“keeping your money in your pocket, where it belongs.” · pdf filechapter 1:...
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“Keeping your money in your pocket, where it belongs.”
FLAIR Study Proviso
Proviso language directed DFS to assess the advantages and disadvantages of the following options:
Enhancing FLAIR
Replacing FLAIR
Replacing FLAIR & CMS
Replacing FLAIR, CMS, People First , and MyFlorida MarketPlace
2
FLAIR Study Proviso – cont’d
The Proviso also required:
Preparation of an inventory of all agency business systems interfacing with FLAIR
Identification of any specific changes needed in the Florida Statutes and the state’s financial business practices to facilitate the recommended option
Preparation of a final report
3
FLAIR Risks and Challenges
Replacing a system that works well and has worked well for many years
Functionality gaps and shortcomings
Integration limitation and manual processes
Support challenges and limited talent pool
Technology anachronism
4
Chapter 1: Background • If the State of Florida was a country, its GDP would
rank among the 20 largest in the world • If the State was in the private sector, its $90 billion
budget would be in the “Fortune 25” • A strategic framework was developed that acted
as a common set of criteria to evaluate each of the required options. The framework included the relative alignment to: • CFO’s Mission • Key Risks & Challenges • Guiding Principles & Supporting Statutes • Vision • Solution Goals
• Status Quo – or “doing nothing” – isn’t an option 5
Chapter 1: Consequences of Limitations Agencies continue to develop and evolve
compensating systems to support their operations
Agencies reported a total of 424 systems that either perform a financial function or interface with FLAIR
Primary financial function gaps being addressed in agencies’ systems include:
AR/Receipting
Cost Allocation
Grant Accounting
Management Reporting
Asset/Inventory Management
Over 75% of agency systems are over five years old
6
Chapter 2: Options Analysis Analysis consisted of:
Interviews of Internal Staff, Other States, Selected State Agencies, Market Analyst, and Vendors
Establishment of minimum capabilities for all options
Alignment to Vision, Goals, and Objectives
Cost analysis for each option
Risk analysis for each option
Expected benefits for option
Other Considerations
Software Licensing
Funding Model
Project Governance Model
7
Chapter 2: Interviews What we learned from internal interviews:
Aspire strengths and weaknesses to consider Understanding of current FLAIR functions
What we learned from state agencies (DCF, DEP, DFS, DMS, DOR, and DOT):
The FLAIR interface is inconvenient, and agencies minimize their interaction with it
Integration with FLAIR is technically difficult, and the technology used causes limitations to agency functionality
Agencies have had to develop reporting capabilities and workaround solutions due to limitations in FLAIR
8
Chapter 2: Minimum Capabilities
MINIMUM CAPABILITIES
JUSTIFICATION FOR INCLUSION
MIS
SION
OF T
HE CF
O,
EXIS
TING
STAT
UTE O
R OT
HER
POLI
CY
LIMIT
ATIO
NS O
F EXI
STIN
G SY
STEM
GUID
ING
PRIN
CIPL
ES,
GOAL
S AND
OBJ
ECTI
VES
AGEN
CY RE
SEAR
CH
STAT
E RES
EARC
H
MAR
KET
RESE
ARCH
1. Single system of record for statewide financial transactions and cash balances
2. General Ledger (G/L) 3. Accounts Payable (A/P) 4. Basic Accounts Receivable (A/R) 5. Bank Reconciliation 6. Payroll Calculation, Verification and
Payment 7. Budget and Encumbrance Management 8. Real-time or near real-time transaction
processing 9. Warrants paid from multiple account
combinations 10. Electronic workflow and routing 11. Effective dating of transactions 12. Support for industry standard
communication / system integration protocols
13. Use of modern programming languages and database technologies
14. Multiple environments to support testing and migration
9
Chapter 2: Minimum Capabilities – cont’d
MINIMUM CAPABILITIES
JUSTIFICATION FOR INCLUSION
MIS
SIO
N O
F T
HE
CFO
, EX
IST
ING
ST
AT
UT
E O
R
OT
HER
PO
LICY
LIM
ITA
TIO
NS
OF
EXIS
TIN
G
SYST
EM
GU
IDIN
G P
RIN
CIPL
ES,
GO
ALS
AN
D O
BJE
CTIV
ES
AG
ENCY
RES
EAR
CH
STA
TE
RES
EAR
CH
MA
RK
ET R
ESEA
RCH
15. Minimize or eliminate use of the mainframe and take advantage of a multi-tier application architecture
16. Flexible database architecture that supports multiple fields
17. Ability to report on a standardized set of data
18. Storage of developed queries, views, and reports
