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Slide 1: OREGON STATE CIO COUNCIL’S Progress Report to the 75th Legislative Assembly’s Legislative Fiscal Office Appendices (Appendices “A” “B” and “C” Only This Draft) June 25, 2009 Dugan Petty, State Chief Information Officer (503) 378-2128 / Dugan.A.Petty@state.or.us
Slide 2: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices [Page left intentionally blank] June 25, 2009 – Version 1.0 2
Slide 3: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices TABLE OF CONTENTS June 25, 2009 – Version 1.0 3
Slide 4: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices [Page left intentionally blank] June 25, 2009 – Version 1.0 4
Slide 5: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Appendix “A” - First Brainstorming Session / Concept Evaluation First Brainstorming Session The CIO Council took the first step in the Fast Track Planning process on February 25, 2009. The first session included members of the CIO Management Council and several other CIOs and identified 41 new opportunities for IT cost optimization. Appendix “A” provides a more detailed review of the cost optimization opportunities described in the first brainstorming session. Evaluating the Results of the First Brainstorming Session The week after the first brainstorming session CIO Council members evaluated the list of 41 concepts using criteria provided by Gartner, Inc, a nationally recognized IT consulting and research firm with special expertise in IT cost optimization on an enterprise basis. The evaluation criteria were as follows. CRITERIA Potential Benefit Business Impact Time Degree of Organizational Risk Degree of Technical Risk Investment Requirement QUESTION How big is the saving if implemented and how does it affect cash flow? What impact will this have on the state business? Can savings be captured in this fiscal year? Next? Is the organization capable of implementing / adapting to the changes? Is there risk that change will undermine the ability of systems to deliver? Does the change require a large up-front investment before savings can be captured? Is the organization willing and capable of making the investment at all? Low - RATING / INFO Medium - + High Adverse to None None to Positive Positive to Strong 2011-13 - 2009-11 - 2007-09 High High High Medium Medium Medium Low Low Low Scoring Using numerical scoring, the list was sorted and prioritized. The top rating (high or low depending on the positive or negative impact) scored 3 points. The middle scored two. The lowest scored one. The color formula was based on the spread, difference between low and high score, with 1/3 of the spread in each category (green, yellow, red). For Financial / Business Impact, the spread was 14 (7-12 Red, 13-17 Yellow, 18-21 Green). For Costs, Time and Risks the spread was 16 (9-14 Red, 15-19 Yellow, 20-25 Green). For Total Benefit the spread was 21 (18-25 Red, 26-31 Yellow, 32-39 Green). For Total Risk the spread was 54 (36-54 Red, 55-71 Yellow, 72-90 Green). For Grand Total the spread was 70 (58-81 Red, 82-104 Yellow, 105-128 Green). Results – Sorted by Grand Total Score Below are the opportunities identified in Session #1 sorted to first show highest benefit with lowest risk. Top 5 Eval. Ranking Opportunity Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category 1 2 Software licensing and 3 maintenance renegotiation High-3 Medium-5 Low-1 20 Strong2 07-09-2 Positive-5 09-11-6 Adverse-2 11-13-1 18 19 Low-7 Medium-1 High-1 24 Low-7 Low-8 Medium-1 Medium-1 High-0 High-0 23 24 38 90 128 Procurement June 25, 2009 – Version 1.0 5
Slide 6: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Top 5 Eval. Ranking Opportunity Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category 2 6 Use of High-3 teleconferencin Medium-6 g and video Low-0 2 conferencing 21 through the web rather than travel Provide IT procurement service brokering for agencies to 1 establish IT contracts needed by multiple agencies High-3 Medium-3 Low-3 20 Strong-0 Positive-8 Adverse-1 17 07-09-2 09-11-7 11-13-0 20 Low-7 Medium-2 High-0 25 Low-7 Medium-2 High-0 25 Low-3 Medium-4 High-1 Unknown-1 18 38 88 126 Collaboration Tools Strong-1 07-09-1 Positive-5 09-11-7 Adverse-3 11-13-0 16 17 Low-4 Medium-3 High-2 20 Low-8 Low-5 Medium-1 Medium-3 High-0 High-0 26 21 36 84 120 Procurement 3 4 4 8 Federal stimulusHigh-3 transparency - Medium-1 Establish a Low-4 2 single system to Unknown-1 be used by all 15 agencies Web front-end for state employee time keeping High-2 Medium-5 Low-2 Unknown-1 18 Hunt for small High-1 but large Medium-7 numbers of Low-0 duplicated costs Unknown-1 17 Strong-0 07-09-5 Low-7 Low-6 Low-5 Positive-6 09-11-3 Medium-1 Medium-2 Medium-3 Adverse-2 11-13-0 High-0 High-0 High-0 Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 14 21 23 22 21 29 87 116 Federal Stimulus Strong-1 07-09-2 Low-3 Low-5 Low-5 Positive-7 09-11-5 Medium-3 Medium-3 Medium-3 5 30 Adverse-1 11-13-1 High-3 High-1 High-1 Unknown-1 Unknown-2 Unknown-1 Unknown-1 Unknown-1 18 17 18 22 22 Strong-0 07-09-3 Low-5 Low-6 Low-4 Positive-6 09-11-5 Medium-2 Medium-2 Medium-3 Adverse-1 11-13-0 High-1 High-0 High-0 6 13 None-1 Unknown-1 Unknown-1 Unknown-1 Unknown-2 Unknown-1 19 20 22 18 13 Create a catalog High-4 Strong-0 07-09-2 Low-4 Low-5 Low-5 of open source Medium-2 Positive-7 09-11-5 Medium-2 Medium-2 Medium-2 solutions used Low-2 Adverse-1 11-13-1 High-2 High-1 High-1 7 33 2 by agencies Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 now for reuse or 18 15 17 18 20 20 replication Establish Centers of Excellence to take lead on collaborative service 2 acquisition and delivery for multiple agencies that share a common need High-4 Strong-3 07-09-0 Low-3 Low-4 Low-1 Medium-4 Positive-5 09-11-5 Medium-3 Medium-4 Medium-6 Low-0 Adverse-0 11-13-3 High-2 High-0 High-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 18 19 13 17 20 16 36 79 115 Common Business Solution 30 79 109 Asset Utilization 33 75 108 Open Source 8 7 37 66 103 Common Business Solution Consolidate High-2 desktop support Medium-2 Low-4 9 17 1 and management in 14 remote areas Strong-2 Positive-4 Adverse-2 16 07-09-0 09-11-6 11-13-2 14 Low-4 Medium-2 High-2 18 Low-5 Medium-2 High-1 20 Low-6 Medium-1 High-1 21 30 73 103 Desktop Support June 25, 2009 – Version 1.0 6
Slide 7: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Top 5 Eval. Ranking Opportunity Use the State High-4 Data Center Medium-3 Low-1 10 14 2 creatively optimize the use Unknown-1 of software 19 Move to less High-0 expensive Medium-6 telecom support Low-2 infrastructure byUnknown-1 14 11 10 1 down sizing services where feasible and replacing T1 lines with DSL Deliver EHigh-3 Government Medium-4 services through Low-1 12 27 1 portal provider Unknown-1 with different 18 contract delivery model Collaborate with the Oregon 2 University System Develop a single records 2 management solution for all agencies Operations mergers High-2 Medium-3 Low-2 Unknown-2 14 High-6 Medium-3 Low-0 18 Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category Strong-1 07-09-0 Low-2 Low-3 Low-4 Positive-6 09-11-6 Medium-5 Medium-4 Medium-2 Adverse-1 11-13-2 High-1 High-1 High-2 Unknown-1 Unknown-1 Unknown-1 Unknown-1 Unknown-1 16 14 17 18 18 Strong-0 Positive-5 Adverse-4 14 07-09-1 Low-5 09-11-6 Medium-3 11-13-1 High-1 Unknown-1 22 16 Low-4 Medium-2 High-3 19 Low-5 Medium2 High-2 16 35 67 102 State Data Center 28 73 101 Asset Utilization Strong-0 07-09-1 Low-5 Positive-7 09-11-5 Medium-2 Adverse-1 11-13-2 High-1 Unknown-1 Unknown-1 Unkown-1 15 15 15 Low-3 Low-3 Medium-4 Medium-4 High-0 High-0 Unknown-1 Unknown-2 17 17 33 64 97 Common Business Solution 13 1 14 9 Strong-2 07-09-1 Low-4 Low-3 Low-7 Positive-5 09-11-6 Medium-2 Medium-3 Medium-0 Adverse-0 11-13-0 High-0 High-0 High-0 Unknown- Unknown-2 Unknown- Unknown- Unknonw-1 2 15 2 3 21 16 16 15 Strong-4 07-09-0 Low-2 Low-1 Low-0 Positive-4 09-11-3 Medium-2 Medium-5 Medium-4 Adverse-1 11-13-6 High-5 High-3 High-5 21 12 15 16 13 29 67 96 Interagency Sharing 39 56 95 Common Business Solution High-3 Medium-4 15 19 2 Low-0 Unknown-2 17 Explore data High-4 sharing Medium-3 16 26 opportunities Low-0 Unknown-1 18 Just enough High-2 communication Medium-2 Low-3 17 20 Unknown-2 13 18 16 Strong-2 07-09-1 Low-3 Low-4 Low-3 Positive-5 09-11-3 Medium-2 Medium-2 Medium-4 Adverse-0 11-13-3 High-3 High-1 High-0 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 16 12 16 17 17 Strong-4 07-09-0 Low-2 Low-2 Low-0 Positive-4 09-11-8 Medium-4 Medium-3 Medium-4 Adverse-0 11-13-0 High-2 High-3 High-4 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 20 16 14 15 12 Strong-1 07-09-3 Low-4 Low-6 Low-5 Positive-1 09-11-4 Medium-1 Medium-1 Medium-2 Adverse-4 11-13-0 High-2 High-0 High-0 None-1 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 17 16 20 19 9 Capacity High-2 Strong-0 07-09-0 Low-5 Low-4 Low-4 analysis and Medium-5 Positive-5 09-11-6 Medium-2 Medium-2 Medium-2 balancing in the Low-0 Adverse-2 11-13-1 High-0 High-1 High-0 State Data Unknown-3 Unknown-1 Unknown-2 Unknown-2 Unknown-2 Unknown-3 Center 16 12 13 19 17 16 33 62 95 Interagency 38 57 95 Data Sharing 22 72 94 Asset Utilization 28 65 93 State Data Center June 25, 2009 – Version 1.0 7
Slide 8: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Top 5 Eval. Ranking Opportunity Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category 19 3 Acquire issue tracking software to save money and time 20 23 2 21 41 2 22 36 2 23 38 1 24 39 25 15 Strong-0 07-09-0 Low-7 Low-5 Low-3 Positive-5 09-11-5 Medium-0 Medium-2 Medium-3 Adverse-3 11-13-2 High-1 High-1 High-2 Unknown- Never-1 Unknown- Unknown- Unknown-1 1 Unknown-1 1 1 17 13 12 22 20 Scrub for High-2 Strong-2 07-09-3 Low-6 Low-5 Low-5 unneeded Medium-2 Positive2 09-11-3 Medium-0 Medium-1 Medium-1 expenses Low-2 Adverse-2 11-13-0 High-0 High-0 High-0 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-4 12 12 15 18 17 17 Consolidate or High-6 Strong-4 07-09-0 Low-1 Low-4 Low-4 in some other Medium-1 Positive-3 09-11-3 Medium-1 Medium-2 Medium-2 way reduce Low-0 Adverse-0 11-13-4 High-5 High-1 High-0 duplicated Unknown-2 Unknown-2 Unknnow-2 Unknown-2 Unknown-2 Unknown-2 services 20 18 10 10 17 16 Develop a High-6 Strong-5 07-09-1 Low-0 Low-2 Low-1 business Medium-1 Positive-2 09-11-2 Medium-3 Medium-4 Medium-6 architecture Low-0 Averse-0 11-13-4 High-4 High-1 High-0 describing Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 intersections 20 19 11 10 15 15 between agencies' business processes Curtail projects High-3 Strong-1 07-09-4 Low-1 Low-4 Low-5 such as identity Medium-1 Positive-0 09-11-3 Medium-4 Medium-3 Medium-1 and access Low-3 Adverse-6 11-13-0 High-1 High-0 High-0 management Unknown-2 Unknown-2 Unknown-2 Unknown-3 Unknown-2 Unknown-2 14 9 18 12 18 17 Prioritize by High-4 Strong-3 07-09-2 Low-2 Low-4 Low-5 biggest payback Medium-2 Positive-2 09-11-3 Medium-3 Medium-1 Medium-1 to cash flow Low-0 Adverse-1 11-13-1 High-1 High-1 High-0 Unknown-3 Unknown-3 Unknown-3 Unnkown-3 Unknown-3 Unknown-3 16 14 13 13 15 17 Create a High-1 Strong-0 07-09-0 Low-5 Low-5 Low-4 funding / Medium-2 Positive-4 09-11-3 Medium-2 Medium2 Medium-1 savings model Low-4 Adverse-3 11-13-4 High-0 High-0 High-2 that allows Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-1 agencies to see 11 11 10 19 19 16 the financial benefit of Data Center optimization High-0 Medium-4 Low-3 Unknown-2 11 High-2 Medium-3 Low-1 Unknown-3 13 High-0 Medium-1 Low-7 Unknown-1 7 20 71 91 Business Intelligence 24 67 91 Asset Utilization 38 53 91 Consolidation 39 51 90 Enterprise Capacity 23 65 88 Cancel 30 58 88 Scoring 22 64 86 Enterprise Capacity Move to less expensive 26 11 1 technology Strong-0 07-09-2 Low-4 Low-4 Low-4 Positive-2 09-11-5 Medium-3 Medium-2 Medium-3 Adverse-5 11-13-0 High-0 High-1 High-0 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 9 16 14 17 18 IT-focused Strong-3 07-09-0 Low-4 Low-5 Low-2 strategic Positive-2 09-11-4 Medium-2 Medium-1 Medium-4 sourcing Adverse-1 11-13-2 High-0 High-0 High-0 27 5 1 initiative Unknown-3 Unknown-3 Unknown- Unknown- Unknown-3 14 10 3 3 14 16 17 Strategic view High-1 Strong-1 07-09-0 Low-1 Low-4 Low-5 of it staffing Medium-4 Positive-5 09-11-3 Medium-2 Medium-2 Medium-1 28 28 challenges / Low-2 Adverse-1 11-13-4 High-4 High-1 High-1 solutions Unknown-2 Unknown-2 Unknown-1 Unknown-1 Unknown-1 Unknown-1 13 14 10 11 17 18 20 65 85 Asset Utilization 27 57 84 Procurement 27 56 83 Strategic Staff Management June 25, 2009 – Version 1.0 8
