Approaches to Successfully Implementing Statewide ERP
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1 Approaches to Successfully Implementing Statewide ERP August 24, 2015 NASACT Clark Partridge, State of Arizona Michael J. Smarik, State of Arizona Daniel Keene, CGI James Colbert, CGI Agenda Statewide ERP challenges ERP solutions Arizona BREAZ project and case study Keys to success Questions 2
2 Statewide ERP challenges Government ERP challenges Rising costs and risk of maintaining aging systems Staffing challenges Stagnant or declining budgets ERP failing to keep up with demands of government 4
3 Past ERP challenges The implementation of a mission critical business system is not the time to figure out project management for the first time. Key implementation deliverables and milestones are needed to measure progress, identify stalls and ensure a smooth conclusion. A lack of checkpoints with periodic deliverables is a sign of future trouble. Scope creep and shifting requirements will affect the project's timeframe, cost and risk. Delivering a project with standard system functionality, and on time / on budget requires strong leadership from both the customer and the integrator. 5 Statewide ERP solutions
4 What can a new ERP system offer a state? The public sector is looking for: 1. Vendor supported modern technology with integrated business applications 2. Specific government functionality 3. Predictable annual costs 4. Proven results and positive impacts 5. Operational efficiency 6. Decreased cycle time 7. Greater collaboration 8. Increased transparency and insight 9. Elimination of redundant systems 10. Minimized customizations 7 Keys to a successful implementation Have a clear vision of your State s needs and demands Create and manage project goals Select the right implementation team Ensure transparency to the state stakeholders 8
5 Envision your State s needs and demands Define State s scope early Conduct an operational review Involve key stakeholders Identify gaps in service and opportunities for improvement What is going to allow your State to be more efficient? Automating processes? Training? Providing more citizen-centric self-service? Resources How will your staff be utilized? Managed services On site hosting SaaS/cloud computing Create a blueprint Roadmap of the future Define and plan for a project budget 9 Create and manage ERP project goals Create a blueprint/prototype for ERP project Timeline for implementation List out key stakeholders duties and expectations during implementation Having the blueprint pre-planned eliminates the guess work of the project Your ERP contract should mirror the blueprint timeline for implementation Ensure ERP contract includes upgrades and maintenance Keep your ERP system modernized Managed services and hosting options Training Involve the software users during implementation Provide training guides or courses for user staff 10
6 Select the right implementation team Internally Maintain champions throughout the ERP project implementation Create and maintain internal buy-in Survey and gather data for right implementation timeline Training Organize staff according to skill set and ability to meet the implementation staffing needs Educate system users before Go-Live dates Coordinate communications efforts regularly Externally Find a provider that knows the market Understands State Governmental needs and demands Government has different regulations, accounting treatments, and requirements Showcases proven results Implemented ERP systems with success Provides experienced employees for Project Offer reliable testimonials 11 Ensure transparency to the state stakeholders Simple ways to maintain transparency throughout implementation Create and maintain a web page Display project description List key stakeholders and other points of contact List the project timeline, target dates, and goals Changes the public could expect from the new system Project benefits to meet agencies demands Create announcements such as press releases to showcase progress and other milestones within the project Transparency promotes accountability and provides information for citizens about what their Government is doing. 12
7 The State of Arizona BREAZ project case study BREAZ 101 Business Re-Engineering AriZona project Statewide initiative to transform Arizona s business processes and replace the current accounting system and a number of agency financial systems. Business Re- Engineering AriZona 14
8 Project vision Goals and objectives: Replace a system at significant risk of failure Implement a statewide ERP system Facilitate standardization of business processes Facilitate timely access to and reporting from a Single-Source of Information Benefits: Standard business processes across the organization Modern technology platform Operational efficiencies Long-term viability Staff portability 15 Arizona s project scope Financial Accounts Payable Accounts Receivable and Billing Asset Management Budgetary Control Cash Management Cost Accounting General Ledger Grants Acquisition & Management Travel Logistics Inventory Management Facilities Management Other Federal Highways (FHWA) Federal Aid Billing Application Security and Workflow 16
9 BREAZ project schedule FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Initiation, Planning, Project Management Phase 1 Phase 2 Phase 3 Phase Timeline 1-BPR and Planning April 2013-August ERP Implementation September 2013-June Post Go-Live July 2015-September Align executive and user expectations Completed a data driven, strategic assessment of State readiness for change to identify the organizational barriers to change and accelerators of change based on data gathered from the State One-on-One Interviews: State leaders (July 2013) Focus Groups: Multiple people from across multiple agencies and functions (July 2013) CFOs, CIOs, Program Area, Shared Services, Dept Of Transportation, Dept of Economic Security, Functional Staff End User Survey: Survey sent to AFIS and AFIS-like users (August 2013) 18
10 Arizona s BPR Business Process Re-engineering (BPR) The BREAZ project team along with the State s agencies worked together to: Create a common vision of how to maximize the benefits of the new accounting system through statewide business processes Put together a blueprints for the State s business processes As-Is Processes The current financial and logistic processes used by the State Statewide (To-Be) Business Processes The new financial and logistic processes to be used by agencies statewide after implementing the Arizona Advantage Solution 19 Organizational readiness considerations Communications Training Change Management Address all levels of staff through direct messaging Create FAQs based on feedback Set clear expectations through: Summarization of business changes after system design is complete Early system demonstrations Use a Blended Approach to training Describe the training approach to agencies to ensure the learning process is understood Reinforce the relationship of role mapping Develop plan for training after Go-Live Include periodic change readiness surveys Focus support for large agencies and agencies with retiring systems Focus support of the smaller agencies by grouping together as necessary Summarize feedback from change readiness assessment by agency 20
11 Statewide ERP implementations keys to success Implementation keys to success Acquisition & Contract Develop a Business Case for the project Create an RFP that is reflective of the total solution to be built, including detailed lists of interfaces, conversion and reports Contract with a vendor to help with the requirements analysis, RFP preparation and evaluation, and quality assurance Define a realistic scope and avoid scope creep Manage the budget Include measurable interim project milestones to assess project progress Decide early on any optional items included in the RFP Establish a Pool of Hours in the contract for additional development Do not underestimate the complexity of integration with other key systems/software 22
12 Implementation keys to success - Project Execution Assign quality staff to the Project Involvement from and communication with agencies Agency staff assigned to the Project Involvement of agencies from requirements analysis to procurement and beyond through project governance Have agency involvement in system design and UAT Early involvement between technical team and agencies with retiring systems Complete thorough testing Strong Change Management Training (use of functional experts) Focus on reporting capabilities Place an emphasis on post go-live support 23 Questions
13 Presenters Daniel Keene CGI Sr. Vice President Clark Partridge State of Arizona State Comptroller Michael J. Smarik State of Arizona Deputy Comptroller James Colbert CGI Vice President 25 Thank you for joining us. 26
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