MySAP Proposal c

Systems Integrator – Flexible Real Estate on mySAP 2005Government of ManitobaTransportation and Government ServicesRFP # ICTP-0027-06-TGS

June 6, 2006

RFP Name and Number:

Systems Integrator – Flexible Real Estate on mySAP ERP 2005ICTP-0027-06-TGS

Submission Closing Date and Time:

June 6, 2006 12:00 noon CST

Vendor and Contact: Deloitte Inc.360 Main StreetSuite 2300Winnipeg MB R3C 3Z3

Eric JensenPrincipalTel: Fax: Email: [email protected]

June 6, 2006

ICT Procurement Branch1100 – 215 Garry StreetWinnipeg MB R3C 3P3

Subject: Systems Integrator – Flexible Real Estate on mySAP ERP 2005

Deloitte is pleased to respond to the Systems Integrator – Flexible Real Estate on mySAP ERP 2005, RFP # ICTP-0027-06-TGS for the Government of Manitoba. We assure you of our competence to complete the project to the highest professional standards.

To the best of our knowledge the information contained in our proposal submitted to you on this Request for Proposals is true and accurate in every respect.

In the event that any agreement should be entered into between our firm and Manitoba as a result of this process, we acknowledge that our response to the Request for Proposals may be included as an appendix to such an agreement. We further acknowledge that any material inaccuracy in our response to the Request for Proposals could be a basis for invalidating such an agreement.

We commit to accepting the conditions and provisions of the Request for Proposals identified in Sections 5 Conditions and Instructions, and 6 Manitoba’s Contractual Requirements.

We commit that the prices quoted will be valid for a period of 90 days from the Closing Date of the Request for Proposals.

We acknowledge that you have absolute discretion in the selection of suppliers.

Yours truly,

Eric JensenPrincipalDeloitte Inc.

Enclosure

Deloitte Inc.360 Main StreetSuite 2300Winnipeg MB R3C 3Z3CANADA

Tel: Fax: www.deloitte.ca

Our Client Service Standards

1. Determine, on each engagement, who our clients are and directly ascertain their expectations for our performance.

2. Analyze our clients’ needs and professional service requirements.

3. Develop client service objectives that will enable us to fulfil our professional responsibilities, satisfy our clients’ needs, and exceed their expectations. Prepare an appropriate client service plan to achieve these client service objectives.

4. Execute the client service plan in a manner that ensures commitments are met, potential problems anticipated, and surprises avoided.

5. Establish effective and creative communication, both internal and external, to enhance client perceptions of value and quality of our service.

6. Provide management with insights on the condition of their business and meaningful suggestions for improvement.

7. Continually broaden and strengthen our relationships with key management personnel to facilitate effective communication and foster client loyalty.

8. Ensure that any professional, technical, or client service problem is resolved promptly with timely consultation in an environment of mutual respect.

9. Obtain from the client, either formally or informally, a regular assessment of our performance.

10. Receive fees that reflect the value of services provided and responsibilities assumed and are considered fair and reasonable by our clients.

Table of Contents

Executive Summary............................................................................................................................... 1

2.1 Facts and Assumptions................................................................................................................. 4

2.2 Proponent Qualifications............................................................................................................... 62.2.1 Proponent History.......................................................................................................... 62.2.2 Related Experience........................................................................................................82.2.3 Personnel..................................................................................................................... 152.2.4 Other Resources..........................................................................................................16

2.3 Subcontractors and/or Business Partners...................................................................................18

2.4 Management Approach............................................................................................................... 192.4.1 Understanding of Scope and Objectives......................................................................192.4.2 Project Organizational Structure and Responsibilities.................................................312.4.3 Project Management and Control................................................................................312.4.4 Risk Management........................................................................................................ 312.4.5 Delivery Work Plan and Schedule................................................................................312.4.6 Quality Assurance........................................................................................................312.4.7 Warranty..................................................................................................................... 312.4.8 Enhancements............................................................................................................. 31

2.5 Proof of Insurability..................................................................................................................... 312.5.1 Commercial General Liability Insurance......................................................................312.5.2 Errors and Omissions Insurance..................................................................................31

2.6 Pricing......................................................................................................................................... 31

2.7 Attachments................................................................................................................................ 31

Appendix 1 – Resumes......................................................................................................................... 31

Appendix 2 – Risk Management Plan Template....................................................................................31

Appendix 3 – Preliminary Microsoft Project Plan for Phase 1 and Phase 2............................................31

Appendix 4 – Sample Quality Assurance Questionnaire.......................................................................31

Appendix 5 – QAR Processes, Roles and Responsibilities Details, Supporting Tools and Templates.. . .31

Appendix 6 – Application Support Centre.............................................................................................31

Appendix 7 – SAP Real Estate Management in SAP Solution Manager..................................................31

© Deloitte & Touche LLP and affiliated entities. Government of Manitoba – RFP # ICTP-0027-06-TGSi

Executive Summary

Deloitte is committed to extraordinary service, innovative solutions and exceeding client expectations. Our clients look to us as their business partner, strategic planner, and trusted advisor. We firmly believe we are uniquely positioned to assist the Accommodations Services Division (ASD) of Manitoba Transportation and Government Services with the implementation of a flexible Real Estate solution based on the following capabilities:

Proven track record – we have successfully implemented this solution for other public sector clients.

The right combination of skills – public sector, real-estate and SAP.

We understand the overall transformation program at the Province.

We understand the Province’s people, processes and IT landscape.

Superior team that knows your business.

Flexible ongoing support options.

SAP partnership.

Proven track record – we have successfully implemented this solution for other public sector clients.

We understand that as part of the Province’s strategy to leverage the investment made in SAP, ASD conducted a fit assessment of SAP against its business requirements which resulted in a high degree of fit. As a result of the fit and the strategic direction of the Province, mySAP Real Estate has been selected as the technology solution to support and enable the organization given the requirements of today and down the road.

We appreciate that there may still be some scepticism with regards the organization’s ability to implement what may be perceived as a complex solution. We understand these concerns and can increase your comfort level given our proven track record of successfully implementing the same SAP modules for similar business needs with other public sector clients. We understand the unique considerations associated with implementing the Real Estate modules in a public sector context.

The right combination of skills – public sector, real-estate, and SAP.

There are several consulting firms that can offer SAP experience to ASD with the implementation of the Flexible Real Estate on my SAP ERP 2005 solution. This is important and required experience, however, it will not in and of itself ensure a successful implementation at ASD. One of the key drivers of success for the project will be to ensure

© Deloitte & Touche LLP and affiliated entities. Government of Manitoba – RFP # ICTP-0027-06-TGS1

Clients City of Ottawa

Colorado –Department of Transportation

Toronto District School Board

City of Vancouver

Public Sector SAP

Real Estate

the right skill mix. Our breadth of Real Estate and Asset Management expertise coupled with public sector experience and SAP product knowledge will ensure that best practices, relevant to your context, will be identified and effectively designed into the overall solution. Deloitte brings the necessary combined expertise. We have resources that have experience with Real Estate management, the SAP Flexible Real Estate and the application of both within a public sector environment.

We understand the overall transformation program at the Province.

Deloitte has been actively involved in a number of aspects of the Province of Manitoba’s transformation program. We are knowledgeable around the following dimensions of the Provinces transformation program:

Transformation strategic objectives, issues and drivers.

Overall Program management and governances plans.

Transformation Change management challenges.

Specific projects and initiatives in place to support the program.

Supporting application and technology landscape.

Based on this knowledge of the transformation program Deloitte is uniquely positioned to complete this engagement with consideration and consistency with the objectives of the overall transformation plan at the Province. We understand the interdependencies and integration of this project with the overall program and specifically related to the current upgrade of SAP R/3 version 4.6B to mySAP ERP 2005 ECC 6.0 and the planned continuous improvement initiative.

We understand the Province’s current people, processes and IT landscape.

Deloitte has a long standing track record of assisting the Province with SAP related initiatives. We were the prime systems integrator for the original implementation of SAP at the Province and have since assisted the Province with a variety of other activities (e.g. upgrade assistance, business transformation program charter, e-commerce pilot application inventory assessment). We have also had the opportunity to work with ASD to understand the operational issues associated with the real estate responsibilities. This work has allowed us to build our knowledge of the Province’s and ASD’s processes, technology solution as well as the people/organization and working culture.

Given this deep involvement with the Province and preliminary work undertaken with ASD, the Deloitte team has a good understanding of what is required to successfully deliver the project. It will also allow our team to ‘hit the ground running’, avoiding timely background assessments of existing processes and systems. Several of the proposed project team members were part of the initial implementation and some of the other projects at the Province. This will ensure first hand and detailed knowledge of integration considerations for the ASD SAP Real Estate implementation.

Superior team that knows your business.

We are proposing a senior team that has significant experience with the Province, Real Estate Management, Asset Management, SAP, SAP Real Estate. The following summarizes the depth of expertise of the proposed Team.


RESOURCES ROLE POM EXPERIEN

CE

REAL ESTATE/ASSET MANAGEMENT

PROCESS EXPERIENCE

SAP /ERPIMPLEMENTATION EXPERIENCE

Marcus Hill Engagement Partner √ √ √Eric Jensen QA Partner √ √ √Roland Sabourin Project Manager √ √ √Ruth Parrett SAP Real Estate √ √Frank Brodie SAP Plant Maintenance √ √Bob Lawson SAP Project System √ √Bob Hirshfeldt SAP Materials Management √ √ √John O’Leary SAP Finance √ √ √Linda Frampton SAP Human Resources √Mike Wong Technical Architecture √ √Kathy Parker Change Management √ √ √Maxine Clarke-Johnson Change Management √ √ √Giscard Rous ABAP Developer √ √Sheryl Owens Real Estate SME * √ √ √Randy Scoville Asset Management SME √ √Willie Lam Technical Architecture SME √ √ √

*SME – Subject Matter Expert

Flexible ongoing support options.

We recognize that ASD is concerned about their ability and cost associated with providing ongoing support to the organization. Deloitte has committed, as part of the scope of this proposal, to provide four weeks of post go-live support. After that, Deloitte is in a position to provide ongoing post implementation support to ASD with a seamless transition from a project team support structure to a more permanent support organization. We offer flexible application management and support services that provide our clients with specific levels of support, when they need it. Our offering ranges from providing an entire functional and technical support team to providing as-needed support for demand peaks, with numerous options in-between. We understand that “one size does not fit all”, and as such we believe in working with our clients to determine what will add the most value given their unique situation. In addition, these support services can be leveraged to support the implementation enabling cost reductions as well as effectively positioning the transfer of knowledge to the support centre resources.

SAP partnership.

Our approach to SAP implementations is based on a partnership approach with SAP. We recognize that ASD has made a significant investment in working with SAP to drive out the SAP solution for ASD. We acknowledge that ASD has contracted directly with SAP for services related to blueprint design as well as quality assurance reviews (i.e. safeguarding). Our approach is a collaborative, integrated approach with SAP. SAP’s activities and involvement will be integrated into our overall workplan. We have a successful history of working together – the combined expertise positions the project for success.


We understand that the SAP Real Estate is one of many initiatives planned for ASD. Managing these multiple parallel initiatives can be a challenge, however, we feel confident that we can effectively manage risk associated with this project and are in a position to work with you regarding resource/priority coordination. We believe that a project’s success depends substantially on the quality and experience of the people involved. The members of the Deloitte team for this project have extensive experience in designing and deploying SAP, Asset Management and Real Estate solutions. Additionally, we bring both experience and willingness to conduct knowledge transfer; our truly collaborative approach allows for a free flow of information, and has been a key success factor in our projects. Our goal is to ensure you are successful after we are gone.


2.1 Facts and Assumptions

Ref. # Fact or Assumption Relevance to the Proposal

1 Deloitte and ASD will mutually agree to any scope changes resulting from increased functionality, or other additional requirements outside of the original project scope through a formal change control process. Work will not be commenced on new requirements outside of the original budget and scope without written approval from both ASD and Deloitte prior to the execution of the work.

These changes may impact the total costs to ASD. We are committed to working in a collaborative fashion with ASD to arrive at the right solution for both ASD and Deloitte.

2 Our estimates are for services only and do not include pricing for costs related to hardware and/or software.

Software and hardware were not requested in the RFP.

3 All configuration and documentation will be in English, master data and screens will be in English.

Impacts functional configuration and documentation effort.

4 ASD will supply the required infrastructure, including hardware and software, for this project. ASD will be responsible for the system performance and availability.

Impacts infrastructure configuration effort by ensuring adequate performance of test and development systems.

5 ASD will be responsible for the procurement and OS level configuration of the hardware.

Impacts infrastructure configuration effort.

6 ASD will be responsible for securing any infrastructure required beyond the logical SAP environment (e.g. firewalls, router configurations, physical access).

Impacts infrastructure and security configuration effort during all phases of the upgrade.

7 ASD will make available required resources (i.e. business representatives and technical resources) as defined in the organization section.

Impacts configuration and testing effort during the project.

8 ASD will ensure that senior representatives from the organization will be available to actively support the project, review and sign-off on key deliverables in a timely fashion and enable timely decision-making.

Lack of active involvement could result in unnecessary change resistance in the organization and cause project delays.

9 ASD will ensure that stakeholders from other Provincial Departments (e.g. EST, CSU, other departments that could leverage asset solution) are available and actively participate in defined workplan activities.

Lack of involvement could result in the design of a solution that can not readily be leveraged by other Provincial Departments and does not take into consideration integration aspects with other planned projects/initiatives.

10 ASD will ensure that a IT landscape strategy is defined that will coordinate the multiple planned initiatives (i.e. upgrade, Real Estate implementation and the continuous improvement initiative).

May result in significant unplanned technical work and potential additional testing if environment strategy is not clearly defined.

11 Any project standards (i.e. process, documentation, naming) and procedures that are to be followed to ensure consistency between the respective project will be defined and provided to the team at the start of the project.

May result in rework and delays if new standards are introduced once the project is underway.

12 ASD will provide the Deloitte consultants adequate workspace, SAP system access and external connectivity access (internet), phones, copiers, office supplies, and administrative support required to perform their tasks.

Impacts expense costs and configuration effort for the on-site resources.

13 Consultants will provide their own laptops for which ASD will provide the appropriate access to the ASD SAP environment.

Impacts expense costs and configuration effort for resources both onsite and remote.


Ref. # Fact or Assumption Relevance to the Proposal14 ASD will provide the appropriate documentation,

process models, and data models as well as other relevant technical and background information as required by the Deloitte team.

Impacts functional configuration effort by accelerating the project teams understanding of the current environment.

15 ASD reviews and provides feedback on all documentation and deliverables within five business days.

Impacts project management effort for the acceptance of deliverables.

16 ASD will make available experienced users to conduct integration and acceptance test during the implementation phase of the project.

Impacts elapsed time and quality of testing. This is an important issue and ASD should not under estimate the value of the experienced users.

17 ASD will be responsible for all media inquiries. Deloitte will not be involved in any aspects of media as it relates to this project unless specifically agreed to by both Deloitte and ASD.

18 Upon completion of the project, ASD will provide Deloitte a reference.

Deloitte is motivated to complete the project as defined on-time, on-budget and on-scope.

