterprise Enabling Technologies
Data CenterUPS/Generators Network Storage
Email GISDocument ManagementIntranetWebsite
CyberSecurity
Reporting /Dashboards Social Media MS Office
Virtualization
♦Desktop♦Laptop♦Tablet♦Phone♦Radio♦Phone
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 21
Department Applications
© 2016 NexLevel Information Technology, Inc. All Rights Reserved
Technology Infrastructure
Enterprise Enabling Technologies
Data CenterUPS/Generators Network Storage
Email GISDocument ManagementIntranetWebsite
CyberSecurity
LandManagement
System
Finance
Payroll /Human Resources
Utility Billing /CIS
TrafficManagement
System ComputerAided
Dispatch
AssetManagement
Reporting /Dashboards
Agenda Management
Time Keeping
Social Media MS Office
Department Applications
RecordManagement
Systems
Virtualization
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 22
RecreationManagement
System
Technology Value Framework
User Infrastructure
(Desktops, Printers, etc.)
and Office Software
Enabling Technologies(Document
Management, etc.)
Decision Support / Analytics
Cumulative Total Cost of Ownership (CTCO) for IT
Valu
e fo
r Inv
estm
ent (
VFI)
Shared Infrastructure
(Servers, Storage,
Network) and Management
Tools
Business Applications
(ERP, etc.)
Current Challenge for Many Agencies
Future Desired State
Leverage
© 2014 NexLevel Information Technology, Inc. All Rights Reserved
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 23
Questions?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 24
Cloud Overview
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 25
Cloud Defined
♦On-demand computing resources or solutions over the Internet on a pay-for-use basis Service versus License Only offering for some solution providers
♦Examples of the types of cloud services Software-as-a-Service (SaaS) Platform-as-a-Service (PaaS) Infrastructure-as-a-Service (IaaS)
♦Access models Public Private Government Hybrid
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 26
Cloud Benefits
♦ Increased scalability and flexibility
♦ Improved accessibility
♦ Reduced capital requirements
♦ Accelerated implementation timeline
♦ Improved disaster recovery
♦ Increased access to technical expertise
♦ Extended maintenance/support hours
♦ Maintains technology currency
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 27
Cloud Policy Considerations
♦Data Considerations
♦Service Level Agreement (SLAs)
♦Interfaces/Integration
♦Transition Terms
♦Disaster Recovery/Business Continuity
♦Storage
♦Audit
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 28
Questions?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 29
Technology Governance
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 30
Technology Governance
♦“Technology governance is the responsibility of executives and the board of directors, and consists of the leadership, organizational structures and processes that ensure that the enterprise’s technology sustains and extends the organization’s strategies and objectives.” IT Governance Institute (ITGI) – www.itgi.org
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 31
Technology Management
Technology Governance Purpose
Departments
Technology Demands Competing Priorities andLimited Budget/Resources
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 32
Technology Governance Scope
Technology and Project Governance
Strategic Alignment
Resource Management
Risk ManagementPerformance Measurement
Value Delivery
Is technology aligned with business
objectives?
Does technology deliver value?
Is technology an enabler providing
maximum benefits?
Are technology risks appropriately
managed?
