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www.vita.virginia.gov

Business/Technology Level Set& Horizon Scan

Information Technology Investment BoardJune 1, 2004

www.vita.virginia.gov 2expect the best

Today’s Topics• Commonwealth Business Planning• The Vision That Drives Us• VITA’s Long-Term Goals• Scanning the Road Ahead

– Plan for remainder of transition period– Financial goals

• Short-term—”Quick Wins”• Long-term--Transformation

• ITIB Strategic Discussions• “We’ll cover that at the planning session”


Commonwealth Business Planning• Historically focused at agency level• Council on Virginia’s Future

– Established by 2003 General Assembly– Chaired by Governor; members from

legislature, private sector, cabinet• Charges:

– Develop Roadmap for Virginia’s Future– Establish scorecards to track progress


Council on Virginia’s Future--Vision• Be the best managed state

– Outstanding financial management– Open and accountable government– Long-range planning/performance management– High quality workforce– Effective information systems management


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


The Vision That Drives Us• Create value • Improve the Commonwealth's competitive

position• Create accountability for how public funds are

spent on technology• Grow our employees• Serve as the model for customer- & citizen-

centric government


State/Local New IT Strategies


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.


Measuring VITA’s Success—Prospective Metrics

• 90% state services available electronically• 75% citizen response--technology delivers

services effectively• Top 10 ranking in Digital State Survey• 100% replacement of legacy

administrative/finance systems--From the Council on Virginia’s Future

Best Managed State Vision TeamDraft Report


The Road Ahead--Transition• Short-term

– July 1—Medium agencies/VDOT– “Quick Wins” process underway, organizing teams to

pursue– Large agencies by January 1

• Long-term– PPEA process continues through 2004– Published attributes frame initiatives & prospective

partnerships– Posting June 1, 2004


The Road Ahead--Financial• Short-Term—Quick Wins

– Process– Targets– Potential Value

• Long-Term—Transformation– Process– Targets– Potential Value


FY05 Savings & Investment Analysis• Identified FY05 cost savings opportunities and

candidate investment opportunities with long-term savings potential.

• Analyzed opportunities using the following criteria:– Size and timing of savings– Contribution towards VITA’s goal to transform &

integrate– Ease of execution

• Selected and ranked opportunities


FY05 Savings & Investment Highlights• Cost savings are projected savings using currently available

information.• Cost savings opportunity portfolio is dynamic and is

managed on an ongoing basis.• Creation of VITA enabled 13 of 15 FY05 cost savings

opportunities.• 75% of the cost savings projects are not hard to implement.• FY05 investment projects can provide significant long-term

savings.• FY06 estimated savings can significantly exceed FY05

estimated savings.


Comparison of Selected Opportunities

Contractor Conversions

LowHard

Easy

Leve

l of D

iffic

ulty

High

Local Phone Service

Consolidation

Small Server

Consolidation

Migrate Customers to CoVaNetBoard of Elections

Lines Consolidation

Standard Core Desktop Bulk

Licensing

Relocate/ Consolidate Mainframe Print Site

Operations Automation –

Production Control

Restructure Operations

Shifts & Coverage

Oracle Financials Application

Consoli-dation

Relocate 411 to

Richmond Plaza

Mainframe Upgrades

Achieves Consolidation & Future Positioning

ImagePort Broadcast

Fax

Offsite Storage Contracts

Consolidation

VITA Host Web Based Business Licensing

Applications


Savings Summary: FY05 Opportunities

ID Project Name FY05 FY06

FY05 thru FY10

Provides

FY05 Cost

Savings

Achieves Consolidation

& Future Positioning

"Easy" to "Medium" Difficulty

1 Local phone service consolidation XX XX XX 2 Standard core desktop bulk licensing XX XX XX 3 Small server consolidation XX XX XX 4 Contractor conversions XX XX XX 5 VITA Host web based business licensing apps XX XX XX 6 Relocate/consolidate mainframe print site 248 1,235 10,995 7 Restructure operations shifts & coverage 193 232 1,353 8 Mainframe upgrades XX XX XX 9 Oracle Financials application consolidation 182 516 3,234

10 Migrate customers to CoVaNet 170 432 2,825 11 Operations automation - prod control 122 500 3,474 12 ImagePort broadcast fax (VDH) XX XX XX 13 Relocate 411 to Richmond Plaza 60 147 795 14 Board of Elections lines consolidation 22 44 242 15 Offsite storage contracts consolidation XX XX XX

