Presentation on theme: "IT Investment Management (ITIM) and the Integrated Financial Management System (IFM) Ernest F. Steidle, Ph.D. Deputy Commissioner, Administration and Chief."— Presentation transcript:
1IT Investment Management (ITIM) and the Integrated Financial Management System (IFM) Ernest F. Steidle, Ph.D.Deputy Commissioner, Administration and Chief Operations OfficerCommonwealth AITR Communications ExchangeOctober 28, 2008Notes: Self-explanatory.1
2Project ScopeIntegrates all fiscal processes, fiscal data management systems and data exchange processes for five DSA agencies and their subordinate units into a single systemDepartment of Rehabilitative Services (DRS)Woodrow Wilson Rehabilitation Center (WWRC)Department for the Blind and Vision Impaired (DBVI)Virginia Rehabilitation Center for the Blind and Vision Impaired (VRCBVI)Virginia Department for the Deaf and Hard of Hearing (DDHH)Virginia Board for People with Disabilities (VBPD)A data exchange engine that allows communication between CARS, CIPPS and eVa via 28 data exchange files with agency based systems.Upon implementation, used by 25 COV agency codes.Notes: Self-explanatory.
3Identification of Gaps A high level of scrutiny by objective outsiders leads to questions that when answered, improves project performance, stakeholder expectations and reduces risk.The project began using traditional life cycle processes, a detailed contract and unrealistic expectations.DRS/DSA followed IT Investment Management (ITIM) Project Management (PM) processes required for Major Projects to uncover gaps and problem areasNotes: Self-explanatory.
4Identification of Gaps There was no vendor management planThe contract requirements was the only documentation guiding deliverables. There was no mention of agency staff roles or expectations. Deliverables were not organized by project life cycle.Commonwealth PMD identified that the Vendor’s management plan lacked key details for a Major IT ProjectProject Team involvement was inadequate resulting in inconsistencies in understanding project requirements.The project began several timesA re-charter of the Project Teams along with definitions of Team responsibilities and a high level of management support resolved this issue.Because of the lack of a coherent Vendor Management Plan, the detailed project plan was flawed.Commonwealth Project Management Division (PMD) identified the problemProject status immediately went to “Yellow” alerting managementConducting weekly status meetings revealed inconsistencies with the Project ScheduleCommonwealth PMD identified that the schedule showed 70% complete but supporting tasks showed 0% completeAll of the problems were related!
5DRS/DSA BenefitsProject was headed toward failure. Early intervention allowed a realignment of milestones and more realistic deadlinesProject risks were significantly reduced by establishing consistency between a vendor management plan, project plan and project scheduleStakeholder expectations were properly managed with clear expectations of project team participants and an accurate project scheduleRisk aversion thru transparency is the name of the game. ITIM PM provides the tool.Notes: Self-explanatory.
6DRS/DSA Process Areas of Improvement Just the right governance, just in time (under development by the ITIM Customer Council)“Right size” governance requirements to project complexityFirst priority is the project resultEstablish viable project performance measures to insure project outcome exceeds user expectationsA “yellow” or “red” status report is not necessarily “bad”It can elicit additional support from outside resources to get the project back on trackClear communication with IV&V vendor is key for valid, relevant IV&V recommendationsCOSTFor IFM, 10% of Project cost is IV&VFor IFM, 10% of Project Cost is internal PM
7Lessons LearnedITIM has potential to reduce risk and save money, but it is still maturingITIM PM is not embraced by all agencies in the Commonwealth and not necessarily fully mature at this point, but the refinement work continuesWhile ProSight is one of the #1 leading tools for managing investments, some infrastructure issues remain and expect growing painsSometimes ITIM PM produces a false negative! Don’t be shy about pointing it out.An ITIM Standard will help agency business and IT leaders understand the value of using investment management processesNotes: Self-explanatory.Communicate ITIM processes to your agency
8Presenter Presenter’s Title Group/Event Name Date Commonwealth IT Investment Management (ITIM) StandardManaging Technology Investments to Provide Value to Citizens in VirginiaPresenterPresenter’s TitleGroup/Event NameDateNotes: The purpose of this presentation is to provide an information briefing on the Commonwealth IT Investment Management Standard and how it supports business in the Commonwealth today.8
9WHY IS ITIM IMPORTANT FOR THE COMMONWEALTH? Commonwealth goal of continuous improvementNotes: These slides are from a presentation given by the Secretary of Technology to the Council on Virginia’s Future in The goals remain the same.Slide 1:The Commonwealth must find ways to meet increasing demands. Cost savings was one of the solutions offered up. Through sound analysis and selecting the right investments, potential cost savings can be found.Slide 2:The ability to lower operation costs was also targeted. Through ITIM/Portfolio management comes the ability to analyze on-going operational investments to reconsider their viability and contribution to the organization’s strategic direction. This analysis has the potential to lower costs as cheaper alternatives are found and redundant investments retired.Slide 3:As demonstrated in the third slide some of the best performers are innovators. As Alan Greenspan pointed out, increases in productivity can be directly attributed to the incorporation of innovative technology. It then follows that the ability for an organization to have a standard consistent and innovative method for handling I.T. investments is essential.“Expand constituent impact through lower operation costs”“We must pursue more aggressive, transparent goals” Governor Tim KaineThe Commonwealth must find ways to meet increasingdemands through cost savings and increased productivity.Investment management can contribute to lower operating costs and the generation of internal capital.The Commonwealth must be innovative in the way in which it invests in IT.