Are resources appropriately
allocated?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 33
Technology Governance Benefits
♦ Provides the framework for how technology decisions are made♦Determines how an organization
uses technology to meet objectives♦Ensures you are “doing the right
things” for the enterprise♦Proactively manages technology risk
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 34
Project Governance
♦Same benefits as technology governance, only at a project level♦Keep it lean and agile♦Limited duration – for the project life ♦Adjust formality based on project
size, complex, and risk
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 35
Questions?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 36
Procuring Complex Technology
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 37
Procurement
♦Complex technology procurements are riskyA good implementation may not
overcome a bad procurement decision
♦There are no shortcuts♦Be prepared to make tough
decisions
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 38
Knowledge Accumulation
Knowledge ofCurrent System Environment, Best Practices,
Solutions, and Implementation Needs
Requirements
RFP
Select
Negotiate
1
2
3
4
5
Time
Leve
l of D
ecis
ion
Know
ledg
e
Initiate
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 39
© 2014 NexLevel Information Technology, Inc. All Rights Reserved
Procurement Framework
Initiation Requirements Procure Negotiate
♦Important to recognize procurement phases♦Specific activities assigned to each♦Roles and responsibilities (IT, Vendor, Finance, Department)
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 40
Initiate Requirements Procure Negotiate
Procurement Framework - Initiate
♦ Recognize the procurement is a “Project”♦ Identify Project Sponsorship and Stakeholders♦ Implement Project Governance and Project Charter♦ Obtain commitment of key resources ♦ Conduct kickoff
“If you don’t have time to do it right the first time,how do you have time to do it again”
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 41
Initiation Requirements Procure Negotiate
Procurement Framework - Requirements
♦Get staff involvedo You need their expertise, it promotes buy-in, and prepares staff for change
♦Focus on “high priority” and “unique” processes or requirements♦Clearly define current and future interface requirements♦Revisit Project Charter – is it still accurate?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 42
Initiation Requirements Procure Negotiate
Procurement Framework - Procure
♦ Create market awareness♦ Recognize the RFP provides the foundation for the final agreements♦ Execute effective scripted demonstrations♦ Consider total cost to implement (TCI) and total cost of ownership (TCO)♦ Conduct reference checks and on-site visits♦ Re-visit Project Charter
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 43
Initiate Requirements Procure Negotiate
Procurement Framework - Negotiate
♦ Be prepared for multiple agreements ♦ Clearly define “acceptance” criteria per phase♦ Insist on “holdback” based on acceptance♦ Incorporate by reference prior work (i.e. – RFPs; specifications)
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 44
Initiate Requirements Procure Negotiate
Procurement Framework Summary
♦ Each phase builds a foundation for the agreement and project success♦ Ensure transition from vendor “sales team” to “implementers”♦ Re-visit risks, budget, resources, schedule
“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action” – Peter Drucker
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 45
Procurement Timeline
♦There is no “typical” timeline Schedule is dependent on staff availability, vendor activity, organization
priority, complexity, and other factors
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 46
Month 1 2 3 4 5 6 7 8 9 10 11 12
Requirements
Initiate Procure
Negotiate
Month 1 2 3 4 5 6 7 8 9 10 11 12
Requirements
Initiate Procure
Negotiate
Aggressive Conservative
Procurement – Evaluating the Cost of Technology
♦Total Cost to Implement (TCI) Software Hardware Integration Configuration Conversion Training Backfill Legacy Vendor Services Documentation
♦Total Cost to Own (TCO) Maintenance and support Upgrades and enhancements
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 47
Alternative Procurement Approaches
♦Request for information♦Pre-RFP demonstrations♦Agile or Alternative procurementPre-qualifyShortlistConfidential conversationsFinal proposals
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 48
Key Takeaways
Expectation Management
Transparency
Momentum
Collaboration
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 49
Questions?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 50
Implementing Complex Technology
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 51
What does a successful implementation take?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 52
People, Process, Technology
People
Process
Technology
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 53
Agency-side Implementation Roles
♦Project Sponsor♦Project Stakeholder♦Project Manager♦Functional Leads Process re-engineering, configuration, testing, training, documentation
♦Subject Matter Experts Configuration, testing, training, documentation
♦Technical Lead Integration, conversion, training, hardware/software configuration, security
♦Change Manager
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 54
Managing Project Constraints
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 55
Scope(The Work)
Time(The Schedule)
Cost(The Resources)
ProjectSuccess
Conversion
♦Extract, Transform, Load (ETL)♦Typical Vendor Role Providing tools (load-side) Assist in mapping Assist in data cleansing Loading data into new application
♦Typical Agency Role Perform data extraction Complete data mapping Complete data cleansing/quality New system data validation
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 56
Change Management and BPR
♦Prosci - “Change management is the application of a structured process and set of tools for leading the people side of change to achieve a desired outcome.”
