what every finance professional should know about large ... · what every finance professional...

123
What Every Finance Professional Should Know About Large Complex Technology Implementations

Upload: buitruc

Post on 17-May-2018

214 views

Category:

Documents


0 download

TRANSCRIPT

What Every Finance Professional Should Know About Large Complex Technology Implementations

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

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 97

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

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 98

Lessons Learned:♦Adoption/pushback (passive/aggressive)♦Aggressive timeline/stressed operations♦Knowledge transfer (business/technological)♦Ongoing costs/funding methodology♦Dependency on implementer

Realizing Business Value

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 99

♦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

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 100

♦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.)

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 101

GIS Benefits Infographic

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 102

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

Pre-Conference Session – Complex Technology Implementations 103

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

Pre-Conference Session – Complex Technology Implementations 104

Enterprise GIS Quarterly Status – End of Fiscal Q4, 2016

GeoVision Assessment

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 105

♦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

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 107

♦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.)

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 108

♦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

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 109

♦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.)

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 110

Roadmap to Multi Tenant Offerings

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 111

5 Year Product Cost

47%

30%

10%

3%10%

Initial implementation Customer Support Planned MaintenanceBreak/fix Enhancements

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 112

Take - Aways

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 113

What have I learned?

Many have no idea how to manage large IT projects

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 114

What have I learned?

You will live with these decisions for years to come

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 115

What have I learned?

Communication is everything!

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 116

What have I learned?

Educated Stakeholders will make or break the projects

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 117

What have I learned?

Technology is the easy part

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 118

What have I learned?

The operational units will suffer during the change

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 119

What have I learned?

The scope of the business changes may be massive

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 120

What have I learned?

The ROI may not be in hard dollars

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 121

What have I learned?

There are no shortcuts to large IT project success

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 122

What have I learned?

It is all about the PEOPLE!

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 123

Thanks for your time today!Phil Bertolini, CIO/Deputy County ExecutiveOakland County, [email protected] Hackelman, Managing PrincipalNexLevel Information Technology, [email protected]

2/6/2017 2017 CSMFO Annual ConferencePre-Conference Session – Complex Technology Implementations 124