19 ASD has not provided a contract for Deloitte to consider and comment upon as part of this Request for Proposal.

Deloitte will review and comment on terms and conditions within any contract that ASD wishes Deloitte to agree to. Deloitte will return comments back to ASD no later than three working days after receiving the proposed contract. ASD should work with purpose to discuss any issues with Deloitte in an expedited manner in an effort to ensure that timelines are met. Deloitte will provide an early start-up contract should normal contracting be prolonged.As an alternative to speed the contracting process, ASD could consider using our terms and conditions that we typically use with clients. These could be used for the master agreement or for an early start up contract.

20 Solution Manager Toolset will be used. Toolset is familiar to Manitoba from previous projects and current upgrade project. In-house skills will be leveraged.


2.2 Proponent Qualifications

2.2.1 Proponent HistoryDeloitte is the largest professional services firm in Canada, with more than 6,600 people. Deloitte provides a full range of management consulting, assurance and advisory, and tax services to more than 60,000 clients in all sectors of the Canadian economy. We are leaders in consulting to public and para-public organizations, with many clients who can attest to our ability to identify opportunities and achieve results. Deloitte is part of Deloitte Touche Tohmatsu, a global leader in professional services with more than 119,000 people in over 140 countries.

119,000+People$12.4B+Revenue140 Countries

• Audit• Tax• Financial Services

55,000+ Professionals7,000 Dedicated SAP

6,600+ Professionals150 Dedicated SAP

Deloitte Touche Tohmatsu

Worldwide Consulting

Consulting

Deloitte has been serving Canadian organizations for over 150 years. We have a proven track record for producing results and a reputation for client satisfaction, coast-to-coast and internationally. We focus on partnering with our clients to understand their businesses and critical success factors, and bringing the best resources (people, methodologies and tools) to develop solutions to our clients’ most critical issues.

Deloitte has a solid professional reputation noted for a collaborative working style and is prepared to work with the Province of Manitoba in a manner or role that makes sense to make you successful. We offer a complete range of services in strategic planning, change leadership, operations management, process improvement, business case development, service transformation, and systems planning and implementation.


Our Mission, Vision and Core ValuesDeloitte’s mission and vision guide the actions of our firm, people, and investments and lay the groundwork for our relationships.

Our Mission is to help our clients and our people excel.

Our Vision is to be the worldwide leader in delivering innovative business solutions and services in the e-economy.

Our Core values are: Unyielding focus on achieving client results Strong spirit of collegiality Dedication to client collaboration and teamwork Extraordinary commitment to people Fundamental belief in professional excellence

Deloitte Structure and Financial StrengthDeloitte is a privately held partnership and, as such, is not required to prepare audited financial statements. However, the following information demonstrates the financial stability of Deloitte:

We have been in business since 1845.

In 160+ years of continuous business, neither Deloitte nor its predecessor firms have ever defaulted on a contract due to lack of financial resources, firm stability, or debarment and breach.

Our worldwide revenue exceeds $18 billion US.

Specifically in Canada, the following table provides some statistics as to our size and stability.

Revenue FY 2005 $1.1 billionTotal People 6,115Number of Partners 512Number of Professional Staff 4,091Number of Administrative Staff 1,512Locations 47


2.2.2

Related Experience

A Unique Combination of Skills – Enabling Success for the Province

There are several consulting firms that can offer experience to the Province with the implementation of the Flexible Real Estate on my SAP ERP 2005 solution. This is important and required experience, however, it will not in and of itself ensure a successful implementation for ASD. The Real Estate module within SAP was designed to support property management within a commercial setting. The functionality required to support ASD’s needs is inherent within the software, however, there are unique considerations in terms of the design of the solution based on the unique processes/needs when applied in a public sector environment. A few examples include:

Integration with public sector funds management (i.e. more complexity in accounting for maintenance and inventory).

Need for enhanced visibility and transparency in the disposition of property (i.e. determination of fair market value and non-commercial considerations).

Unique visibility to infrastructure attributes to enable informed investment decisions.

Deloitte brings the necessary combined expertise. We have resources that have experience with Real Estate management, the SAP Flexible Real Estate and the application of both within a public sector environment.

Our SAP Practice – A History of SuccessDeloitte is a leading provider of SAP services globally and in Canada. Deloitte has been providing SAP services for over 15 years. Our SAP practice has over 5,000 dedicated SAP professionals worldwide. This number reflects one of the largest teams of global SAP experienced professionals in the industry. Over 50% of our SAP consultants have more than 10 years of SAP software experience. Our SAP practice has successfully executed more than 1,700 SAP implementation projects worldwide, with over 1,300 projects now live.

Deloitte was one of the initial firms to participate with SAP Americas when the SAP Real Estate application was first launched in North America and we continue to enjoy a close relationship with the real estate product group in Germany.

Public Sector PracticeGovernment executives consider Deloitte to be one of the outstanding professional services firms serving the public sector today. Our leadership is evident in the clients we serve, the experience and knowledge we offer, and the extent of our involvement in leading government association affairs. We have more than 40 years of experience helping state and local government clients with their operations and their systems. This means that we offer our clients the time-tested, specialized


Clients City of Ottawa

Colorado –Department of Transportation

Toronto District School Board

City of Vancouver

Public Sector SAP

Real Estate

experience that they need, plus the depth of experience in emerging e-Government initiatives that can make the difference for their future success.

Deloitte’s Public Sector practice has worked with all levels of government, all over the world, including, but not limited to, nearly all of the 50 states in the U.S. and the U.S. and Canadian federal governments, as well as many of the major cities, counties, school districts, and universities in North America. Globally, our Public Sector practice has served major government agencies, health organizations, and public learning institutions in Europe, Asia-Pacific, and Africa. Our experience in the Public Sector also reflects our understanding of the unique management issues in the public environment, coupled with an overriding understanding of the programmatic issues specific to government programs.

Our team is experienced with the public sector industry and working at the Province of Manitoba. Deloitte has been involved with several initiatives that bring relevant knowledge and insight to the ASD Real Estate initiative.

Work Undertaken for the Province Relevance to ASD ImplementationOriginal implementation work – Deloitte undertook the original implementation of the first footprint of SAP at the Province and still retains significant knowledge of the applications, the implementation processes and the results.

Some of the proposed resources were staffed on the initial implementation. As such, they have an understanding of the current SAP solution that ASD would need to interface with. This will reduce risk and the timeframe associated with designing processes, the supporting SAP configuration and associated interface points.

Real estate advisory work – Deloitte has worked with Transportation and Government Services to understand the operational issues associated with their real estate responsibilities including a review of the packages that could satisfy their application needs

Our proposed project manager was involved in some of the preliminary work undertaken. As such, there is some working knowledge of ASDs facilities management challenges, supporting processes and technology as well as working environment. This knowledge will be leveraged and will reduce the learning curve associated with understanding your business and needs.

SAP advisory services – Deloitte has provided advisory work related to the overall business transformation initiatives and business case for the upgrade to the solution that has now been chosen by the Province.

This work has provided us a broad understanding of the specific objectives, benefits and costs associated with one of the projects associated with the overall transformation project. This provides context for the proposed Real Estate initiative.

Business Transformation program charter – Deloitte recently completed the development of a charter for the new Business Transformation Program – BT1.

This work provided us with a detailed understanding of the specific projects associated with the BT1 initiative. The Real Estate implementation for ASD is one of these projects. This Knowledge will provide context and a solid understanding of the objectives associated with the ASD initiative.

Upgrade from R/3 to 4.6B to mySAP ERP 2005 ECC 6.0 – Deloitte has been selected as the implementation partner to assist with the upgrade.

Deloitte is currently working with the Province on the Upgrade project. The ASD initiative will need to be closely coordinated with the upgrade to ensure that at the end a single environment is used to support both initiatives. The Deloitte teams will work closely together to ensure coordination and integration.

We have also worked extensively with the Province of Nova Scotia on their SAP Program. In Nova Scotia, we have successfully completed a number of projects; the following being of specific relevance given the ASD proposed initiative and context:

Original Implementation Work – Deloitte also undertook the original implementation of the first footprint of SAP at the Province of Nova Scotia and still retains significant knowledge of the applications, the implementation processes and the results.

SAP Competency Centre – We were engaged to assist the SAP Competency Centre in developing their service delivery model.


SAP Program Office – We worked with leadership of the SAP Program Office to develop a governance structure that would include representation of all stakeholders in the program.

Real Estate PracticeDeloitte’s Real Estate Advisory Services Group (REAS) is comprised of individuals who are recognized as experts in the fields of real estate strategic planning, transactions, development, project management, privatization, and valuation. Our professionals have worked with property owners, investors, lenders, developers, and public officials to identify and maximize opportunities, as well as determine and enhance the use, value and financial return from all forms of real estate.

Deloitte is particularly proud of our success in providing services to Public Sector organizations. Our tradition of success in the Public Sector is driven by our commitment to a teaming relationship with our government clients, our project management capability, and our proven abilities at change leadership. We work in step with our client counterparts throughout our projects, emphasizing knowledge transfer and development of permanent ongoing internal change leadership capabilities. We also bring a deep understanding of government programs and operations coupled with our practical ability to get things done on time, within budget, and right the first time.

Qualifications and ReferencesDeloitte has undertaken some Real Estate and many Asset Management implementations, however, the most relevant experiences for ASD are those where there has been a combined Real Estate/Asset Management implementation and within the public rather than private/commercial sector.

We have successfully implemented very similar SAP Real Estate/Asset Management solutions for several public sector clients. On the next page are details of some of these experiences.


QualificationClient Organization Toronto District School BoardSummary of Client Organization The Toronto District School Board (TDSB) is the largest school

board in Canada and employs over 30,000 personnel. In 1998, the TDSB with an operating budget of $2 billion was created by edict of the Province of Ontario as an amalgamation of the seven boards of education within the City of Toronto. Each of the former boards had its own financial system, none of which was capable of handling the requirements of the new Board.

Service Timeframe October 1998 – January 2000Brief Description of the Project(including size and scope)

The TDSB SAP R/3 4.0 functional scope included: Financials (FI/CO/FM) Procurement (MM) Plant Maintenance (PM) for Facilities Project Systems (PS) for Capital ProjectsRoll-out included some 4500 users in 650 locations.With SAP Canada acting as prime contractor, Deloitte acted as the implementation partner for this major initiative. Deloitte provided Project Management Office (PMO) services and acted as the City’s primary integration partner throughout the project.Deloitte provided a broad range of services including: Project management and integration Change leadership and training support Functional business consulting SAP functional configuration including security Technical architecture design and implementation Technical development Infrastructure consulting capabilities Post implementation supportThe project was delivered on time and on budget allowing the new Toronto District School Board to begin its new financial processes at the beginning of its first fiscal year of operation.

Qualification

Client Organization City of Vancouver, British Columbia, CANADASummary of Client Organization The City of Vancouver initially installed SAP R3 in 1999. After

that point, the City continued to improve and extend the benefits it received.

Service Timeframe November 2002 – July 2003Brief Description of the Project(including size and scope)

In late 2002, the City determined that the area of facility maintenance and asset accounting for its real estate property, buildings and park facilities provided a significant opportunity for improving value.Deloitte was retained to support the City of Vancouver to extend its SAP footprint to include Plant Maintenance and Asset Accounting and integrating the solution with its existing SAP landscape.A joint City of Vancouver / Deloitte team of approximately 12 core team members coupled with the existing SAP support team completed the design, construction and deployment in a 6 month time-frame.


QualificationClient Organization Colorado Department of Transportation (CDOT)Summary of Client Organization CDOT is responsible for the maintenance of the highway

systems in Colorado. This includes road repairs, construction as well as snow removal.

Service Timeframe August 2005 -> October 2006 (expected go-live)Brief Description of the Project(including size and scope)

CDOT wanted to implement a technology solution to enable the following: Track properties across the state Manage contracts for maintaining the properties (e.g. snow

removal, landscaping, HVAC, general maintenance) Track costs for maintaining these properties Manage lease contracts and associated accountingCDOT is implementing (i.e. currently in the last stages of the realization phase) SAP R/3 ECC 5.0 Flexible Real Estate to meet all of their real estate business requirements. Key transactions implemented include: Project systems (WBS structures, cost capture and

settlement to asset accounting) Real Estate leases and contracts and associated

correspondence Lease contract renew “triggers” Inspection notices Rental billing and cost recovery Facility maintenanceDeloitte is providing consulting and project management including process design, SAP configuration and testing.


Reference

As requested in the RFP, the following is a reference of one Real Estate/Asset Management engagement of similar size and scope to this RFP within the past two years is provided below.

Reference

Client Organization City of Ottawa – Integration Business Solutions (IBS)Project Objectives The objective of this project was to support the amalgamation

of 12 municipalities to form the new City of Ottawa. It consolidated multiple payroll, and maintenance management systems into one.

Brief Description of the Project(including size and scope)

The IBS program was a series of related projects focusing on building business solutions to integrate Finance, Supply, Human Resources, Real Property & Asset Management, and Transportation, Utilities and Public Works functions for the new City of Ottawa. IBS will help to harmonize business processes and tools used by City staff. The technology platform for this solution is SAP.The currently three projects included in the IBS program:Human Resources (HR) Developing common payroll, time and scheduling processes

(Payroll/Time). Developing a standard organizational/position management

process supported by a consolidated database of HR information, including employee data and some training information (PA/PD).

Developing strategic HR processes in the areas of compensation, recruitment, development and training, employee movement, employee benefits, health and safety, and labour relations.

Employee and Manager self – time entry, benefits registration, employee data changes, approvals and reporting.

Transportation, Utilities and Public Works (TUPW) Enhancing the SAP application (PM) that is currently

available at the wastewater plant and pumping stations. This will improve the tracking of work and equipment history, equipment-lifecycle costing, planning and scheduling, and trending analysis.

Implementation of an integrated maintenance management process that incorporates financial data, costing, and HR information at water treatment plants and pumping stations (PM).

Building tools and processes to support the Field Operations group, including Surface Operations (roads, parks and snow removal), Traffic and Parking (PM/PS).

Real Property & Asset Management (RPAM) Building an inventory of real property in one central

database (RE). Building tools and processes to support facility maintenance

and repair (PM). Developing tools to support project control and budgeting

(PS).SAP Version, Modules and High Level Transactions Implemented

SAP R/3 4.6c RE, PM, PS, HR/Payroll

Service Timeframe July 2001 – January 2005


ReferenceClient Organization City of Ottawa – Integration Business Solutions (IBS)Nature of the Services Provided Deloitte led Business Transformation activities including the

development and implementation of an organizational transition strategy to support the implementation of SAP. Work products included: developing three comprehensive businesses cases to support the system implementation (HR, TUPE, RPAM); leading the process and organizational re-design effort for human resources, work management, asset management, real property, finance and materials management; and overseeing the development, implementation and monitoring of change management, communication, training and benefits tracking programs.Deloitte also led the TUPW project which, building upon the process and organizational re-design effort being carried out by the Business Transformation Office, includes the implementation of an SAP solution in three different areas. First, enhancements are being made to the existing SAP/PM footprint at the Waste Water plant and pumping stations. This enhanced footprint will then serve as the template for the second area: implementing an SAP/PM solution at the Water Treatment plant and pumping stations. Third, the team will be implementing a hybrid SAP PM/PS solution in the Field Operations area. This group consists of the Surface Operations, Traffic Operations and Parking Operations functions of the city.

