lemuel c. stewart, jr. cio of the commonwealth june 9, 2004

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expect the best

www.vita.virginia.gov

Lemuel C. Stewart, Jr.

CIO of the Commonwealth

June 9, 2004

Large Agency Transition TeamKickoff Meeting

www.vita.virginia.gov 2expect the best

LATT Topics

• What’s going on with VITA

• The Integration process

• FY05 Savings and Investment Analysis

• Future Plans

• Value of VITA


Imperatives• The Vision for Technology in Virginia• Establish Virginia as a model leader in the use and management of

technology in government.

• The Vision for VITA• Transition from decentralized, stove-piped IT service delivery to a

highly effective, consolidated, and centralized model.

• Why We Are Doing This+ Customer- and citizen-centric services+ Savings+ Effectiveness+ Best Practices management of the IT investment

= Revolutionize services to our customers (best quality/best value)


Governor’s 2004-05 Objectives

Virginia Excels—Best-Managed State Initiative

1-Financial Management 6-Mail Services

2-Information Technology 7-Human Resources

3-Procurement 8-Capital Outlay Process

4-Emergency Preparedness 9-Admin. Dispute Resolution

5-Real Estate Management 10-Operational Values


State/Local New IT Strategies

Duplicative technologyinvestments

Reliance on internal MIS

Independent agencytechnology planning

Siloed programDevelopment

Intra-agency focus

Consolidation oftechnology resources

Innovative Partnerships

Governance model andEnterprise architecture

Interoperability andStandardization

Data sharing andInteragency cooperation

New Worldvs.

Source: Gartner

Old World


VITA’s Long-Term Goals

• Ingrain the “build once, use many times” approach to service improvement.

• Be the catalyst for customer & citizen-centric state business transformations.

• Continually demonstrate improved service and savings benefits for citizens, customers, and taxpayers.

• Achieve true “transparency” as the state’s IT utility.• Become the model of IT excellence in government.


Integration Stage: The Size of the Matter

• Over the course of Integration, VITA will be responsible for supporting:– 90 Organizations at 1,497 locations– 60,000+ end users– 3,000+ servers– 12,500+ telecommunications

devices– 1,286 employees


Integration: Near-Term

• Medium agencies & VDOT transition as of July 1

• Large agencies transition beginning summer 2004

• Agencies will pay direct IT costs + administrative fee (5.5% proposed to JLARC)


Transition: Shared Services

*Listed projects are examples for illustrative purposes


Integration: “Quick Wins”

• Objective: savings (at minimum) to offset agencies’ administrative fees during FY 05 ($6.7M)

• Initial candidate projects identified

• Projects to be pursued by joint VITA/agencies teams

• Projects will promote move to “shared services”


FY05 Savings & Investment Analysis

• Identified FY05 cost savings opportunities

• Analyzed and ranked opportunities using the following criteria:

– Size and timing of savings

– Contribution toward the goal to integrate & transform

– Ease of execution


ID Project Name FY05 FY06

Six-Year

Baseline Benefit

Provides

FY05 Cost

Savings

Achieves Consolidation

& Future Positioning

"Easy" to "Medium" Difficulty

1 Local phone service consolidation XX XX XX l l l2 Standard core desktop bulk licensing XX XX XX l l l3 Small server consolidation XX XX XX l l l4 Contractor conversions XX XX XX l l l5 VITA Host web based business licensing apps XX XX XX l l6 Relocate/consolidate mainframe print site 248 1,235 10,995 l l7 Restructure operations shifts & coverage 193 232 1,353 l l l8 Mainframe upgrades XX XX XX l l l9 Oracle Financials application consolidation 182 516 3,234 l l

10 Migrate customers to CoVaNet 170 432 2,825 l l l11 Operations automation - prod control 122 500 3,474 l l l12 ImagePort broadcast fax (VDH) XX XX XX l l13 Relocate 411 to Richmond Plaza 60 147 795 l l14 Board of Elections lines consolidation 22 44 242 l l l15 Offsite storage contracts consolidation XX XX XX l l l

