Commitment to Improving Efficiency with Three Enterprise Systems. Presentation to Budget Finance Audit Technology Committee.

Transcription

1 Commitment to Improving Efficiency with Three Enterprise Systems Presentation to Budget Finance Audit Technology Committee.May 2003

2 Three Related Board Actions for Consideration! Commitment to/financing for Enterprise System Replacement ISIS-Integrated Student Information System Human Resources Finance/Procurement! Financing Strategy including COPs! Selection of ISIS Software and project plan Contract 2

3 Steps Completed To Move Forward! Board in FY approved $3M to start evaluating HR/Financial System replacement.! Board funded/approved short-term improvement plan and RFP process for the Integrated Student Information System. 3

4 Steps Completed To Move Forward! Board approved Bench Contract allowing expediting of short-term work orders/project Management for Measure K projects, and other IT projects including IT System replacements.! Infrastructure put in place for school offices to do business electronically 99.9% now directly connected to the District network. 4

5 Steps Completed To Move Forward! Decision Support System brought on-line allowing for real-time access to/analysis of student performance, and now adding in financial and HR data.! Working with Business/HR offices mapping business processes, and doing short-term improvements. 5

6 Steps Completed To Move Forward! Briefed Vision and Budget in Jan/Feb BFAT meetings.! Going forward, for oversight due to complexity and budget implications, recommend biannual presentations to BFAT committee on project progress, and budget expenditures. 6

7 The Vision DSS Data Warehouse Human Resource Financial School Management Expect to consolidate 100 legacy software systems and databases into 3 Enterprise-wide systems. 7

8 Financial Implications! These systems will be costly ISIS estimated at $107.1 million over 5 years HR estimated at $45.1 million over 5 years Finance/Procurement estimated at $50.1 million over 5 years! These are all-in costs and do not yet reflect any savings from the efficiencies implemented. 8

9 Proposed Funding! Working with Finance and Bond community, we propose to use COPs to finance a significant portion of the costs Evens out the payment stream Reduces the up-front burden at a time when money is tight Allows us to use savings from efficiencies to contribute toward future debt service after full implementation! Current budget proposals reflect all funding needed from the General Fund for next year (assuming COPs are issued.) 9

10 District Annual Budget Requirements! The table shows the projected additional District cash flow requirements for these systems in the next twelve years (assuming COPs are issued). Financing evens out the funding requirements and defers some of the costs to future years. General Fund Requirement for Enterprise Systems In $ millions Fiscal Year New General Fund Requirements for Non-financeable Costs Debt Service Total Total

11 Integrated School/Student Information System Program ISIS Program May 2003

12 Why?! ISIS Required by Chanda Smith Consent Decree Integrates all student/school data Replaces outdated technology, particularly at the secondary level Would replace 26 separate legacy systems, increasing efficiency 12

13 Vendor selection is completed! Action before the Board is to approve the vendor selection and project plan! Following presentation provides the highlights 13

14 BACKGROUND! Chanda Smith Consent Decree! Short-term Improvement Plan! Current state shortcomings of legacy systems and business processes 14

15 FUTURE STATE! Make more student data available to school users (e.g. special education information)! Substitute electronic forms and documentation for paper where possible! Provide schools easy access to reports normally generated by central offices and vice-versa! Change business processes to reflect best practices in public education 15

16 PACKAGE SELECTION CONSIDERATIONS School Max Solution! Centralized, not school based design! 74% of existing LAUSD systems can be replaced out-of-the-box! Can be implemented as is without custom development work! Requirements gap can be filled through planned enhancements every six months! Web-enabled with commitment to a major software upgrade (J2EE release) in 30 months! Already California SIS compliant! Already being used by 33 districts in California, including Santa Ana, Simi Valley, Glendale, Oxnard! Implementations in New York, Texas, Illinois, Georgia and other key states! Demonstrated commitment to K-12 marketplace and strong financial footing 16

17 MAJOR PROJECT PHASES Total project duration = 50 months Phase Project Initiation Fit/Gap Analysis Secondary School Deployment System of Record Conversion Elementary School Deployment (includes Early Childhood) Special Education System Development and Implementation Adult Education Implementation Project Close-out Key Deliverables Work plan, Project Charter, Orientation documents, Beta test Requirements validation, product plan, technical specifications Training, data conversion, readiness review, go live in 10% increments Training, data conversion, readiness review, go live in 10% increments Training, data conversion, readiness review, go live in 10% increments Training, data conversion, readiness review, go live in 10% increments Final documentation, specifications Start June 2003 July 2003 October 2003 July 2005 November 2005 June 2003 March 2006 July

18 SUMMARY OF ISIS PROGRAM COSTS! Maximus Consulting! Implementation Services 33.51m! Development Change Orders 3.35m! Option for additional new schools 1.39m! SchoolMax! SchoolMax Licenses 5.60m! Maintenance for SchoolMax (4 yrs) 4.48m! LAUSD Project Staff 21.94m! Non-Maximus Consulting 23.20m! 3 rd Party Applications (Oracle, Welligent, Compuware, etc.)! Software Licenses 4.26m! Software Maintenance (4 yrs) 2.11m! Hardware Procurement 4.60m! Hardware Maintenance (4 yrs).80m! Other Project Costs 2.00m! ISIS PROGRAM TOTAL $107.20m 18

19 ERP Human Resources and Finance/Procurement Status May 2003

20 Why?! HR and Finance/Procurement The District s business/finance/hr technology is old, fragmented, and either home grown or highly customized. Workflow is not supported (e.g., hiring or procurement) These old systems cannot be efficiently deployed using the web or other current technologies. Modern business software packages: Are based on best business practices Provide easy flow of business transactions from one desk to another. 20

21 Why?! Efficiency District Strategic Plan emphasizes the need to increase efficiency Tremendous financial pressures require us to look for ways to do more with less Current systems cannot provide the support needed to enable us to employ best practices Modest system improvements will not yield the results needed As we continue to grow (85 new schools) we need improved systems to allow us to support schools and offices without growing our central infrastructure 21

22 High Level Plan for ERP Software Selection and Configuration Project Planning And Organization Request for Proposal Process Phased Implementation Change Management Process Reengineering Training Interim Enhancements Short-term Improvement Strategies 22

23 Project Planning And Organization Status Summary! We are in the Project Planning and Organization Phase Executive Sponsor Selected; Planning initiative funded by Board High Level As-Is Process Mapping is underway Procurement and Payables completed HR nearly complete (including payroll and benefits) Identification of potential Short-term improvements underway; prioritization will be complete shortly Bench Contract task orders for remaining process mapping and for assistance with the RFP development will be issued shortly 23

24 Timeline! Goal is to issue RFP late summer or early fall.! Phased implementation is planned with procurement/finance targeted first.! Short-term improvements will be prioritized and initiated in the interim. 24

25 QUESTIONS 25

26 Total District Annual Budget Requirements for Implementation ITD Five Year Project Budget for Enterprise Systems In $ millions PROJECT Total Integrated Student Information Sys Existing Ongoing IT Funds New IT Funds Proceeds from COPS ISIS Total Enterprise Financial System Existing Ongoing IT Funds New IT Funds Proceeds from COPS Enterprise Financial System Total Enterprise Human Resource System Existing Ongoing IT Funds New IT Funds Proceeds from COPS Enterprise Human Resources Total Total New Funds COPS Total New and Existing IT Funds Total Project Needs