Current Status CompleteClient Contact Name and Telephone Number

Lill Thomsen, 613.580.2400


2.2.3 PersonnelEmployee Name Project Phase/RoleMarcus Hill Engagement PartnerEric Jensen Quality Assurance PartnerRoland Sabourin Consulting Project ManagerRuth Parrett Functional Consultant – Real EstateFrank Brodie Functional Consultant – Plant MaintenanceBob Lawson Functional Consultant – Project SystemsBob Hirschfeldt Functional Consultant – Procurement and InventoryJohn O’Leary Functional Consultant – FinanceLinda Frampton Functional Consultant – Human ResourcesMike Wong Technical ArchitectureGiscard Rous Interfaces and Conversions (ABAP)Kathy Parker Change/TrainingMaxine Clarke-Johnson Change/TrainingSheryl Owens Subject Matter Expert – Real EstateRandy Scoville Subject Matter Expert – Asset ManagementWillie Lam Subject Matter Expert – Technical Architecture

Refer to Appendix 1 for detailed resumes, according to the format defined.


2.2.4 Other ResourcesThere are a number of additional SAP resource groups that Deloitte can draw on in the event that additional resources are required to support the implementation project or to provide post go-live support to ASD:

Extended Deloitte Global SAP Practice

Application Support Centres

Extended Deloitte Global SAP PracticeGlobally, Deloitte has 5450 dedicated SAP practitioners. Below is a breakdown by skill set. This global network of resources can be drawn on throughout the project for input on their experiences related to design and troubleshooting considerations.

Total 5450850Netweaver: Portal, BI , BW, ABAP etc.175mySAP SRM250mySAP SCM200mySAP PLM300mySAP CRM

Per SAP Solution250Human Resources800Manufacturing625Procure to Pay

1300Order to Cash700Financials

Per Business Process

Number of SAP Practitioners

Total 5450850Netweaver: Portal, BI , BW, ABAP etc.175mySAP SRM250mySAP SCM200mySAP PLM300mySAP CRM

Per SAP Solution250Human Resources800Manufacturing625Procure to Pay

1300Order to Cash700Financials

Per Business Process

Number of SAP Practitioners

Application Support CentresDeloitte is able to offer Application Management Services through a network of Application Support Centres (ASC) located throughout the world. These centres are interconnected and able to share workload as appropriate. The map below indicates the location of these facilities.


Many of these centres have dedicated SAP resources, however, 3 of the largest are located in India and Canada. Mumbai and Hyhderabad in India have approximately 400 resources. The facilities based in India have been assessed at CMM Level 5. The Canadian ACS is located in Markham, Ontario with 40 SAP resources and is CMM Level 3 certified.

Services available through the ASC are described below:

Deloitte Services Application to ManitobaOutsourcing Advisory Services

Provide assistance with developing an effective sustainment strategy, model and implementation plan.

Project Support Alternative Delivery Remote Development

Add functional resources to the team, on-site or remotely, to assist on demand. Utilize remote, on-demand ABAP development capability from our India remote

development centre (RDC). Deliver additional on demand Basis support, on-site or remotely. Knowledge Transfer is initiated on site during the current project and continues

during the support phase.Application Management Services

Provide support for an extended stabilization period via a combination of on-site and remote resources.

Resources can interface with the core implementation team. Longer-term supplemental support is also an option to increase flexibility and

reduce cost.

For additional information on our Markham facility refer to the Support Model Option section on page 32 and Appendix 6 – Application Support Centre.


2.3 Subcontractors and/or Business Partners

Product/Service Business Name & Address Contact &Telephone #

AB ()

SME ()

Estimated Portion of

Total Proposal Value (%)

SAP Consulting <Personnel name deleted>xxx xxx xxx

8%

SAP Consulting <Personnel name deleted>xxx xxx xxx

18%

Accommodations, Meeting Facilitation and Meals

<Personnel name deleted>xxx xxx xxx

7%

Document Management


3%

Training Materials and Delivery


5%


2.4 Management Approach

2.4.1 Understanding of Scope and Objectives

Understanding of Scope and ObjectivesIt is our understanding that the Government of Manitoba and Accommodations Services Division (ASD) current utilize a number of “dated” systems, with numerous manual steps and “spreadsheets” to manage the real estate, accommodations and projects within their portfolio. This results in a disconnected silo’s of information, which hamper the Division ability to efficiently meet the needs to operate and plan for the accommodation requirements of the Government.

The current processes and technology are not able to meet neither current nor future needs.

We recognize the significant increase in “capital spend” in the near term for major new facilities and refurbishment projects will poses challenges to the organization unless improved processes and solutions can be quickly deployed.

The continued focus in government for cost effective operations continues to impact ASD. With a significant property portfolio, the need to enhance the management of accommodations, to improve the satisfaction of government department “tenants” and reduce the overall cost of occupancy to the government can not be enabled with the current non-integrated applications supporting project and property management.

With the mandate to oversee government accommodations and facilities, the organization needs to transform from a reactive provider of services to a proactive and strategic approach to meeting and optimizing accommodation over the longer term.

ObjectivesIt is within that context that we understand the high level objectives of the project to be:

To improve the effectiveness and time horizon in planning of capital, operations and space requirements and the execution of major construction and projects and services.

To better manage the inventory of space, streamline the tracking of usage, leasing and cost recoveries.

To improve the effectiveness of facility maintenance, to streamline the planning, execution and visibility of contracts, costs and time expended, permitting a more proactive approach to the management of maintenance and services.

To provide more accurate, timely and relevant information to permit better decision making.

To replace the existing disparate systems, and enable the processes thought the implementation of SAP Real Estate and other components of the mySAP ERP application solution.

Hence, we understand that the Government of Manitoba anticipates streamlining and optimizing the “full real estate management cycle” processes from acquisition through to disposal, transforming the organization, by modernizing the supporting application technology – leveraging the SAP application suite.


Deliver Real Estate

Services

Develop Real Estate Strategy &

Plan

AcquireAccommodati

ons(Build, Buy or

Lease)

Monitor and Evaluate Real

Estate and Property Mgmt Performance

Operate & Maintain Facilities

Processes:efficient processes

are essential to minimize cost and

support strong customer service

People:the right number

of people, with the right skillsets will successfully utilize the processes and

technology

Technology:properly planned and implemented

information systems will enable the processes, increasing

productivity of the workforce

Process

Deliver Real Estate

Services

Deliver Real Estate

Services


Plan


Plan


Plan

AcquireAccommodati

ons(Build, Buy or

Lease)

AcquireAccommodati

ons(Build, Buy or

Lease)

AcquireAccommodati

ons(Build, Buy or

Lease)







Processes:efficient processes

are essential to minimize cost and

support strong customer service

People:the right number

of people, with the right skillsets will successfully utilize the processes and

technology

Technology:properly planned and implemented

information systems will enable the processes, increasing


Process

We understand and appreciate that success will be enabled by the technology (i.e. SAP) but a focus on processes, people and organization will be critical to the projects’ overall success.

Scope – Process PerspectiveFrom the process perspective we understand that the following areas are considered as “in-scope”:

In-Scope Process In-Scope Process

Real Estate and Capital Asset Planning Facility Maintenance and Operations− Breakdown and Preventative Maintenance− Maintenance Workorders

Facility Construction and Renovation− Contract Management− Project Services− Procurement and Inventory− Cost Capture including “time” as well as

expenses

Providing Real Estate Property Services− Leasing− Billing, Cost Recovery and Occupancy− Space and Accommodation Planning

Reporting and Monitoring of Performance

Scope will be refined to a lower level of detail as part of Phase 1.

Scope – SAP PerspectiveThe SAP Real Estate solution and associated components of the mySAP ERP suite are the key technical enablers for this project. From our understanding of the business processes under consideration, our initial understanding of the associated SAP modules or components required to enable your requirements are illustrated below.


SAP Components to Enable Real Estate, Facilities Maintenance, Project and Construction Services

SAP – Facility Maintenance (PM)SAP – Project Systems (PS)SAP – Inventory Mgmt (MM-Inv)SAP – Supplier Relationship Mgmt (SRM)

SAP – Procurement (MM-Pro)SAP – HR – Time CaptureSAP – Finance (FICO – FM)

SAP – Real Estate (RE-FX)SAP – Finance / Funds (FICO-FM)SAP – Finance (GL/AR/AP)

SAP – Investment Management (IM)SAP – Budgeting and Planning (BI )SAP – Real Estate (RE)SAP – Plant Maintenance (PM)SAP – Project Systems (PS)SAP – Finance (FICO)

SAP – Real Estate (RE-FX)SAP – Project Systems (PS)SAP – Funds Management (FM)SAP – Finance (GL/AR/AP)SAP – Fixed Asset Accounting (AA)

SAP – Real Estate (RE)SAP – Business Intelligence (BI )SAP – Finance (FICO)

Deliver Real Estate

Services

Deliver Real Estate

Services

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

AcquireAccommodations

(Build, Buy or Lease)





Monitor and Evaluate Real Estate and Property Mgmt

Performance


Performance



Processes:efficient processes are

essential to minimize cost and support strong customer

service

People:the right number of

people, with the right skillsets will successfully utilize the processes and

technology

Technology:properly planned and

implemented information systems will enable the processes, increasing


Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

SAP Net Weaver Platform (Infrastructure layer)workflow, application, data, and process integration, business data warehouse, user presentation layer, solution management,

document management solution,


SAP – Procurement (MM-Pro)SAP – HR – Time CaptureSAP – Finance (FICO – FM)





Deliver Real Estate

Services

Deliver Real Estate

Services

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan








Performance


Performance





service



technology




Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

Process

Tech

nolo

gy People







Deliver Real Estate

Services

Deliver Real Estate

Services

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan








Performance


Performance





service



technology




Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

Process

Tech

nolo

gy People





Deliver Real Estate

Services

Deliver Real Estate

Services

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan

Develop Real Estate

Strategy & Plan










Performance


Performance





service



technology




Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

Process

Tech

nolo

gy People

Process

Tech

nolo

gy People



Deloitte has made a significant investment in a toolset called IndustryPrint. IndustryPrint is a collection of interactive process models, designed by industry and based on best practices. Refer to page 28 for further information on our IndustryPrint tool. Below is an IndustryPrint draft model that breaks down the core processes to lower levels of detail along with an identification of which software modules will support which sub-process. This will be further refined as part of Phase 1.


Construct / Renovate Facilities

Construct / RenovateFacilities (K)

Develop & MaintainConstructionStandardsK-010

Manage & Sch.Internal

ResourcesK-060

Conduct Prelimin. Design &EngineeringK-020

Launch Project

K-030

Develop Plans & Schedule

K-040

MonitorPerformance

K-070

Close-Out Project

K-100

Manage & AdministerExternal Contracts

K-050

Ensure Quality &Safety

K-080

Commission & Turnover Facility

K-090

Construct / RenovateFacilities (K)

Develop & MaintainConstructionStandardsK-010

Manage & Sch.Internal

ResourcesK-060

Conduct Prelimin. Design &EngineeringK-020

Launch Project

K-030

Develop Plans & Schedule

K-040

MonitorPerformance

K-070

Close-Out Project

K-100

Manage & AdministerExternal Contracts

K-050

Ensure Quality &Safety

K-080

Commission & Turnover Facility

K-090

Real Estate Planning & Strategy

DefineBusiness Unit

RE Plans (B)

Identify SpaceRequirement

B-010

Define OccupancyCost B-020

DevelopOccupancy PlanB-030

Define Overall Real Estate Plan (P)

Develop CorporateReal Estate PlanP-010

Integrate to CorporateFiscal PlanningP-030

Define Real EstateStrategy & Plan

Develop Real Estate& Space StrategyD-010

Develop / DefineRE OrganizationD-020

Develop ServicePlan

D-030

Develop MarketingPlan

D-040

Define Property &Space PortfolioPlanD-040

Rationalize CorporateReal Estate RequirementsP-020

DefineBusiness Unit

RE Plans (B)


B-010



DefineBusiness Unit

RE Plans (B)

DefineBusiness Unit

RE Plans (B)


B-010


B-010


B-010




Define Overall Real Estate Plan (P)





Define Real EstateStrategy & Plan

Develop Real Estate& Space StrategyD-010

Develop / DefineRE OrganizationD-020

Develop ServicePlan

D-030

Develop ServicePlan

D-030


D-040


D-040

Define Property &Space PortfolioPlanD-040

Rationalize CorporateReal Estate RequirementsP-020

Deliver Service

Deliver Corporate Real Estate Services (S)

ManageExpenses

S-040

Dispose ofExcess SpaceS-080

Rental Space Marketing S-010

Lease NeededSpaceS-070

Contract / Lease AdministrationS-020

Manage FacilityOperationsS-090

Select / ManageThird Party Services S-100

Manage Space / Occupancy Plan S-060

Manage Land Use & ZoningS-110

Recover / Settle Occupancy CostS-050

Process Rental Billing / AccountingS-030

Dispose of Excess PropertyS-085

Acquire NeededProperty(Buy/Lease)

S-075

Maintain Tennant RelationshipsS-120

Deliver Corporate Real Estate Services (S)

ManageExpenses

S-040




Rental Space Marketing S-010

Lease NeededSpaceS-070

Contract / Lease AdministrationS-020





Manage Space / Occupancy Plan S-060



Recover / Settle Occupancy CostS-050

Process Rental Billing / AccountingS-030

Dispose of Excess PropertyS-085


S-075


S-075



* *SAP – Real Estate (RE-FX)* *SAP – Investment Management (IM)* *SAP – Budgeting and Planning (BI )* *SAP – Real Estate (RE-FX)* *SAP – Plant Maintenance (PM)* *SAP – Project Systems (PS)

* *SAP – Facility Maintenance (PM)* *SAP – Project Systems (PS)* *SAP – I nventory Mgmt (MM-Inv)* *SAP – Supplier Relationship Mgmt (SRM)

© Deloitte & Touche LLP and affiliated entities. Government of Manitoba – RFP # ICTP-0027-06-TGS 23

Monitoring & Control

Monitor & EvaluateReal Estate Performance (E)

Business Unit andCorp Acct & RprtE-010

Risk ManagementE-060

Conduct PerformBenchmarking& KPI ’s E-020

Manage & MonitorSignificant EventsE-030

Manage LeaseAuditsE-050

Develop & MaintStakeholder RelE-040

PerformanceValuation & ScoringE-070

Manage MonitorProperty TaxesE-080

Report Portfolio PerformanceE-090

Planning & StrategyMonitoring & ControlsMaintain

Maintain Technical & Infrastructure Facilities (MI)

Prepare Maintenance PlansMI -020

Schedule Routine Maintenance

MI -030

Dispatch Maintenance Staff MI -050

Process & Schedule Work Orders

MI -060

Receive Maintenance Notifications / RequestsMI -040

Establish Equipt. / Facilities Structure Data MI -010

Record Work Order HistoryMI-080

Capture Time & CostsMI-090

Execute Work Order Tasks

MI -070

Define Mtnce Strategy, StdsMI-015

Monitor Conditions of FacilitiesMI 025

Ensure Safety & Quality

MI-075

Confirm Work Order CompleteMI -100

Liaise With Service ProvidersMI -110

Monitor PM Performance MI -120

Perform Root Cause AnalysisMI -130

Manage Warranty and ContractsMI -085

Monitoring & Control





















Planning & StrategyMonitoring & ControlsMaintain




MI -030



MI -060






MI -070




MI-075









MI -030



MI -060






MI -070




MI-075









MI -030


MI -030




MI -060


MI -060









MI -070


MI -070






MI-075


MI-075

















SAP – Real Estate (RE)SAP – Business Intelligence (BI )SAP – Finance (FI CO)



Plan & Manage the Business (MB)

Manage Accounting Data(DC)

Procure Materials & Services (PM)

Decision Support (DS)

Manage IT Services (IT)

I ntegrate with Corporate Services



Manage Accounting Data(DC)Manage Accounting Data(DC)

Procure Materials & Services (PM)Procure Materials & Services (PM)

Decision Support (DS)Decision Support (DS)

Manage IT Services (IT)Manage IT Services (IT)

I ntegrate with Corporate Services

* SAP – Finance – Funds Management* SAP - Finance – GL / AP / Asset Accounting* SAP – Procurement (MM-Pro)* SAP – HR – Time Capture* SAP – HR / Payroll* SAP – Finance (FICO – FM)

*SAP Net Weaver Platform (Infrastructure layer)workflow, application, data, and process integration, business data warehouse, user presentation layer, solution

management, document management solution,

* Existing SAP Components * * New SAP Components


Anticipated Customization and IntegrationsOur goal is to minimize the level of “customization or modification” (changes to the “core code”) of the SAP application. Changes to “core code” increase the total cost of ownership and significantly increase complexity in subsequent upgrades. SAP provides a variety of standard tools to “configure” (the selection of anticipated process options) and extend the functionality (API, user exits, etc) where SAP anticipates client specific changes. These are then protected from subsequent upgrades. The completion of the BluePrint phase identifies the areas of the solution that need “configuration” (org structures, master data requirements and embedding the agreed business process alternatives) and the areas where gaps exist. These identified gaps will require closure to meet the business need. From a project management perspective, it is our practice to work with our clients to evaluate the risk and value in selecting approaches to close functional gaps, and typically these types of decisions require more senior level approval.