Slide 9: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Top 5 Eval. Ranking Opportunity Move to open source 29 12 3 alternatives High-0 Medium-7 Low-1 Unknown-1 15 Prioritize by High-2 what creates Medium-3 30 40 1 jobs for citizens Low-1 Unknown-3 13 MultiHigh-6 jurisdictional Medium-1 31 25 1 planning / Low-0 consolidation Unknown-2 20 Range of High-3 “Software as a Medium-3 Service” Low-1 Unknown-2 32 31 1 solutions for common 16 business functions Appropriate governance 33 37 2 model to act on the larger opportunities Multi-agency solution for electronic 34 29 records management Create open source 35 34 1 consortium High-5 Medium-1 Low-0 Unknown-3 17 High-4 Medium-3 Low-0 Unknown-2 18 Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category Strong-0 07-09-1 Low-0 Low-0 Low-3 Positive-6 09-11-6 Medium-3 Medium5 Medium-2 Adverse-2 11-13-1 High-4 High-3 High-2 Unknown-1 Unknown-1 Unknown-2 Unknown-1 Unknown-2 13 16 10 13 15 Strong-2 07-09-2 Low-2 Low-4 Low-4 Positive-2 09-11-3 Medium-2 Medium-1 Medium-1 Adverse-2 11-13-2 High-2 High-1 High-1 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-3 12 14 12 15 15 Strong-6 07-09-0 Low-0 Low-1 Low-1 Positive-0 09-11-2 Medium-2 Medium-3 Medium-2 Adverse-1 11-13-5 High-5 High-3 High-4 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 19 9 9 12 11 Strong-0 07-09-0 Low-1 Low-3 Low-2 Positive-6 09-11-4 Medium-2 Medium-3 Medium-4 Adverse-1 11-13-3 High-3 High-0 High-0 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 13 11 10 15 14 28 54 82 Open Source 25 56 81 39 41 80 Enterprise Capacity 29 50 79 Software as a Service Strong-3 07-09-1 Low-0 Low-3 Low-3 Positive-3 09-11-2 Medium-2 Medium-1 Medium-3 Adverse-0 11-13-3 High-4 High-2 High-0 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-3 15 10 8 13 15 Strong-2 07-09-0 Low-1 Low-3 Low-0 Positive4 09-11-2 Medium-0 Medium-3 Medium-3 Adverse-1 11-13-5 High-6 High-1 High-4 Unknown-2 Unknown-3 Unknown-3 Unknown-3 Unknown-3 15 9 9 16 10 Strong-0 07-09-1 Low-4 Low-4 Low-4 Positive-5 09-11-3 Medium-0 Medium-1 Medium-1 Adverse-1 11-13-2 High-2 High-1 High-0 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-3 11 11 14 15 14 Strong-1 07-09-1 Low-2 Low-3 Low-4 Positive-4 09-11-3 Medium-2 Medium-2 Medium-1 Adverse-0 11-13-1 High-1 High-1 High-0 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-2 11 10 11 14 14 Strong-3 07-09-0 Low-2 Low-3 Low-3 Positive-2 09-11-3 Medium-1 Medium-3 Medium-3 Adverse-1 11-13-3 High-3 High-0 High-0 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-3 14 9 9 12 12 Strong-4 07-09-0 Low-0 Low-1 Low-1 Positive-2 09-11-3 Medium-2 Medium-3 Medium-3 Adverse-0 11-13-2 High-4 High-2 High-2 Unknown-3 Unknown-3 Unknown-3 Unknown-4 Unknown-3 16 8 8 11 11 Strong-0 07-09-0 Low-0 Low-1 Low-1 Positive-5 09-11-2 Medium-2 Medium-2 Medium-3 Adverse-2 11-13-5 High-5 High-4 High-3 Unknown-2 Unknown-2 Unknown-2 Unknown-2 Unknown-2 12 9 9 11 12 32 46 78 Enterprise Capacity 33 44 77 Common Business Solution 36 37 38 39 High-1 Medium-1 Low-4 Unknown-3 9 Management High-2 scope Medium-2 18 optimization Low-1 Unknown-4 11 Preparation for High-4 the next waves Medium-1 24 of efficiencies Low-1 Unknown-3 15 Create an High-6 enterprise-style Medium-0 business Low-0 35 2 planning model Unknown-3 to take on larger 18 optimization opportunities Cloud High-2 computing Medium-4 22 Low-1 Unknown-3 15 20 54 74 Open Source 22 49 71 Management Practices 29 42 71 Enterprise Capacity 33 38 71 Enterprise Capacity 27 41 68 Software as a Service June 25, 2009 – Version 1.0 9
Slide 10: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Top 5 Eval. Ranking Opportunity Single state High-4 communications Medium-1 40 21 center Low-2 Unknown-3 16 Use open source High-2 as an Medium-2 41 32 1 optimization Low-1 tool Unknown-4 11 Sess. 1 # Financial Benefit Business Impact Time Org. Risk Tech. Risk Invest. Total Relative Benefit Total Grand Relative Total Risk Bundled Category Strong-0 07-09-1 Low-2 Low-0 Low-0 Positive-6 09-11-2 Medium-1 Medium-3 Medium-2 Adverse-0 11-13-3 High-3 High-3 High-2 Unknown-3 Unknown-3 Unknown-3 Unknown-3 Unknown-4 12 10 11 9 6 Strong-0 07-09-0 Low-1 Low-1 Low-3 Positive-3 09-11-5 Medium-2 Medium-3 Medium-1 Adverse-1 11-13-1 High-2 High-1 High-0 Unknown-5 Unknown-3 Unknown-4 Unknown-4 Unknown-4 7 11 9 10 10 28 36 64 Common Business Solution 18 40 58 Open Source June 25, 2009 – Version 1.0 10
Slide 11: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices Appendix “B” – List of Actions Underway and Future Opportunities Appendix “B” contains the full list of IT cost optimization concepts developed by the CIO Council. It also contains examples of agencies’ actions in IT cost optimization already underway. June 25, 2009 – Version 1.0 11
Slide 12: IT COST OPTIMIZATION AREA 1. Information Technology Procurement 1.1. Renegotiate "Shelf Ware" Maintenance 1.1.1. ODOT - Reduction in average software maintenance cost - Software maintenance vendors to reduce their software maintenance cost percentage. Procurement Re-negotiate UNDERWAY OPPORTUNITY CATEGORY Sub-category Underway 1.2. Renegotiate Hardware and Software Maintenance and Service Level Agreements 1.2.1. License and Maintenance Re-Negotiation - Agencies could cooperate in renegotiations. With other jurisdictions (cities and counties)? DAS could promote through policy. Procurement Re-negotiate Opportunity 1.3. Consolidate IT Contract Services Vehicles 1.3.1. IT Contract Service Brokering – Select agencies to provide IT procurement service brokering for IT contracts needed by multiple agencies. 1.3.2. IT-focused Strategic Sourcing Initiative - Replicate the SmartBuy process undertaken by the State Procurement in 2005. 1.3.3. Centers of Excellence Approach - One agency that excels in a particular activity or service provides that service for all other agencies. 1.3.4. Background Check Center of Excellence - Reside all criminal background checks through the Oregon State Police. 1.3.5. IT Service Management Center of Excellence – The Department of Human Services acts as the primary provider of IT service management for other agencies. Common Procurement Common Common Common Brokering Re-negotiate Excellence Background IT Service Opportunity Opportunity Opportunity Opportunity Opportunity 1.4. Hire Internally @ Lower Rates than Contract Staff 1.4.1. ODOT - Reduction in cost by eliminating long-term contractors – Reduce unit software and project costs by eliminating long-term contractors and transferring support to internal staff. 1.4.2. ODOT - Reduce technical development costs by replacing contractor with FTE – Reduce technical development and maintenance costs assuming legislature allows substitution of contractors with FTE. Procurement Procurement Shift to FTE Shift to FTE Underway Underway 2. Cost Savings In IT 2.1. Standardize Desktop Products 2.1.1. Standardize Desktop Products – Explore the use of less expensive technology, in particular 45 nanometer computers at a cost of around $800 per unit. 2.1.2. DAS – Standardized Geospatial Software - DAS has established a standardized geospatial software suite for all agencies in the Executive Branch. PC Geo Less Expensive Tech Standardize Opportunity Underway
Slide 13: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 2.2. Cell Phone Audits 2.2.1. ODOT - Blackberry Messaging Communications – Enables faster communications, decision-making and a positive return-on-investment (ODOT Blackberry Business Case and ROI). 2.2.2. DAS - DAS Statewide PDA Control Policy – Places strict controls on the allocation of all PDAs potentially saving costs. Collaboration Control Telecomm Telecomm Sub-category Underway Underway 2.3. Centralize Portal Management 2.3.1. DAS – Change E-Government Delivery Model - Deliver E-Government services through portal provider with different contract delivery model. 2.3.2. State Data Center - Web Server Consolidation – Consolidate web serves to reduce the number of appliances and associated overhead. E-Gov SDC Business Model Consolidate Opportunity Opportunity 2.4. Telecommunications Line Audits 2.4.1. All Agencies – Right Sizing - Move to a less expensive telecommunication support infrastructure by down sizing services where feasible and replacing T1 lines with DSL. 2.4.2. All Agencies – Restrict Allocation of Telephones - Many staff do not need to have their own desktop phone and could be served nearly as well by having a generally accessible phone nearby. Consideration should be given to the adequacy of access to dial 911 and business requirements. 2.4.3. All agencies – Single State Communications Center – Establish a single state communications center for those agencies with that operational need. The center could function as a combined crisis center saving money as providing a needed capability. 2.4.4. All agencies – Voice over Internet Protocol (VoIP) – Make a wholesale shift to Voice over Internet Protocol (VoIP). 2.4.5. ODOT – Use of Broadband Wireless - Replace T1 circuits with broadband wireless communications cards at remote ODOT offices. The move is expected to result in a biennial reduction in State Data Center network charges of approximately $287,000. Telecomm Telecomm Infrastructure Get rid of phones Opportunity Opportunity Common State Comm. Center VoIP Wireless Opportunity Telecomm Telecomm Opportunity Underway 2.5. Consolidation of IT Infrastructure 2.5.1. State Data Center – Software Optimization – The State Data Center to aggressively optimize the use of software. 2.5.2. State Data Center – Consolidation - The State Data Center continues consolidation efforts to reduce software licensing costs for all agencies. The SDC identifies redundancies and takes the follow-up actions needed to harvest savings. SDC SDC Software Software Optimization Opportunity Opportunity June 25, 2009 – Version 1.0 13
Slide 14: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 2.5.3. State Data Center – Load Balancing – The SDC is to conduct capacity analysis and resource balancing using virtualization to convert three mainframes to one saving $1 to 2M per biennium. 2.5.4. State Data Center – Accurately Align Need with Service – The State Data Center, using a performance contract, aligns demand for services with service level allowing right-sizing of service and lowering cost. Using this approach an outside consultant is paid based on the efficiencies they can produce. 2.5.5. State Data Center – Shift to Variable, On-Demand Service – The State Data Center uses an external consultant to perform a utilization study under a performance contract. 2.5.6. DCBS – Shift from Tape to Disk Backup - DCBS is currently considering moving from a tape backup to disc back up with de-duplication. 2.5.7. ODOT – Consolidation - ODOT continues to support the consolidation of multiple data centers to one and the consolidation of systems that perform a single function or support a single type of business transaction onto fewer platforms. 2.5.8. ODOT – Direct Monitoring of Networks - ODOT is seeking “Trusted Agent” status to be allowed to monitor networks and mission critical server-based applications resulting in higher up-times for customer applications. 2.5.9. ODOT – Cost Stabilization - ODOT is reducing overhead rates by examining SDC cost equations and data trend assumptions; thus, improving and stabilizing SDC rates. SDC SDC Consolidate Load Balancing Sub-category Opportunity Opportunity SDC SDC SDC Procurement SDC On-demand Service Backup Consolidate Delegation Rates Opportunity Underway Underway Underway Underway 2.6. 2.7. Server Virtualization 2.6.1. Employment – Consolidation – The Employment Department is working with the SDC to further consolidate servers. Employment – Transform IT Services Group – Employment is working to transform the IT services group reducing the maintenance footprint and increasing time available for strategic planning and development. SDC Consolidate Underway Assess Internal IT Staffing Needs 2.7.1. Organization IT Services Underway 3. Joint Business And IT Cost Savings 3.1. Teleworking 3.1.1. All Agencies – Teleworking – All agencies to focus on a substantial increase in telecommuting to produce cost savings and more sustainable practices. 3.1.2. Revenue – Expanded Teleworking - The Department of Revenue is focusing on enabling, promoting and expanding the practice of telework. Tools Tools Telework Telework Opportunity Underway June 25, 2009 – Version 1.0 14
Slide 15: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.1.3. DCBS – Telework / Citrix – DCBS, through the use of central application delivery with Citrix, has significantly lengthened the life span for the desktop letting the agency utilize surplus PCs and allowing more effective telework and remote site work. Tools Telework Sub-category Underway 3.2. Videoconferencing 3.2.1. All Agencies – Teleconferencing – All agencies use teleconferencing and videoconferencing rather than travel. The practice is expected to produce significant cost savings over current practices and result in more sustainable practices. 3.2.2. All Agencies – Teleconferencing as Support – Agencies use web-based teleconferencing and video conferencing tools as an innovative and cost effect tool for a range of activities including meetings, training, forums, etc. 3.2.3. DAS – Statewide Software Price Agreement - Implement statewide price agreements for the spectrum of web conferencing tools. Make the procurements a state initiative allowing all governmental jurisdictions to leverage efficiencies. 3.2.4. Education – Leverage Oregon Department of Education’s Video Production and Presentation Experience – Leverage Oregon’s Department of Education experience in the production and presentation of video content of the Web. 3.2.5. All Agencies – Teleconferencing via Movie Theatres – Investigate forming a partnership with movie theatres statewide to provide a larger, potential integrated venue for teleconferencing, while also adding diversified business value to operator’s operations. 3.2.6. DCBS – Use of Video Conferencing for Governance Meetings – DCBS is using video conferencing for Building Codes Division Board meetings. 3.2.7. Employment – Contracted Services for Webinars and Teleconferencing – The Employment Department has a contracted service for computer based webinars and meetings. The contract is used for conducting agency wide trainings, interviews, and communications to staff located across the state. Savings come in the form of reduced travel and per diem costs. Use of the service continues to expand. 3.2.8. DAS / Agencies – Determine ways to inexpensively equip state staff to use web resources rather than physical travel (web meetings). Tools Tools Procurement Tools Tele Conferencing Tele Conferencing Price Agreement Web Opportunity Opportunity Opportunity Opportunity Tools Tele Conferencing Video Conferencing Service for Webinars Opportunity Tools Tools Underway Underway Tools Equipment Opportunity 3.3. Create Data Warehouse to Mine Opportunities 3.3.1. Revenue – Real-time Access to Tax Lot Data – Many agencies would benefit from having access to real-time or near real-time tax lot data. Make that data available on an ongoing easily accessible basis to those agencies that have a business need Geo Data Opportunity June 25, 2009 – Version 1.0 15