Total Savings 7,492 11,025 66,083 Cost Avoidance 785 1,306 7,331

Cost Savings 6,707 9,719 58,752


Candidate Project FY05

Investment FY06

Savings

FY05 thru FY10

Savings Host statewide alert notification (SWAN)Unix sourcingLicense consolidation - servers asset mgt.Oracle licensing consolidationStatewide IT security programTOTALS: (2,557) 5,375 36,288

Investments for Future Savings


Project SequencingID Task Name1 Local phone service consolidation2 Standard core desktop bulk licensing3 Small server consolidation4 Contractor conversions5 VITA Host web based business licensing apps6 Relocate/consolidate mainframe print site7 Restructure operations shifts & coverage8 Mainframe upgrades9 Oracle financials application consolidation10 Migrate customers to CoVaNet11 Operations automation - production control12 ImagePort broadcast fax (VDH)13 Relocate 411 to Richmond Plaza14 Board of elections lines consolidation15 Offsite storage contracts consolidation

Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr2003 2004 2005 2006 2007 2008FY05 FY06 FY07 FY08FY04


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<


Total Savings By Category & Year

(Thousands)

6-Yr Baseline Benefit

(Tho

usan

ds)

(20,000)

-

20,000

40,000

60,000

80,000

100,000

120,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10

Savings Reported 12,756 19,212 18,832 18,832 18,832 18,832 18,832 126,128 FY05 Savings Opps 7,492 10,887 8,263 13,139 13,539 12,763 66,083 PM Improvements 10,000 15,000 20,000 25,000 25,000 25,000 120,000 Investment Projects (2,557) 5,375 8,255 8,330 8,405 8,480 36,288 Strategic Investments (500) 18,888 36,776 36,776 36,776 36,776 165,492 Total 12,756 33,647 68,982 92,126 102,077 102,552 101,851 513,991


Note total includes both savings and cost avoidance.

-

100,000

200,000

300,000

400,000

500,000

600,000


Total 12,756 33,647 68,982 92,126 102,077 102,552 101,851 Cumulative 12,756 46,403 115,385 207,511 309,588 412,140 513,991

Cumulative Savings By Year

(Tho

usan

ds)

(Thousands)


ITIB Strategic Discussions• What is the Board’s thinking on strategic

vs. operational roles?• What is the relationship of Board

initiatives to Virginia’s Roadmap for the Future?

• How can the Board be more proactive in setting the strategic direction for “enterprise systems”?


Strategic Issues for the ITIB (cont’d)

• How can agencies’ business leadership (not just IT) be collaboratively engaged?

• What solutions can be pursued for under-funded oversight responsibilities in project management and security?


“We’ll cover that at the planning session.”

• Role/positioning of VITA internal auditor• No layoffs policy/implications• Facilitating funding for agency-specific IT

projects (PPEAs, bonds, loans, etc.)• Board operations best practices• Frequency of Board meetings


Revised slides follow…..• Following are slides modified 6/8 per

Lem’s request


Savings and Avoidance by Year

(Thousands)

(Tho

usan

ds)

-

20,000

40,000

60,000

80,000

100,000

120,000


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


Total Savings By Category & Year

(Thousands)

6-Yr Baseline Benefit

(Tho

usan

ds)

(20,000)

-

20,000

40,000

60,000

80,000

100,000

120,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10S/A Recorded FY04 12,756 19,212 18,832 18,832 18,832 18,832 18,832 126,128 FY05 Initiatives 7,492 10,887 8,263 13,139 13,539 12,763 66,083 PM Improvements 10,000 15,000 20,000 25,000 25,000 25,000 120,000 Investment Projects (2,557) 5,375 8,255 8,330 8,405 8,480 36,288 Strategic Investments (500) 18,888 36,776 36,776 36,776 36,776 165,492 Total 12,756 33,647 68,982 92,126 102,077 102,552 101,851 513,991 Avoidance 9,788 25,472 33,320 39,977 45,052 45,127 45,202 243,938 Net Savings 2,968 8,175 35,662 52,149 57,025 57,425 56,648 270,052


-

100,000

200,000

300,000

400,000

500,000

600,000


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

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