Given the specific context at ASD, there are three broad forms of integration that will need to be considered:

Integration to Government-wide SAP implementation – The integration and interaction between the SAP components / functions required to meet ASD’s requirement and the existing government wide SAP enabled processes (HR-Time capture, Procurement, HR, Budgeting, and Finance (particularly Funds Management). The following are specific examples of integration considerations:

For HR time capture some key integration considerations include: new organization structure considerations, incorporation of additional activity types for maintenance, addition of “project” time capture objects, capture of work order confirmation/completion in timesheets, tracking of competencies/skills for maintenance planning and links to HR Employee Data.

For Procurement some key integration considerations include: addition of inventory module and materials, changes to material valuation rules, capture of material requisitions generated from PM work orders, impact on MRP and purchase order generation and changes to accounting for inventory and funds management.

For Finance some key integration considerations include: mapping of organization structures, cost centres and assets to new real estate building and plant maintenance functional locations, new cost settlement process from projects and maintenance into existing asset accounting and cost centres, budgeting and planning at a lower level required (i.e. project, building, etc.) and updating of AP process on holdbacks or retainage for construction progress payments.

Deloitte’s knowledge of the existing SAP installation and the impact and option for real estate and facility management provides a significant advantage to ASD.

Integration to non-SAP applications – The integration between the “SAP” solution overall and “non-SAP” systems that may be required to meet the overall requirement. The conclusion of Blue Printing and Solution Architecture will identify the specific “non-SAP” integrations required. At this point, this might include items such as integration with GIS, Utility Management, and Document Management.

Technical integration – The technical integration of program code / configuration into the overall SAP production landscape. By their nature, projects introduce new processes and technology which mean change. In contrast, operations and support value stability and limited change. Various strategies exist to mitigate the inherent risks (technical architecture strategies, regression testing approach, etc.).


Our ApproachASD has indicated that they want a creative approach to the project that will provide for the following:

An approach based on SAP’s ASAP methodology.

Streamlined approach to Blueprinting in the areas of Process Confirmation and Requirements Definition.

Application of asset management and real estate management Best Practices that will improve the overall effectiveness of the ASD implementation.

Strategies for incorporating specialist expertise and resources to the project.

Approaches to project implementation that will minimize overall project timeframes and delivery cost.

Strategies to support the ongoing operations.

The following provides details of our approach and how it will enable the realization of the above-mentioned objectives.

The Foundation – ASAP Methodology

As per your request, our overall approach will be supported by SAP’s ASAP methodology. Deloitte has historically always used the ASAP methodology and, as such, our practitioners are very familiar with all of the specific activities, tasks and supporting tools and templates. The individual proposed as the Project Manager is SAP certified as an “Implementation Methodology (ASAP) Consultant”.

SAP has introduced new technology (Solution Manager) to support both project management and technical management of the overall solution (see Appendix 7 – SAP Real Estate Management in SAP Solution Manager). We understand that Solution Manager is being implemented as part of the mySAP ERP Upgrade that is currently underway. It would be our intent to leverage this new tool which incorporates the ASAP method.

Enhanced ASAP Features – Enabling Sustained Change

We understand not only the technical complexity of the required solution but the challenge of ensuring that the ASD organization is able to adapt to the new processes, new technology – essentially a new way of working. A strong focus on people and organization will be critical to the success of this project. The change to be introduced to the organization will need to be managed and the staff effectively supported through the journey. To enable this we propose to supplement the ASAP methodology with two additional streams of activities: Organizational Readiness and Support. Note: the ASAP methodology has some change management activities embedded in it, however, we feel that with this project and our understanding of the organization and people, that more robust change management activities will be required. These are not new activities that will be created to support this project. Over the years Deloitte has developed additional streams of activities that can be leveraged by clients that require broader support services as part of the scope of the


implementation of SAP. These activities have been integrated into the overall ASAP methodology to ensure coordinated execution of activities and deliverables.

Supplementary Supplementary Activity ThreadsActivity Threads

Organizational Readiness

Support

Organizational Readiness – This thread comprises an integrated series of activities that guide the impacted portions of an organization, due to the changes experienced during a system implementation project. This thread helps to ensure that the impacted organization is "ready, willing and able" to work with a new or changed set of processes enabled by new technology.

The objective for the Organizational Readiness thread is to ensure that the impacted organization clearly understands the need for change and the impacts of the change, and that it possesses the capabilities and motivation to change. Additionally, there is a large focus on transferring knowledge to the organization, developing methods and content for ongoing support of job performance.

The activities in this thread accelerate an organization’s adoption of the changes and reduce the performance dip typically seen on large scale ERP implementations.

Note: ASAP has some change management activities, however, they are primarily focused on training. We have supplemented these activities with additional organizational change management activities.

Support – This thread focuses on achieving an optimal support solution for the Client. There are many support models that can be implemented once the software package is live and as result they must be evaluated closely to determine the best fit based on immediate support needs as well as longer term. The support models can range from being performed onsite through to outsourcing the entire IT operation.

Streamlined Approach to BluePrinting and Leveraging Best Practices

ASD has defined an aggressive timeline within which to complete the project. In order to maintain the timeline but at the same time ensure that ASD incorporates leading practices into the overall solution a streamlined approach to the blueprinting activity is proposed. This streamlined approach will also enable the completion of the project within the desired period and minimize delivery costs.

Our approach to streamlining the blueprinting process is driven by 5 key enablers.


Blue Blue PrintingPrinting

Subject Matter Expert (SME)

Panel

Leverage Work Undertaken by

ASD

Leveraging Learning’s from Other Projects

SAP I nvolvementI ndustryPrint

IndustryPrint – IndustryPrints are a proprietary toolset that Deloitte has developed to enable clients to rapidly confirm or redesign existing business processes and to identify and take advantage of leading practices. IndustryPrints are business process models built on best practices, by industry. These process models are interactive and have embedded linkages to leading ERP solutions, including SAP. Deloitte has developed an IndustryPrint for both Real Estate as well as Asset Management. Both of these industryprints will be utilized to streamline the process confirmation and enable the identification and inclusion of relevant best practices into ASD’s overall solution design. Process models developed by ASD will be taken into consideration as part of the review. Opportunities for identification of additional best practices will be the focus.

Level 1: Processes & Sub-Processes

Level 2: Sub-Processes & Activities

Level 3: Activity Flows

The detail of each process is captured in comprehensive activity flows that indicate interaction with SAP modules and functions.

Refer to page 22 for a high level overview of the Real Estate IndustryPrint.


Subject Matter Expert (SME) Panel – To streamline the blueprinting process, enable creative thinking regarding the solution design (Note: design for ASD as well as the other asset management stakeholders) from both a process and technology perspective, and ensure coordination and integration to the existing SAP footprint and other initiatives, we propose to compile a panel of subject matter experts from various disciplines. The team will work through focused workshops at the front-end of the blueprinting process to identify any additional process requirements, redesign opportunities and incorporation of best practices. The team will utilize IndustryPrint and the process models developed by ASD to support the process. The team collectively or as individual Subject Matter Experts can be called upon throughout the course of the blueprinting and/or implementation process to provide input to resolution of issues that may arise. We envision the composition of the team to include representatives with the following expertise:

•ASD•Deloitte•SAP•EST•CSU

•Real Estate•Asset Management

•SAP•BT1

Organization Expertise

Leveraging Learning from Other Projects – Deloitte has undertaken projects of a similar nature with other clients. Through this process the teams developed process models based on best practices and specific solution blueprints. The knowledge acquired through these projects, including lesson learned regarding the application of SAP Real Estate within a public sector environment will be leveraged during the blueprinting process. One of the project team members from our reference site, Colorado Department of Transportation will be part of the Subject Matter Expert (SME) Panel. The sharing of learnings will contribute to streamlining the blueprinting process and ensuring that known pitfalls and considerations are known in advance and addressed.

Leveraging Work Undertaken by ASD – We recognize that ASD has investment a lot of time and energy into redesigning and documenting their business processes and supporting organizational structure as well as defining gaps between these processes and the SAP solution. It is our intent to leverage the work that has been completed rather than starting with a clean sheet.

SAP Involvement – As a partner of SAP’s, we recognize the value that SAP resources and involvement can bring to projects of this nature. We understand that SAP has been quite involved in working with ASD to understand the fit of the SAP solution against ASD’s business requirements. Through that process much knowledge has been acquired. It is out intent to work with SAP through the blueprinting process to obtain their insight on key design considerations. SAP representatives will be positioned as part of the SME panel as well as part of the core project team working through the details of the ASD solution blueprint.

Implementation Approach to Minimize Timeframes and Delivery Cost

We will work collaboratively to minimize the overall project timeframe and delivery costs during the implementation. A few potential strategies are defined which can be further refined during Phase 1 of the project.


Staffing the project with local resources to the greatest degree possible. Four (4) of our proposed team members are Winnipeg-based.

Examining the opportunity to complete a component of the technical development remotely, in our Markham development center. Some clients have experienced up to 25% reduction in cost for that component by leveraging this capability. Refer to section entitled Support Model Option on page 32.

Examining with the project team, the feasibility of a common “project shut down”or “vacation windows” to avoid a protracted period of low productivity often typical in the summer.

After better understanding the business drivers and factors leading to the J anuary 2007 time – examine the alternative of phasing or roll out that would accelerate the delivery of specific components, rather than the overall solution.

A strategy to actively engage additional Provincial staff (particularly in the area of testing, and the development and delivery of training) to utilize consultants in a coaching and advisory role is more cost effective than having them perform the task (which also improves buy-in and acceptance as well).

Cost

Tim

e

Pre-Configured Solution

In the RFP it indicates that, as part of the BluePrinting activity, ASD would like to partially configure a solution by leveraging SAP’s “pre-configured” solution sets and to validate the partial solution design by testing using TGS data. We are familiar with the “pre-configured” solution sets that SAP has built and have leveraged these before with product demonstrations and “proof of concepts” with other clients. With all of our collective experience in working with the Real Estate and Asset Management solutions and in discussions with SAP, it appears that there are no pre-configured solution sets that have been developed for either of these areas. They do exist in the Financials and HR modules, however, these are areas where TGS will be leveraging the current configuration at the Province, hence, use of these tools in these areas would have no real value. It is unclear to us what the specific objectives of the use of a pre-configured solution set is for ASD. We have made the assumption that ASD is looking to partially configure or prototype certain processes to confirm the design.

Based on the ASAP methodology, the realization phase is typically focused on building the solution through iterative cycles of configuration and testing. It is possible for us to bring forward some of these activities into the Blueprinting phase in order to provide TGS with a partially configured solution that TGS could test with their own data. As part of the project start-up activities, we would work with TGS to identify several sub-processes (i.e. up to 4) of a process (e.g. capital asset planning, facility construction and renovation, etc.) to focus the prototyping activities on. We anticipate that the inclusion of this type of prototyping activity will increase the Phase 1 timeline by approximately 5-6 weeks. Even though the team would only be focused on a sub-set of the overall configuration, much of the foundational configuration (e.g. organization structure, master data) required to enable the design of any specific transaction sets would need to be setup. We are prepared to undertake this, however, it is not our recommended approach for the following reasons:

Although manageable, there is risk in configuring only a sub-set of the processes due to the highly integrated nature of the SAP solution. There are many integration points between the respective transactions and, as such, consideration would need to be given to upstream/downstream subprocesses and other processes and transactions that interact, utilize or are impacted by the configuration design that would be built to support the select number of sub-processes. Regardless there is a high probability that some aspects of the prototyped sub-processes will change once the rest of the solution is configured.


Typically the configuration is done for all processes at the same time and through a very controlled, staged process that builds on the solution setup with iterative cycles of configuration and testing. Additional testing and potentially re-configuration would need to be undertaken to ensure that the sub-set of processes configured as part of the “prototype” work properly once the rest of solution is configured.

In order to mitigate the risks of selecting only a few sub-processes to prototype there would be greater effort required than following the proven approach as outlined in the ASAP methodology. To demonstrate our commitment to the Province, we would be prepared to absorb the additional cost associated with this approach. In section 2.6 we have identified the pricing associated with the prototyping activities as a separate line item. The pricing for the prototyping activities reflects a portion of the effort that would be associated with the first cycle of configuration/testing. Additional costs associated with configuring only a sub-set of the overall solution have not been included. Should TGS decided not to prototype a portion of the solution as part of BluePrinting, the costs reflected with Prototyping would be reallocated into the Phase 2 pricing.

Other Implementation Needs

ASD has identified a number of other needs that you feel are important to ensure project success. These needs would fall into implementation and post go-live phases of the project. Below is a summary of these specific requirements along with our proposed approach of how to address them.

Province’s Needs and Requirements Deloitte’s Approach

Phase 2: Implementation The importance of knowledge transfer to Provincial

staff to improve acceptance and understanding of the solution.

Our approach to knowledge transfer includes:− Developing a formal SAP training program

for Provincial staff.− Pairing and mentoring of consultant and

Provincial staff.− Individual capability transfer contracts with

formal reviews.− An approach to completing work that

provides Provincial staff the opportunity to utilize hands on SAP skills during the project.

Work style and team approach are critical to the success of the engagement.

Having the right working chemistry and integrating with the existing team early will be key to the project’s success.