Slide 16: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.3.2. All Agencies – Data Architecture – Currently, agencies are resistant to wholesale data sharing. By connecting data to the agencies’ business objectives, new light is shed on the business reasons and value of data sharing. Cooperatively complete a high-level business architecture (or design) demonstrating business connections across the agencies. From that architecture, draft a data architecture that demonstrates how data resources can be optimized including data sharing. 3.3.3. All Agencies – Data Fees – Under some circumstances, data can have value to others. Consider charging fees for access to data that would have value to others and where that sharing is appropriate. 3.3.4. All Agencies – Eliminate Data Duplication – All agencies and agencies collectively, initiate a focused geospatial data de-duplication effort. Agencies collectively re-architect all geospatial information systems data into a single data set that would serve as a utility for all agencies. 3.3.5. Legislature – Data Sharing Policy Direction – Current statutes complicate or prohibit data sharing even though it makes business sense to do so, and would optimize business practices if done. Assuming data sharing can be made secure and access controlled, there should be a legislative mandate in statute for agencies to share data where it makes sense to do so. 3.3.6. All Agencies – One-Government Approach to Data Sharing – Over time this course would eliminate redundant data optimizing cost and value. 3.3.7. All Agencies – Citizen Information - Personal information about citizens (and business) is created over and over at each agency, and sometimes in each office of the same agency. Data about individuals are not connected. Create a single Citizen data file that each agency then uses providing a connection point to align all other data sets. 3.3.8. All Agencies – Service Oriented Architecture - Now, every agency treats data as that agencies' sole possession. Engage in an ongoing initiative to de-duplicate data. Using the principle of service oriented architecture, we need to find ways to re-design how data can be built once and then used by many to serve a variety or purposes. 3.3.9. Education & Employment – Lifecycle Data Sharing - Data sharing between the Oregon University System and the Employment Department could be used to track life cycle cause and effective as a person progresses from a student to a member of Oregon's workforce. OUS has the student information; Employment the workforce. Together the information allows conclusions and information for decision-making not otherwise possible. Kindergarten through 20 data could be compared to employment information to create an entirely new type of value. Data Architecture Sub-category Opportunity Data Fees Opportunity Data De-Duplication Opportunity Data Policy Opportunity Data Data Sharing Citizen Identifier Opportunity Opportunity Data Architecture Opportunity Data Sharing Opportunity June 25, 2009 – Version 1.0 16
Slide 17: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.3.10. All Agencies and DAS – Data Standardization – Standardize data formats across state government so over time data can easily be shared and value optimized. This is especially true across agencies belonging to a particular budget program area (i.e., public safety, natural resources, etc.). 3.3.11. Oregon State Police – Expand Digitized Fingerprint Systems and Data – The Oregon State Police Live Scan digital fingerprint system has transformed this line of business. Continue to streamline and make more widely available and usable this form of fingerprinting saving money and time. 3.3.12. Employment – Data Warehouse - The Employment Department is developing a data warehouse now. Data Standards Sub-category Opportunity Common Fingerprinting Opportunity Data Warehouse Underway 3.4. Workflow and Handoff Analysis and Automation 3.4.1. DAS – Statewide Price Agreement for Business Process Engineers – DAS should establish a statewide price agreement providing ready access for agencies to business streamlining experts. 3.4.2. All Agencies – Business Process Streamlining Core Team - A state group formed to coordinate business process streamlining across the agencies would also see commonalities between the agencies and be able to add value. This team could also promote the precepts of business process streamlining into organizations. A centralized re-engineering expertise / service would have the benefit of seeing the whole of state government and all the “moving parts.” So, they could observe the product of one effort and subsequently make that product available to all agencies. 3.4.3. DAS – Business Process Streamlining Public/Private Partnership - A centralized re-engineering expertise / service could form a public / private partnership with consultant experts in business process streamlining paid for out of verifiable savings. 3.4.4. All Agencies – Improved Management Capabilities – Require managers to have knowledge of and certified experience in critical management practices. For instance, following the lead of the private sector require managers be knowledgeable in continuous improvement / quality management practices. The concept applies to other management practice areas as well. 3.4.5. All Agencies – Cross-agency Business Processes – Agencies should look for opportunities to bridge business processes across agency lines when it makes business sense to do so. 3.4.6. All Direct Service Agencies – State Kiosks - Consider state services kiosks where agencies with licensing applications share duties with DCBS, and Employment, etc. These kiosks could be Web-enabled to provide citizens an additional access point. Business Business Process Streamlining Streamlining Opportunity Opportunity Business Streamlining Opportunity Capability Skills Opportunity Business Service Consolidate Service Delivery Opportunity Opportunity June 25, 2009 – Version 1.0 17
Slide 18: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.4.7. DCBS – Web-enabled Applications – DCBS is using E-government and Electronic Data Interchange (EDI) applications for interfacing with customers and business as well as gathering significant amounts of information without data entry staff. 3.4.8. DCBS – Web-enabled Services - DCBS uses the Web extensively for helping citizens and staff locate information (example - license directories) or ordering resource material. 3.4.9. DCBS – Automatic Notification - DCBS uses GovDelivery to automatically notify interested parties of information updates and to receive needed notifications. Service Web-enabled Applications Web-enabled Applications Notifications Sub-category Underway Service Service Underway Underway 3.5. Asset Utilization Analysis 3.5.1. All Agencies – Asset Use Review – All agencies review routine areas of expenditure to scrub out unneeded or unwarranted expenses. 3.5.2. All Agencies – Software Use Review – All agencies review computer software use. Remove any unused or unwarranted software as a means to cut costs. 3.5.3. All Agencies – Infrastructure Bundling – All agencies look for ways to quickly bundle or consolidate any duplicated infrastructure into a single solution to save costs. Examples include duplicated phone lines especially when multiple agencies are housed in the same location. Use State Data Center tools to detect those redundancies. 3.5.4. All Agencies – Unification of Services – All agencies should look for ways to create a single service provided to al rather than duplicating processes or efforts individually and uniquely at each agency. In many cases the unified service could be provide under the sponsorship of one agency, a Center of Excellence. Candidates for unification include: e-mail hosting; imaging systems; online timekeeping; employee portal; electronic records management; and human resource management templates. 3.5.5. State Data Center – Land Line versus Cell – A review of all telephone costs may reveal that it is less expensive to issue cell phones than land-based telephone lines. The State Data Center will assess the cost benefit of each alternative. 3.5.6. Underway Now / State Data Center – De-duplication – The State Data Center is currently reviewing customers to identify multiple agencies with multiple access points from the same location. The objective is to consolidate or bundle service to eliminate duplication. 3.5.7. Oregon Youth Authority - Appropriately Scaled Services – OYA is reviewing services associated with the State Data Center asking the question, "Do services match need?" OYA is reviewing the cost and appropriateness of data lines with county partners. OYA is also looking at less expensive lines from a local provider. Asset Asset Consolidate Critical Review Critical Review Same Location Opportunity Opportunity Opportunity Common Unified Service Opportunity Telecomm SDC Critical Review Critical Review Opportunity Underway SDC Critical Review Underway June 25, 2009 – Version 1.0 18
Slide 19: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.5.8. State Data Center - Telecommunications Lines - The State Data Center has implemented a new contract that moves everyone away from use of a frame relay approach with its high line charge. There are some additional costs associated with making that transition (i.e., routers, switches, etc.). The State Data Center believes the line conversions will result in $50k savings per month with some up-front cost required. All Agencies - Electronic Payroll Statements – Consider a move to electronic payroll statements as opposed to the paper-based distribution system now in place. Telecomm Critical Review Sub-category Underway 3.6. 3.7. HR Self-Service Expansion 3.6.1. Common Service Opportunity Examine Storage Policy to Reduce Storage Size 3.7.1. ODOT - Infrastructure Virtualization - Virtualization of ODOT’s infrastructure started 10 years ago with the decision to dramatically reduce the amount of storage on purchased servers in lieu of creating a Storage Area Network. Virtualization provides the agency with immediate cost avoidance while improving the utilization of the infrastructure. SDC Consolidate Underway 3.8. Consolidate Radio Systems 3.8.1. ODOT – Consolidated Radio System – ODOT supports the Oregon Wireless Information Network (OWIN) in the planning and development of the new statewide communications system. That ensures the radio needs of ODOT are met in the new system. 3.8.2. ODOT – Support Wireless Projects – ODOT provides technical and project support to OSP Wireless Projects and partners with OSP and Corrections in communications site development. 3.8.3. ODOT – Consolidated Wireless Systems Staffing – ODOT is working to consolidate ODOT and OSP wireless communication technicians to reduce costs and increasing service delivery for both agencies’ customers. The technicians provide service to ODOT and OSP in a geographic service area rather than in an agencyspecific service area thereby reducing travel and response time and increasing system reliability. Wireless Consolidate Underway Wireless Staffing Consolidate Merger Underway Underway 3.9. Consolidate Geo-Spatial Systems and Data June 25, 2009 – Version 1.0 19
Slide 20: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 3.9.1. DAS – Geospatial Information Services Unit - Geospatial information and services that use that information are valuable. At the same time, these services are now provided on a redundant basis. Form a single cooperative or shared service geospatial service provider using a single common geospatial data set. This approach would promote the most efficient and effective practices in geospatial information system management, while also eliminating the need for redundant data sets and service units. Existing geospatial experts in the agencies could be re-tasked to form one cohesive unit that serves all agencies. Savings would pay for the new unit. 3.9.2. DAS – Geospatial Data Inventory – DAS, as a first step in evaluating statewide needs and opportunities in the realm of geospatial information, should inventory all geospatial data used across agencies. 3.9.3. Revenue – Access to Tax Lot Data – Agencies defined a need for real-time or near real-time access to tax lot data hosted by the Department of Revenue. Agencies are primarily in need of: parcel number; ownership; and mailing address. Access to tax lot data could serve as a high-value data resource reducing costs for agencies. The concept would likely require legislative action. 3.9.4. DAS – Standardized Geospatial Software – DAS has, through Administrative Rule, standardized agencies’ use of geospatial software. 3.9.5. DAS – Geospatial Software Enterprise License Agreement – Once DAS standardized on one particular geospatial software suite a follow-on Enterprise License Agreement effort has been completed. 3.9.6. ODOT – Integrated Geospatial Services – ODOT’s GIS services are delivered through an enterprise infrastructure that empowers and enables information systems application development teams to integrate GIS data directly into their applications. Geo Service Sub-category Opportunity Geo Geo Data Data Sharing Opportunity Opportunity Geo Geo Geo Standard Software Service Underway Underway Underway 3.10. Enforce Modularization of Large Scale Procurements Procurement Project Underway 3.10.1. ODOT – Modularized Procurements – ODOT has optimized existing IT services and products by simplifying and implementing projects incrementally. 4. Enable Innovation And Business Restructuring 4.1. Oregon - Collective, Multi-agency Planning / Architecture / Portfolio 4.1.1. All Agencies – Unified Business Architecture – Multi-agency initiatives require a different approach than that of individual agencies. Action to pursue multiagency opportunities must be planned. A single, unified business architecture describing the business objectives and processes of all agencies would allow those agencies observe their mutual and intersecting IT needs. That then provides the framework needed to identify opportunities and make them actionable. Business Architecture Opportunity June 25, 2009 – Version 1.0 20
