2011 NASCIO Recognition Award Nomination State of Georgia

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1 2011 NASCIO Recognition Award Nomination State of Georgia Nomination Category: Enterprise IT Management Initiatives Title of Nomination: Georgia Enterprise Technology Services Nomination Submitted By: Calvin C. Rhodes Chief Information Officer, State of Georgia Executive Director, Georgia Technology Authority

2 Executive Summary Georgia is well on its way to achieving an ambitious goal set in 2007: Move the state s IT operations out of their horse and buggy days and into the 21 st century by turning to private-sector leaders in technology service delivery. The end result of our IT transformation will save money, keep the state current with modern technology, reduce operational risk created by poorly managed technology systems and ensure that confidential data remain safe and secure from outside threats. Georgia Enterprise Technology Services is groundbreaking for state government and is one of the largest public-sector IT transformations in the world. Valued at $1.2 billion over eight years, this transformation affects 70,000 state employees and 1,400 state and local government offices in every corner of the state. In FY2010 alone, the state spent $1.2 billion on IT. With an $18.3 billion budget for FY 2012, Georgia would rank 136 if it were a Fortune 500 company. The state serves one of the nation s fastest growing populations, currently 9.8 million a 20 percent increase since A modern, secure, reliable and cost-effective technology infrastructure is essential to enabling state government to meet its service obligations to Georgians, but over the past few years, serious deficiencies in the state s IT enterprise have been well documented. An independent assessment determined that Georgia was carrying too much risk, and its IT problems were too great for the state to solve on its own. The problems are widespread and deep: PCs running operating systems too old to support current anti-virus software, service interruptions due to inadequate backup power for critical IT systems, failure to backup important data due to broken servers, and underfunding of disaster recovery and security. After what was arguably the most competitive and transparent procurement in Georgia s history, the state outsourced IT infrastructure services to IBM beginning April 1, 2009, and managed network services to AT&T beginning May 1, Our business case projects savings of $181 million over the life of the IBM and AT&T contracts. In addition, the Georgia Technology Authority (GTA) which provided technology services to state and local government agencies was reorganized, downsizing from 660 employees to about 165. GTA shifted its focus to managing the delivery of services and built a Service Management Organization (SMO) to manage its two new service providers. The SMO was built on industry best practices and was staffed and operational prior to service commencement, giving GTA a stable management platform for one of the state s largest change initiatives. Tools such as service level agreements, operational metrics and opinion surveys are now assisting in day-to-day management as the initiative delivers positive, measureable results.

3 Description of the business problem and solution A serious problem Georgia leaders have long understood the importance of a wellmanaged IT enterprise to support state government and have worked to correct deficiencies and overcome obstacles. An in-depth assessment of GTA s operations in 2006 revealed shortfalls in IT operations when compared to industry best practices. GTA lacked many of the processes and automation necessary to operate efficiently. At the same time, much of its hardware and software was running well beyond its intended life cycle, and updating the infrastructure would require a significant capital expenditure. If the agency responsible for leading the state s use of IT faced such serious problems, what could the situation be like in other agencies? To find out, GTA contracted with Technology Partners International, an IT assessment and sourcing consultant, to assist with the most comprehensive assessment of the state s IT operations ever conducted. Begun in summer 2007, the assessment included the 13 state agencies with the largest IT expenditures and sought to fully document problems with the state s IT enterprise and determine whether the state could fix those problems itself or whether to reach out for private-sector help through outsourcing. The assessment compared IT operations to industry standards and examined service delivery and service level targets; business continuity and disaster recovery; and the condition, life cycle and cost to refresh and maintain IT assets. More than 100 interviews were conducted with senior business and IT managers in the participating agencies, and data was collected to develop a sound business case. After collecting and analyzing assessment data, TPI reached the following conclusions in December 2007 about the IT operations of GTA and participating agencies: GTA is not operating effectively; it is a highly inefficient and dysfunctional organization and delivers expensive services. Agency decisions and current practices are placing key business systems and operations at risk. State government is paying more than it should for IT services as agencies create redundant islands of operations to work around GTA. Without coordinated changes across the enterprise, the problems will continue. Capabilities within the state to fix the problems have deteriorated to such an extent that only an enterprise-wide initiative drawing services and skills from the market has the opportunity to make timely repairs. A workable solution Based on these findings GTA began the competitive procurement to consolidate and outsource the state s IT infrastructure and managed network services. The development of the Request for Proposal was a highly collaborative process involving more than 100 key IT, business and human resource managers from the 13 participating agencies. Contracts were signed in November IT infrastructure services were transitioned to IBM on April 1, 2009, and managed network services were transitioned to AT&T on May 1, Both transitions occurred on schedule. Implementation started June 1, 2009.