Deloitte Consulting is recognized for its collaborative work style by both our clients and third party evaluators.

In our experience, client leadership is required to drive and sustain change in an organization and we support your desire to actively lead the project.

A large component of our proposed project team has previous working experience with the Province of Manitoba.

In projects such as this, the sourcing and quality of business data is often an impediment to the successful functioning of the process.

Our approach to data conversion includes:− Identification and finalization of the data

conversion strategy (what data is required, how much history is converted, how will it be converted) done as part of BluePrint Phase!

− Staffing a discrete provincial team with responsibility to collect, clean and ready the data for loading.


Province’s Needs and Requirements Deloitte’s ApproachPost Go-Live

ASD needs to mitigate the length and depth of the performance dip that typically accompanies ERP implementations.

Our approach includes:− Proactive change management activities.− Creating early indications of performance

and managing the “dip” in performance.− Daily “check-in calls” with key users during

the initial stabilization period to highlight issues.− Creating a “SWAT” team that can be

dispatched should remedial training be required.

The need for seamless support and the skills to transition staff to operations.

Our approach finalizes the Application support model and roles during the implementation phase – so designated staff are fully trained prior to go-live.

Our intent would be to make the support transparent to the end-user, regardless of which organization performs tasks.

Support Model OptionThere are options for ASD to consider in terms of post implementation support outside of developing an in-house support structure. An alternative for ASD is to consider outsourcing the support based on an Application Support Model. This will provide the Province with additional flexibility to deal with on-going support and continuous improvement initiatives.

Our centre that provides these offerings is located in Markham Ontario. Our Markham support centre provides remote consulting, remote development and application support service including help desk services for SAP. This capability can provide on-going application support for the Province after the system go-live.

When looking at support options for an SAP environment, the Province must consider several key criteria:

A solution that is tailored to your needs.

A solution that is high quality (with respect to processes and resource experience).

A solution that is flexible and can adapt to changing support/business needs.

A solution that is cost effective.

A solution that provides high quality services and consistency.

A solution that has the right mix of on-site and remote services.

A vendor that understands you and your environment.

A vendor who can also readily provide a broader set of services.


These considerations are often conflicting and therefore difficult to accomplish. As a result Deloitte has developed, and proposed to use, our Application Management Services (AMS) to provide long-term sustainment for ASD’s SAP environment following the Go Live & Support Phase. Deloitte could provide the following AMS services:

Super-user support for complex ‘how-to’ questions.

Break/Fix Support for application defects (including ABAP).

Minor Enhancements to the system (including ABAP).

Basis support (transports, applying patches, etc.).

Security maintenance (profile changes).

Request logging and tracking using our HEAT call tracking system.

Monthly service reporting and Quality Assurance reviews.

Deloitte proposes a “bundle of hours” approach for the AMS solution using a team of resources for the ASD. With this approach ASD commits to an amount of support per month for all of the in scope areas but will have access to more support if required. Markham resources will also travel on-site for short periods if required.

Excluded from scope in the “bundle of hours” is:

Basic Level 1 end-user support (to be provided by Super Users and the Help Desk).

Security administration (profile assignments and password resets).

Large enhancements.

Peak support over and above the commitment level for “how-to's,” break/fix and small enhancements.

To ensure that ASD has the right level of support, Deloitte will provide an initial 4-month ‘characterization’ period to accommodate the high-level of support required in the near-term and due to the uncertainty of the support level required, after which the long-term support level is set.

Application support will be provided between the hours of 8:00AM and 6:00PM Eastern Time Monday to Friday.

During the project we will complete capability transfer to our Markham ASC resources to help ensure that ASD receives continuity of support. Additional projects and/or increased scope can also be transitioned into the AMS solution in the future.

We offer flexible application management and support services that provide our clients with specific levels of support, when they need it. Our offering ranges from providing an entire functional and technical support team to providing as-needed support for demand peaks, with numerous options in-between. We understand that “one size does not fit all”, and as such we believe in working with our clients to determine what will add the most value given their unique situation.


2.4.2 Project Organizational Structure and ResponsibilitiesOur proposed management structure is illustrated in the organization chart below. We would anticipate that the Manitoba stakeholders, in particular ASD, EST – both ICT and CSU would participate as members of the Project Steering Committee providing oversight to the project as described in more detail below. We would also anticipate that SAP would have a seat on the Project Steering Committee.

Province of Manitoba – Flexible Real Estate on mySAP ERP 2005 Project Organization

Steering CommitteeQuality Assurance

Project Management Office

• ASD Business Project Manager (Business Lead)

• ASD Project Manager (Technical Lead)

• Deloitte Project Manager• Change Management Team

Expert Advisors

• Real Estate SME• Asset Management

SME• Technical SME

Deloitte

• As RequiredSAP

• Asset Management Representatives

Manitoba

Functional Team

• ASD Business Owners• RE Consultant • PM Consultant• PS Consultant• MM Consultant• Finance Consultant• HR Consultant

Technical Team

• Architecture Consultant• Basis Consultant• ABAP – Consultant and

ASD/ Province• Security – ASD/ Province

• Project Sponsor• Business Owners• I CT Representative• CSU/ BT1 Representative• Deloitte Engagement Partner• SAP Representative

• Deloitte Quality Partner

• SAP Representative• ASD Quality

Sponsor

Note: Consultants will be a combination of Deloitte

& SAP

Steering CommitteeExecutive Sponsorship and commitment are critical success factors of a project of this kind. The Project Steering Committee provides this sponsorship and commitment by:

Actively championing the project and reviewing project progress.

Maintaining thorough understanding of what the project involves.

Promoting SAP throughout the organization.

Providing support and guidance to the project team and removes obstacles to achieving success.

Approving changes to project scope, timing and project charter.

Making resources available and empowers the project team to make decisions.

Makings strategic-level decisions and timely resolves issues escalated from project team.


Quality AssuranceA quality assurance team with representation from Deloitte, ASD and SAP will be formed to ensure that quality standards are adhered to and project risks are managed. Refer to Section 2.4.6 Quality Assurance for more details.

In addition, we understand that SAP will be providing its Safeguarding Services to this project. We have included the SAP Safeguarding Service on our project organization chart and in our work plan.

Project Management OfficeWe propose that this project be led by a project management office consisting of the Business Lead and IT Lead being provided by Manitoba as well as the Deloitte Project Manager and the Change Management Lead. This group would have responsibility for:

Develop, monitoring and reporting on the project plan.

Issue tracking and resolution.

Management of project scope using a well defined scope management process.

Ensuring that sufficient time and resources are available to deal with the key activities of data conversion, cleaning up existing databases, and developing interfaces.

Development of project standards in conjunction with the BT1 Business Transformation Office (BTO).

Change Management and communication activities in conjunction with the BTO.

Functional Team

The functional team would consist of consulting resources with expertise and experience in each of the modules in scope of this implementation. Dedication business oriented resources from ASD are also required to work as members of this team.

This team will be responsible for identifying the Blueprinting deliverables as prescribed by the ASAP methodology including process designs and SAP transactions to be included in scope. If Manitoba decides to proceed with a proof of concept during the Blueprinting phase, the functional team would do the required configuration work.

Technical Team

Our technical team consists of a technical architect who is experienced with SAP NetWeaver and familiar with Manitoba’s implementation. This team also includes an experienced developer who, during Blueprint, will determine requirements for interfaces, conversions, reports, forms and enhancements. During Phase 2, he will also develop these programs as required. We would anticipate the need for Manitoba to provide one or two full-time developers to work with the consulting developer on this team.

We would also require Manitoba to provide a team member experienced with SAP security and authorization to be part of this team.


Expert Advisors

We are able to offer a team made up of Subject Matter Experts, each with a high degree of expertise and experience in their field. This team will participate in workshops as appropriate and provide oversight to the project team in their respective areas. Resumes for these Subject Matter Experts are included with resumes for other team members.

SAP Solution Experts

Our organization chart above indicates the inclusion of SAP resources on both our functional and technical teams. We are pleased that Manitoba is making SAP resources available to participate in this implementation. We would anticipate that these resources would assist with scope definition, participate in blueprint workshops and provide expert commentary on our deliverables. It is our experience that having SAP resources on our implementation teams facilitates access to detailed product knowledge.

If Manitoba considers it desirable, we are also willing to consider SAP resources as part of our Phase 2 implementation team.


2.4.3 Project Management and Control

Project Management Methodology (PMM)Deloitte is in the business of delivering results our clients can rely on and results our clients can build on. Fundamental to achieving this goal is the implementation of a single, consistent project management methodology.

The Project Management 4.0 methodology (PMM4) systematically addresses all key components of project management. PMM4 is based on the concepts embodied in the generally accepted and effective project management framework, the Project Management Body of Knowledge (PMBOK), which was developed by the Project Management Institute (PMI) and is described in A Guide to the Project Management Body of Knowledge (PMBOK® Guide).

This methodology is scalable and flexible and has proven successful in delivery solutions ranging from the development of simple reporting tools to complex SOA frameworks. It is designed to help practitioners manage projects with a focus on risk management, quality, and client satisfaction. PMM was designed to meet client and practitioner needs:

Deliverables-based – Allows for the iterative nature of project management processes.

Scalable – Fits any project regardless of size or scope and accommodates each project’s unique requirements.

Rich in information – Houses extensive information about method processes, work distribution, and deliverable creation.

Based on experience – Allows practitioners to reuse, rather than replace, the vast experience and knowledge of our practice.

Based on best practices – Reflects Deloitte best practices and industry research and experience, allowing Deloitte practitioners to share a common language worldwide.

PMM is based on years of experience and established best practices. Subject matter experts created approaches, detailed procedures, and tools to form a cohesive, concise, and effective methodology that:

Makes use of practitioner experience and knowledge.

Can be integrated with other Deloitte Consulting methodologies as a separate project; management thread.

Can be adapted to accommodate the unique requirements of any project.

Considers the iterative nature of project management processes.

Provides the information needed to select a set of project management tools, to mitigate risk, and to identify special considerations for managing multinational project teams.

PMM modules include the tasks required to develop major deliverables. These tasks do not add content to major deliverables but they enable them to be developed on time, within budget, and according to defined specifications. Each task in PMM4 includes a detailed approach and key considerations to help project teams manage projects in a way that eliminates duplication of effort, verifies consistency with other Deloitte methodologies, maximizes the efficient use of resources, and follows standard Deloitte policies and procedures.


Execute ProjectInitiate Project Plan Project

Organization

Logistics

Financials

Risk/ Issues

Quality

Procurement

Communications

Workplan

Produce Logistics Plan Acquire Logistics Implement Logistics

Produce Organization Strategies

Produce Project Charter

Perform Financial Transactions Maintenance

Produce Project Communications Plan Communicate Project Information

Produce Workplan

Control Project Close Project

Monitor Staff Performance Decommission Staff

Close Financials

Monitor Risks & Risk Responses

Control Issue Resolutions

Control Change Requests

Decommission Logistics

Scope/ Change

Produce Integration Strategies

Produce Organization Plan

Produce Financial Plan

Produce Risk Plan

Produce Issues Plan

Produce Scope Plan

Produce Change Plan

Produce Quality Plan

Produce Project Plan

Acquire Staff Improve Staff Performance

Implement Risk Approach & Risk

ResponsesPerform Issue Resolutions

Implement Change Requests

Conduct Quality Assurance

Execute Project Plan

Control Financials

Monitor Project Performance Complete Project

Monitor Quality Assurance

Integration

Control Logistics

Monitor Project Communications

Produce Client Contract Plan

Produce Vendor Contract Plan Establish Vendor Contracts Administer Client

ContractsAdminister

Vendor ContractsClose Vendor

ContractsClose Client Contracts

Execute Workplan Control Workplan

Produce Budget Strategy

Complete Phase

Figure 1: Project Management Methodology Module Map (PMM4)


2.4.4 Risk Management

Risk Management Process and Supporting ToolsThe objectives of our Risk Management approach is to identify, evaluate, manage/mitigate and monitor the risks associated with projects of this nature. In addition to performing interim reviews and milestone check-points, our Risk Management approach embeds risk mitigation processes that will be incorporated into our proposed overall project approach. Deloitte Consulting Partners work throughout the engagement project life cycle to identify, quantify, respond to, and control project risks. Our approach includes SAP consultations during the implementation project to help identify risks factors before they become critical. Risk management plans will be developed to reduce the likelihood of the high probability / high impact risks from occurring, and to minimize the effect on the project should they occur.

An overview of the process is depicted below:

Assign PrimaryTeam Ownership

Input into Risk

Summary Log

Define Risk and Assign Rating

UpdateRisk

Summary Log

Assign ResponsePlan Owner

UpdateRisk

Summary Log

Develop RiskResponse Plan

Mitigation/Contingency

Plan

ApprovePlan?

Response Plan

Approval

ImplementRisk Mitigation

UpdatePlan

Risk Occurs?

Implement Risk

ContingencyUpdate

Plan

Moniter and Re-Evaluate

Risks UpdateRisk

Summary Log

Report Risk Status

UpdateRisk Charts

I dentify Risk

No

Yes

YesNo

Feedback

Risk I dentification Risk Quantification Risk Response Development Risk Response Control

Assign PrimaryTeam Ownership

Input into Risk

Summary Log

Define Risk and Assign Rating

UpdateRisk

Summary Log

Assign ResponsePlan Owner

UpdateRisk

Summary Log

Develop RiskResponse Plan

Mitigation/Contingency

Plan

ApprovePlan?

Response Plan

Approval

ImplementRisk Mitigation

UpdatePlan

Risk Occurs?

Implement Risk

ContingencyUpdate

Plan

Moniter and Re-Evaluate

Risks UpdateRisk

Summary Log

Report Risk Status

UpdateRisk Charts

I dentify Risk

No

Yes

YesNo

Feedback

Risk I dentification Risk Quantification Risk Response Development Risk Response Control

We have developed a variety of templates and spreadsheets to enable the effective capture, tracking and management of risks. Refer to Appendix 2 for a Risk Management Plan Template that provides details of the type of documentation that is captured related to risk management along with examples of some of the supporting templates and spreadsheets that have been created to enable the effective capture and management of risks.

Preliminary List of Project Risks and Mitigation StrategiesCritical to the successful execution of any project of this nature is the proactive identification of potential project risks, along with well-defined mitigation and contingency plans. The following provides a list of risks that have already been identified based on our current understanding of the project, the ASD organization and other initiatives that may impact the planned project.


The potential risks have been categorized as follows:

Process Risks – Risks relating to the process, methodology, end-user expectations, and cost control related to the project.

People Risks – Risks relating to the project team, third party providers and/or ASD operational staff.

Application and Technology Risks – Risks associated with the SAP application) and the underlying technical infrastructure.

For each potential risk the following information is presented:

Name – A brief description of the risk in question.

Probability – Identifies the relative likelihood of the risk occurring. Probability of occurrence is provided as ‘low’, ‘medium’, or ‘high’.

Impact– Identifies the impact on the project, should the risk event actually materialize. Impacts are grouped into the following four categories:

Critical – Could result in the termination of the project or significant negative impact to government operations.

High – The risk may result in a significant reduction in effectiveness, quality, and project goals desired results.

Medium – The risk could result in delays, missed milestones, and not achieving benefits.