Slide 21: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.1.2. All Agencies – Multi-agency Planning Forum – Create a sustained forum for agencies to collectively plan and implement multi-agency or enterprise-level initiatives. 4.1.3. All Agencies – Multi-agency Portfolio Approach – Sustained multi-agency efforts require a portfolio approach to IT investment management allowing targeting of investments based on pre-defined objectives. Capacity Capacity Planning Portfolio Sub-category Opportunity Opportunity 4.2. Oregon - Multi-jurisdictional planning 4.2.1. All Agencies – Multi-agency, Multi-jurisdiction Planning Forum – Provide a forum for all jurisdictions (i.e., Federal, state, local, regional and tribal) to have a seat at the planning table so a broader range of potential opportunities can be defined and unified or coordinated action taken. For example, consolidation of networks across the many jurisdictions offers real transformational benefit for the citizens of the state. Capacity Planning Opportunity 4.3. Oregon - Web-enabled Collaborative, Multi-agency Workspace 4.3.1. All Agencies – Multi-agency Collaborative, Web-enabled Workspace – DAS should quickly create a collaborative, multi-agency workspace enabled through Oregon GovSpace to allow agencies to continue the process of Fast Track Planning and acting together to harvest the range of opportunities. 4.3.2. All Agencies – Strategic Communications – Quickly activate a communications vehicle that allows agencies to share information. In particular, focus on supporting cross-agency information sharing and the marketing of opportunities to reduce costs, optimize service or provide new capacities needed for future planning and collaborative action. 4.3.3. ODOT – Web-enabled Collaboration Tools - ODOT has and continues to implement a suite of standardized collaboration tools and services allowing ODOT staff and business partners to easily collaborate on projects and work regardless of their physical location. The expected outcome is for staff to routinely use interactive software, audio and visual collaboration tools improving productivity. ODOT Information Systems provides a reliable, high-performance IT infrastructure and tools to support these collaboration tools. 4.3.4. ODOT – Web Meetings / Video Conferencing – ODOT is deploying iLinc, a technology for web-meetings and desktop videoconferencing. Deployment has dramatically reduced travel costs. 4.3.5. ODOT – Collaborative Software – ODOT has deployed collaborative software (ODOT Social Media Networking Project) for the ODOT Communications Division to reduce the cost and time of getting video content to the public. Capacity Tools Opportunity Capacity Communicate Opportunity Capacity Tools Underway Capacity Tools Underway Capacity Tools Underway June 25, 2009 – Version 1.0 21
Slide 22: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.4. Oregon - Create enterprise-style business planning for larger opportunities 4.4.1. All Agencies – Multi-agency Planning Forum – Create the multi-agency business planning forum needed for agencies to act together in pursuit of larger optimization opportunities. Capacity Planning Sub-category Opportunity 4.5. Oregon - Develop a business architecture describing agency intersections 4.5.1. All Agencies – Unified Business Architecture – Agencies must cooperate in developing a unified business architecture describing intersections between agencies' business processes and opportunities for cooperative, multi-agency action. 4.5.2. ODOT - Enterprise Architecture - ODOT is working with other agencies to establish an enterprise IT architecture to align business and IT, reduce costs, improve agility and increase shared services and reuse. The vision is to have a clear and documented understanding of ODOT’s business services and ensure agency processes, information, applications and technology are aligned to deliver those services. Business and technical solutions are designed and engineered to work together. Where possible, components can be reused or leveraged across multiple solutions. ODOT lines of business and Information Systems have a good understanding of the relationships between the elements. In later stages, simplifying the application architecture clarifies design decisions and encourages reuse. Capacity Capacity Business Architecture Business Architecture Opportunity Underway 4.6. Oregon - Appropriate governance to act on the larger opportunities 4.6.1. All Agencies – Multi-agency Governance Model – Establish the appropriate governance model to allow all agencies to work together to act on the larger opportunities identified in the Fast Track Planning Sessions. 4.6.2. Legislature – Target Outcomes – Agencies need clearly defined enterprise-level target outcomes, and accountability to achieve those outcomes. Set clear direction or target outcomes for multi-agency action. 4.6.3. DAS – State IT Governance Policy – Update the State IT governance Policy to incorporate the governance findings of the Fast Track Planning Sessions. 4.6.4. All Agencies – Business Participation in Multi-agency Planning and Action – Press business-side leaders to service in the Fast Track Planning process and the follow-on actions. Without that involvement most opportunities will not be harvested. Capacity Capacity Capacity Capacity Decision-making Target Outcomes Governance Framework Blended Roles Governance Opportunity Opportunity Opportunity Opportunity June 25, 2009 – Version 1.0 22
Slide 23: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.6.5. DAS – Blended Governance Model - A unique solution for the State of Oregon in light of its federated business model, would be to create a blended governance group comprised of select agency heads, administrative or business services directors, technology leaders, and key subject matter experts. That would allow the forum for business leaders to describe their needs, while IT leaders could expose business leaders to innovative approaches for applying IT. 4.6.6. Governor’s Office – Executive Participation in Governance and Decisionmaking – Promote the periodic involvement of decision-makers in the blended governance forums. 4.6.7. DAS – Strategic Communications in Governance – Convene a group at the highest level to let agency heads understand opportunities for multi-agency action in optimizing IT. 4.6.8. DAS – Private Sector Participation in Governance – Participants proposed the revised governance structure somehow include a (Private Sector) Business Advisory Board with the objective of importing practices from the private sector directly into government planning and action. 4.6.9. ODOT – Organizational Governance - ODOT has formed a Community of Interest around IT governance. The objective is to accurately predict the cost and schedule of every project, and then deliver successfully, with high quality, against those cost and schedule predictions. 4.6.10. Employment – Organizational Governance – The Employment Department has an active IT Governance model in place for setting project priorities and providing oversight. Capacity Blended Roles Governance Sub-category Opportunity Capacity Capacity Capacity Blended Roles Governance Strategic Comm. Blended Roles Governance Decision-making Opportunity Opportunity Opportunity Capacity Underway Capacity Decision-making Underway 4.7. Oregon - Portfolio of initiatives 4.7.1. All Agencies – Portfolio View – Participants proposed that opportunities defined in this Fast Track Planning process be organized in a portfolio of initiatives different from a project portfolio - that agencies promote (versus being DAS driven). All Agencies – Fresh Look – Review all existing agency and enterprise assumptions. In particular, try to understand when the agency is doing something because it is a practice of the past, versus actions that are based on business need and best practice. With that in mind, review business processes and existing technology looking for opportunities to save dollars or create efficiencies. Capacity Portfolio Opportunity 4.8. Oregon - Culture of collaborative inquiry 4.8.1. Capacity Continuous Improvement Opportunity 4.9. Oregon - Multi-agency IT budgeting, funding, financing June 25, 2009 – Version 1.0 23
Slide 24: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.9.1. DAS – Agency Optimization Equals Agency Savings - Participants repeatedly suggested there is an imperative need to set up a funding / financing / savings model that allows agencies to see the financial benefit of State Data Center optimization. 4.9.2. DAS – Pilot Funding – Participants described the need for a funding model (or pilot funding model) that would support research and development and pilot efforts to optimize state government services and information. 4.9.3. DAS – Cost Benchmark - Compare DAS costs to other benchmarks so agencies will know the costs and value are reasonable. 4.9.4. All Agencies – Hardened Business Case - Business cases do not accurately reflect costs. A stronger business model is needed with more up-front work applied so there are "no broken promises" and an accurate calculation of Return-On-Investment. A stronger Business Case would also prevent the situation in which agencies get "hit twice." 4.9.5. DAS – Enterprise Funding Model – Create a routine path to solicit and receive funding for IT efforts at an enterprise level. That must be solved before the opportunities described in this report are expected progress to action. Capacity Capacity Service Capacity Business Model Funding Model Benchmarking Decision-making Sub-category Opportunity Opportunity Opportunity Opportunity Capacity Funding Opportunity 4.10. Oregon - Management scope and capabilities Consolidation Capacity Staffing Flexibility Management Practices Opportunity Opportunity 4.10.1. All Agencies – Interagency Management Crossover - Consider allowing one manager to oversee the employees of different agencies when it makes business sense to do so because of alignment of objectives and proximity of staff. 4.10.2. All Agencies – Management Practices – Certain management capabilities are essential to achieve the full range of opportunities defined in this report. Participants suggested that given the business, technological and budgetary challenges faced by agencies now, additional training and certification of managers may be necessary. 4.11. Oregon - Efficiency Through Organizational Innovation Organization Performance Underway 4.11.1. ODOT – Organizational Innovation - ODOT has modified its IT governance and management seeks to understand the full range of organizational needs, exploit best practices, and enable business innovation. The ODOT IS organization anticipates future needs, enables new business models, and identifies enabling technologies. This leads to: organizational agility; reduced cycle times; a reduction in defects; reduced cycle times. 4.12. Oregon - Federal Stimulus Common Stimulus Opportunity 4.12.1. All Agencies – Efficient Federal Stimulus Tracking - Participants promoted the use of a single system to be used by all agencies to coordinate and track funds from the Federal Stimulus package. June 25, 2009 – Version 1.0 24
Slide 25: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.12.2. ODOT - Federal and State Stimulus Projects – ODOT is focusing on initiatives with high potential to deliver more jobs to Oregonians while providing immediate improvements State highway transportation infrastructure and short-term Return-OnInvestment that positions Oregon to lead an economic recovery. Common Stimulus Sub-category Underway 4.13. Oregon - Open Source OS Policy Decision Opportunity 4.13.1. All Agencies – Open Source Opportunity Mining - Participants suggested the State of Oregon consider moving to open source (OS) alternatives. They felt that while Open Source is not free as some claim, this may be the time to consider a wholesale swap to open source alternatives to pursue substantially lower costs. 4.13.2. All Agencies – Collaborative Open Source Development – Consider collaborative development of OS software to address common business challenges saving money now and over the life of the business process. 4.13.3. All Agencies – Open Source Catalog - Create a catalog of open source solutions used by agencies now for reuse or replication by others. That would require that we undertake an inventory and produce a catalog of open source applications being used by agencies so they can be quickly leveraged for other agencies. 4.13.4. All Agencies – Open Source Consortium – Open Source consortiums, possibly interstate in nature, could spread out the cost burden and allow for a much greater return on investment. The opportunity could encourage code and resource re-use. The effort could start with a set of smaller projects in order to evaluate interest and potential cost savings. 4.13.5. ODOT – Open Source Tools - ODOT is leveraging innovative IT approaches such as Open Source software tools (Open Source Inventory Results), server and storage and mainframe virtualization. Moreover, ODOT is researching the Microsoft Virtual Desktop in order to speed time to deployment as well as reduce PC technician support costs. OS OS Collaborative Development Catalog Opportunity Opportunity OS Consortium Opportunity OS Software Underway 4.14. Oregon - Cloud Computing Common Service Delivery Mechanism Opportunity 4.14.1. All Agencies – Cloud Computing - “Cloud Computing” offers a dynamically scalable and often virtualized service over the Internet requiring little advance planning and relatively small up-front cost. This is an opportunity that needs to be explored. 4.15. Oregon - Repeatedly Identified Opportunities Common License Opportunity 4.15.1. Licensing Agencies – Enterprise Online Licensing – Create one, single enterprise-level licensing system serving the needs of all licensing agencies. June 25, 2009 – Version 1.0 25