♦PBR - Michael Hammer – “Don’t Automate, Obliterate”
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 57
“Efficiency is doing things right; effectiveness is doing the right things.” - Peter Drucker
Training
♦Types of training Train-the-trainer Vendor-led Online vs. On-site 3rd party
♦Training starts early in the implementation♦Train often♦Confirm training effectiveness♦Consider post-implementation training
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 58
Reporting and Analytics
♦Ability to extract data from the system is critical for success♦Reporting should be intuitive to allow “users” to self-service♦Multiple reporting tools may be required Standard reports (“canned reports”) Excel integration 3rd party reporting tools Dashboards GIS
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 59
Managing Technology Risk
♦Planning♦Scope♦Expectation Management♦Integration ♦Business Process/Change Management
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 60
Considerations for Implementations
♦Establish the reason and enlist support♦Staff the project for success♦Agency-side PM important♦Empower staff to make decisions♦Plan and use backfill♦Requirements gathering is a collaborative process♦Expectation management starts from the outset♦Communicate constantly♦Success requires maintaining momentum
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 61
Questions?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 62
Let’s Get Real – How does it really work?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 63
Where Does a Project Start?♦Joint Decision Making
♦ Work together with functional partners
♦ Involvement of Top Decision Makers♦ Involve the entire “c” suite
♦ Standard Evaluation Method♦ Shared understanding of how the
project will be judged
♦ Screen for Technical Considerations
IT Budgeting and Decision Making, Chapter 6
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 64
Where Does a Project Start (cont.)
♦Formal Business Case Made♦ Must understand the tangible and
intangible benefits
♦ Partnership with Finance Office♦ Working together to understand
the financial impact
♦ IT Strategic Plan♦ Multi-year plan for technology
IT Budgeting and Decision Making, Chapter 6
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 65
Strategic Plans
♦Do you have an IT Strategic Plan?♦Define the mission of the entire organization♦Plan to develop enabling technologies that solve the
problems♦2 to 3 years in length♦Overarching document to guide IT forward♦It is a living document that takes care and feeding♦Ensure every project undertaken ties back to plan
IT Budgeting and Decision Making, Chapter 6
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 66
IT Business Cases
The Essentials♦A Return on Investment Analysis (ROI)♦A Standard Set of Evaluation Criteria♦Alignment and Integration with Budgeting Process♦Intra-organizational Cooperation♦Accountability for Results
IT Budgeting and Decision Making, Chapter 7
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 67
Example ROI Analysis of Virtualization Project
Description Year 1
Benefits/SavingsTangible Benefits Subtotal $1,287.390
Cost Avoidance Subtotal 0
CostsDevelopment Service Subtotal: $267,340
Hardware Subtotal: $679,642
Software Subtotal: $269,680
Infrastructure Subtotal: $33,638
Annual StatisticsAnnual Total Savings $1,287,390
Annual Total Costs: $1,250,300
Annual Return on Investment: $37,090
Annual Costs/Savings Ratio: 97.12%
Year Positive Payback Achieved Year 1
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 68
Developing IT Business Cases
♦Clearly Understand Vision and Goals♦Evaluate Existing Systems♦ Identify Alternatives♦Run the Numbers♦Establish Performance Measures
IT Budgeting and Decision Making, Chapter 7
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 69
Oakland County Process
♦Develop a Scope and Approach Document/ROI♦Clearly identify the Tangible and Intangible Benefits♦Gain Leadership Group (LG) approval to do a project
sizing♦Gain LG approval to include the project in the IT
Master Plan♦Funding must be determined prior to LG approval
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 70
pay for it ONCE“Build it ONCE,
benefits.”EVERYBODY&
Oakland County “Mantra”
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 71
IT Planning Process
Planning for technology projects is a “long distance” race and not a “sprint”
Careful planning and strong project management will help IT be successful
Running the Government Race 2010
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 72
IT Planning Process
♦Must involve partners to ensure buy-in♦2 year planning timeframe♦Develop committees/leadership groups consisting of
partner community♦Develop strong processes and standards♦Led by Project Management Office (PMO)♦Develop mentorship and guidance
IT Budgeting and Decision Making, Chapter 6
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 73
2/6/2017
Project Management
♦ Do you know what Project Management means to your organization?