Low – The risk could result in minor difficulties, hassles, and dissatisfaction.

Mitigation – Steps suggested to reduce the impact or consequences of the event should it occur.

Contingency – Actions that could be taken to respond, should the event occur.

People1. Resistance to Change Probability – HighImpact Mitigation Contingency

High Stakeholders and staff are not

engaged or supportive of changes to be introduced.

Difficulty achieving project objectives.

Potential negative impact on proposed timelines and budget as additional time and effort may be required to roll-out proposed changes.

Conduct a change readiness assessment/survey at the beginning of the project to identify potential change resistance.

Develop a change management plan to identify and resolve potential resistance issues. Continuously monitor/revise the plan.

Ensure effective communication, training and support.

Clarify project and operational roles and responsibilities.

Adjust change management plan/communication, and if necessary, the overall project workplan to deal with issues that arise – e.g., additional “on-the-job” training may be required.

Reallocation of resources to other job functions.


2. Ability of ASD Organization to Absorb Technology/Process Change

Probability – Medium

Impact Mitigation ContingencyMedium Difficulty in understanding,

adapting and internalizing new processes and technology which may lead to project delays.

Difficulty achieving project objectives.

May lead to change resistance.

Through the change management process closely monitor resources and adapt change management plans accordingly.

Develop effective knowledge transfer strategy and plan.

Develop and document new roles and responsibilities.

Develop effective role transition plans.

Deliver effective and frequent communications to build early awareness and comfort with pending changes.

Provide additional training.

Increase timelines and delay “go-live” dates.

Reallocation of resources to other job functions.

Increase reliance on external expertise to support execution of tasks where possible while continuing with knowledge transfer.

*This will be exacerbated by the other business initiatives which will also introduce change to the organization.

3. Ability to Support Multiple Competing ASD Business Initiatives Probability – High

Impact Mitigation ContingencyHigh Difficulty in dedicating the

required resources which may impact timelines and cause delays.

Project team burn-out due to unrealistic work loads.

Develop detailed workplans for all initiatives to ensure that a realistic estimate of resource requirements to support all projects is defined upfront.

Establish a central management committee to oversee all initiatives to ensure that resources are not overall located and to assist in making decision on project/resource priorities.

Backfill positions early to ensure adequate knowledge transfer.

Monitor resource utilization.

Reallocate resources between projects.

Add additional external resources to the project team mix.

Extend project timelines. Adjust project scope/complexity. Defer one or more of the

initiatives.


4. Availability of Adequate Number of Internal (i.e. Province) Technical Resources with Required Skill Sets due to Multiple, Parallel Initiatives

Probability – High

Impact Mitigation Contingency

High Difficulty in executing tasks

within defined timeframes which may lead to project delays.

Upon completion of the workplan assess required number of resources and nature of skill sets required given complexity and allocated timeframes.

Review required skill sets for all projects versus available skill sets and define gaps and associated risks.

Cross-train internal resources to enable broader coverage and ability to support all of the initiatives.


Reallocate resources between projects.


Extend project timelines. Adjust project scope/complexity.

5. Limited Project Team Experience with Large Complex Projects Probability – Medium

Impact Mitigation ContingencyMedium Difficulty in executing tasks

within defined timeframes which may lead to project delays.

Clearly define project expectations and commitments (i.e. working days, holidays, etc.).

Tightly manage project to proactively anticipate any potential issues.

Leveraging expertise of external consultants with experience in similar projects.

Reallocate resources. Add additional external resources

to the project team mix. Extend project timelines. Adjust project scope/complexity.

6. Insufficient Executive Support/Involvement Due to Multiple Parallel Business Initiatives

Probability – Medium


High Delays in decision-making

resulting in project delays. Inadequate championing of

desired business changes which will negatively impact adoption of changes in the organization.

Empower project team to make decisions.

Engage other senior government representatives in a Steering Committee that will oversee and actively support the project.

Extend project timeline.


7. Delayed Decision Making Probability – HighImpact Mitigation Contingency

High Project delays.

Establish a clearly defined issue resolution and escalation process.

Empower project team to make decisions.

Engage other senior government representatives in a Steering Committee that will oversee the project and support the Executive Sponsor in decision-making.

Extend project timeline.

Process8. Inadequate Integration with the Province’s Continuous

Improvement InitiativeProbability - High


Medium Potential rework for ASD as

shared processes are redesigned after ASD designs their solution.

Additional cost and effort associated with rework.

Introduction of additional change to the ASD organization post go-live.

Coordinate the continuous improvement initiative with the ASD SAP Real Estate project to ensure that the future vision for common processes is defined within the required timelines of the Real Estate initiative.

Ensure involvement of the Business Transformation Program Management Office in the Real Estate initiative to ensure that integration points to other initiatives are considered.

Plan for rework post “go-live”. Extend and/or defer Real Estate

project timeline.

9. Difficulty in Obtaining Consensus on Process/System Standardization across Impacted Departments

Probability – High

Impact Mitigation ContingencyMedium Delayed decision-making

impacting project timelines and costs.

Ensure that there is representation from all of the impacted departments in the solution design process.

Develop an effective decision-making and escalation process.

Ensure senior-level involvement in the high level visioning sessions to obtain consensus and establish a working framework for the team.

Extend project timelines and budget.


10. Scope Creep Probability – HighImpact Mitigation Contingency

Medium Increased cost of the project. Resources consumed to complete

new activities. Deadline may be affected.

Implement a formal process to manage scope changes.

Maintain a listing of future enhancements and timing for implementation.

Additional work is not commenced until change requests are approved.

Remove any non-critical activities from the scope of work (i.e. re-prioritize workload).

Reallocate workplan responsibilities.

Consider additional resources to accommodate required scope changes to maintain project timelines.

Consider timeline extension if scope change is significant.

Technology11. Absence of Required Data in Legacy Systems Probability – Medium

Impact Mitigation ContingencyMedium Could lead to significant effort in

creating data impacting project timelines.

Increased cost.

Determine absent or incomplete data early in the project.

Involve all employees in efforts to source data where appropriate.

Source additional data entry services.

Contract additional data entry resources.

12. Significant Environment Management Issues Probability – Medium

Impact Mitigation ContingencyMedium Non -synchronized environments

(i.e. impacting multiple projects) resulting in unplanned effort to address.

Environment integrity issues. Unplanned effort to address

issues resulting in project delays and increased costs.

Establish an overall system landscape strategy prior to the start of the Real Estate project.

Establish clear procedures on environment management and synchronization.

Reallocate technical resources from other initiatives to assist with resolution of environment issues.

Contract additional external resources to assist with resolution of environment issues.

Extend project timelines.


2.4.5 Delivery Work Plan and ScheduleOur methodology starts with the ASAP Implementation methodology and then supplements and provides enhancements based on our experience with numerous SAP projects.

Phase 1 – Preparation & BluePrint Deliverables and TimeLineYour RFP (Section 1.4.1) provides an outline of the key deliverables you anticipate for the Project Preparation and Blueprint Phase of the project (which is reproduced below).

Key Activities and Deliverables

Summary of Activities Major Deliverables

Refine project work plan and project kick-off. Develop change management and communications

plan. Define project management processes (including

information management, issue/risk management, and project reporting).

Update key business objectives and requirements. Create development system. Set up Solution Manager.

Project work plan. Project management processes. Change management and communications plan. Refined business objectives and requirements. Development system. Established Solution Manager.

Key Activities and Deliverables

Summary of Activities Major Deliverables GOM processes review and requirements. Establish concept fit of SAP modules and transactions

with GOM processes. Identification and resolution of gaps. Production hardware sizing. Refine technical architecture. Finalize scope. Configuration loaded/system setup. GOM sample data loaded. Knowledge transfer on concepts and solution. Pre-configured solution review using actual data.

Knowledge transfer of design best practices. Detailed design using the GOM business process

requirements and data. Gap analysis between the tailored design and the

GOM with recommendations. Partially configured blueprint solution. Refined work plan. Detailed business blueprint. Final implementation scope including phasing, data

migration and integration plan. Finalized technical architecture. Fixed price estimate for delivery of Phase Two.

We will undertake all of these activities and develop all of the requested deliverables. We will also deliver a few additional deliverables based on the additional threads of activities that we propose to undertake.

The following table identifies what we anticipate as the key deliverable for Phase 1 (Project Preparation and Blueprint). For each deliverable there is a description of the content, who is responsible for producing the deliverable and any dependencies whether they are internal or external to the ASD project. Deliverables are grouped according to the following five categories of common grouping of activities defined in the ASAP methodology:

Project Management – Includes activities related to the project organization, risk management, planning, monitoring, budget, staffing and quality assurance.


Process – Includes activities related to process redesign, SAP software configuration, solution testing and documentation.

Organizational Readiness – Includes activities related to leadership commitment, organizational readiness, organizational structure/role redesign, change management and training.

Technology – Includes activities related to hardware infrastructure design, sizing and installation, SAP landscape architecture, application installation/setup, conversion and interface design and development as well as application customization and report writing.

Security and Business Controls – Includes activities related to security, business risk management and audit controls

Support – Includes activities related to the development of an effective user support strategy, model and supporting processes.

We have denoted * the areas or deliverable where we have either added, supplemented or enhanced the ASAP identified deliverable.

Deliverables – Phase1

Deliverable Description Responsible Dependency

Project Management – Initial Workplan

Confirmation of scope and refinement of workplan to reflect ASD input.

Project Managers

Project Management – Project Management Processes

Definition of project management processes including risk, quality, issue, scope management, project tracking, and reporting.Note: this deliverable will be part of the Project Charter.

Project Managers

Initial Workplan

* Project Management – Project Charter

Detailed document containing the following: goals and objectives of the project, identification of critical success factors and anticipated outcomes, organizational structure and roles and responsibilities, risks and mitigation strategies and project management processes.

Project ManagersFunctional LeadsTechnical Leads

Completion of Preparation

Project Management – Blueprint Design

Final deliverable of process design session – includes details of the overall solution design.

Project Manager Summary document at conclusion of blueprint phase.

Project Management – Refined work plan and estimate

Based on findings of Blueprint design, develop the detailed project work plan for Phase 2 and the estimation of effort and costs associated.

Project Managers

Conclusion of BlueprintBasis for Approval to proceed to Phase 2

Process – Organization Structure Requirements

Definition of the high level organizational structure elements.

Process Leaders

* Process - Business process & requirements

Design of business process and overlay of SAP involvement in the process.

Process Leaders Review of existing ASD requirements and initial fit gap completed

Process – SAP requirements and gap analysis

Identification of SAP requirements (master data design, business scenarios, areas of config setting, development requirements.Also includes gaps requiring closure and integration with existing SAP footprint.

Process Leaders Completion of business process workshops


Deliverable Description Responsible Dependency* Process – Process and Integration Walkthrough and validationPartially Configured BluePrint Solution

Walk thru of processes and integration of existing SAP functions with objective of validation – selective use of SAP solution to illustrate.Should ASD wish to develop a prototype as part of the Blueprint phase, it would be delivered as part of this process.

Process Leaders Business Design

*Org. Readiness – Change Leadership Strategy and Approach

Outlines the approach to the people, change and leadership elements required.

Change Leader Stakeholder AssessmentChange Readiness

Org. Readiness – Project Team Training Approach and Curriculum

Identifies SAP Training Requirements for Province of Manitoba team members.

Change Leader Project Team organization defined and staff assigned

*Org. Readiness – End User Train Approach and Estimate

Identifies strategy, approach and plan to provide training to end – users and associated effort.

Change Leader Definition of organizational, process scope and initial process design completed

*Org. Readiness – Knowledge & Capability Transfer Approach

Approach to transferring knowledge to the Province Team and Support Organizations during the project.

Change Leader Project Team organization defined and staff assigned

Org. Readiness – Communications Plan

Defines the stakeholder audiences , core messages and approaches.

Change Leader Stakeholder AssessmentChange Readiness

Technology – Understanding of Current Architecture and Operations

Understanding of existing SAP architecture current ASD systems.

Tech Lead

Technical –Technical Standards

Development of standards and processes for development, code control and migration, testing.

Development Lead

Understand Current architecture and SAP operationsDefinition of Conceptual Architecture

Technology –Technical Requirements

Identification of hardware requirement, sizing. Tech Lead Understand current architecture and operations

*Technology –Conceptual Architecture

Provides overview of the overall solution include both SAP and third party solutions required to enable the process.

Tech Lead Business Process designs underwayInitial Fit-gap

Technology – Define Technical Architecture

Definition of SAP landscape, reintegration and detail of third party application, general data flows.

Tech Lead Define Conceptual Architecture

*Technology – Plan Development Requirements and Estimate

Identification of development required (i.e. forms, reports, interfaces, conversion, enhancements, third party apps) and estimate of effort to complete.

Development Lead

Completion of Process design workshops by business process teams

* Security and Business Controls – Define Approach to Security and Controls

Outline the approach, plan and effort to implement security and business controls with the application.

Security Resource

Business process designs in progressUnderstanding of current SAP security protocol and design


Deliverable Description Responsible DependencySupport Review of options for post go-live support. Project

ManagementBusiness Owners/LeadersSteering Committee

Based on our understanding of your requirements and our experience we estimate that Phase 1 will require a duration of 8 weeks for Project Preparation (2 week) and BluePrint (6 Weeks). This does not include the development of a pre-configured solution or prototype as part of the Blueprint phase. Should ASD want to include this as part of Phase 1, the timeline would extend by another 5-6 weeks.

HIGH LEVEL PHASE 1 TIMELINE

THD ACTIVITY Date 4-Jul-06 11-Jul-06 18-Jul-06 25-Jul-06 1-Aug-06 8-Aug-06 15-Aug-06 22-Aug-06Week # 1 2 3 4 5 6 7 8

PMO

CLL

BUS

TECH

SEC

Threads PMO - Project ManagementCLL - Change Leadership & LearningBUS - Business Process TeamsTECH - Technology TeamSEC - Security and Business Controls

Understand Current Technical Environment

Id & Understand Stakeholders

Change & Stakeholder Readiness AssessmentCapability Transfer PlanCommunications PlanEnd User Training Strategy & Plan

Plan Project Team Training

Identify / Plan / Estimate Software Development

Define Approach and Plan for Security Auth

Build Sandbox / Development EnviromentsDefine Technical Requirements

Define Technical Standards & Procedures

Define Conceptual ArchitectureDefine Technical Architecture

Process Walk Thru ValidationIntegration Design Walk Thru

Review Existing ASD DocumentationDefine Organizational Structure RequirementsDesign Business ProcessIdentify SAP Requirements and Fit Gap

Manage ProjectPhase 2 Workplan and Estimate

Preparation BluePrint

Initial Project Planning & ScopeProject Procedures Defined

Kick Off + Charter

BluePrint Review / QA

Mid Phase Health Check

In Appendix 3 we included a preliminary Microsoft Project – Project Plan for both Phase 1 and Phase 2 of the project, which demonstrates our readiness to mobilize quickly and complete the initial workplan required. Note: this detailed workplan does not reflect activities associated with the development of a pre-configured solution or prototype.

Phase 2 – Implementation and Support Timeline, and Key MilestonesBased on our understanding of your requirements and our experience at this point in time, we estimate that Phase 2 will require duration of 16 weeks (10 week for Realization) and 6 weeks for


Final Preparation) This is followed by 4 weeks of intensive stabilization and subsequent characterization and operational support.

