Statewide Enterprise Resource

Planning (ERP) Systems Project

Presentation
for
ERP Advisory Council

July 23, 2008 1 Comptroller of Public Accounts

 Agenda

• Call to Order and Welcome

• Roll Call
• Review and Approval of Minutes
• Agency/Higher Education ERP Workgroups Status
• ERP Project Review Process
• ERP Business Case Study
• ERP Report to Legislature
• Public Comment
• Future Meetings
• Adjourn
July 23, 2008 2 Comptroller of Public Accounts
 Project Timeline
Mar 08’ Apr 08’ May 08’ Jun 08’ July 08’ Aug 08’ Sept 08’ Oct 08’ Nov 08’ Dec 08’

Development of the ERP Implementation Plan

Initial workgroup
reports

Anticipated
workgroup reports

Business case development

Final report drafted

including external comments

Report submitted

July 23, 2008 3 Comptroller of Public Accounts

 Current ERP Workgroups

New and continued workgroups:

• Accounts Payable
Focus: Web based travel voucher
• Statewide Considerations
Focus: Unique business identifier
• Vehicle Fleet Management
Focus: Statewide Requirements and replacement
of Fleet Focus

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 ERP Project Review Process - Status

• The process was effective July 1st

• Have received four projects so far
• Communications to Executive Directors - cc CFO/CIO

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 ERP Project Review Process - Submission Criteria

You must complete the form if you plan to:

• Implement a new system

• Implement a new module
• Change the software version
• Implement any ERP change costing more than $500,000 that does
not fall under one of the above categories

When in doubt, call J.P. or complete a form.

Questions? Call J.P Wardle at 475-0746

or email j.p.wardle@cpa.state.tx.us

July 23, 2008 6 Comptroller of Public Accounts

 ERP Business Case Study - Deliverables
• Project plan (completed)
• Determination of alternatives to be evaluated (completed)
• Assessment of existing administrative systems*
• Inventory of process improvement opportunities*
• High-level (as is) interfacing systems model*
• Business case analysis report
• Funding plan report
• High-level implementation plan analysis report
• Executive briefings and testimony support

* Survey results are key ingredients – 24 agencies/6 university systems

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 ERP Business Case Study - Alternatives
Alternative solution scenarios to be evaluated
Scenario 1: Status Quo – Assumes that the State continues on its current path of
operating existing systems for each agency/institution in accordance
with the results of the CPA’s November 2007 survey.
Scenario 2: Single ERP System – Replace the existing statewide legacy
administrative systems (e.g., USAS, USPS, SPA) with a new, fully
integrated, commercially-available ERP system that would provide all
functionality identified in HB3106. One (1) statewide ERP system for
all agencies and all institutions of higher education would be
established and operated by the CPA. There would be multiple ERP
instances but all under a common, unified ERP code baseline.
Scenario 3: ERP System Hub Model - Replace the existing statewide legacy
administrative systems (e.g., USAS, USPS, SPRS, SPA) with a new,
fully integrated, commercially-available ERP system; the CPA would
operate as an Application Service Provider (ASP) for most State
agencies under this model. Higher education institutions and HHS
agencies (HHSAS) would operate under a decentralized processing
model as data reporting “hubs” and would be interfaced into the
Statewide Data Warehouse platform.
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 ERP Business Case Study – Alternative 2

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 ERP Business Case Study – Alternative 3

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 ERP Business Case Study – Primary Components

ERP Costs ERP Benefits/Avoided Costs

– Software 1 Avoided Systems Costs 2
– Hardware – Replacing current systems
– Implementation – Not implementing planned systems
– Upgrades vs. – Not performing planned/anticipated
– Ongoing Maint. & Mgmt. enhancements/upgrades to existing
and planned/anticipated systems
– Training once implemented
3
Process Improvement Benefits
– Value Pocket benefits

July 23, 2008 11 Comptroller of Public Accounts

 ERP Business Case Study – Primary Inputs

July 23, 2008 12 Comptroller of Public Accounts

ERP Business Case Study – Accomplishments to Date
• Finalization and documentation of Business Case Alternatives to be Considered
• Finalization of detailed Project Plan (living document)
• Finalized generic agency survey template and customized surveys for each of the
24 agencies to be surveyed (added their actual Nov. 7th survey results and the
time period within which they are assigned to deploy the ERP software for study
purposes only)
• Assigned CPA Agency Liaisons to provide support in completing surveys
• Prepared training materials and conducted training for CPA Agency Liaisons
• Completed Planned Deployment Schedule (excluding Higher Education) for
Alternatives 2 and 3 (used for study purposes only)
• Conducted survey training for 24 agencies on 7/16 and 7/17
• Obtained “Buy-in” for project approach and alternatives from Higher Education
hubs (UH System was not in attendance)
• Conducted initial “kick-off” meeting with Texas State University System
leadership regarding their specific involvement in completing the business case
• Initiated development of detailed cost estimate for Alternative 2 (Pure ERP)
• Customized surveys for 10 statewide systems to be completed by CPA

July 23, 2008 13 Comptroller of Public Accounts

 Recommended Outline for Report to Legislature
¾ Introduction
* Executive Summary
* Acknowledgements
¾ The ERP Plan
* Advisory Council’s Approach
* Key Requirements & Functionality
* Constraints and Assumptions
* Projected Timeline & Cost
¾ Current Environment
* Statewide
* Agencies & Higher Education
July 23, 2008
¾ ERP Workgroup Reports
* Findings & Recommendations
* Requirements/Constraints/Assumptions
¾ Independent Business Case Study
* Approach to Business Case
* Major Assumptions & Guidelines
* ERP Alternatives for Texas
* ERP Recommendation for Texas
* Other Key Findings
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 Primary Communication Vehicle

http://www.texaserp.org

July 23, 2008 15 Comptroller of Public Accounts

 Future ERP Advisory Council Meetings

• August 20
• September 24
• October 29
• November 20
• December 18

These are strategically scheduled to be held after all

CFO/CIO ERP Committee meetings so that we can
present you with their thoughts, concerns and ideas

July 23, 2008 16 Comptroller of Public Accounts