achieving value in im/it investments · achieving value in im/it investments ... – pm’s...
TRANSCRIPT
Achieving Value in IM/IT
Investments
“Seizing Opportunities”
Presented to: Financial Management Institute - Professional Development Week
By: Patricia Sauvé-McCuan
Project Executive, Financial Management Business Solutions Project, Grants & Contributions Systems
Chief Informat1ion Officer Branch (CIOB),
Treasury Board of Canada Secretariat (TBS)
Date: 24 November 2011
2
Objectives of Presentation
• To identify the drivers for change in the GC IT landscape;
- historical context
- an enterprise approach
• Give you an appreciation of the current GC IM/IT
environment and the issues it creates
– Need for better value • Standardize, consolidate, reengineer
• To describe the role of the Chief Information Officer Branch
(CIOB);
– Enforcing a government wide approach
– Supporting SSC
• Way forward
3
Common Understanding is key
• What is a financial management system (FMS)*?
– A combination of business processes,
procedures, controls, data and software
applications – which produces financial and
non-financial information
– It is more than the technology enablers, more
than the applications which support those
processes.
* Policy on the Stewardship of Financial Management Systems
4
Historical Context - IT Systems Landscape
• Fragmentation has led to inefficiencies, duplication and under utilization of IT
systems to effectively deliver GC Outcomes
– Holistic information is not readily available for decision making
– Sub-optimization of IT and human resources across business lines
• Low standardization and low interoperability reduces economies of scale,
diminishes quality of service delivery and presents barriers to new initiatives
• Historical procurement approaches have led to inefficiencies, increased costs
and a disparate, overly distributed GC footprint that poorly leverages
investment in financial and human resources and private sector skills and
capabilities
• Total Cost of Ownership and sub-optimization of resources across IT Programs
is not sustainable and must be addressed on a priority basis
5
The Case for GC IT Change
• Strategic drivers
– Strategic Operating Reviews
– Deficit Reduction Action Plan
– Administrative Services Review
– PM’s Advisory Committee on Public Service Renewal
– Citizen centric approach – effective government • create economies within Government to enable us to better serve Canadians
• Strategic Direction to operate the government as one entity with best practices
– Interoperability of systems is achievable
• Mandate in policy for OCG standard processes, data & systems for financial management
• Human resources sourced both internally and externally are the dominant IT expenditure
– Supply risk increasing due to workforce demographics
– Uneven distribution of IT skills exist creating inefficiencies and limiting innovation
• Aging IT is a significant problem requiring new approaches to IT sustainability
– Few departments have multi-year, systematic approaches to renewing mission-critical and other applications and systems
6 6
Budget 2011 - IT Strategy
Consolidate Standardize
• Standardization - the essential first step to modernization of IT
• Government taking a significant step in IT services consolidation with SSC
• Portfolio management: clustering of platforms and enterprise systems
• Reengineering IT service delivery – internally & externally
Re-Engineer
Foundation element of the IT Strategy of the GC is to examine government-
wide solutions that will standardize, consolidate and re-engineer the way it
does business
7
Shared Services Canada
• New agency reporting to Minister of PWGSC
• Strengthened authorities, mandatory services
• Consolidate IT resources and personnel from 44
departments and agencies for IT Infrastructure service
delivery:
– Datacenter: facilities, servers, equipment
– Networks GC wide
• Key Priorities
– Deficit Reduction Action Plan – Jan 2012 submission
– E-mail – 6 to 9 months to begin service
8
As-Is Landscape
Departmental and Inter-Departmental Program Integration
Inter & Extra Government Applications
Departmental Program-specific Applications
Administrative Applications
Employee & Manager Portal / Self-service
Other Finance / Materiel
Functionality
Recruitment
SPS Business Intelligence
Learning CFMRS/BOSR
Departmental Program Operation Systems (e.g.,
Real Property, Gs&Cs,
etc)
Pension
Core Human
Resource
Applications
Payroll
Core Financial
Applications
(and SMS)
Core Materiel
Applications
Travel GOC Marketplace
Canada Student Loans
Old Age Security (OAS)
CRA Applications
Other departmental program operations
applications
GCPEDIA PubliService
ATIP
Vital Events Others
Canada Pension Plan CPP)
Case Management
Finance
502 applications -
SAP, Oracle, CDFS,
Freebalance, GX Etc.
Human Resources
776 applications:
SAP HR, CMS, HRIS,
GC HRMS, Etc.
ATIP
102 plus applications:
19 manual processes,
AccessPro, IKON, ATIP
Express, E-copy, Etc.
Grants & Contributions
80 plus applications:
SAP, GX, Grantium,
CMIS, CGRS, FNITP,
Lotus Notes, Etc.