19. Modern set of reporting tools for export and analysis of data
20. Self-service reporting
21. Asset, Project, Contract and Grants Accounting
22. Modern, user-friendly interfaces
23. Electronic document storage and attachments
24. Direct interface with productivity tools such as Microsoft Excel
10
Chapter 2 - Cost Comparison
COST CATEGORIES (IN MILLIONS)
OPTIONS CONSIDERED
OPT
ION
1:
ENH
AN
CE F
LAIR
OPT
ION
2:
REP
LACE
FLA
IR
OPT
ION
3:
REP
LACE
F
LAIR
AN
D C
MS
OPT
ION
4: R
EPLA
CE
FLA
IR, C
MS,
MFM
P,
AN
D P
EOPL
E FI
RST
Implementation Cost $467.4 $219.4 $224.6 $383.1
FLAIR Support Costs $225.1 $100.8 $98.4 $111.9
New FLAIR (ERP) Support Costs (including Upgrades) $131.5 $329.1 $344.6 $354.7
Solution Total Cost of Ownership $824.0 $649.3 $667.6 $849.7
Comparative score 2.5 3 2.9 2.4
11
Chapter 2 - Summary of the Option Analysis
REVIEW CATEGORY
OPTIONS CONSIDERED
OPT
ION
1:
ENH
ANCE
FLA
IR
OPT
ION
2:
REP
LACE
FLA
IR
OPT
ION
3:
REPL
ACE
FLA
IR A
ND
CM
S
OPT
ION
4: R
EPLA
CE
FLAI
R, C
MS,
MFM
P, A
ND
P E
OPL
E FI
RST
Alignment to Vision and Goals 1.6 1.8 2.8 3
Total Cost of Ownership 2.5 3 2.9 2.4
Achievement of Benefits 1.8 2.9 3 2.7
Risk 1.7 2.5 2.5 2.1
Combined Comparison 1.9 2.6 2.8 2.6
12
Chapter 3: Recommendation
The recommendation is to replace FLAIR and CMS with an ERP solution (Option 3)
Implementation of the core functionality will occur over seven years
Full implementation, including Assets, Contracts, Grants, and Projects will occur over twelve years
Implementation cost estimated at $224.6 Million
Risk should be closely managed by actively executing against critical success factors
13
Chapter 3: Recommendation
Critical success factors include: Establishing a comprehensive multi-tiered
governance model
Working to standardize business processes prior to implementation
Managing system customizations
Initially deploying a limited scope of core functionality
Utilizing a controlled pilot to validate the solution
Leveraging a phased rollout to agencies
14
Chapter 4: Implementation Strategy
When approved to move forward, the replacement of FLAIR and CMS will be a complex, multi-year project
The implementation framework in the report allows for flexibility to incorporate best practices of a system integrator
Includes a plan for knowledge transfer to state resources
Effective organizational change management will be a focus throughout the project lifecycle
15
Timeline and Key Activities Activities
Business Process Reengeneering
Procurement
Organizational Change Management (OCM)
Project Management Office (PMO)
Workforce Transition (WFT)
System & Data Strategy
Implement and Rollout ERP Soluiton
Add Expanded Functionality in All Agencies
Support Existing FLAIRSupport ERP FLAIRUpgrade ERP
FY26-27
FY27-28
FY28-29
Pre-DDI
DDI Phase 1: Implement ERP Solution
FY20-21
FY21-22
FY22-23
FY23-24
FY24-25
FY25-26
FY14-15
FY15-16
FY16-17
FY17-18
FY18-19
FY19-20
DDI Phase 2: Expand ERP Functionality
Operations and Maintenance
Intent to Award
Stakeholder Analysis
ProjectGovernace Framework
Technology Requirements
Functional RequirementsStandardize Processes
Organization Impact Assesment
ProjectCharter
16
Three main categories of procurement: Pre-DDI Support
Focus is to first create the right mix of state staff and consultants to work on the project
Leverage industry expertise in Business Process Reengineering (BPR), Organizational Change Management (OCM), Workforce Transition (WFT) and Project Management
Information Warehouse Review business reporting for the new financial system
Procurement of the ERP software and system integrator
17
Chapter 5: Procurement & Contract Mgmt
What’s Next? Proviso
22 FTE with $1.1M in Salaries and Benefits $7.8M in Special Category of which $2.1M in reserve Independent review of the FLAIR Study Recommendation
Pre-DDI planning has started! Overview of FY 14-15 activities
Setting up Project Management Office Planning, Business Process Analysis/Reengineering,
Governance Develop and implement Organizational Change Management
(OCM) plan Preparing for procurement of ERP software and systems
integrator (SI) Exploring opportunities to modernize FLAIR to facilitate
integration with ERP Overview of FY 15-16 activities
On-going business process analysis/reengineering and OCM activities
Procurement of ERP software and systems integrator (SI)
18
“Keeping your money in your pocket, where it belongs.”
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