10HOW DOES ITIM SUPPORT COMMONWEALTH BUSINESS? Maximizes business valueAllows the Commonwealth to select IT investments that align with business goals and objectivesExamples:Business Need IT StrategyReducing long customer wait timesWeb-based customer service applicationsObtaining quick access to medical dataHigh performance networks and databasesPreparing for hurricane evacuationsNew wireless radios and centralized computersIdentifying vehicle license platesHigh speed laptops in State Police carsReducing the time to process tax paperworkWeb-based software solutionsNotes:IT Investment Management (ITIM) supports Commonwealth Business by maximizing the business value through the identification (the agency strategic planning process defines business needs) and selection (selecting IT investments that align with business goals and objectives using strategies from the Enterprise Architecture) of those investments.Your business drives Commonwealth IT investments
11WHAT CAN ITIM DO FOR MY AGENCY? ITIM is a proven business investment methodology that will help you:Align investments to business goals and objectivesIdentify and track spending on IT investmentsControl and monitor IT investment projectsConfirm that IT investments are meeting business objectivesLeverage IT investment opportunities that may generate internal capitalMake informed decisions on an IT investment portfolio by assessing value and riskNotes:IT Investment Management is a proven business investment methodology used successfully around the world by leading organizations both in the private and public sectors to:1. Align investments to business goals and objectives2. Identify and track spending on IT investments3. Control and monitor IT investment projects: Investments are often not made based upon a specific long term business strategic goal but are a reaction to daily operational emergencies. Once an investment decision is made, it is also important that the investment be controlled and monitored.4. Leverage IT investment opportunities that may generate internal capital: In general investments are made in isolation, in traditional stovepipes. A high-level standardized view of investments will allow the Commonwealth and agencies to identify like investments and leverage one against another for the greater good. In leveraging investments and identifying commonality, there is a great potential at all levels (agency and Commonwealth) to release capital that would otherwise be allocated to duplicate efforts.5. Make informed decisions on an IT investment portfolio by assessing value and risk: One of the primary goals of ITIM is to support value-based agency IT investment decisions. Value and risk must be tracked across the entire ITIM cycle.
12WHAT IS THE ITIM STANDARD? The ITIM Standard documents the current Commonwealth IT investment governance process, for better stakeholder understanding, that allows the ITIB and CIO to meet Code-directed responsibilities in collaboration with business leadersThe ITIM Standard utilizes best practices that are commonly used in both the public and private sector, around the worldNotes:The purpose of the Commonwealth of Virginia Information Technology Resource Management ITIM Standard (ITIM Standard) is to:Describe the phases in the ITIM process;Define how the value of an IT investment is measured in each phase;Identify the required actions associated with each phase; andAssign roles and responsibilities for those actions,in order to maximize the business value of IT investments in the Commonwealth.
