Post on 29-Dec-2015
ERP Governance Models and Strategies:How States Manage Critical Post-Implentation ERP Decisions and Keep All Players on the Same Team.
Keith Johnson, OracleLynne Bajema, State Comptroller, OKJan I Sylvis, Chief of Accounts, TNKristopher Knight, Director, Division of Accounting, DEDavid A Von Moll, State Comptroller, VAKathy Sheppard, Deputy Comptroller, MAAlan Skelton, State Accounting Officer, GA
SPEAKERS
Trends in State ERP Systems*
• ERP II – Greater self service, business intelligence and built in analytics, moving beyond core applications
• Definite move towards cloud, hosting, IaaS and SaaS
• Necessity of security while improving transparency
• Demand for mobile capability, BYOD integration, etc
• Improved project and portfolio management with strategic IT planning
• Budget and cost control
• Shared services
*NASCIO State CIO Priorities for 2014
Trends in State ERP Systems
Earlier adopters moving to ERP II – Greater self service,
business intelligence, move beyond core applications
• Transparency – Expose data, records and information to external parties
• Business Intelligence/Analytics – Financial/Budgets/Procurement/Projects etc.
• Performance Management/Performance Based Budgeting – Move beyond basic budget preparation
• Self service – Employee/Vendor/Client• Expand beyond core – Projects/Maintenance/Performance Management
/Treasury/Grants – Integrated platform
BI - Budgetary Control AnalyticsOverview
Overspending alerts with drill-down to the budgets that have been overspent
View report by Cost Center, Fund, Program, Project or Group Account dimension and only by the data user has been granted access to.
Freeze report headers enables scrolling within the report view
Secured link for executives to view reports summarized by Budget and Budget Period
Decision Packages and Budget RequestsUse Decision Packages to develop budget proposals or incremental requests for funding
Dynamically include or exclude packages from the total.
Toolbar icons are used to add a new decision package, edit it’s narrative, share with another entity or navigate to budget requests
Rank each decision package
Trends in State ERP Systems
Definite move toward shared services
9
Accounts Payable• Scan, process and pay ~10,000 invoices per month
Vendor Maintenance• Manage ~4,000 vendor maintenance requests per month• Provide eSupplier vendor self-service
Travel & Expense• Process and pay ~8,500 expense reports per month
Chart of Account Maintenance
Contact Center• Respond to ~3,500 employee and vendor inquiries per month
Many Examples• Delaware – State, 2 State Colleges, 17 K12• Cal State System – 23 instances to 1• County/City and Schools – Multiple Cities
Imaging
Trends in State ERP Systems
Considering multi-organization processing models
Provide services across different jurisdictions – Examples:
• State of New York – Learning Management Services for 600,000 State, Municipal and School District Employees
• State of Tennessee – Benefits management and open enrollment for 300,000 State, Higher Education, School, Municipal and retirees.
• State of Delaware – Finance and HR/Payroll services for all State agencies, 2 State colleges, 17 school districts and 18 charter schools
• State of Connecticut – HR and Payroll for State University• Pittsburgh – ERP for City, Allegheny County and Allegheny Port
Authority• Minnesota – Local Government Information Services (LOGIS) –
Provides applications and IT services for 45 Cities and Counties
Trends/Deployment Options
The ERP Market is changing
• “Traditional” - Licensed-based pricing model- On-premise solution (with managed service option)- Single tenant- Client supported (with vendor supported option)
• “Pure” Cloud/Software as a Service - Subscription-based pricing- Delivered through the cloud- Multi-tenant- Vendor supported
Not either/or but both
Comparison of Traditional ERP to Cloud/SaaS ERP
Key Features Traditional ERPManaged Service
(Hosted) Cloud/SaaS ERP
Software Features and Functionality
Mature Mature Evolving
Customizations Allowed Allowed Not allowed; done through configuration
Upgrades Every 2-3 years Every 2-3 years Pushed every 4 months
Infrastructure Dedicated, owned by client
Dedicated or shared, owned by provider
Shared, owned by ERP vendor
Cross-jurisdiction Single tenant Single and/or multi tenant
Multi tenant
Staffing Client owns and operates
Client contracts out some functions
Client contracts out most functions
Business model Upfront CAPEX with license and maintenance
“Smoothed” CAPEX with license and maintenance
“Smoothed” CAPEX with subscription
Less sharing More sharing
ERP Project Success Factors
• Active Executive Sponsors• User Acceptance• Change Management vs. Training• Staffing project with FTE’s – use the
brightest• Define Project success • Identify current metrics- track success• Identify project quick wins
Expected Business Benefits – Financials
Potential Process Improvements Potential Business Benefits
Streamline financial processes Increase cash management Streamline asset recording and tracking process Eliminate or reduced data entry/paperwork Reduce or elimination of reconciliations Provide for accrual basis of accounting Integrate financial accounting transactions with
other relevant financial data
Improved process efficiencies/response time Increased financial analysis time for better
decision support- Performance Management Reduced cycle processing time such as time to
close the books Enhanced cash flows Lower finance costs
• Standardized financial processes across the organization and provides for more efficient transaction processing thereby providing more time for value-added analysis and decision support.
• The solution provides the necessary functionality to comply with current standards. The solution will eliminate the need for many manual procedures currently in place.
Expected Business Benefits – Budgeting
Potential Process Improvements Potential Business Benefits
Eliminate error-prone manual processes Ensure complete, current information Enable budget reports Maintain accurate and balanced data Monitor budget status Link budget planning with operational systems
(e.g., financial, human resources, and project systems)
Improved ability to construct, manipulate and view complex budget structures
Improved integration of strategic and operational planning
Focused budget decisions on results and outcomes Supplement financial targets with non-financial
value drivers Coordination of objectives and executive processes
• Provides the functionality to manage and track an organization’s expenses and projects. • Provides the necessary functionality to comply with current standards.• Eliminates the need for many manual procedures currently in place.
Expected Business Benefits – Human Resources
• Increase productivity through an integrated HR system with improved process efficiencies. • Remove the duplication of data collection, manual processing, and the passing of paper from person to person. • The use of Manager and Employee Self Service capabilities will provide more timely access and control over
information. • Eliminate the need for many manual procedures currently in place.
Potential Process Improvements Potential Business Benefits
Streamline human resources processes Reduce data entry due to automation Reduce recruitment and new hire paperwork Integration to payroll and financial transactions Reduce time and effort on time reporting
Reduced transaction processing time Reduced cost for new hires Reduced cost per payment transaction Consolidated administration of Benefit programs Better tracking of leave time
Suggested Best Practices in ERP Governance:
Have a sound business case for what you want to do
Gain and keep executive and legislative buy-in and commitment
Determine governance structure early in the process
Establish and stick to your business plan and methodology
Document business processes and system requirements
Beware of change management
Invest in people – the right talent on the job and emphasize training
Build in essential risk mitigation strategies
COTS over Custom is almost always better