Achieving Value in IM/IT

Investments

“Seizing Opportunities”

Presented to: Financial Management Institute - Professional Development Week

By: Patricia Sauvé-McCuan

Project Executive, Financial Management Business Solutions Project, Grants & Contributions Systems

Chief Informat1ion Officer Branch (CIOB),

Treasury Board of Canada Secretariat (TBS)

Date: 24 November 2011

2

Objectives of Presentation

• To identify the drivers for change in the GC IT landscape;

- historical context

- an enterprise approach

• Give you an appreciation of the current GC IM/IT

environment and the issues it creates

– Need for better value • Standardize, consolidate, reengineer

• To describe the role of the Chief Information Officer Branch

(CIOB);

– Enforcing a government wide approach

– Supporting SSC

• Way forward

3

Common Understanding is key

• What is a financial management system (FMS)*?

– A combination of business processes,

procedures, controls, data and software

applications – which produces financial and

non-financial information

– It is more than the technology enablers, more

than the applications which support those

processes.

* Policy on the Stewardship of Financial Management Systems

4

Historical Context - IT Systems Landscape

• Fragmentation has led to inefficiencies, duplication and under utilization of IT

systems to effectively deliver GC Outcomes

– Holistic information is not readily available for decision making

– Sub-optimization of IT and human resources across business lines

• Low standardization and low interoperability reduces economies of scale,

diminishes quality of service delivery and presents barriers to new initiatives

• Historical procurement approaches have led to inefficiencies, increased costs

and a disparate, overly distributed GC footprint that poorly leverages

investment in financial and human resources and private sector skills and

capabilities

• Total Cost of Ownership and sub-optimization of resources across IT Programs

is not sustainable and must be addressed on a priority basis

5

The Case for GC IT Change

• Strategic drivers

– Strategic Operating Reviews

– Deficit Reduction Action Plan

– Administrative Services Review

– PM’s Advisory Committee on Public Service Renewal

– Citizen centric approach – effective government • create economies within Government to enable us to better serve Canadians

• Strategic Direction to operate the government as one entity with best practices

– Interoperability of systems is achievable

• Mandate in policy for OCG standard processes, data & systems for financial management

• Human resources sourced both internally and externally are the dominant IT expenditure

– Supply risk increasing due to workforce demographics

– Uneven distribution of IT skills exist creating inefficiencies and limiting innovation

• Aging IT is a significant problem requiring new approaches to IT sustainability

– Few departments have multi-year, systematic approaches to renewing mission-critical and other applications and systems

6 6

Budget 2011 - IT Strategy

Consolidate Standardize

• Standardization - the essential first step to modernization of IT

• Government taking a significant step in IT services consolidation with SSC

• Portfolio management: clustering of platforms and enterprise systems

• Reengineering IT service delivery – internally & externally

Re-Engineer

Foundation element of the IT Strategy of the GC is to examine government-

wide solutions that will standardize, consolidate and re-engineer the way it

does business

7

Shared Services Canada

• New agency reporting to Minister of PWGSC

• Strengthened authorities, mandatory services

• Consolidate IT resources and personnel from 44

departments and agencies for IT Infrastructure service

delivery:

– Datacenter: facilities, servers, equipment

– Networks GC wide

– Email

• Key Priorities

– Deficit Reduction Action Plan – Jan 2012 submission

– E-mail – 6 to 9 months to begin service

8

As-Is Landscape

Departmental and Inter-Departmental Program Integration

Inter & Extra Government Applications

Departmental Program-specific Applications

Administrative Applications

Employee & Manager Portal / Self-service

Other Finance / Materiel

Functionality

Recruitment

SPS Business Intelligence

Learning CFMRS/BOSR

Departmental Program Operation Systems (e.g.,

Real Property, Gs&Cs,

etc)

Pension

Core Human

Resource

Applications

Payroll

Core Financial

Applications

(and SMS)

Core Materiel

Applications

Travel GOC Marketplace

Canada Student Loans

Old Age Security (OAS)

CRA Applications

Other departmental program operations

applications

GCPEDIA PubliService

ATIP

Vital Events Others

Canada Pension Plan CPP)

Case Management

Finance

502 applications -

SAP, Oracle, CDFS,

Freebalance, GX Etc.

Human Resources

776 applications:

SAP HR, CMS, HRIS,

GC HRMS, Etc.

ATIP

102 plus applications:

19 manual processes,

AccessPro, IKON, ATIP

Express, E-copy, Etc.

Grants & Contributions

80 plus applications:

SAP, GX, Grantium,

CMIS, CGRS, FNITP,

Lotus Notes, Etc.