♦ Do you have strong Project Management in your organization?
♦Why should an organization invest in Project Management?
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 74
Project and Portfolio Management (PPM)
♦Creation of a Project Management Office (PMO) may be necessary to lead the effort
♦Must meet with key stakeholders to understand their business and their needs
♦Must understand the overall needs of the organization
♦Approve the project charter and manage resources♦Assess and mitigate risks
IT Budgeting and Decision Making, Chapter 11
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 75
PPM Critical Success Factors
♦Secure top management commitment♦Understand that implementation is a business change effort♦Devote the necessary resources♦The Project Manager rules♦Set clear goals, scope and expectations♦Track project progress, results and scope♦Communicate effectively and often♦Understand and address risks♦Control project scope and minimize disruptions by managing
change♦Test every way you can
IT Budgeting and Decision Making, Chapter 11
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 76
♦ GAP & ROI Analysis♦ Define Anticipated Benefits &
Measurements♦ From Installation to Implementation
Total Cost of Ownership
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 77
Build versus Buy
♦Build?♦Strategic Direction
♦What resources exist♦Do we want to build?
♦Costs♦Software, Hardware, Licensing, Labor♦Ongoing Maintenance♦Total Cost of Ownership
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 78
Build versus Buy
♦Buy?♦Strategic Direction
♦Do package offerings exist?♦Do we have the skills to implement?
♦Costs♦Software, Hardware, Licensing, Labor♦Ongoing Maintenance♦Total Cost of Ownership
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 79
Insource versus Outsource
♦ Insourcing & Outsourcing are potentially valuable tools for IT service delivery♦ Right sourcing will benefit
the IT organization♦ Must rationally evaluate the
outsourcing opportunities♦ Drive down costs♦ Effectively leverage human resources
IT Budgeting and Decision Making, Chapter 132/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 80
Insource versus Outsource
♦Sourcing can range from little or no effective policies to being an integral part of an organizations success
♦Complete outsourcing is not recommended
IT Budgeting and Decision Making, Chapter 132/6/2017 2017 CSMFO Annual Conference
Pre-Conference Session – Complex Technology Implementations 81
2/6/2017
Systems Integrations
♦ Enterprise IT Systems touch numerous operational systems
♦ Integrations must be carefully thought out due to costs♦ Development Costs♦ Maintenance Costs♦ Versioning Costs
♦ Shadow Systems must be replaced or minimized♦ What operational units NEED and not what they
WANT♦ Steering Committee must have final decision on
integrations
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 82
2/6/2017
Software Licensing and Maintenance
♦ Licensing Models vary depending upon hosting model
♦ Terms and Conditions must be carefully negotiated
♦ Cloud Procurement Ts&Cs are identified in the Center for Digital Government’s paper titled “Cloud and As-A-Service Procurements”
♦ Long Term support model may change over time
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 83
2/6/2017
Infrastructure Needs
♦ Infrastructure needs depend on hosting model♦ Internally Hosted♦ Externally Hosted♦ Cloud Hosted
♦ Buy for tomorrow and not just for today♦ Capacity Planning♦ Future Growth
♦ Disaster Recovery and Business Continuity Recovery planning important
♦ Engage third party experts
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 84
2/6/2017
On Premise versus Cloud
♦ Costs vary greatly for on premise versus the cloud♦ Up front startup costs♦ Ongoing maintenance costs
♦ Capital Expenses versus Operating Expenses♦ Redundancy
♦ On premise and secondary location♦ Cloud locations across nation
♦ Connectivity♦ Lack of speed kills
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 85
Training
♦ Technical training should start early in the process♦ Technical and project management training
♦ Training of operational unit staff should commence shortly after initial purchase♦ National conferences♦ Onsight and off sight training♦ Ongoing refresher courses
♦ Training never stops♦ Technology and Business Processes change over
time
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 86
Goal: Seek project approval and level-set expectations
Why?♦ Critical system for running County business♦ Every financial transaction affected♦ People-intensive process♦ Significant risk
Communications Plan
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 87
Channels:♦ Steering Committee♦ Cross-functional project management team♦ Stakeholders participation
Approval Process:♦ Stakeholders ♦ Executive Staff♦ Legislative Branch♦ Employees
Communications Plan
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 88
♦ Leverage technology dollars across entire enterprise♦Focus on business re-engineering, not technology
implementation♦Business drives technology,
technology does NOT drive business
Technology is the easy part!
