Tackling ERP Modernization: A New Approach for State and Local Government
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1 Tackling ERP Modernization: A New Approach for State and Local Government Today s Speakers Joe Morris Lead Analyst Center for Digital Government Government Technology Mike Bailey Finance Director City of Redmond Charlie Johnson Managing Director Microsoft In Collaboration With: erepublic, Inc. Content may not be used without expressed permission.
2 Topics for Today State and local government trends and ERP adoption drivers from the Center for Digital Government How the City of Redmond, WA implemented their ERP system and leverages government-specific best practices to reduce costs, increase visibility and simplify compliance Learn how you can improve your accountability and efficiency to overcome the challenges associated with ineffective financial and HR systems
3 IT Priorities 2012 State and Local CIO Priorities Consolidation Virtualization Shared Services Cloud Computing Smart Computing Context-Aware Computing GIS Mobile Computing to Field State County City Mobile Computing to Citizens Mobile Computing to Business ERP/Legacy Modernization
4 Drivers Need to Replace old legacy systems Systems are too costly to maintain Lack of integration? Systems lack functionality Too many manual processes Non-standard business processes Enable effective decision-making Easier maintenance of operations Improved accountability and transparency
5 Total Five Year Costs
6 ERP Spending by Area
7 Challenges The Total Cost of Ownership (TCO) for the license, implementation & maintenance is high and ends up being more than expected Implementations are challenging, demanding and overburdening Systems are typically built for the private industry and are then configured to fit government environments There is a lot of risk with implementing an ERP and delays/going over budget is a concern Deployments always take longer than expected
8 So Why Are We Doing This? A recent study found that 75% of public sector organizations surveyed extended their ERP implementation timeline 66% came in over budget Why are so many states and localities considering an ERP implementation? When done right an ERP can deliver: Cost savings Increased productivity Increased efficiency
9 Microsoft Dynamics AX 2012 for Public Sector Organizations: Solutions for the Business of Government Charlie Johnson Managing Director
10 A New Generation of ERP That works for you, not against you Integrated Applications Simplicity and Agility Differentiating Public Sector Functionality Powerful Embedded Analytics and BI Government Public Safety and National Security Education Healthcare Not for profit Works the way you need it to Simple to use Tailored to meet your needs Get the right data to decision makers
11 The Right Experience for the Right Task I spend all day in Outlook. It works just like Office. All the information is at my fingertips. Getting data in without logging in is a snap. 11
12 Procurement Role Center Microsoft Confidential 12
13 Tackling ERP Modernization: A New Approach for State and Local Government Mike Bailey, Finance Director
14 City of Redmond City government, 52,000 residents, very technology forward community, strong mayor form (mayor is CEO) 650 full time employees (about 200 seasonal employees) Centralized / Internal IT and Finance Functions (which I supervise) My role CFO, oversee technology functions My background GFOA board, budget committee, trainer, CIFMA FM project, Technology resource group chair, BFO roundtable, Performance management commission, etc. WFOA / AWC / UW Evans School I ve been with five other cities and one park district. Put new systems in all but one city (which already had Tyler Technologies products) I ve been with Redmond 3 ½ years 14
15 Challenges faced by the City City implemented JD Edwards about six years ago. Very centralized / controlled model Systems (IT and processes) very locked down / risk averse Inadequate access to data, reports and / or solutions Lots of independent shadow systems created by city staff to accomplish required tasks Redundancy of effort and data Lack of control over external reporting which often came out of these shadow (and often ad hoc) systems 15
16 Change in Leadership / Direction New mayor and myself wanted to move forward on the technology curve Home of world technology leaders technology forward community Economic pressures create logical need to improve processes and efficiencies Did technology assessment and developed IT Strategic Plan Council funded and embraced 16
17 ERP in the IT Plan Top need identified in IT Plan was for enterprise financial system (or ERP) Did technology scan for solutions with firm we have used in the past (not a formal RFP) Found no obvious vendors that seemed to be the technology forward choice for our city so determined to reinstall existing solution. Soon after discovered TAP opportunity at Microsoft / Tyler and determined that was a far better option. 17
18 City staff welcomed a fresh solution Worked with city staff to design implementation plan and schematic Avoid duplicate effort, leverage staff efforts, improve use of technology to replace manual processes Create repository for solutions that matched needs Rebuilt chart of accounts (reduced to 1/3 of original) Created strong project accounting schema that complemented GL schema Built workflows around logic models and internal control needs All staff has access to view all GL transactions / data Data cubes created for more common data needs 18
19 Staff Support for the Change Held open houses and rallies to expose staff to what could be Built extended team of implementers Lots of training on both technology and process changes Process changes were as challenging as technology changes Staff has embraced the change and begun to leverage the improvements 19
20 Implementation Shifts Focus Now beginning to really dig in to what could be Process reviews are beginning anew Workflow has become a resource - much more than moving digital paper Data mining new avenues Working to implement several features still Role centers are being explored to present the system features to the user in a custom fashion. 20
21 What s next for the City I see a long future of mining the potential The new systems have created a vast set of opportunities for us to grow in to An appetite to learn and understand what we have so we can continue to take advantage of it. We need more and smarter public sector AX clients so we can learn from each other and make each other better! 21
22 Now your questions What did we pay? We were a technology adoption partner (TAP) We got a discount in product and services but paid in other ways Many hours working with development and implementation teams Several meetings with other TAP participants How long did it take to implement? We started TAP about two years ago We started really implementing the go-live version about six months out. We started training, process development, etc. about four months out. 22
23 Microsoft Dynamics AX 2012 Public Sector ERP That Everyone Can Use Tailored Role Centers with Performance Dashboards Financial Management (GL, AP, AR, CA, FA, IN, TM) Fund Accounting with Encumbrances/Pre-encumbrances Budgetary Control for both Legal & Departmental Budgets Multi-Year Project Accounting & Grants Management Travel and Expense Management with Pre-Authorizations Public Sector Procurement-to-Pay Cycle with Sourcing Human Capital Management Integrated Workflow, Compliance Center & Audit Workbench Microsoft Office Interoperability Business Intelligence and Reporting
24 Powerful Achieve operational efficiency faster with increased reliability. Purposely built for the business of government Improve delivery of citizen services Empower your people to be more productive With Microsoft Dynamics AX 2012, we can realize our vision of a full-service city. Not only will it make our jobs a lot easier, but it will also make jobs in other cities across the nation much easier. John Marchione Mayor, City of Redmond
25 Agile Respond to changing requirements and new citizen demands. Adapt easily to new constituent needs Address legislative mandates Support transparency and open government Until now, organizations have had to rely on outdated, legacy ERP systems and make do with ad hoc customizations to achieve the functionality they need. This can be costly to maintain and doesn t necessarily offer the flexibility modern government organizations need today. Steve French Vice President Enterprise Applications, Hitachi Consulting UK
26 Simple A familiar user experience provides easy access to the information you need. The familiar Microsoft interface is easy to learn and intuitive to use Simplify information sharing We want to expose a lot more information to a much broader audience, including elected officials and constituents. The familiar look of the product will immediately remove barriers that some people might experience when it comes to financial information. Mike Bailey Director of Finance and Information Services City of Redmond, Washington
27 Familiar to your people Fits with your systems Fuels your business productivity Enables confident decision making Structured Unstructured
28 Questions? Joe Morris Lead Analyst, Center for Digital Government Government Technology Mike Bailey Finance Director,City of Redmond Charlie Johnson Managing Director, Microsoft In Collaboration With: erepublic, Inc. Content may not be used without expressed permission.
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