9 9
Auditor General’s 2010 Report on Aging IT
Enterprise Applications
75 %
Internal
Services
Applications
Departmental Applications
Financial
Management
Human Resource
Management
Information
Management
Legal
Services
Material
Services
Information
Technology
Justice
Movement of
People
Program Specific
Internal Apps
Science and
Research
Safety for
Canadians
National Security
And Defense
Communications
Travel and
Other Admin
Acquisition
Services
Management
And Oversight
Real Property
Health Care
Case
Management
Legislative and
Regulatory
Provide Funds
Undefined
Grants and
Contributions
25 %
Line of
Business
Applications
Cross government inventory conducted to assess the state of aging IT systems
10
New GC IT Service Delivery Context
• Mission specific
applications
• Desktop
• Portfolio
leaders
• Mission specific
applications
• Desktop
• Portfolio
leaders
•Mission specific
applications
• Desktop
• Portfolio
leaders
44 largest departments and agencies
TBS CIOB • Strategy
• Policy
• Standards
• Enablement
• Oversight
• Capacity Shared Services Canada • Internal service provider for all IT infrastructure
• Teams initially co-located with departments
• Services beyond the 44 departments – as feasible
• Management of all related assets, contracts
11
Three Evolving IM/IT
Service Delivery Models
Generic and Commoditized
Enterprise Delivery
Department Delivery
Mission and Mandate Specific
Datacentre : facilities, servers…
Desktops
Pay & Pension
Networks
Financial systems
Grants and contributions
Tax system
Case management
Recruitment
Benefit and income redistribution systems
Public security
IT security infrastructure
Records management
Health information systems
HR systems
Preliminary analysis – work in progress
User devices
Portfolio & Cluster
Delivery
12
How do we get there?
Transformation & Evolution in a Predictable Manner
GC-wide
Shared
Silo’d
Governance Data Process Implementation
GC-wide management of one common configuration of a common application
Various groups sharing the management of common configurations of shared instances of applications
Multiple dept’s Using many self-governed applications
GC-wide single configuration, shared hosting, one or more shared instances
Various groups sharing common configurations of applications, shared instances, shared hosting
Many dept’s using multiple configurations & hosting environments for different applications
GC-wide using one common data standard and definition
Various groups using same data standards and definitions
Multiple dept’s Using many data standards, or no standards
GC-wide using one common set of standard business processes
Various groups using various sets of standardized business processes
Multiple dept’s Using many business processes
TARGET STATE Integrated
and
Interoperable
13
CIOB Role
• Policy Development and Advice
• Defining Standards
• Monitoring and Compliance
• Management Oversight
• Community Development and Capacity Building
Information Management
Information Technology
Security and Identity Management
Access to information and Privacy
14
Finance & Materiel Systems Strategy
• Goal is to operate with the optimum number of systems with integration based on standardization
• Systems are to be considered horizontally within the GC to derive efficiencies, economies of scale and maximize business value
• IT investments related to Financial and Materiel Management must not proceed independently without CIOB and OCG guidance
– Opportunities for consolidation (systems and infrastructure) must be considered
• Standard data models, business processes and platforms are being created
– Common Enterprise Data initiative (CEDI)
– Financial Management Business Process initiative (FM-BP)
– Financial Management Business Solutions Project (FM-BSP)
15
Finance & Materiel Systems Strategy
• Departments are to move to GC-wide standard
configurations
– Defined in the draft Standard on Enterprise Resource Planning
Systems
– TB Submission for FM-BSP led by OCG Moving Forward (Jan
2012)
– PWGSC finalizing blueprint with SDAs for common FM solution
• Opportunities for the standardization and consolidation of
ancillary financial and materiel systems will be pursued
– e.g. Procure to Pay functions (Financial Management, Financial
Reporting, Materiel Management, etc.)
16
What’s The Payoff?
Financial
Benefits
Productivity
Benefits
Business
Benefits IT Benefits
Ability to leverage significant industry and government investments
in open standards based solutions
Reduced licensing & configuration costs
Reduced costs for maintenance & changes
Reduced operations Cost
Reduced cost of future integrations
Better economics than other integration
approaches
Reduced training expenditure
Increased level of
expertise Continuum of
Knowledge Transferable skills Reduced redundancy
Ability for business to directly control process definition & management
Ability to easily integrate with government partners
and suppliers
Provide value to
governmental partners and suppliers which could
result in new service opportunities
Ability to develop new service streams
Improved business & IT alignment that helps in intelligent planning
Cost of enforcing and ensuring policy and
regulatory compliance
Phased replacement of legacy middleware
Improved business & IT alignment that helps in intelligent planning
Ability to monitor and measure success
Reduction of maintenance liability
17
Common Understanding is key
What is bringing ‘value’?
– Value from technology is more than cost savings
– If cost reduction is the only value we measure, then we have probably used the technology to automate clerical processes, and have not looked at providing strategic value
• Need performance based concepts of value
• Need to focus on strategic outcomes
• Need to focus on needs at the enterprise level
19 19
Contact information:
Patricia Sauvé-McCuan
Project Executive, Financial Management Business Solutions
Project, Grants & Contributions Systems
Patricia.Sauvé[email protected]
613-960-9458