District Wide Applications

November 12, 2002

November 12, 20022

District Wide Applications Process Recommendations Board Decision

November 12, 20023

Agenda How did we get here? Why do some of these projects fail? What have we done to mitigate risks? When will we get it? How do we build it? What does it Cost? How do we pay for it? Decisions

November 12, 20024

How did we get here? Old System

Business like 1940’s

Struggle with data

Struggle with processes

Limited Budgets

New System Modern Business

Systems Make data driven

decisions Effective/Efficient

Systems

More $ to Educating Children

November 12, 20025

How did we get here? External Third Party Analysis

Replace core business systems SIS, HR, FI Replace/Update core infrastructure

WAN, email, calendar, helpdesk, support

Internal Analysis Tiger Teams Subject Matter Experts

November 12, 20026

How did we get here? (cont)

RFP for District Wide Applications Software (ERP)

Reported to BoE on Recommendation of PeopleSoft (HR, FI) and Zangle (SIS)

RFP for Implementation Partner 6 Respondents 3 Short List (KPMG, PWC, Empower)

Written responses, Interviews, References Cost, K-12 experience, Best-Fit

November 12, 20027

How did we get here? (cont)

Empower: HR, FIRecommended Implementation Partner K-12 Experience Never had a failed Implementation 100% On Time, On/Under Budget Experience with PeopleSoft 8.x

Payroll, HR, FI, Warehouse, Portal Technical Expertise, BPR, Training Change Management

November 12, 20028

Why do some ERP projects Fail?

Lack of Executive Support Lack of Expertise in

Project Management Quality Assurance/Testing Change Management

Poor Requirements Definition Project Scope Creep

November 12, 20029

Why do some ERP projects Fail? Lack of Business Process Review

AS-IS, TO-BE Untrained Users Unclear Expectations/Deliverables Implementation partner not understanding

the customer’s business Communication Failure to decrease staffing after

implementation*

November 12, 200210

What have we done to mitigate risks? Commitment of Executive Leadership

Superintendent, Executive Leadership Team, Executive Committee, Executive Sponsors

Tiger Teams HR, FI, SIS

Recruited and Partnered with Technical Advisors Project Architect Quality Assurance, Testing,

Business Process Review PeopleSoft Technical Project Manager, Infrastructure

November 12, 200211

What have we done to mitigate risks? Clear Requirements Clear Deliverables Clear Expectations Change Control Practice

Contain any changes in Scope Commitment to Changing our Business

Practices to be more Effective/Efficient Commitment to decrease staff after

implementation*

November 12, 200212

What have we done to mitigate risks? Phased Approach to Implementation Communications Plan Just-In-Time Training for Staff

Software Partner Implementation Partner District Subject Matter Experts (SME’s) District Professional Development Unit Resource Teachers (proposed) to support

School Site Staff

November 12, 200213

When Will We Get It? Phases and Timelines – Parallel Processes

Phase I: November ‘02 - September ‘03 SIS: Pilot Cluster (TBD) Master Schedule,Student

Data, Attendance, Discipline HR: Payroll, Human Resources, Time and Labor,

HR Portal FI: General Ledger, Receivables, Payables,

Budget, Billing, Purchasing, Inventory, eProcurement, Finance Portal

Data Warehouse and Reporting

November 12, 200214

When Will We Get It? Phases and Timelines

Phase II: November ‘03 - June ‘04 SIS: Rollout to Schools, Parent Connect, Student

Connect, Modifications for SDCS HR: ePay, Benefits, eRecruitment, eProfile FI: Asset Management, Cash Management,

Projects, Grants

Phase III: August ‘04 - March ‘05 Upgrades, Outstanding Issues, Enhanced

Functionality, Parking Lot Items

November 12, 200215

How do we Build It?

November 12, 200216

What does it Cost? Applications $25.8M

PeopleSoft, Zangle, Document Imaging, Reporting Tools, Implementation

Infrastructure $1.9M WAN, email, calendar, Help Desk, Support, Desktops,

Servers, Data Center People and Partnerships $1.6M

Project Management, QA & Testing, Change Management, Training, Technical Assistance

Maintenance - On Going Costs $5M/year Licenses, support, hardware,

November 12, 200217

What Does it Cost (cont)

DWA Costs

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5

Year

$ M

illi

on

s

Maintenance

HW, SW, Imp

14.2

15.6

9.0

5.2 5.0

Total Maintenance $19.6M

Total HW, SW, Imp $29.3M

November 12, 200218

How do we Pay for it?•FY 02-03 $14.2M

•$12.25M COPs, $.45M eRate, $1.5 Redevelopment Agency

•FY 03-04 $15.6M

•$14.65 COPs, $.45M eRate, $0.5 Redevelopment Agency

•FY 04-05 $9.0M

•ROI $6.0M, $0.1 COPs, $2.4M Redirect, $0.5 Redevelopment Agency

•FY 05-06 $5.2M

•ROI $6.0M ($0.8M Positive)

•FY 06-07 $5.0M

•ROI $6.0M ($1.0M Positive)

November 12, 200219

How do we Pay for It? (cont)

Exploring Grant Funding Return On Investment (ROI) Starting Year 3

Medical Billing $2.1M Attendance $1.5M Paper Costs $0.5M Mandated Costs $.85M CSIS Rebate $0.7M Reduction in HR, Payroll, Financial Staff $2.8M Decreased Litigation Business Process Review

November 12, 200220

Return On Investment (cont)

ROI Estimates

0 0

6 6 6

0 0

2 2 2

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5

Years

$ M

illi

ons

Medical Billing

November 12, 200221

Personnel Plan

Attrition Placement in other District Positions Retraining Incentives/Buy Outs Layoff

November 12, 200222

Decisions Approve the Contracts for:

Hardware,Software, Implementation 23-21, 23-77, 23-79, 23-81, 23-82, 23-84

Training, Support, Partners 23-71, 23-72, 23-73

Maintenance 23-78, 23-80, 23-83

November 12, 200223

Decisions Contracts still to bring to the Board:

(Costs are included in the budget)

Renting Data Center Reporting Tools Document Imaging Wide Area Network Upgrade