4 Significance of the project to improving the operation of government Transparency of spending and predictability of costs Shortly after the transition of services, GTA conducted a True Up process to ensure both an accurate bill and an accurate count of state IT assets. The process provided each agency a new baseline for service invoices and billing at market-competitive rates for actual service consumption. Details about usage for all technology services are included in online invoices, giving leaders facts on which to base decisions about future usage and IT spending. A Financial and Billing Resource Center on the GTA web site offers agency customers assistance with billing issues. Consolidated Service Desk In June 2009, the state launched its Consolidated Service Desk, which consolidated 21 service desks across 12 state agencies. For the first time, GTA customers can call a single, toll-free number (1.800.GTA.3233) to receive 24/7/365 support. The service desk handles an average of 20,000 calls each month and uses a continually expanding knowledge-management database to resolve issues promptly. A project unto itself, this consolidation was completed within three months of IBM s commencement and is exceeding customer satisfaction service levels. Operational metrics and service levels With 60 service level metrics for IT infrastructure services and another 43 for managed network services, GTA is able to closely monitor success and target areas for improvement. Areas of early success included service desk calls, batch processing, change management, and print services. Operational metrics allow GTA to keep close tabs on a variety of performance indicators. For example: More than 98% of problems called in to the Consolidated Service Desk are resolved on the first call. The rate of abandoned calls to the Consolidated Service Desk is consistently less than the target of no more than 6%. More than 74% of data tickets on average are automatically detected, which means technicians can be onsite or service restored remotely often before a customer agency knows a problem exists. On average, more than 95% of orders for voice and data services have been completed on time since April 2010, exceeding the target level. On average, more than 97% of voice and data projects have been completed on time since April 2010, well above the target rate. Customer satisfaction GTA is tracking customer satisfaction with the Consolidated Service Desk using point-of-service surveys. Since the launch of the service desk, both IBM and AT&T have consistently exceeded expected service levels. GTA also conducts customer satisfaction surveys of agency heads and 150 agency business leaders. The data is part of the Overall Customer Satisfaction Service Level Agreement. Agency heads are surveyed annually, and business leaders are surveyed twice each year. The surveys are conducted by the University of Georgia.

5 In addition, GTA set up a toll-free number, opinGTA, for customers to leave a voice mail anonymously, if they choose about their service experience. Concerns and suggestions are logged, and process changes are made when needed. Several enhancements have been implemented based on customer input, including allowing service tickets to be created and tracked online, instituting an escalation process for service problems, and giving users online access to incident reports. The online GETS Customer Resource Center provides quick help on popular topics. Regular refresh of computing equipment - With a well-planned schedule for refresh of desktops and laptops, the state is now able to keep agency equipment up to date and reduce the risk of disruptions caused by old, troublesome machines. Desktops are being replaced every five years, and laptops are being replaced every three years, which means 20 percent of desktops and 33 percent of laptops will replaced each year on an ongoing basis. More than 4,900 desktops and laptops were replaced in 2010; another 8,200 are targeted for upgrade in Disaster recovery The state has developed its first enterprise disaster recovery program to ensure our ability to restore critical information systems in the event of an emergency or disaster. Three tests have been conducted, involving 10 agencies and 116 critical servers and associated applications. Each test has resulted in important lessons leading to stronger restoration capabilities. The most recent test, conducted in February 2011, was the largest yet in both duration and scope, lasting 120 hours and involving the highest number of agencies and service providers. Approximately 90 percent of all servers were restored, as opposed to 70 percent during the first test in August The next test, a 150-hour exercise, is scheduled for August Server and storage consolidation Server and storage consolidation is one of the major activities for modernizing the state's IT operations and ensuring greater reliability of the applications that support essential state services. We have completed a redesign and implementation of a new hosting environment for server and storage consolidation at the state s data center, a Tier IV facility which provides a secure, state-of-the-art environment. This new hosting environment will comply with all state and federal security and regulatory requirements. Consolidation and migration are being conducted in waves and extend beyond simply lifting and shifting servers. This consolidation virtualizes servers, upgrades outdated hardware, and upgrades applications. GTA works with agencies to prepare for relocating servers and the applications running on them to the state data center. In many instances, these servers many of them old and obsolete have been operating in state office buildings without adequate backup for electrical power or cooling, physical security or alarms. The state's comprehensive IT assessment found that no agency data centers came close to the technical and operational standards the state should be using. On a scale of 1 to 5, the highestscoring agency data center received 2.59; the state data center scored One hundred end-of-life or chronically failing servers were upgraded in 2010; another 100