Slide 26: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.15.2. All Agencies - Criminal Background Check Center of Excellence – Create a consolidated Background Check service offered by the Oregon State Police as a Center of Excellence. OSP could be the service provider for all state criminal records checks instead of every agency having a criminal records unit. 4.15.3. All Agencies - Electronic Records Management – Create a single enterprise solution to provide Electronic Records Management services. Participants felt such a service should be provided by the Office of the Secretary of State. 4.15.4. All Agencies - IT Service Desk Center of Excellence – Allow the Department of Human Services to provide IT service desk services for all other agencies as a Center of Excellence. 4.15.5. All Agencies - Web-enabled Time Sheets – Use existing solutions to create a single solution to web-enable time sheets for employees of the State of Oregon. 4.15.6. All Agencies - Consolidated e-mail services (in sourced / out sourced) – Consider consolidating all e-mail services for the agencies of state government – and possibly outsourcing that service allowing agencies to focus valuable staff resources on providing critical services. 4.15.7. All Agencies - Paperless Government – Establish a strategic initiative to evaluate the possibility of moving to an essentially paperless business model. 4.15.8. All agencies - Web-based Training – Include web-based training as part of any large system roll-out. 4.15.9. All Agencies - Anti-Spam Services – Offer Anti-Spam services through the State Data Center as a utility service for all agencies allowing them to eliminate their versions. Common Criminal Background Check Electronic Records Management IT Services Web-enabled Time Sheets E-mail Sub-category Opportunity Common Service Tools Common Opportunity Opportunity Opportunity Opportunity Asset Common Common Critical Review Web-enable Training Anti-Spam Opportunity Opportunity Opportunity 4.16. Oregon - Software as a Service SaaS Collaboration Portfolio IT Services Business Intelligence Lead SaaS Agency Opportunity 4.16.1. All Agencies – Software as a Service – Create a range of Statewide Price Agreements for Software as a Service (SaaS) solutions that agencies can access. Service offerings through SaaS include such business processes as: collaboration software; portfolio management; IT service management; and business intelligence. Participants pointed out that SaaS solutions provide and alternative to DAS consolidation but in a federated environment. 4.16.2. All Agencies – Software as a Service Centers of Excellence - When Software as a Service is offered, one agency acting as a “Center of Excellence” should lead the contracting or licensing effort on behalf of all other agencies. Consolidation Opportunity June 25, 2009 – Version 1.0 26
Slide 27: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.16.3. Revenue – Software as a Service – The Department of Revenue is looking at Software as a Service opportunities to lower costs. The agency is considering use of a SaaS Performance Management Tool for use in: staff assessments; goal setting; and for setting and putting in place performance standards. The department is also considering SaaS endpoint security tools. Lastly, the Department of Revenue is considering the use of SaaS business process management tools and techniques to help the agency improve efficiency. SaaS Performance Management Sub-category Underway 4.17. Oregon - Better tracking, reporting, communicating SaaS Issue Tracking Opportunity 4.17.1. All Agencies – Issue Tracking Software – Acquire and deploy issue tracking software as a means to save time and money. Tracking a complex range of activities on paper can cost substantially more money because of missed opportunities. Electronic tracking has proven to save money by ensuring actions are right the first time. Electronic tracking tools are available as Software as a Service. That requires little up-front money or time to start reaping benefits. 4.17.2. DAS – Software as a Service Procurement Framework – Create a framework for making decision about the appropriate use of Software as a Service (SaaS) tools. Once that framework is established, all of the agencies can move quickly to these sorts of solutions. Before embarking on a SaaS procurement Identify the needs of multiple agencies. In most cases, create a statewide price agreement for SaaS services again saving agencies time and money. SaaS Procurement Framework Opportunity 4.18. Oregon - Grant Management Common Grant Management Opportunity 4.18.1. All Agencies – Grant Management Solution – Create a Grant Application Program and Service to facilitate the life cycle of grant issuance and application, and to allow strategic pursuit of grant opportunities. 4.19. Oregon - Common Code Library OS Common Code Library Underway 4.19.1. ODOT – Common Code Library – ODOT allows programmers to easily find what is needed from a well organized code library. It only takes one event where a developer pulls an old version of a code segment into a new build, and wasted days trying to fix what was supposed to have been fixed already. ODOT has created a repeatable development methodology that delivers useful and shareable code quickly. 4.20. Oregon - Statewide Broadband Build-out Stimulus Broadband Opportunity 4.20.1. Rural Infrastructure – Leveraging Broadband Funding - The Governor’s Broadband Initiative targets $50 million for rural, economic and health benefits. The Health Information Infrastructure Advisory Committee (HIIAC) is also working on a universal health network that might also benefit from this effort so agencies could leverage a single investment for multiple purposes. June 25, 2009 – Version 1.0 27
Slide 28: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.21. Oregon - Improved Citizen Access to Government 4.21.1. All Agencies – Improve Citizen Access to Government – Focus on enabling citizens to better connect and communicate with government using the complete spectrum of available web-enable tools. Tools Citizen Access Sub-category Opportunity 4.22. Oregon - Agency outreach to the Oregon University System Capacity Collaboration Opportunity 4.22.1. All Agencies – Access the Resources of the Oregon University System – Access the Oregon University System (OUS), and in particular with the Open Source Lab at OSU, to find ways they can assist in optimizing state government resources and services. 4.23. 4.24. Oregon - Leveraging licensed products already in use Common Standardized OS Underway 4.23.1. SharePoint Deployment – DCBS is initiating SharePoint for Enterprise Content Management, collaboration, increased efficiency and workflow. Oregon - Operational Mergers Consolidation Consolidation Merger Merger Opportunity Underway 4.24.1. All Agencies – Merge Agencies Operations – Partially combine multiple agencies’ operations when it makes business sense to do so. 4.24.2. ODOT – Merge Agency Operations – ODOT has merged their microwave wireless communications operations with that of the Oregon State Police. 4.25. Oregon - Statewide Closure (4/10) Service Office Closures Opportunity 4.25.1. All Agencies – Statewide Office Closure – Consider moving the all nonemergency state agencies to a 4/10 schedule, with all offices open Monday through Thursday only. 4.26. Oregon - Project Acceleration Business Accelerated Project Underway 4.26.1. Employment – Moving Projects Up – Employment is moving up project schedules with the help of additional contracted and short term staffing in order to complete these projects in this biennium or ahead of schedule allowing cost savings to be realized in future biennia. 4.27. Oregon - Project Cancellation Business Business Delay Development Cancel Project Underway Underway 4.27.1. Oregon Youth Authority – Delay Software Development – The Oregon Youth Authority has delayed software development, deployments and lifecycle replacements as a means of avoiding costs. 4.27.2. ODOT – Project Cancellation – ODOT’s CIO and IT management team focused on deciding which large projects will not be undertaken due to the economic slow down, e.g. ERP. ODOT is also eliminating Work Order Contracts and large procurement process cycle times. 4.28. Oregon - Application Development 28 June 25, 2009 – Version 1.0
Slide 29: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 4.28.1. ODOT – Application Development Tool Use – ODOT is enforcing the use of an integrated tool suite enables fast and easy application assembly. ODOT is also promoting the principle of simplify and reuse. Tools Application Development Sub-category Underway 5. Shared Service – IT Capability 5.1. Call Centers (Emergency and Non-emergency) 5.1.1. All Agencies – State Communications Center – Consider establishing a single state communications center. Common State Comm. Center Opportunity 5.2. Electronic Document Management System 5.2.1. All Agencies – State Electronic Records Management Center - Every agency has to meet records management obligations. One solution could be developed that all could use thus saving money and optimizing resources. The Office of the Secretary of State could own the centralized ERMS solution. Data storage could be hosted elsewhere. 5.2.2. All Agencies – Backup Data Storage – The Office of the Secretary of State is working to produce a system in Burns, Oregon to serve as a data backup site. That site would be available to other agencies. If the site were used by most agencies, costs would be lowered. 5.2.3. All Agencies – E-Mail Hosting / Archiving – Create a standardized e-mail hosting and archiving solution. Third party hosting may be one alternative for the effort. The effort could reduce archiving costs, ensure that records are kept for the proper period, and help address legal issues. 5.2.4. ODOT – FileNet – ODOT has deployed FileNet Enterprise Content Management (ECM) resulting in a reduction in time required for employee’s to look up documents. The tool saves an estimated 5+ hours a week per employee creating remarkable efficiency. 5.2.5. ODOT – Email Management – ODOT is deploying FileNet Email Manager for email archiving. ODOT is establishing an enterprise-scale service for managing the archiving, retention and retrieval of information. The service focuses on mail messages and other electronically stored documents in mailboxes, including the MS Exchange archiving, storing email as a public record, and email as an investigation tool. Cost savings will eliminate staff hours to manually restore back up tapes and email environments, plus manually searching for specific email criteria. Common Electronic Document Management Opportunity Data Backup Opportunity Common E-Mail Opportunity Common Enterprise Content Management E-mail Underway Common Underway 5.3. Computing Centers (Mainframes, Servers, Storage) 5.3.1. State Data Center – Redefine SDC Scope - Participants suggested reviewing those aspects of the State Data Center that were originally considered out-of-scope in order to consider actions that could have a positive impact now. SDC Expanded Scope Opportunity June 25, 2009 – Version 1.0 29
Slide 30: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 5.3.2. State Data Center – Revise SDC Mission - Participants suggested the mission of the SDC needs to be changed in light of the challenges facing state government. Consider modifying the mission to achieve certain strategic objectives. 5.3.3. State Data Center – Expand the SDC Customer Base - Participants suggested adding more users to the State Data Center in an effort to lower costs for all. A fixed user base not means fixed costs for the existing customer agencies. 5.3.4. State Data Center – Active Directory Consolidation - SDC planners suggested Active Directory Consolidation which would reduce agency staffing requirements. 5.3.5. DCBS – Virtualization - DCBS' use of virtualization has reduced the number of servers and increased the utilization of the servers. SDC SDC Common SDC Update Mission Expanded Customer Base Active Directory Consolidation Virtualization Sub-category Opportunity Opportunity Opportunity Underway 5.4. IT Contract Vehicles 5.4.1. All Agencies – DAS Policy on Applicability of Contracts – Participants recommended changing the contract "standard" so all other agencies would be able to use contracts initiated by any one agency. A policy is needed to have all contracts written in that form. This one-government approach would keep vendors from selling duplicates of the same product to multiple agencies. That better serves the interests of the citizens of Oregon and agencies. 5.4.2. All Agencies – Enterprise Rationale in Contracting – Before entering into a contract, agencies would consider the approach that best addresses the needs of multiple agencies, and perhaps of multiple jurisdictions. Then contracts would incorporate those higher-order requirements. Then the contract would be issued in a way that makes it available to all agencies. In addition to a culture change, administrative rulemaking would need to be applied to make the approach actionable. This approach would also require better communication about contracts and agency business needs so they drive contract planning and pricing. 5.4.3. All Agencies – Key Contract Inventory – Inventory all existing contracts and identify key contracts that agencies have in place now where goods and services are provided. Try to line up the contract end dates so that contracts that address common needs are negotiated at about the same time. Eventually consolidate multiple contracts into one drive lower prices. Cooperative purchasing statues apply. 5.4.4. All Agencies – Contract Re-negotiation - Review all contracts in order to categorize common contract and termination dates. Then, re-bid these contracts as a group. Then use this information when considering joint contracts for the future. 5.4.5. All Agencies – Contracting Clearinghouse – Establish a clearinghouse of contracting capabilities or catalog of available services/brokering. Procurement One-Government Contracting Opportunity Procurement One-Government Contracting Opportunity Procurement Critical Review Opportunity Procurement Procurement Critical Review One-Government Contracting Opportunity Opportunity June 25, 2009 – Version 1.0 30