3 Key Elements of Technology
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 89
♦ Visionary Leadership♦ Doing More with Less♦ Using Technology to Improve
Business Processes♦ Driving Change Throughout
the Organization
Oakland County Vision
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 90
Roadmap to Multi Tenant Offerings
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 91
♦Performance♦ Large Data ♦ Vendor Product and being limited
♦Security ♦Access for users off the network♦Restrict users by CVT♦ Limit admin rights
Common Concerns
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 92
♦Vendor Management♦ Establishing a partnership♦ Beta testing
♦Integrations for Business Process♦ Import/export of data ♦ Maintain custom integrations during upgrades
♦User Engagement♦Communication
Common Concerns (cont.)
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 93
♦Begin with Standards♦Business Process Analysis♦ Identify data requirements♦Determine customizations based on best practices
♦Challenges along the Way♦ Numerous stakeholders♦ Identify and eliminate shadow systems♦The cost of moving program forward while cost of
maintaining keeps increasing
Enterprise Resource Planning System
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 94
♦Continued Support for Users♦Train key users♦ Continually updates processes
♦Maintenance of Technology♦ Large effort (1+yr) upgrade to latest software version
and infrastructure ♦Versions require constant end user training♦Each version requires rework of system integrations
Enterprise Resource Planning System (cont.)
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 95
ROI Analysis of ERP Project
Description Year 1 through 6
Benefits/SavingsTangible Benefits Subtotal $0
Cost Avoidance Subtotal $20,644,543
CostsUser & IT Development/Labor Subtotal: $12,242,779
Hardware Subtotal: $1,985,333
Software/Licensing Subtotal: $2,686,076
Contingency Subtotal: $1,534,892
Benefits vs CostsTotal Benefits/Savings $20,644,543
Total Costs: $18,449,080
Total Return on Investment: $2,195,463
Costs/Savings Ratio: 89.37%
Year Positive Payback Achieved Year 6
2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 96
Costs:♦ Year 1: $4,789,238♦ Year 2: $6,474,928♦ Year 3: $5,656,528♦ Year 4: $468,838♦ Year 5: $516,853♦ Year 6: $542,696
TOTAL: $18,449,080
Benefits/Savings:♦ Year 1: $1,253,200♦ Year 2: $339,335♦ Year 3: $2,799,857♦ Year 4: $4,116,684♦ Year 5: $5,270,008♦ Year 6: $6,865,459
TOTAL: $20,644,543
Realizing Business Value
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Cost and Benefit/Savings (6-years):
Total Cost of Ownership: $18,449,080Total Benefit/Savings: $20,644,543Cumulative ROI: $2,195,463
Cumulative Cost/Savings Ratio: 89.37%
Payback occurs: Year 6Intangible Benefit: Customer service responsiveness improvement
Realizing Business Value
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Lessons Learned:♦Adoption/pushback (passive/aggressive)♦Aggressive timeline/stressed operations♦Knowledge transfer (business/technological)♦Ongoing costs/funding methodology♦Dependency on implementer
Realizing Business Value
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♦Begin with Standards♦Fundamental need for single parcel layer with
standard parcel ID♦Address standards♦Common source of data across County
♦Challenges along the Way♦ Transferring and sharing of large data sets - imagery♦ Maintain User Engagement♦The cost of moving program forward while cost of
maintaining keeps increasing
Geographic Information System
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♦Continued Support for Users♦Multiple training classes each year♦ Staying relevant with latest products in the industry
♦Maintenance of Technology♦ Large effort (1+yr) upgrade to latest software version
and infrastructure ♦Upgrade of custom tools♦Growing data - scalability
Geographic Information System (cont.)