9 9

Auditor General’s 2010 Report on Aging IT

Enterprise Applications

75 %

Internal

Services

Applications

Departmental Applications

Financial

Management

Human Resource

Management

Information

Management

Legal

Services

Material

Services

Information

Technology

Justice

Movement of

People

Program Specific

Internal Apps

Science and

Research

Safety for

Canadians

National Security

And Defense

Communications

Travel and

Other Admin

Acquisition

Services

Management

And Oversight

Real Property

Health Care

Case

Management

Legislative and

Regulatory

Provide Funds

Undefined

Grants and

Contributions

25 %

Line of

Business

Applications

Cross government inventory conducted to assess the state of aging IT systems

10

New GC IT Service Delivery Context

• Mission specific

applications

• Desktop

• Portfolio

leaders

• Mission specific

applications

• Desktop

• Portfolio

leaders

•Mission specific

applications

• Desktop

• Portfolio

leaders

44 largest departments and agencies

TBS CIOB • Strategy

• Policy

• Standards

• Enablement

• Oversight

• Capacity Shared Services Canada • Internal service provider for all IT infrastructure

• Teams initially co-located with departments

• Services beyond the 44 departments – as feasible

• Management of all related assets, contracts

11

Three Evolving IM/IT

Service Delivery Models

Generic and Commoditized

Enterprise Delivery

Department Delivery

Mission and Mandate Specific

Datacentre : facilities, servers…

Desktops

Email

Pay & Pension

Networks

Financial systems

Grants and contributions

Tax system

Case management

Recruitment

Benefit and income redistribution systems

Public security

IT security infrastructure

Records management

Health information systems

HR systems

Preliminary analysis – work in progress

User devices

Portfolio & Cluster

Delivery

12

How do we get there?

Transformation & Evolution in a Predictable Manner

GC-wide

Shared

Silo’d

Governance Data Process Implementation

GC-wide management of one common configuration of a common application

Various groups sharing the management of common configurations of shared instances of applications

Multiple dept’s Using many self-governed applications

GC-wide single configuration, shared hosting, one or more shared instances

Various groups sharing common configurations of applications, shared instances, shared hosting

Many dept’s using multiple configurations & hosting environments for different applications

GC-wide using one common data standard and definition

Various groups using same data standards and definitions

Multiple dept’s Using many data standards, or no standards

GC-wide using one common set of standard business processes

Various groups using various sets of standardized business processes

Multiple dept’s Using many business processes

TARGET STATE Integrated

and

Interoperable

13

CIOB Role

• Policy Development and Advice

• Defining Standards

• Monitoring and Compliance

• Management Oversight

• Community Development and Capacity Building

Information Management

Information Technology

Security and Identity Management

Access to information and Privacy

14

Finance & Materiel Systems Strategy

• Goal is to operate with the optimum number of systems with integration based on standardization

• Systems are to be considered horizontally within the GC to derive efficiencies, economies of scale and maximize business value

• IT investments related to Financial and Materiel Management must not proceed independently without CIOB and OCG guidance

– Opportunities for consolidation (systems and infrastructure) must be considered

• Standard data models, business processes and platforms are being created

– Common Enterprise Data initiative (CEDI)

– Financial Management Business Process initiative (FM-BP)

– Financial Management Business Solutions Project (FM-BSP)

15

Finance & Materiel Systems Strategy

• Departments are to move to GC-wide standard

configurations

– Defined in the draft Standard on Enterprise Resource Planning

Systems

– TB Submission for FM-BSP led by OCG Moving Forward (Jan

2012)

– PWGSC finalizing blueprint with SDAs for common FM solution

• Opportunities for the standardization and consolidation of

ancillary financial and materiel systems will be pursued

– e.g. Procure to Pay functions (Financial Management, Financial

Reporting, Materiel Management, etc.)

16

What’s The Payoff?

Financial

Benefits

Productivity

Benefits

Business

Benefits IT Benefits

Ability to leverage significant industry and government investments

in open standards based solutions

Reduced licensing & configuration costs

Reduced costs for maintenance & changes

Reduced operations Cost

Reduced cost of future integrations

Better economics than other integration

approaches

Reduced training expenditure

Increased level of

expertise Continuum of

Knowledge Transferable skills Reduced redundancy

Ability for business to directly control process definition & management

Ability to easily integrate with government partners

and suppliers

Provide value to

governmental partners and suppliers which could

result in new service opportunities

Ability to develop new service streams

Improved business & IT alignment that helps in intelligent planning

Cost of enforcing and ensuring policy and

regulatory compliance

Phased replacement of legacy middleware

Improved business & IT alignment that helps in intelligent planning

Ability to monitor and measure success

Reduction of maintenance liability

17

Common Understanding is key

What is bringing ‘value’?

– Value from technology is more than cost savings

– If cost reduction is the only value we measure, then we have probably used the technology to automate clerical processes, and have not looked at providing strategic value

• Need performance based concepts of value

• Need to focus on strategic outcomes

• Need to focus on needs at the enterprise level

18 18

Discussion

and

Questions

19 19

Contact information:

Patricia Sauvé-McCuan

Project Executive, Financial Management Business Solutions

Project, Grants & Contributions Systems

Patricia.Sauvé-McCuan@tbs-sct.gc.ca

613-960-9458

20

QUESTIONS?

20