Commitment to Improving Efficiency with Three Enterprise Systems

Commitment to Improving Efficiency with Three Enterprise Systems

Presentation to Budget Finance Audit Technology Committee.May 2003

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Three Related Board Actions for ConsiderationThree 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

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Steps Completed To Move ForwardSteps Completed To Move Forward

! Board in FY 2002-03 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.

4

Steps Completed To Move ForwardSteps 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.

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Steps Completed To Move ForwardSteps 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.

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Steps Completed To Move ForwardSteps 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.

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The VisionThe Vision

Expect to consolidate 100 legacy software systems and databases into 3 Enterprise-wide systems.

HumanResource

Financial SchoolManagement

DSS Data WarehouseDSS Data Warehouse

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Financial ImplicationsFinancial 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.

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Proposed FundingProposed 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.)

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District Annual Budget RequirementsDistrict 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.

Fiscal Year

New General Fund Requirements

for Non-financeable Costs Debt Service Total 2003-04 4.5 1.9 6.42004-05 4.5 12.1 16.62005-06 4.5 12.4 16.92006-07 4.5 13.7 18.22007-08 4.5 18.8 23.32008-09 4.5 19.0 23.52009-10 4.5 18.9 23.42010-11 4.5 18.9 23.42011-12 4.5 18.8 23.32012-13 4.5 6.5 11.02013-14 4.5 6.5 11.02014-15 4.5 6.5 11.0Total 54.0 154.0 208.0

General Fund Requirement for Enterprise SystemsIn $ millions

Integrated School/Student Information System Program

Integrated School/Student Information System Program

ISIS Program May 2003

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Why?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

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Vendor selection is completedVendor selection is completed

! Action before the Board is to approve the vendor selection and project plan

! Following presentation provides the highlights

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BACKGROUNDBACKGROUND

! Chanda Smith Consent Decree! Short-term Improvement Plan ! Current state—shortcomings of

legacy systems and business processes

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! 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

FUTURE STATEFUTURE STATE

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! 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

PACKAGE SELECTION CONSIDERATIONSPACKAGE SELECTION CONSIDERATIONS

School Max Solution

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July 2005System of Record Conversion

July 2007Final documentation, specificationsProject Close-out

March 2006Training, data conversion, readiness review, go live in 10% increments

Adult Education Implementation

June 2003Training, data conversion, readiness review, go live in 10% increments

Special Education System Development and Implementation

November 2005Training, data conversion, readiness review, go live in 10% increments

Elementary School Deployment (includes Early Childhood)

October 2003Training, data conversion, readiness review, go live in 10% increments

Secondary School Deployment

July 2003Requirements validation, product plan, technical specifications

Fit/Gap Analysis

June 2003Work plan, Project Charter, Orientation documents, Beta test

Project Initiation

StartKey DeliverablesPhase

MAJOR PROJECT PHASES“Total project duration = 50 months”

MAJOR PROJECT PHASES“Total project duration = 50 months”

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! 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

! 3rd 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

SUMMARY OF ISIS PROGRAM COSTSSUMMARY OF ISIS PROGRAM COSTS

ERP –Human Resources and Finance/Procurement

ERP –Human Resources and Finance/Procurement

Status May 2003

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Why?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.

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Why?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

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High Level Plan for ERPHigh Level Plan for ERP

Phased Implementation

Project Planning

And Organization

Short-term Improvement

Strategies

Training

Request for Proposal Process

Process Reengineering

Software Selection and

Configuration

Change Management

Interim Enhancements

Phased Implementation

Project Planning

And Organization

Short-term Improvement

Strategies

Training

Request for Proposal Process

Process Reengineering

Software Selection and

Configuration

Change Management

Interim Enhancements

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Status SummaryStatus 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

Project Planning

And Organization

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TimelineTimeline

! 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.

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QUESTIONS

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Total District Annual Budget Requirements for ImplementationTotal District Annual Budget Requirements for Implementation

PROJECT 2003-04 2004-05 2005-06 2006-07 2007-08 TotalIntegrated Student Information Sys Existing Ongoing IT Funds 5.5 5.6 6.1 6.2 6.0 29.4 New IT Funds 4.5 4.5 4.5 4.5 - 18.0 Proceeds from COPS 14.6 12.7 17.0 18.4 - 62.7 ISIS Total 24.6 22.8 27.6 29.1 6.0 110.1 Enterprise Financial System Existing Ongoing IT Funds 2.3 2.2 1.8 2.8 2.0 11.1 New IT Funds - - - - 2.5 2.5 Proceeds from COPS 5.0 9.5 8.5 8.5 5.0 36.5 Enterprise Financial System Total 7.3 11.7 10.3 11.3 9.5 50.1 Enterprise Human Resource System Existing Ongoing IT Funds 2.3 2.2 1.9 1.2 2.0 9.6 New IT Funds - - - - 2.0 2.0 Proceeds from COPS 4.0 8.5 8.5 8.5 4.0 33.5 Enterprise Human Resources Total 6.3 10.7 10.4 9.7 8.0 45.1 Total New Funds COPS 23.6 30.7 34.0 35.4 9.0 132.7 Total New and Existing IT Funds 14.6 14.5 14.3 14.7 14.5 72.6 Total Project Needs 38.2 45.2 48.3 50.1 23.5 205.3

ITD Five Year Project Budget for Enterprise SystemsIn $ millions