Province of Manitoba – Real Estate/Projects and Maintenance

Summary of ActivitiesDuration (Weeks) 2 6 10 6 4Duration (Days) 10 30 50 30 20Start Date 04-Jul-06 17-Jul-06 28-Aug-06 20-Nov-06 01-Jan-07End Date 15-Jul-06 26-Aug-06 17-Nov-06 29-Dec-06 27-Jan-07

Below is a more detailed breakdown of the phase 2 activities.


2.4.6 Quality Assurance

Quality Assurance MethodologyOur Client Service Quality and Risk Management (QRM) Program is designed to be a mutually acceptable form of project governance that equally serves the interests of the firm and our client. As such, the key principles of the QRM and related project based Quality Assurance Review(QAR) approach are as follows:

Shared senior level involvement and review.

Joint authorship of deliverables and reviews.

Objective reviews.

Accountability to project governance and senior leadership in both organizations.

Provide constructive insights to the project management team on quality and risk.

The QRM framework ensures that the projects we undertake with our clients are structured, managed and monitored for the mutual success of our clients and our firm. As such, our clients benefit from:

A Quality assurance review (QAR) process provides an added layer of project governance by way of a periodic, independent review of project status and issues by a senior Deloitte partner.

A centralized process that ensures the best and most appropriate resource(s) are assigned to the QAR role.

A process that includes the software vendor to ensure that all product related issues and concerns are managed in a timely and co-operative manner.

Template Quality Assurance tools that have been used consistently to structure and monitor all of our client projects to successful completion.

A standard approach that our staff use repeatedly, ensuring consistency and efficiency.

A centralized repository and tracking tool that escalates status and issues to the firms’ management committee for an added level of quality monitoring of significant, high risk and complex projects.

Quality Assurance Review (QAR) Process

Introduction

Our Project QAR process leverages the project specific implementation methodology that is being utilized. As depicted below, the QRM program is used to provide the QAR process, tools and reports to assess project status and issues within the Implementation Methodology timeline and approach.


QRM Program

Quality Assurance Review Process

Quality Management Plan (Project standards)

Project Delivery

Implementation Methodology

© 2005 Deloitte Consulting

Quality Assurance Review Process

Quality Assurance approach, structure, tools, reports

Project approach, structure, timelines,

deliverables

Utilizes Deloitte QRM program to assess

project progress within the Implementation

Methodology timeline and approach.

Upon acceptance of the engagement by the client, a Deloitte partner with relevant expertise and experience is assigned to work with the Client Engagement team in the capacity of QAR Partner. The QAR Partner works with the client project sponsor and the project management (PMO) team to identify a client resource that is knowledgeable of the business and the objectives of the project but is not directly involved in the day to day operations of the project. If the project involves any other significant parties, such as a software vendor, the QAR partner arranges for the assignment of an executive from the software vendor organization to the QAR Team.

The QAR Team then gathers to obtain a common understanding of the project’s objectives, the role of the QAR Team and the QAR process as outlined in the following subsections.

Process Overview

The QAR process is outlined below.

Task–Assign QA Resources

Task–Develop QA Plan

Task–Develop QA Work Plan

Plan QA Meeting/Agenda

with PMCSchedule QA with

Project TeamPerform QA

ReviewCompile QA

ReportQA Report Review

with PMC (Log Responses)

Finalize QA Report, Issue to Project Sponsor

and PMO

Task-Close Project

Manage Quality Assurance Review

SAP Safeguarding is part of the QA

Process

QA Focus by Phase

The following provides an overview of the key QA activities that would be undertaken in each of the ASAP project phases.


ASAP

Project Phase Timing and Focus of QARProject preparation

Upon completion of planning, scoping and contractual arrangements to review: Definition of project scope (what’s in and what’s out). Project team (availability of resourcing, clarity of roles and responsibilities). Definition of project infrastructure (policies, processes, tools, etc.). Organizational readiness and management commitment.

Blueprint Upon completion of design activities to review: Progress of design activities. Issues outstanding as a result of design activities. Effectiveness of project infrastructure (i.e. issues management, deliverable preparation and

sign off, change order management, status updating, work plan management, etc). Performance of team. Vendor management and involvement in issues resolution.* Note: SAP safeguarding activities.

Realization At various points during build or configuration activities, depending on the length of this phase of the project, to review: Progress of configuration and testing activities. Progress data conversion and testing activities. Progress of interface and testing activities. Progress of report development and testing activities. Planning for deployment. Issues outstanding as a result of build/configuration activities. Effectiveness of project infrastructure (i.e. Issues management, deliverable preparation and

sign off, change order management, status updating, work plan management, etc.). Performance of team. Vendor management and involvement in issues resolution.

Go Live Midway through the deploy or go live phase, review: Progress of deploy/go live phase. Progress of end-user training. Progress of performance testing. Progress of cutover planning. Issues outstanding prior to go live. Effectiveness of project infrastructure (i.e. Issues management, deliverable preparation and

sign off, change order management, status updating, work plan management, etc.). Performance of team. Vendor management and involvement in issues resolution. Organizational readiness for go live. Overall quality of solution being deployed. SAP pre- go-live assessment activities.

Support Within a month post Go Live or early in the sustainment phase, review: Acceptance of system by end users. Performance of system in production environment. Performance of the help desk and end user support. Issues management in sustainment environment. Transition of responsibilities from project team to sustainment team. Vendor management and involvement in issues resolution.


Evaluation Criteria

To support the quality assurance reviews, our methodology contains detailed qualitative and qualitative evaluation criteria. These span across a number of categories such as leadership effectiveness, risk management, change management, etc. Refer to Appendix 4 for a Sample Quality Assurance Questionnaire. As part of the start-up activities of the project, this questionnaire will be refined with ASD.

Refer to Appendix 5 for further details on the QAR processes, roles and responsibilities, as well as supporting tools and templates.


2.4.7 WarrantyOur proposed approach for warranty is to provide a post-implementation support plan to ASD that will facilitate the development of a long-term, in-house sustainment capability that leverages the existing support capability residing in the Province. Deloitte’s expertise in delivering large scale, multi-phase SAP implementations has helped us to develop an effective post-implementation approach tailored specifically for ASD. We will provision for 30 days of go-live support effort for the stabilization period. In addition, Deloitte proposes the following optional services to compliment the post-implementation support provided by the software vendor SAP. As part of the on-going SAP annual maintenance contract the Province has established software support levels defined which will provide support to ASD.

Our solution is over-and-above the post-implementation support provided by the software vendor (SAP ) and our approach builds on the ASAP methodology for system stabilization and leverages our Application Management Services (AMS) practice, based in Markham, Ontario, to help develop, deliver and transition the SAP support capability to Province.

There are three key components to the Deloitte recommended approach for Province:

Transition to Sustainment

Sustainment

Integration with Current SAP Competency Centre

Each component of the approach is described in further detail below.

Transition to SustainmentA managed transition to sustainment serves as a foundation to help ensure that sustainment operations are responsive, flexible and efficient. To develop the foundation for sustainment, Deloitte uses several methods during the period leading up to Go Live and immediately thereafter as outlined below.

Prior to Go Live, Deloitte can:

Staff Markham-based AMS resources on the project to facilitate knowledge transfer to the resources that will support Province after go live.

Develop detailed transition work plan to Deloitte’s AMS solution.

Confirm the cutover date to Deloitte’s AMS support solution.

During Stabilization Deloitte can:

Use AMS resources (including those on the project team) to provide support during the stabilization period.

Conduct knowledge transfer on ASD business processes and system configuration to additional AMS resources.

Refine the processes, infrastructure and roles to meet ASD’s requirements.

Confirm Service Levels.

Identify Service Management reporting requirements.


SustainmentEffective sustainment operations help to ensure that ASD has an opportunity to take advantage of the targeted business operations improvements. A responsive sustainment organization will help ensure smooth system adoption and improved overall operational efficiency. The successful support of each phase of the program is also critical to mitigating risks associated with the subsequent phases at Province.

consideration. Our AMS solution can provide initial sustainment for ASD’s SAP environment to augment your capabilities, and then fully transition this capability to MICT, as your resources and processes are further developed. Deloitte has developed a customized SAP Applications Management Services solution for your

Deloitte proposes a “bundle of hours” approach for the AMS solution to supplement your internal capabilities. From our Markham AMS solution centre, the Deloitte support solution can offer of the following ‘base’ sustainment services:

Help desk and super-user support for complex ‘how-to’ questions.

Break/Fix Support for application defects over and above any warranty items (including ABAP).

Minor Enhancements to the system (including ABAP).

Basis support (transports, applying patches, etc.).

Security maintenance (profile changes).

Additional items that would be the responsibility of ASD are:

Basic Level 1 end-user support (to be provided by Super Users and the Help Desk).

Security administration (profile assignments and password resets).

Large enhancements.

Peak support over and above the commitment level for ‘base’ support.

With our proposed bundle of hours model, ASD commits to a small number of ‘base’ support hours (between 100 and 200 hours per month). These hours can be used by ASD for any of the in scope services or application modules. Although ASD commits only to the base amount of support per month, you would have access to more support if required on a pay-per-use basis. Markham resources could also travel on-site for short periods if required.

ASD has the option to reduce support earlier if your capabilities develop faster or continue support longer if required. Additional projects and/or increased scope can also be transitioned into the AMS solution in the future.

Application support can be provided during normal business hours (8:00AM and 6:00PM EST, Monday to Friday) and after hours support is also available.


We believe that using our AMS solution to provide support is the best solution for ASD for the following reasons:

The support team will be comprised of key resources from the implementation and therefore will have a good understanding of the implemented system configuration and requirements.

The solution is flexible and designed to align with the rollout plan, increasing as more functionality and users are added and decrease as ASD’s internal capabilities improve.

The Markham centre will have access to additional implementation team members if required.

ASD will have access to part-time resources and hot skills as required, thereby avoiding costs for skills and resources that are not routinely required.

Province competency centre resources have the ability to work on additional projects without jeopardizing ongoing Sustainment.

Integration with Current SAP Competency CentreWe anticipate that down the road the current SAP support organization – MICT will extend its services to other departments and SAP installation s, including ASD. The Markham Center resources will be in a position to transfer support in a seamless fashion to MICT when they are ready.


2.4.8 EnhancementsThe Deloitte application support centre is a CMM level 3 certified centre with proven processes for tracing and resolving on-going enhancement requests. Typically, we customize the process for each client depending on their individual needs of the client. The following chart depicts a typical process for managing enhancements.

58 t ©2005 Deloitte & Touche LLP and affiliated entities.

Use

rsPr

ovin

ceL2

Sup

port

RequestSubmitted

by User

Open HelpDesk Ticket

Open DeloitteHelp Desk Ticket

(HEAT)

Review HelpDesk Ticket

ResolveTicket

Close HelpDesk Ticket

Resolve TicketType ofRequest

NoSchedule &Assign Ticket

Yes

Obtain ApprovalCreate Work Order

Level 1

No

Close HelpDesk Ticket

Perform InitialAnalysis

Work OrderRequired

ResolveRequest

Close Deloitte HelpDesk Ticket

(HEAT)

L1 H

elp

Des

k

Level 2

RequestResolved?

Yes

RequestClosed

Assignto ASC?

No

Del

oitte

ASC

No

RequestResolved?

YesSchedule &Assign Ticket

Review withSuper User

No

RequestResolved?

Yes

Application Management Processes - Enhancements

Yes

We will jointly develop the support processes to manage the AMS services provided. We will build on the existing POM call center process.

Deloitte has a number of application management controls that assist in the tracking and evaluating of enhancement requests. The following outlines the controls as well as standard reporting for application management services.

Application Management Controls Work orders – Deloitte provides a Work Order, for approval by ASD, for any request that exceeds

a predetermined effort threshold. This threshold (e.g. 16 hours) is set by ASD to allow you to control ASC work effort and spend.

Usage notifications – Deloitte will provide notification to ASD as usage achieves predetermined levels (50%, 75%, etc.). This information allows you to control and limit further activity and avoid additional costs in a month. The thresholds are determined by The Province.

On-line reporting – ASD has access to all Toronto ASC activity on-line, allowing you to see and if required, reprioritize efforts.

Weekly calls – Deloitte and ASD leadership have weekly calls to review current activity and forecast future activity. This allows you to manage priorities and effort in a proactive manner.


Reporting Deloitte will regularly meet with ASD to review our performance. The reports that Deloitte

provides help manage and improve the services provided.

We will use a quarterly Quality Assurance (QA) process to summarize and review the services provided to ASD. This QA review also provides an opportunity for ASD and Deloitte to plan and make appropriate adjustments for the services going forward.

Report FrequencyDaily Statistics DailyOpen Calls DailyWork Order Reports WeeklyService Level Exception Report As RequiredDiagnostic Report MonthlyPre-Purchased Hours Usage Report MonthlyQA Review Quarterly


2.5 Proof of Insurability

2.5.1 Commercial General Liability Insurance

This insurance certificate was recently supplied to Manitoba for the ecommerce proposal. An identical certificate is issued for each proposal. If the province requires a separate certificate for this proposal, which will not be any different, then we can provide.

2.5.2 Errors and Omissions InsuranceDeloitte carries errors and omissions insurance (see above section).


2.6 Pricing

Under separate cover.


2.7 Attachments

Appendix 1 – Resumes

Appendix 2 – Risk Management Plan Template

Appendix 3 – Preliminary Microsoft Project Plan for Phase 1 and Phase 2

Appendix 4 – Sample Quality Assurance Questionnaire

Appendix 5 – QAR Processes, Roles and Responsibilities Details, Supporting Tools and Templates

Appendix 6 – Application Support Centre Overview

Appendix 7 – SAP Real Estate Management in SAP Solution Manager


Appendix 1 – Resumes

Brodie, Frank

Clarke-Johnson, Maxine

Frampton, Linda

Hill, Marcus

Hirschfeldt, Robert

Jensen, Eric

Lam, William

Lawson, Robert

O’Leary, John

Owens, Sheryl

Parker, Kathy

Parrett, Ruth

Rous, Giscard

Sabourin, Roland

Scoville, Randy

Whiteside, Ken

Wong, Mike


Appendix 2 – Risk Management Plan Template

Risk PlanAuthor: Author nameDate: DateVersion: Version number

Table of ContentsIntroduction

Purpose and Scope

Related Documents and Standards

Risk Management Process

Risk Assessment

Risk Responses Log


Introduction

Purpose and Scope

Instruction: Describe purpose and scope of the Risk Plan.

The purpose of this Risk Plan document is to specify the processes used to identify and manage risk. The Risk Plan should be completed before the initial planning phase is finished, and it should be reviewed regularly to validate existing risks and identify new ones.

Related Documents and Standards

Instructions: Provide a list of related documents and standards.

Risk Management Process

Instructions: In this section, identify the process that will be use on the engagement to identify and manage risks. An example is shown.

Identify current and potential risks.

Categorize, quantify, and prioritize risks.

Determine categories to be used (for example, business imperative, project structure and approach, technology, people)

Determine severity of each risk (critical, serious, moderate, low), or assign a monetary value to each risk.

Determine probability that each risk will occur.