Total Savings 7,492 11,025 66,083

Cost Avoidance 785 1,306 7,331

Cost Savings 6,707 9,719 58,752

Savings Summary: New FY05 Opportunities


VITA’s Transformation Stage

• Transformation is creating the “to be” environment for the Commonwealth– Consolidation of facilities, hardware, and

software– Realignment and possible relocation of IT staff– Deployment of innovative technology solutions– Implementation of significant cost-savings

initiatives – Creation of innovative partnerships


Strategic Savings Opportunities

Major Re-engineering Initiatives • State-of-the-art Data Center with disaster backup• Enterprise Desktop Management• Enterprise Messaging• Enterprise Customer Care Center• Electronic Government & Business Transformation• Comprehensive Statewide Network Services• Enterprise Systems, Process, and Application Management

>estimated total $100M - $165M savings over 6 years<


VITA Business Plan Representative Timeline


Transformation: Long-Term

• PPEA process continues 2004/05

• Posting June 1, 2004 (as per HB 29)

• Posted attributes frame initiatives & prospective partnerships

• Comprehensive communications and evaluation plans for each stage in PPEA process


VITA PPEA Governance Organizations

VITA PPEA Review Committee

Commonwealth IT Investment Board

Review & Decision Authorities

Membership Established in CODE

ITIB

Secretaries of Tech., Fin., Admin., Com. & Trade

Treasury Board OAG

Selected VITA, DGS, OAG, DPB, DOA, DHRM & Treasury Staff

Invited Participation: ITIB & Selected Agencies


The Value of Partnerships• Going it alone is not an option

– Virginia does not have $200 - $400 million to invest in infrastructure and facilities

– Virginia does not have the people, time, or resources to implement these large-scale projects

• Potential partners bring much to the table– Innovative ideas for solving our business problems– Access to state-of-the-art capabilities and technologies– Expertise and ability to bring major projects to completion – Ability to bring resources to bear for the benefit of citizens and

customers • The Commonwealth defines what is—and isn’t—acceptable in

proposals


The Value of VITA

• Today: – Opportunity to comply with the law/Governor’s

objectives– Quick wins for the Commonwealth

• Tomorrow:– Opportunity to change how state manages IT– Tremendous savings and efficiencies – Continued investment in technology and agency

business needs.– Improved services to our customers/citizens.


VITA Savings/Cost Avoidance—as of 5/04

FY 04 FY 05 FY 06Six-Year Baseline Benefit

Gross Savings—Seven Initiatives

$ 2.97 M $ 5.67 M $ 5.67 M $ 31.33 M

Cost Avoidance—Four Initiatives

$ 9.79 M $13.54 M $ 13.16 M $ 75.96 M

TOTALS $12.76 M $19.21 M $ 18.83 M $107.30 M


-

100,000

200,000

300,000

400,000

500,000

600,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10

Cost Savings and Avoidance

(Tho

usan

ds)

(Thousands)

Savings 2,968 8,175 35,662 52,149 57,025 57,425 56,648 Avoidance 9,788 25,472 33,320 39,977 45,052 45,127 45,202 Total 12,756 33,647 68,982 92,126 102,077 102,552 101,850 Cumulative 12,756 46,403 115,385 207,511 309,588 412,140 513,990


The Value Picture

“Best Quality Service & Best Value”

TODAY

ITInfrastructure

1.4B

AgencyCitizen

Services

1.2B

TOMORROW

ITInfrastructure

.9B

AgencyCitizen

Services

1.7B

6 YR Baseline


For More Information on VITA

www.vita.virginia.gov

Lemuel C. Stewart, Jr.

CIO of the Commonwealth

804.343.9002

[email protected]

[email protected]


Transition Approach• Be Flexible

– A lot of influences have shaped the culture and environment of VITA and your Agency, we try to be sensitive to these influences

• Be Collaborative– Our interest is to be consistent with legislation and position the

Commonwealth for savings, we need to work together to gain mutual benefit

• Be Reasonable– We will make every effort to meet agency requests, but we also

must consider VITA’s support responsibility and legislative mandate

• Create Win – Win – Win– An open communication environment will foster a win for the

Customer, a win for VITA, and a win for the Commonwealth


Transition Stages

lemuel c. stewart, jr. cio of the commonwealth june 9, 2004

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