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GIS Benefits Infographic
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Enterprise GIS Quarterly Status – End of Fiscal Q4, 2016
GIS Road Show
6
5
3
Completed In Progress
14TOTAL
ArcGIS Online
Other Highlights
1 Pictometry Contract
1 Changes to OC ESRI Support Staff
AGO Users by Department
AGO Growth over Time
118 GeoVision DownloadsSince July 2015
Open Data Portal
## Total Datasets Downloaded Since Nov 1
121 Total SessionsSince Nov 1, 2016
2221
Data sets DownloadedSince Nov 1, 2016
Nov. 3, 2016
Applications Shared2/6/2017 2017 CSMFO Annual Conference
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CVT Roadshow Pilot Group
Completed
In Progress
• Auburn Hills• Beverly Hills• Birmingham• Commerce Twp• Ferndale• Groveland Twp
• Facilities• IT• RCOC• Homeland Security• Equalization• Treasurer
• EDCA (4)• Veteran’s Affairs
On Deck
• Highland Twp• Independence Twp• Lake Orion Village• Milford Village• Springfield Twp• West Bloomfield Twp
• Animal Control• CVT Pilot (Top 5)• Register of Deeds2/6/2017 2017 CSMFO Annual Conference
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Enterprise GIS Quarterly Status – End of Fiscal Q4, 2016
GeoVision Assessment
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♦Begin with Standards♦Data Models♦ Report Templates
♦Challenges along the Way♦Performance of application for field users (software,
hardware, tablet, wifi)♦Software product not designed for multi tenant♦Security of data between users
Collaborative Asset Management System
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♦Continued Support for Users♦User Groups ♦Training♦Communication
♦Maintenance of Technology♦ Large effort (1+yr) upgrade to latest software
version and infrastructure ♦ Effort to maintain and upgrade customizations and
integrations
Collaborative Asset Management System (cont.)
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♦Begin with Standards♦ Common address PIN ♦ Collaboration among local municipalities♦One database with uniform data♦ Local and state reporting across the County
♦Challenges along the Way♦ Base architecture didn’t support multi-tenant♦ Custom data export scripts ♦Database performance issues ♦ Local units have limited control; County is required to
perform higher level admin on behalf of CVTS
Land Management System
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♦Continued Support for Users♦First line of support♦Multiple training classes each year♦Admin processes
♦Maintenance of Technology♦ Install vendor patches twice per month ♦Server and database upgrades every 2 – 4 years♦Major software upgrades every 10 years
Land Management System (cont.)
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Roadmap to Multi Tenant Offerings
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5 Year Product Cost
47%
30%
10%
3%10%
Initial implementation Customer Support Planned MaintenanceBreak/fix Enhancements
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Take - Aways
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What have I learned?
Many have no idea how to manage large IT projects
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What have I learned?
You will live with these decisions for years to come
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What have I learned?
Communication is everything!
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What have I learned?
Educated Stakeholders will make or break the projects
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What have I learned?
Technology is the easy part
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What have I learned?
The operational units will suffer during the change
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What have I learned?
The scope of the business changes may be massive
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What have I learned?
The ROI may not be in hard dollars
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What have I learned?
There are no shortcuts to large IT project success
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What have I learned?
It is all about the PEOPLE!
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Thanks for your time today!Phil Bertolini, CIO/Deputy County ExecutiveOakland County, [email protected] Hackelman, Managing PrincipalNexLevel Information Technology, [email protected]
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