Rank the risks based on impact (Impact of a risk = (likelihood of a risk) x (consequence of a risk)).

Identify the Risk Responses.

Determine which risks require a response.

Assign a team member to each risk to follow the risk plan, crate a risk response, and to monitor, document, and report the risk status.

Take whatever advance actions are possible to reduce the effect of a significant risk.

Establish a schedule for subsequent risk assessments.

Review the Risk Plan.


Risk Assessment

Instructions: Record current and potential risks, and describe.

Assign a category.

Determine if they are external risks (frequently uncontrollable) or internal (usually controllable).

Determine the impact to the project if the risk occurs (low, medium, or high; or numbered 1 –5)

Determine the probability of the risk occurring (low, medium or high).

Record which organization unit is affected.

Describe the response strategy. Add additional pages or documentation references if appropriate.

Risk Name or Current Potential

Description Category External or Internal Risk

Impact (Severity Rating)

Probability Organization Unit Affected

Response Strategy


Risk Responses Log

Instructions: The Risk Responses Log will be used during the execution of the project to track the status of risks. It may be used as a stand-alone document during the execution and control of the risks.


Appendix 3 – Preliminary Microsoft Project Plan for Phase 1 and Phase 2


Appendix 4 – Sample Quality Assurance Questionnaire

Sample Assessment Summary – Selected Section OnlyThe tables on the following pages outline our findings from the QA/RM review just completed. The legend table below describes the notation used for each area assessed. Risks (including some which are properly mitigated), which we felt were important to highlight for the Project Managers and the Steering Committee, are underlined in our findings.

Legend Description No risks identified or identified risks appear to be properly mitigatedX Some action required by Project Team or Steering Committee to mitigate potential areas of riskBlank Questions were not asked at QA session and will be a focus of future reviews

Project Scope

Question

1st

QualityReview

2nd

QualityReview Comments

Project Charter has been prepared and has been approved by ASD and D&T Project Executives.There is a clear explanation of scope in writing.The project team understands the scope.There are currently project components that are beyond scope.If so, to what degree is the project out of the defined scope?There is a formal process for raising scope-related issues for resolution.Is this process being followed.


Project Planning and Monitoring

Question

1st

QualityReview

2nd


Project progress.The project work plan is used to manage the project.How often is the plan updated Weekly, Monthly, Quarterly.The planning horizon is adequate to anticipate workloads and/or problems.

The team understands and uses the plan.Issue TrackingHow are issues tracked or documented.Issues are resolved in a timely manner.Tracking engagement status, and budget on a subproject basis.MLCC status meetings and reporting.The Project Team has developed and implemented a formal communication plan, which allows for effective and effective communication through various parts of ASD’s organization.A system for organization and maintenance of working papers exists.Administrative policies and procedures on the engagement exist.The project team is using industry experience where appropriate.The project team is employing the ASAP methodology.

Project Leadership

Question

1st

QualityReview

2nd


Deloitte Project Manager has the necessary technical skills, client skills, people skills and experience to manage this project.ASD has an Executive Sponsor for the current project.

ASD has a Project Manager for the current project.

ASD has a Project Steering Committee for the current project.


Technology

Question

1st

QualityReview

2nd


The project team has the required technology to effectively and efficiently carry out their assigned tasksASD has implemented the necessary Technology Infrastructure to address the project requirementsASD has or is developing the necessary skill set to support the new systems which they will be responsible for once Deloitte involvement is finishedIs the application performing as expected or are there some significant outstanding issues with the applications?

Resources

Question

1st

QualityReview

2nd


ASD has sufficient personnel for the project and they are performing their role in a timely manner.ASD personnel are engaged in the analysis and recognize the need to own the decisions.The right consulting personnel are in the right roles.Team spirit and morale is high.Have adequate working space.

Project Deliverables

Question

1st

QualityReview

2nd


What is the on-time record for deliverables and major milestones.There is a formal process for ASD acceptance of deliverables, and it is used effectively.


Additional Issues and Recommendations

Project Team Specifics

The teams are working well together. Project Management needs to work with the sub-teams to ensure plans are developed to address the following functional concerns:

Key points by sub-team…

Important Dates

The following table is an excerpt from the Charter. The deliverable status has been added to monitor progress.

Next Quality Assurance MeetingThe next Quality Assurance meeting will be held on MMM DD.

If you have any questions about the contents of this review, please call any of the undersigned to discuss further.

xxx

Deloitte

xxx

Accommodations Services Division of Manitoba Transportation and Government Services.


Appendix 5 – QAR Processes, Roles and Responsibilities Details, Supporting Tools and Templates

Prepare QAR Work PlanThe QAR team finalizes a work plan and distributes the timing of the QARs to the team. It is not uncommon for the schedule to change along the way to fit the project timelines and requirements. As an example, a specific component of the project, such as Security and Controls, may be assessed as a high risk and require additional QAR attention. In such a case, an additional interim QAR could be added to the schedule to specifically focus on the activities related to Security and Controls across the project teams.

Plan QAR Meeting/Agenda with PMOAs the QARs are, in essence, an extension of the project governance, the QAR Team works closely with the PMO to schedule, plan and execute the QARs. The QARs require support from the PMO and active participation by team members in order to create the open and supportive environment that is required to satisfy the objectives of the QAR. The agenda and schedule should be established with the first QAR and then maintained for each review, adjusting only if required to meet the demands of the project.

The team lead interviews will vary in length, from 30 to 60 minutes, depending on the stage of implementation and size of the team involved. The QAR Team is advised to interview the PMO team first in order to gain an understanding of the current status and issues across the project such that the time with the implementation teams can be focused on the identified issues, progress and plans for the next 4-6 weeks.

Schedule QAR with Project TeamEach QAR is scheduled with the team through the PMO. As the QAR Team is not involved in the day to day operations of the project and unaware of daily scheduling considerations, it is a PMO responsibility to arrange the interview schedule with the team leads, arrange for the logistics of the meetings (i.e.,,, Meeting rooms, availability of documentation, meals, etc) and ensure that the team leads prepare for their QAR session.

Perform QARDepending on the project’s approach to QARs, interviews and questionnaires are used to engage team members in meaningful discussion of project status and issues. The QAR Team will spend time with each team (usually with Client and Deloitte Team Leads together) to review the status of their area of the project through a question and answer format. The QAR is not intended to duplicate or replace the project status and issue tracking mechanism managed by the PMO, nor is it an audit of the project. The purpose of the QAR is to:

Provide an independent review and assessment of project progress and significant issues.

Involve experienced resources in governing the project and resolving significant issues.

Monitor project progress and issue resolution through a reporting mechanism to the Project Sponsor.


Compile QAR ReportThe end deliverable of each QAR is the report issued to the Project Sponsor and Steering Committee which includes a comprehensive status, summary of issues outstanding and an action log for the PMO and project teams. There is a template for both the detailed QAR report and the executive summary QAR Report. The QAR team works together to document the findings of the QAR in the detailed report and then the summary version is compiled for communication to the executive and any other identified stakeholder groups.

(i.e. Audit committee) The report is structured to allow categorization of status and issues and allows for assessment and trending analysis of the status and issues using a numeric scoring system. This allows for easy identification of the areas of concern and attention within the project.

The QAR team will shape the template into a client specific format and will work together to draft and finalize the reports for each review. Upon completion of the QAR report, the QAR team will then review the report with the PMO.

Review QAR Report with PMO, Log ResponsesOnce the detailed QAR report is compiled, the QAR team will schedule a review with the PMO. The PMO reviews all observations and recommendations and then provides a response within the QAR report and creates an Action Log of activities to be undertaken by the PMO and/or project teams. This Action Log is created in the first report and then carried forward and updated for each review thereafter. Once the PMO has a response and summarized action items, the detailed QAR report is forwarded to the QAR team to be finalized.

Finalize QAR Report and Issue to Project Sponsor and PMOThe QAR team reviews the detailed QAR report with PMO responses and action log for completeness and finalizes the report along with an executive summary version for the Project Sponsor, PMO and any other identified stakeholder groups that receive the report. The QAR team will have scheduled a 2-4 hour session with the Project Sponsor and Steering Committee to present the detailed findings and engage in discussion of any actions required as a result of the QAR. The final report is also issued to the PMO and the project team leads as a form of feedback on the process

QAR Roles and ResponsibilitiesRole ResponsibilitiesQAR Team Draft the QA charter.

Plan, schedule and execute the QARs. Prepare QAR reports. De-brief with PMO and gather feedback from PMO. Present QAR findings to project sponsor and other stakeholders.

PMO Work with QAR Team to plan timing of QARs within the implementation plan. Support QAR Team by scheduling and preparing team leads for QARs. Manage logistics for QAR sessions (rooms, scheduling, deliverable status, etc.). Provide PMO response to the QAR report. Create the Action Log. Execute on the Action Log as required. Provide QAR feedback to the team.


Role ResponsibilitiesTeam Leads Prepare status and issues summary.

Participate in QAR sessions with meaningful responses and dialogue. Execute on the Action Log as required. Provide QAR feedback to the team.

QAR ToolsThe QAR process uses template risk assessment questionnaires, interview guides, action logs and reports to focus on project success factors listed below by assessing the impact on the project and the progress of each factor for each QAR:

Definition of scope.

Work planning and estimating.

Project tracking and control.

Project team structure.

Management commitment.

Project team skills.

Methodology.

Cross-team communications.

Vendor management.

Project & end user team training.

Project specific issue tracking.


Appendix 6 – Application Support Centre

Background on Deloitte’s Markham Application Support CentreDeloitte offers global applications management, near shore and offshore delivery services, with access to over 4,200 professionals worldwide across multiple geographies and industries.

Operation Center

Markham, Canada(Siebel, SAP, Oracle, Ariba)

Munich, Germany(SAP)

Shanghai, China(SAP)

Singapore(Siebel, Oracle)

Petone, New Zealand(SAP)

Hyderabad, I ndia(Siebel, SAP, JDE, Oracle)

Mumbai, I ndia(Siebel, Oracle, Broadvision)

Melbourne, Australia(Siebel, SAP, Oracle)

Johannesburg, South Africa(Siebel, SAP, Oracle)

Madrid, Spain(Siebel, SAP, Oracle, Peoplesoft)

Spring Valley, PASanta Clara, CA( Siebel, Oracle Broadvision)

Data Center

N. Canton, OH(Oracle)

Harrisburg, PA(Custom Development)

Tulsa, OK(Siebel, SAP, Oracle, JDE)

Key features of our Application Support Centre (ASC):

Scalability – Quick start-up and shut-down of resources with the ability to scale resources up and down during the life of the project or support engagement.

Onsite Presence – On-site resources as required for large projects/support engagements or those having complex design requirements or support needs requiring a demanding on-site presence.

Single Point of Contact – A single supplier of support resources, with full accountability for the quality of support delivery providing total control over timeliness of service delivery and adherence to standards.

Rapid Delivery – The ability to produce support output on a two or three-shift basis using resources in the Americas, Asia Pacific, and Europe.

Knowledge Transfer – Knowledge transfer to internal resources, if required, to ensure that skills and knowledge are transferred and institutionalized.

Low Cost – Low cost, leveraged solution using global ASC resources.


There are a number of benefits to using ASC resources during the implementation including:

Reduced cost of implementation due to:

Reduced implementation effort from a reduction in capability transfer relating to configuration and technical tasks required to support the system post-live.

Reduced travel costs.

Ability to use fractional FTE’s for delivery maximizing resource efficiencies.

Smooth transition to post implementation support model as many of the core team members can play long-term roles in providing ongoing support.

Greater degree of accountability for post implementation support as many of the support team members would have been core team members on the project and would be supporting the system they helped implement.

Industry RecognitionDeloitte’s success in outsourcing is based on the same elements that distinguish us in the consulting world. In fact, Deloitte has been ranked #1 in Customer Satisfaction among all outsourcing providers in a recent Information Week Research Survey of 333 business-technology professionals.

Deloitte is the only firm to score above a ‘7’ in the satisfaction ranking and was rated the top provider in nine out of ten categories, including reliability, service-level agreements, and availability of experts, industry knowledge, reputation, cost/value, strategic advice, training/experience and innovation.

This recognition reinforces the marketplace’s acceptance of and preference for our differentiated, multidisciplinary approach. We completely integrate our applications management services with our broader systems and Commercial Off-The-Shelf (COTS) integration practices.


Alternative Delivery ApproachTraditional implementations require a large team of consulting resources in a full-time, on-site capacity. This approach has the drawbacks of high consulting costs, high travel costs, resource inflexibility, and infrastructure requirements.

Our proposal instead leverages an Alternative Delivery approach, one with an on-site/off-site delivery mix. This proven model maximizes value and minimizes client disruption by providing full-time, on-site resources for key roles. These resources are augmented with remote resources from Deloitte’s Application Support Centre (ASC) in Markham, Ontario.

This delivery approach leverages proven Application Management and Remote Delivery capabilities that benefit the Province with reduced costs, increased flexibility and increased efficiency. As part of the team is located off-site, consulting costs are minimized and resource utilization is optimized. Also, the remote resources are available “on demand” thereby providing part-time assess to skills, while further reducing cost. This model also streamlines the transition to support and provides effective support from day one of go live.

ASD• Client-specific industry and

process knowledge• Template knowledge• Project sponsorship and

ownership• Core competency capabilities

“Core” Resources• Deep industry knowledge• Manage ambiguous issues to

resolution• Overall project management• Provide relationship

continuity

“Markham” Resources• CMM Level 3 assessed

remote delivery capability• Ability to leverage FTEs

(ramp up and ramp down for peaks; partial roles)

• Can leverage hot-skills between multiple clients (BW, SEM)

ASD

ASD Core

Markham

Key Benefits of Alternative DeliveryDeloitte’s Alternative Delivery model offers significant benefit to the Province for this project. Some of the key benefits are:

Delivery using an onsite/offsite framework maximizes value – Deloitte experiences show savings to be closer to 30% compared to traditional on-site teams. In fact, if required, the entire project can be delivered from our Markham ASC.

The Alternative Delivery approach minimizes client disruption – the Province participation can be limited to just the key resources and during key times on the project.

The project has access to resources “on demand” – that is, peak demand and hot skills can be provided as required, making these resources more accessible and reducing the cost to the project.

There is flexibility to stretch delivery milestones to accommodate your needs by being able to ramp up or down resources to the required timelines.


The implementation can be faster by through more flexible resource management and redesigning of some project activities (such as training and integration testing) – this is particularly beneficial if our Markham ASC is also proving long-term sustainment afterwards.

If the Markham ASC provides sustainment services after go live, the support risk is significantly reduced as the project resources can also be leveraged to provide application support.

Using the Markham ASC relieves you of infrastructure/space issues related to large projects – our centre can host all project resources (Deloitte, Province of Manitoba, SAP, and any other 3 rd party).

Deloitte’s Remote DevelopmentDeloitte’s Markham ASC is also dedicated to providing remote development and configuration services for ERP implementations.

Deloitte has significant experience providing SAP services utilizing a remote model. As Deloitte is a leading provider of SAP implementation consulting, the extended delivery practice is, in turn, focused on providing services in these important applications.

Our remote delivery teams also provide staff to work on site directly with our project teams as appropriate throughout the implementation.


Appendix 7 – SAP Real Estate Management in SAP Solution Manager


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