Slide 31: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 5.4.6. ODOT – Purchasing Delegated Authority – ODOT has asked the State Procurement Office to allow higher levels of delegated authority in order to reduce cost and time of purchasing. 5.4.7. All Agencies – Best Pricing – Agencies currently have the opportunity to use the Western States Contracting Alliance and Federal General Services Administration pricing to optimize costs. Agencies can also access significant education discounts under certain circumstances. There is also an opportunity to buy off Oregon University System contracts. 5.4.8. All Agencies – IT Strategic Sourcing – Undertake a strategic review of all external service providers and other expensive support mechanisms to understand what kind of opportunities exist to optimize cost including: contract re-negotiation; and putting in place other controls producing efficiencies. Savings gained using those practices are hard dollar savings. Participants agreed the approach should be put in place immediately. Procurement Procurement Process Streamlining Smart Buy Sub-category Underway Underway Procurement Critical Review Opportunity 5.5. Desktop Applications (Acquisition, M/A/C) 5.5.1. All Agencies – Extend PC Lifecycle - Consider adjusting lifecycle replacement time frame for field staff computers. Consider if the cheaper alternative of NetBooks could be used in place of more expensive laptop and desktop computers. 5.5.2. ODOT – Reduce PC Administrator Rights – ODOT has reduced the number of PC support calls by dramatically reducing the number of ODOT employees with PC administrator rights. Contracting IT Service Critical Review Limit PC Admin Rights Opportunity Underway 5.6. IT Help Desk 5.6.1. All Agencies – Consolidated Desktop Support – Establish consolidated desktop support and management in remote areas. The concept would be especially advantageous in more remote areas. In short, consider having one agency provide desktop support or other similar services for multiple agencies. 5.6.2. All Agencies – 36 County LAN / Desktop Support Needs Assessment – Inventory LAN and Desktop support requirements in all 36 Oregon counties. Then determine the agency that would most appropriate to be the IT support service provider in that county. 5.6.3. All Agencies –Consolidated IT Service Desk – Create a Consolidated Service Desk for entire state utilizing an enterprise service desk tool, standardized desktop builds, desktop support, and password resets. Support IT Service Opportunity Support IT Service Opportunity Support IT Service Opportunity June 25, 2009 – Version 1.0 31
Slide 32: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices UNDERWAY OPPORTUNITY CATEGORY IT COST OPTIMIZATION AREA 5.6.4. Employment – Desktop Support Appliance – The Employment Department has deployed an appliance to make desktop support and maintenance more efficient and predictable. Employment is also working to implement an agency-wide Service Request System. 5.6.5. DCBS – Job Scheduler - DCBS has replaced production staff with job scheduler automating practices and lowering cost. Support IT Service Sub-category Underway Tools IT Service Underway 5.7. Reassess Internal IT Staffing Needs 5.7.1. All Agencies – Strategic View of IT Staffing – Given staffing challenges, take a strategic view of IT staffing challenges / solutions at an enterprise level. 5.7.2. Oregon Youth Authority – Do Not Fill Positions - OYA is not filling vacancies reducing costs. Staffing Staffing Strategic Management Vacancies Opportunity Underway June 25, 2009 – Version 1.0 32
Slide 33: Appendix “C” - Description of Potential Near-Term Efforts Description of Near-term IT Cost Optimization Concepts Eleven cost optimization concepts were selected by the CIO Council as candidates for potential near-term action. The concept “Contract Brokering through Cross-agency Collaboration” has been blended with the concept “Streamline Software as a Service Procurement” to create the final list of 10 near-term actions contained in Appendix “C.” Two descriptions below (Contract and “SaaS” License Brokering through Cross-agency Collaboration / Renegotiate Contracts, Licenses and Agreements) are considered to still be in “Draft” status. Edits from critical stakeholders in the Department of Administrative Services State Procurement Office have been invited and are still possible.
Slide 34: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Web-based Tools DESCRIPTION Web-based tools such as web-conferencing provide a cost-effective alternative to time-consuming and resource-intense travel to meetings. If the web-based conferencing alternative is used whenever possible across state government, significant cost savings will accrue and result in more sustainable practices. To optimize cost and sustainability, the State of Oregon would then apply the practice to a range of similar activities including: trainings; conferences; forums; etc. Some agencies are well versed in the use of web-enabled collaboration tools. That experience can be leveraged. BACKGROUND Web-based conferencing, meeting and training tools can improve communications and productivity while reducing costs and greenhouse gas emissions. Eliminating travel also eliminates automobile mileage charges or expenditures for fuel and maintenance, and often eliminates the need for overnight lodging. The net result is cost optimization and improved staff productivity. Every agency should use teleconferencing and videoconferencing in lieu of travel unless a physical meeting is warranted for specific business purpose. Statewide price agreements are in place allowing agencies ready access to videoconferencing services and software. AT&T provides videoconferencing and related services under a current long-distance contract. Various web-enabling software is available through the current ASAP Software contract. DAS has established a statewide price agreement for iLinc software. This agreement is due to expire at the end of April 2009. DAS is reforming and further extending that contract to allow agencies continued or expanded access to iLinc service. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Research and Inventory - Determine the range opportunities available to equip state staff to use web resources in lieu of physical travel. Inventory agencies’ needs for web-enabled collaboration tools and compile into a comprehensive needs assessment. Statewide Price Agreement - Implement a statewide price agreement or agreements for the spectrum of web-based conferencing tools. Whenever possible allow all governmental jurisdictions to leverage efficiencies. In the event of gaps, issue additional price agreements to ensure all needs are met. Provide training and increase awareness of access to tools. Explore Other Alternatives - A related suggestion was to form a public/private partnership with movie theatres across the state to provide a larger potential venue for teleconferencing, while also adding diversified business value to operator’s operations. This initiative has the potential to advance sustainable practices since the concept is scalable to a wide variety of venues. KEY ISSUES Examine existing price agreements and contracts. Make users aware of options. Consider consolidating contracts when business needs can be met and costs reduced. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High X Medium Low X X X X June 25, 2009 – Version 1.0 34
Slide 35: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Improve Citizen Access to Government DESCRIPTION Enable citizens to better obtain information and interact with government using web-enabled tools to achieve their needs. More web-enabled self-service application allows citizens to access information and government services when and where they need it. Effective web-enabled tools reduce the cost of conventional transactions by agencies. Citizen and business partner interaction with government will be viewed as positive when needs are effectively met through web-based services and tools. BACKGROUND More citizens are expecting services and information to be readily available via the Internet. The State of Oregon, through the Department of Administrative Services E-Government Program, provides some of the e-government enabling technology, policy and support for agencies. Agency use of web-enabled services has increased. Experience shows that providing services via web-based tools lowers the cost-per-transaction for agencies, as well as reducing cost and time burdens for citizens. Web-enabled services are usually streamlined and semi-automated further reducing cost. Accelerating the adoption rate of these services provides a predictable way to increase efficiency, optimize cost and better address citizen expectations. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION The current E-Government Contract will expire in 2010. The Oregon E-Government Program completed a Business Case evaluation resulting in an RFP under development now. Alternatives delivery methods were evaluated for web-based services, information and transactions. The selected delivery model is funded by online transaction fees. The vendor is incented to: provide more online services to recoup their costs and return a profit faster; market higher public use of online services, and provide easy-to-use design services. Unlike the current fixed-price contract, this funding model is scalable to provide more web services. Agency assessments could be offset by transaction fee funding. A portion of the fees fund the cost of hosting the portal, supporting services and developing new applications. This delivery model is successful in 22 states consistently ranked in the top-eight of the Center for Digital Government’s “10 Best of the Web.” KEY ISSUES Adoption Rate - Use of web-based self-service tools by agencies will increase naturally over time. The trend is positive and increasing. Other jurisdictions set adoption targets to predictably optimize cost while improving service. Converting to web-enabled services can predictably optimize cost. Delivery System - Provide a more effective E-government delivery system capable of supporting an expanded range and number of services. While the existing delivery system has produced benefit, the pace of conversion has been constrained. Modifications to the delivery system and application development incentives would result in more web-enabled services and scalable capacity. Multi-jurisdiction Support - Many jurisdictions in Oregon face identical cost constraints, service needs and citizen expectations. Consider cooperating with other jurisdictions to plan and adopt a unified approach to common lines of business, and to collocate services to lower costs. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High X Mediu m Low X X X X June 25, 2009 – Version 1.0 35
Slide 36: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Contract and “SaaS” License Brokering through Cross-agency Collaboration (Draft) DESCRIPTION One agency provides IT procurement service brokering for IT contracts and “Software as a Service” (or SaaS) services needed by multiple agencies in order to reduce the amount of time to procurement, to streamline the procurement process, and to establish and promote the principle of a one-government (as opposed to agency-by-agency) approach. Using e-mail or a Web-enabled collaboration software workspace, an agency would notify all other agencies of their intent to procure. Other agencies with a need for that commodity or service would notify the originating agency and describe their requirements. A lead agency would establish IT contracts that all agencies can access. This approach applied on a consistent basis could significantly reduce the amount of time and effort required to contract. BACKGROUND Currently, agencies generally contract individually, or if over $150,000 through the State Procurement Office. There may be opportunities where cooperative procurements may result in significant efficiencies in elapsed time and cost of procurement. One approach would have one agency act as a lead contracting agency working with other agencies thus reducing the overhead required to conduct procurements on an individual agency by agency basis. While agencies have collaborated in procurements, rarely has one agency served as the lead to broker the procurement for all others. This approach could result in more price agreements established for agency use and faster implementation. It can allow more contracts and price agreements to be completed sooner through broader agency participation rather than each IT-related good/service contract need going into the agency or SPO queue separately. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION • Identify need - Participating agencies identify a potential contract need. An e-mail notice is sent out to the CIO community to see if other agencies have an interest in participating in a joint procurement. Form Team - Agencies with an interest agree to team in the development of a Request for Proposal. The prospective lead agency contacts DAS SPO and DAS EISPD for delegation/designation as the lead agency (SPO) and for guidance regarding downstream IT Investment review and oversight requirements (EISPD). Requirements Document - The agencies with a common interest create requirements documents that identifies their common requirements, volumes and specifications. SDC Exception Request – At the appropriate time in the process, participating SDC Customers will need to approach the SDC (individually or as a group) to complete the SDC Service Exception process. Information Resource Request - If over $75,000 an IRR must be submitted and approved by EISPD. If over $125,000 an IRR and business case/feasibility statement must be submitted and approved by EISPD. For SaaS contracts, EISPD reviews using a team formed out of the CIOMC and the SDC to determine to examine impacts on the SDC, Security, IT Standards, and other existing IT services and contracts. In addition the team will determine if standards should be established through the SaaS contracting process. Procurement Lead – Typically SPO staff is the procurement lead. In this implementation the agency team will consult with SPO to determine if SPO has the available expertise and staff to pursue the procurement during the time frame required. If they do not, then the SPO will determine if they will delegate the procurement authority to a lead agency. Award contract - The procurement activity is pursued and an award is made. The award results in a price agreement or contract agencies can access. The SPO lists the award on ORPIN and manages as a statewide price agreement. • • • • • • June 25, 2009 – Version 1.0 36