13Commonwealth Technology Portfolio ITIM ANSWERS KEY INVESTMENT QUESTIONS FOR BUSINESS LEADERSCommonwealthStrategic PlanningProcessBusiness Plans & NeedsWhat proposed IT investments potentially solve business needs?Pre-SelectInvestment ResultsWhich IT investments best meet the business needs?Commonwealth Technology PortfolioEvaluateSelectNotes:ITIM is a key component/building block in Performance Management and that the fundamental principals of investment management support Efficiency and Effectiveness. ITIM is about selecting the right investments; insuring that these investments align properly to the organizations’ missions, goals, and objectives; insuring that the investments are performing as planned; and determining if the investments delivered the anticipated business value. At the center of the process is an automated IT Investment Management Tool, the Commonwealth Technology Portfolio, which captures all IT investments and provides analytical tools to assist management with business decisions.ITIM is the Commonwealth’s primary process for:Identifying which proposed IT investments potentially solve agency business needs;Selecting IT investments that best meet the business needs;Monitoring the performance of the initiatives for developing and placing the selected IT investments into operation; andDetermining if the selected IT investments are continuing to deliver the expected business value.The ITIM process consists of four Phases. The goal of the Pre-Select (Identify) Phase is to identify, analyze, and document IT investments that support agency business needs. The goal of the Select Phase is to decide from among the investments identified in the Pre-Select (Identify) Phase which investments to undertake. The goal of the Control Phase is to ensure that IT investments are developed and placed in operation using a disciplined, well-managed, and consistent process. The goal of the Evaluate Phase is to compare the actual performance results and benefits of an investment to the range of target performance measures established for the investment. The ITIM process is repeated within the agency and the Commonwealth on an annual basis and as part of the budget cycle.Did the selected IT investments deliver the expected business value?ControlAre the selected IT investments performing as planned?
14WHAT BENEFITS HAVE WE ALREADY SEEN? There have been no failed major projects in past 5 yearsProjects are completing and meeting performance goalsThe Commonwealth has significantly lowered project failure risks and improved decision-making capabilitiesIT investments are aligned with business strategyThe Commonwealth has a systematic approach for managing portfolio risk and controlling investment activitiesThe Commonwealth has identified new opportunities such as shared servicesNotes: Self-explanatory.
15AS AN AGENCY, WHAT DO I NEED TO DO? Identify and document business needs derived from:Citizen needsCouncil on Virginia’s FutureGrant fundingCode of VirginiaAgency Strategic PlansConsumer boardsGovernor’s initiativesCommonwealth Strategic Plan for ITFederal and State mandatesEvaluate, score, and rank IT investmentsPrioritize IT projectsIdentify business needs and prioritize potential investmentsDevelop Investment Business CasesResearch possible enterprise/collaboration opportunitiesUpdate the Agency Strategic Plan and Commonwealth Technology PortfolioNotes: Self-explanatory.
16A COMMONWEALTH ITIM SUCCESS STORY - VDOT Fleet Equipment Management Information System (FEMIS)VDOT had a business need to track and manage fleet equipmentDocumented need for IT investment in the Agency Strategic Plan and Commonwealth Technology PortfolioBusiness need aligned with the goals and objectives from the Council on Virginia’s FutureNotes: Self-explanatory.
17A COMMONWEALTH ITIM SUCCESS STORY – VDOT (continued) Fleet Equipment Management Information System (FEMIS)Commonwealth CIO reviewed the Investment Business Case in the portfolio and saw a potential for multi-agency solutionVDOT worked with the CIO to establish a shared service that will benefit multiple agenciesCommonwealth contract is now in place for all agenciesShared service will reduce Commonwealth costs to set up future independent contractsEnterprise investment opportunity and resulting shared-service would not have been identified without following ITIM best practicesNotes: Self-explanatory.
18AS AN AGENCY, WHAT DO I NEED TO DO NEXT? Translate business value into performance measuresDevelop detailed project plans and execute projects as directed in the Commonwealth Project Management StandardDevelop applications in accordance with statewide technical and data standards for information technologySubmit monthly status reports, requests for baseline adjustments greater than 10%, and IV&V reports for each Major IT Project (as scheduled)Notes: Self-explanatory.
19VA Election & Registration Information System (VERIS) A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE - SBEVA Election & Registration Information System (VERIS)SBE had a business need for a new statewide voter registration and election management systemProject started fine, but began to run into serious problemsVendor missed deliverables and milestonesAssumptions and user requirements were not clearly understood by all the stakeholdersVendor did not clearly understand the business problemNotes: Self-explanatory.
20A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE (continued) VA Election & Registration Information System (VERIS)ITIM governance and oversight helped recover a failing IT investmentInternal Agency Oversight Committee (IAOC) identified problem areas and escalated them to the Cabinet levelSecretary of Administration consulted with CIO on action planCIO recognized need for new Project Manager and weekly assistance to the Project Management teamA “Help America Vote Act (HAVA)” compliant system was finally delivered, but there were several key lessons learned along the wayNotes: Self-explanatory.