6 are targeted for Application servers from three agencies were migrated to 60 new server images, and another 275 servers are in progress. A complete data center inventory, a first for the state, was conducted at 14 sites. About 2,500 servers are being reviewed for consolidation, and application remediation is under way to enable critical state applications to run in the new, consolidated environment. The remediation process documents all the applications that are currently running on agency servers and the dependencies among those applications. Backup and recovery The state backs up almost 2,000 servers throughout the IT enterprise, paying attention to each drive on each server and building a success rate above 98 percent. A new tool now increases recoverability of data and provides critical information, enabling technicians to instantly view successes and failures, the root cause of failures and backup performance. transformation Another major initiative is consolidating and upgrading and BlackBerry servers. The project involves moving three Novell GroupWise environments and nine Microsoft Exchange environments to a single, enterprise Microsoft Exchange environment. More than 47,000 accounts are affected. The number of and BlackBerry servers is being reduced from 400 to 28, and servers are being relocated to the state s Tier IV data center. New capabilities: Security, server tools New tools are being implemented to automate the monitoring and management of servers and end-user computers. Dell Desktop Manager (DDM) has been installed on about 35,000 desktop PCs and laptops in agencies. With the capabilities DDM provides, the state has an enterprise approach to managing end-user computers for the first time. Software patches and updates can now be deployed in an automated, consistent and timely way across multiple agencies. DDM also makes it possible to encrypt data on desktop PCs and laptops and allows technician access from a remote location. Meanwhile, IBM has installed management tools on 2,500 servers. The tools enhance reliability by gathering information about servers, monitoring performance and storage capacity, sending alerts to technicians and allowing them remote access, and enabling servers to run more efficiently. Re-engineering the state s wide area network Significant changes have been made to the state s wide area network: a new, standard platform to reduce time intervals for service orders, changes and incident response; tools to better manage network traffic and enhance security; and increased redundancy and disaster recovery capabilities. The work completed to date has resulted in up to a 100 percent increase in network capacity. The state s network can now failover to facilities in Nashville, TN, providing a level of redundancy and reliability previously unimaginable for the state. AT&T is completing migration of agency firewalls to its network, which is resulting in greater security and easier management. The number of firewall rules is being reduced from more than 7,000 to about 50, making it simpler to identify all of the state s vulnerabilities and respond to incidents effectively.

7 Stronger, leaner, more focused technology agency In addition to improving IT service delivery to Georgia state agencies, GTA has emerged from the transition stronger and more effective. GTA streamlined its organization, downsizing from 660 employees to 165 as we began managing the delivery of services rather than providing those services directly. While 679 positions at GTA and other state agencies were affected by the outsourcing, most employees received job offers from the service providers or one of their subcontractors before service transition. Prior to signing contracts with the state s service providers, GTA established a Service Management Organization (SMO) to oversee service delivery and compliance with contractual requirements. Modeled after similar organizations in successful, privatesector companies, the SMO works daily with customer agencies and service providers to ensure customers business needs are met. Benefit of the project Georgia now has a sustainable model for IT and expects to save $181 million over the life of the contracts with its service providers. Further, through this long-term partnership, the state is making investments in technology that we could never make on our own: through IBM, we are investing $184 million in our infrastructure, and through AT&T, we are investing $99 million in our network. Although Georgia has much work still to do, the signs of real transformation are increasingly evident. For the first time, the state has a complete IT asset inventory and is refreshing end-user computing equipment. Server consolidation is under way, with many servers already relocated to the state data center. Tools to monitor server performance are maximizing efficiency. Proactive monitoring of the state's data network means problems are detected and resolved quickly. In another first for the state, Georgia now has an enterprise-wide approach to disaster recovery, and tests are conducted regularly. GTA has brought industry best practices to the operation of the Consolidated Service Desk. Agency customers can order IT products and services through an online catalog. The state s new IT billing system provides greater clarity, enabling agency leaders to see an unprecedented level of detail in their invoices that supports facts-based decision making about their use of services and the impact on agency budgets. Agencies remain closely involved in the transformation initiative, and a monthly online newsletter keeps them informed about its progress and benefits. Provider performance is being measured according to service levels established in the contracts. We require credits from the service providers for failing to meet agreed-upon service levels, but as an incentive for them to do a better job for the state, they can earn back the credits if they perform above the expected service level for the next 12-month period. In addition, minimum and expected service levels are increased annually. The state s IT enterprise, through Georgia Enterprise Technology Services, has made greater strides over the past three years than at any time in its history. Through this transformation, Georgia is truly managing its technology at the enterprise level.

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