Slide 37: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices KEY ISSUES Authority to Purchasing - Purchasing authority is delegated from the DAS Director to the SPO to conduct and award the procurement in accordance with state purchasing rules and ORS 279 and Oregon Administrative Rules. SPO may choose to conduct the procurements, or can determine to delegate the procurement to a lead agency. The procurement must be conducted in accordance with ORS 279 regardless of whether it is conducted by the SPO or delegated to a lead agency. Jurisdictional Issues – The Secretary of State and other jurisdictions that are not under DAS purchasing authority follow different rules. How can procurement actions involving SOS and other jurisdictions be managed to allow for common contracts and access to price agreements established by other jurisdictions? ORS 279 contemplated cooperative purchasing between jurisdictions within the state. SPO will need to help establish how executive branch agencies subject to DAS purchasing authority can participate. Awards Accessible to all – Contract awards should not only be for the use of the lead agency and the participating team, but should result in statewide price agreements for all state agencies and political subdivisions to use. This will result in a menu of choices for agencies and leverage greater buying power. SPO will need to incorporate the awards into their ORPIN system for others to access. Software as a Service - (SaaS) is a model of software deployment where a provider licenses an application to customers for use as an on-demand service. SaaS alleviates the need to: • • • Install computer applications; Acquire software maintenance; and Install software patches. SaaS can often provide a low start-up cost, low ongoing-cost, least-encumbrance business solution. SaaS often uses a pay-as-you-go funding model avoiding the full cost of system development and deployment. Consider Impacts – The SaaS model can be attractive for enterprise-class applications. Combining agency needs and streamlining access to SaaS applications can result in less duplication, better outcomes and reduced pricing. Efforts in this area should include a process to estimate when SaaS provides the most cost effective solution taking into consideration cost, impacts on the SDC or existing IT infrastructure, Security, IT Standards, and other IT service contracts. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Mediu m X X Low X X X June 25, 2009 – Version 1.0 37
Slide 38: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Renegotiate Contracts, Licenses and Agreements (Draft) DESCRIPTION Re-negotiating hardware, and software licenses and maintenance agreements under these economic conditions is a real-world practice. Vendors understand the impact of these budget conditions. They see keeping contracts and licenses in place as a business priority. They would rather keep existing clients than lose them. Terms and conditions may allow renegotiation of this nature. There may also be opportunities to reassess the scope and volume commitments for these contracts. Making volume commitments may result in better pricing. Cooperative re-negotiations with other jurisdictions (cities and counties) could also potentially save additional money for those jurisdictions. BACKGROUND The State Procurement Office (SPO) establishes price agreements for agencies through competitive solicitations. Often they team subject matter expertise through the CIOMC with a Procurement Analyst who has expertise in the particular market to develop price agreements that meet agency IT needs. Work to consolidate requirements is often done on a voluntary basis. Typically individual agency contracts or price agreements do not leverage volume commitments. Many of the current price agreements and contracts for IT services and equipment were awarded in better economic times. There are a number of potential changes that could result in cost reductions for both state agencies and suppliers that should be considered through renegotiation. During these difficult economic times a number of companies have sought concessions from their suppliers to reduce costs. Renegotiating concessions in state contracts where feasible could result in cost reduction, especially when magnified by the potential of multi-agency purchases and spending. If agencies were to undertake that approach collectively, the savings could be substantial. Analyzing the contract opportunities and calculating the potential scope of spending and current market pricing would be a precursor to projecting the potential for savings. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION • • • • Research and Inventory contracts, licenses and maintenance agreements across state agencies. Evaluate contracts and agreements based on the spending volumes to determine if renegotiation is likely to result in sufficient savings to pursue. Establish a priority list of potential IT agreement categories to examine further. Opportunity Analysis - For agreements where renegotiation is possible and worth pursuing from a savings standpoint perform an analysis to determine the scope of potential savings based on current market conditions and potential agency needs. Charter for each IT category - Develop a simple charter outlining: o o o o o Scope of category Team members Roles and responsibilities Policy owner responsibilities Licensing team to accomplish results • • Renegotiation or establish new contracts - A team made up of interested agency experts and a member of the State Procurement Office to set targets, develop a renegotiation strategy renegotiate the agreement and measure outcomes. An alternative approach might include delegation of authority to a lead agency. Strategy Approval – SPO, DOJ and CIOC and other policy owners approve the renegotiation strategy and authorize the team to move forward. • June 25, 2009 – Version 1.0 38
Slide 39: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices • • Reporting – The team reports on outcomes, efficiencies and cost savings to the SPO and CIOMC. EISPD tracks outcomes and reports to LFO. Contract Award – SPO posts the revised contract on the ORPIN KEY ISSUES Effective contract renegotiation takes research and analysis to understand the collective agency needs, the amount of spending to leverage in the future, and market conditions and pricing. In effect the buying team should understand the market and market dynamics at least as well as the seller. Contracts in mid-term that are candidates for renegotiation must have a provision that allows for contract cancellation at the convenience of the State. SPO staffs that typically lead renegotiations have other work underway including critical state and federal stimulus work. That limits SPO resources to do this work. SPO must determine what role they will take in to add value to IT contract and price agreement reviews and renegotiations. Each category that results in a procurement action must either be led by the SPO team member or if SPO does not have the expertise available, or cannot address during the needed time frame, they can delegate to one agency to lead the procurement within the IT category. Time to complete contract renegotiations varies on a contract-by-contract basis. Some contract renegotiations are likely to be possible within FY 09-11. In the case of motivated suppliers, concessions may be possible sooner. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High X Mediu m X X X X Low June 25, 2009 – Version 1.0 39
Slide 40: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Electronic Payroll Statements DESCRIPTION Transition from a paper-based distribution of state employee payroll statements to an electronically distributed system to substantially reduce printing costs and the cost of staff resources needed to distribute and file the paper documents, also creating a more sustainable practice. BACKGROUND Currently, the Oregon Statewide Payroll Services (OSPS) unit within the Department of Administrative Service prints and distributes approximately 48,000 employee payroll statements per month. 40,000 provide employees documentation of direct deposit statements. 8,000 show issuance of paper checks. In addition to the actual printing costs, distribution and administrative staff throughout the agencies are then required to distribute these documents taking care to protect privacy and sensitive information. The paper then has to be filed. The entire process accrues costs throughout. A shift from paper-based to electronic distribution of these documents has been planned, evaluated and deemed a prudent course of action by experts. Several years ago OSPS crafted a Policy Option Package (POP) to convert these pay stubs and related forms to an electronically distributed format. That POP would have required a slight increase in assessment and so did not receive necessary agency support to go forward. Is possible to convert existing system to distribute these forms electronically. In recent years a number of vendors have begun to offer to undertake these functions for fee. Experts cited a cost estimate of $.25 per month per employee as a conservative estimate of cost for the service. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Charter a multi-agency workgroup partnering with the DAS OSPS to act on behalf of all agencies to again evaluate and plan the electronic distribution of employee’s monthly payroll forms. The group would first inventory or verify all of the cost bases associated with payroll form distribution, as well as an inventory of constraints applied to agencies. Compile a composite requirements specification for electronic distribution of payroll statements. Survey the industry for available services and costs. Develop a prioritized list of vendor-provided and internally-enabled alternatives to enable electronic payroll distribution. Evaluate the potential impact and cost effectiveness of the various options. Compare the current and potential payroll distribution approaches to determine the scope of potential savings and the feasibility of the concepts. If projected cost savings warrant, plan and implement migration to the appropriate solution. KEY ISSUES Some agencies do not have access to mainframe computers and would have difficulty electronically enabling payroll distribution. Some agencies are so small that it does not make financial to so using an agency-specific cost / benefit calculation. Vendors calculate on a per capita or per seat basis. There are no upfront or system costs for some vendors. Personnel staff occasionally find errors using the paper-based system that would be more difficult to identify electronically. The Bureau of Labor and Industries requires that employees provide explicit permission to receive payroll information in electronic form. If the employee does not do so, paper-based forms are required. Electronic distribution requires the employee have access to a computer with net access. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Medium X X X Low X X June 25, 2009 – Version 1.0 40
Slide 41: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Expedite Shared Development and Use of Code DESCRIPTION Standardized code is needed to enable interagency data sharing. Open source (OS) code, operating systems and software can be used for a variety of purposes. To lower cost and optimize the usefulness and value of data and systems, there is a need for a forum and secure repository to allow programmers to easily share code enabling data sharing and open source code and software when it is appropriate to do so. There is a need for a well-organized code library that also identifies use, license and distribution restrictions. Promote the appropriate use of code to enable data sharing, and the sharing of replicated OS code and software to speed up the development of software and applications. The approach will: promote data sharing across the agencies; reduce build-time and error rates optimizing cost and creating residual value in coding efforts; and encourage a repeatable software development methodology that delivers reusable code quickly. BACKGROUND Some agencies already have the capacity within their organization, or even across governmental jurisdictions, to share code. Agencies have found that sharing code lowers cost and produces a greater return-on-investment. Several practices must be in place to harvest these efficiencies. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Create an Oregon GovSpace collaboration website – Establish a consortium of agencies using Oregon GovSpace to form and grow a community to: conduct code sharing dialog and messaging; collaboratively evaluate code and its usefulness and reusability in data sharing, operating systems and applications; and to support limited project management in those efforts. Common Code Library - Develop a common code library, including applicable software license agreements, if any, to enable informed and compliant code sharing across state government. Open Source Catalog - Develop a catalogue of OS applications used by state agencies. This catalog describes: OS applications used by all state agencies; any applicable licenses; the lines of business supported by these applications; and the contact information for staff knowledgeable about OS applications. The objective is to promote cross-agency adoption and support of OS applications. Open Source Desktop – If needed, work with the State Procurement Office to establish one or more statewide price agreements for desktop and laptop computers featuring open source operating systems, through which agencies can acquire and evaluate that option over time. KEY ISSUES Any code sharing must be in compliance with licensing terms. OS software development has become a mainstream practice. However, open source code is not necessarily free and may be encumbered by license restrictions on use and distribution. Use of OS code should not be accidental or surreptitious. Agencies must understand: how open source fits into the technology architecture; Total Cost of Ownership implications; maintenance requirements over time; ongoing staff training and external expertise requirements; downstream contracting implications, and licensing requirements. Use should be the result of a critical evaluation demonstrating the option is the most appropriate solution to address agency needs. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Mediu m X X X X X Low June 25, 2009 – Version 1.0 41
Slide 42: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Telecommuting DESCRIPTION The agencies of the State of Oregon are guided by DAS statewide policy to enable telecommuting. To optimize costs and promote more sustainable practices, explore action that can be taken using the innovative application information technology to make the practice of telecommuting an attractive alternative for all agencies when appropriate to achieve business purposes. BACKGROUND DAS statewide policy 50.050.01, Telecommuting, encourages state agencies to allow employees, where suitable, to telecommute when there are opportunities for improved employee performance, reduced commuting miles or agency savings. While a routine practice, observers believe telecommuting is not truly promoted across the agencies thus not optimizing cost savings and sustainability benefits. Tools to allow telecommuting have evolved over the years, but without a comprehensive review to determine how best to enable employees to accomplish business objectives. The cost benefits are tangible warranting a shift from simply enabling telecommuting to promoting the practice. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Review the full array of tools and best practices available to optimize the practice of telecommuting. Inventory agencies to define their business needs and constraints with regard to telecommuting. Evaluate the current level of deployment of the practice of telecommuting to create a baseline for comparative analysis. Evaluate policy, practice and tools to determine potential cost impact when compared to the baseline. In composite determine the course of action and tools needed to optimize both cost and business value of telecommuting. Once decided, using a multi-agency development team, determine those statewide price agreements, contracts, policies, or marketing efforts needed to optimize the practice of telecommuting. KEY ISSUES Telecommuting has been offered to employees as an option. So far, telecommuting does not appear to be a mainstream practice across the agencies. There are profound implications for the future of government if the practice is routinely used to the degree that it begins to impact building occupancy rates and transportation density. Only then will the full scope of potential savings and business impact be known. While this proposal does not seek that distant objective, it does set the stage for a more in-depth inquiry. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Medium X Low X X X X June 25, 2009 – Version 1.0 42
Slide 43: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Online Timekeeping DESCRIPTION Several agencies have developed and deployed user-friendly, web-enabled user interfaces to the state employee timekeeping system. Is it feasible to leverage that development effort by sharing the coding and techniques with all other agencies? To streamline the timekeeping process, lower costs and optimize value? BACKGROUND The current state employee timekeeping system and user interface has been in place for years. Agencies consider the old user interface cumbersome. It does not meet their needs. Several years ago a multi-agency team spent over a year working to develop an improved interface under what was later called the Oregon Time Information Management for the Enterprise (ORTIME) initiative. The purpose of the effort was to: reduce redundant time-capture work processes; and to deliver an enterprise-capable, Web-based time tracking system for employees of the State of Oregon. The project was cancelled. No work in this area has been conducted since. Several agencies have developed a web-based system interfaces for the state payroll system allowing their employees much more intuitive access to the state payroll system. Current programming and system development practices may now allow these prototypical solutions to be used by other agencies without significant development costs. It may be prudent to take another look at this. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION First, it would necessary to certify that these agencies’ prototypical payroll system interfaces: 1) meet the requirements of other agencies and DAS; and 2) at least one can be replicated without significant additional development cost. If it does, use a multi-agency team to plan and act to adapt the interface to make it available across agencies. If the prototypical interface does not meet needs, progress can still be made in this area by taking a collaborative planning approach. A multi-agency group of CIOs, experts and stakeholders could be chartered to explore a range of opportunities to modify the prototype or create a new approach to accomplish the same objective. Once an approach is selected, a standard multi-agency opportunity assessment and planning process would be applied to make the opportunity available to all agencies. KEY ISSUES The state payroll system is complex. Lessons-learned from prior efforts tell us that costs to modify legacy payroll and timekeeping systems can increase rapidly because of that complexity. At the same time Web-enabled approaches offer a far more cost effective range of solutions than was possible in the past. A joint Department of Transportation and Department of Administrative Services pilot project to develop the finance and human resource modules of an enterprise resource planning (ERP) was cancelled. That effort would have provided all agencies with an ease-to-use timekeeping interface. Without that solution, a renewed, multi-agency effort is warranted. Lastly, another alternative has been identified, a Software as a Service (SaaS) approach. While not a likely solution because of the complex connections to the legacy payroll systems, it may be prudent to explore the availability of a single SaaS solution because of the advantages that approach sometimes offers. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Medium Low X X X X X June 25, 2009 – Version 1.0 43
Slide 44: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION GIS Data Consolidation DESCRIPTION Build on Oregon’s achievements in geospatial data coordination to create a Geographic Information Systems (GIS) data warehouse within the State Data Center blending agencies’ currently separate GIS data sets into a single strategic asset to which each agency contributes and all can use. BACKGROUND GIS data has become an increasingly important and valuable component in management, planning and decision-making. The State of Oregon has been successful in coordinating the development and use of geospatial data across the state. The DAS Geospatial Enterprise Office (GEO) has created a data clearinghouse where standards-based data sets are provided in a statewide projection for all users. GEO has created data exchange standards, and data sets that adhere to those standards. GEO has established cooperative partnerships in data creation (e.g., aerial imagery, transportation and tax data). The National States Geographic Information Council (NSGIC) has identified Oregon as one of only nine states in the nation that meets all of the key factors for successful geospatial coordination. That success has provided a sustainable conduit for Federal funding over the years. Still, one objective has not yet been achieved. Some GIS data sets held by agencies are still not part of a common statewide geospatially enabled data environment. So certain pieces are missing that would provide value for all other agencies. Governor’s Executive Order 00-02 promotes agencies’ coordination of GIS activities. It does not consolidate data so it can be developed once and then be available for use by all. It does not envision GIS data as a strategic asset with ever increasing value. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Charter a multi-agency workgroup as a partner with the EISPD Geospatial Enterprise Office to act on behalf of all agencies to plan the consolidated and coordinated development, maintenance and use of GIS data. The group would first inventory all of the existing GIS data and applications deployed by the agencies of state government. Then it should inventory agencies’ common and unique business requirements for GIS data. Finally, it must inventory constraints placed by agencies or external authorities on the shared use and availability of GIS data. Then it will compile a composite requirements specification for a consolidated GIS data warehouse housed in the State Data Center. Evaluate those requirements to determine if and how a consolidated GIS data source appropriately available to all agencies might work. Compare the current and potential GIS data scenarios to determine the scope of potential savings and the feasibility of the concept. If projected cost savings warrant, plan and implement migration to a consolidated GIS data source serving all agencies. KEY ISSUES The common nature of GIS data makes it an excellent candidate for cost optimization efforts in the realm of data sharing. Still there are real roadblocks to a single consolidated GIS data set available to all agencies. While progress toward the target objective of a consolidated GIS data set might be staged over time, cost savings would be tangible and significant at each stage. Inevitably, this approach represents a significant cost savings and value optimization opportunity (as documented in the NavigatOR business case). Additionally, this approach begins the process of enabling metrics on the true costs of GIS data development and maintenance across the agencies which will provide a benchmark for further efforts. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Medium X X Low X X X June 25, 2009 – Version 1.0 44
Slide 45: Progress Report on Information Technology Cost Optimization and Efficiency - Appendices CONCEPT DESCRIPTION / INITIAL EVALUATION AND PRIORITIZATION Enterprise Anti-Spam DESCRIPTION “Spam” can be defined as, “…the abuse of electronic messaging systems…to send unsolicited bulk messages indiscriminately.” Spam messages often contain malicious features that can attempt to disable or corrupt a system as well. Intelligent hardware and software filters are routinely put in place across networks and in systems to serve as countermeasures for Spam (i.e., Anti-spam). Consolidate the various anti-spam services now occurring at several agencies into one robust service provided as a utility by the State Data Center optimizing cost and freeing valuable staff resources to better focus on targeted business objectives. BACKGROUND The agencies of Oregon state government process many millions of e-mails per month. A significant percentage of those e-mails are Spam. Without filters in place state employees would be bombarded with unnecessary, routinely offensive and potential damaging material. The State Data Center provides anti-spam filters applied to all the traffic that flows over the consolidated networks and through the state’s e-mail hub. At the same time several other agencies also have anti-spam filters in place in order to apply different criteria to the data traffic between the State Data Center and their email systems in order to address specific business requirements. Together, these multiple systems are very effective in reducing the risks, resource impact and direct costs associated with Spam. But redundant anti-spam processes also mean that software licensing, maintenance and support costs are also replicated. With rigorous planning and consideration of agencies’ special requirements a robust, consolidated anti-spam solution should be possible as a utility service of the State Data Center optimizing cost while also accommodating agencies’ unique business-driven requirements. HIGH-LEVEL ACTION PATH TO IMPLEMENTATION Charter a multi-agency workgroup partnering with the State Data Center to act on behalf of all agencies to plan a consolidated anti-spam solution. The group would first inventory all of the existing anti-spam countermeasures being applied by the agencies of state government. Then inventory agencies’ common and unique business requirements for anti-spam and related services. Compile that needs assessment into composite requirements specifications for a consolidated anti-spam service. Then evaluate those requirements to determine if and how a single point anti-spam solution would operate. Compare the current and potential anti-spam solutions to determine the scope of potential savings. If projected cost savings warrant, plan and implement migration to the consolidated anti-spam solution offered as a utility service by the State Data Center. KEY ISSUES Anti-spam filtering requirements and practices are already well documented across the agencies as they are a fundamental part of rigorously applied information security practices. Still, when contemplating consolidation of a service such as anti-spam countermeasures the complexity and criticality of the undertaking must be evaluated and well understood. Agencies’ special data and system requirements are likely to be complicating factors, especially when viewed in the composite. With appropriate safeguards and planning these potential barriers should be overcome. PRELIMINARY EVALUATION / PRIORITIZATION RELATIVE PRIORITY (Priority of action when compared to the list of identified opportunities) RESOURCE IMPACT (Resources needed to plan and act on opportunity / Level of effort) POTENTIAL SAVINGS (Degree of change in dollars routinely spent now that are not spent) EFFICIENCIES (Measurable reduction or improvement in process resulting in optimization) TIME TO COMPLETION (High = FY2011-13 / Medium = FY 2009-11 / Low= Almost Immediate) High Medium X Low X X X X June 25, 2009 – Version 1.0 45