21A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE (continued) VA Election & Registration Information System (VERIS)Lessons learnedVERIS Post Implementation Review Report dated September 19, 2008 stated, “Ensure that the state standards for project management and development are followed”Stakeholder identification and commitment is vital to successAssumptions and user requirements must be identified and validated early in the investment lifecycleThe statement of work with the vendor must be detailed and accurateA realistic, achievable, and detailed project plan is critical to successNotes: Self-explanatory.
22AS AN AGENCY, WHAT DO I NEED TO DO NEXT? Conduct Post Implementation Reviews on Major IT Projects using the asset performance measures established in the Control PhaseUse asset performance measures to measure the business valueDocument IT asset performanceAnalyze gaps between current business needs and performance of IT assetsMake a determination to maintain, migrate, improve, or retire each IT asset in the agency technology portfolioNotes: Self-explanatory.
23USING THE ITIM STANDARD Each phase of the ITIM process is clearly explainedAt the end of each phase, roles and responsibilities are clearly identified4.3 Control PhaseThe purpose of the Control Phase is to ensure, through timely oversight, quality control, and executive review, that IT investments are developed and placed in operation using a disciplined, well-managed, and consistent process.Notes: Self-explanatory.
24USING THE ITIM STANDARD (continued) Pre-SelectAt the end of the Standard, stakeholder responsibilities are listed in bullets and grouped together by phase for quick referenceSelectControlNotes: Self-explanatory.Evaluate
25Commonwealth Strategic Planning HOW DOES ITIM FIT WITHIN THE COMMONWEALTH’S EXISTING STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT MODEL?Commonwealth Strategic PlanningEfficiency & EffectivenessITIM insures that IT investments arealigned with the Council on Virginia's Future long term objectives and The Commonwealth Strategic Plan for Information TechnologyCouncil on Virginia’s Future2003Long Term ObjectivesCommonwealth Strategic Planning Process2005Notes:The following elements of the Performance Leadership model have been established over the past several years:The Council on Virginia's Future was established in 2003 to develop a vision and long-term goals for Virginia's future. It was also tasked with developing a performance leadership and accountability system for state government that aligns with and supports achievement of the vision (http://www.future.virginia.gov/index.php).The Commonwealth of Virginia’s strategic planning process was overhauled in At this time, the IT strategic plan was merged into the agency business plan (http://www.dpb.virginia.gov/sp/sp.cfm).The COVA Strategic Plan for Information Technology for was written in 2006 (http://www.vita.virginia.gov/library/default.aspx?id=829).ITIM is a key component/building block in Performance Management and that the fundamental principals of investment management support Efficiency and Effectiveness. ITIM is about selecting the right investments; insuring that these investments align properly to the organizations’ missions, goals, and objectives; insuring that the investments are performing as planned; and determining if the investments delivered the anticipated business value.ITIM in the Commonwealth is based on:The recognition that the Commonwealth strategic planning process drives technology investment strategies;The need to support effective communication about technology investment decisions;The concept that technology investments in the Commonwealth support and add value to the business of state government; and,The premise that technology investments should be prioritized, executed, and measured based on how they achieve agency and enterprise-wide strategic goals and objectives, and how they serve the critical business needs of the Commonwealth.I.T. Strategic PlansAgency Strategic PlansCommonwealth Information TechnologyInvestment Management(ITIM)Service Area PlansCommonwealth Strategic Plan for Information Technology2006
26ITIB approved September 30, 2008 NEXT STEPSITIB approved September 30, 2008Enhance investment portfolio management tool to better support ITIMNotes:The first step in implementing IT Investment Management (ITIMI) is to ensure that everyone has a level of knowledge and awareness of ITIM. An education campaign on the methodology, its benefits, its tie to performance leadership and how it will be implemented was incorporated into ProSight training classes and special presentations to agencies.Implementation of the portfolio management tool, ProSight, centralized procurements, project management, and IT strategic planning workflows into one system thereby streamlining the process.The ITIM standard provides the overall framework of requirements agencies are to follow. The ITIM Standard will be submitted to the ITIB for approval on 10/16/08.Execute an education and awareness campaign; enhance stakeholder understanding
29AS AN AGENCY, WHAT DO I NEED TO DO? Identify and document business needs derived from:Citizen needsCouncil on Virginia’s FutureGrant fundingCode of VirginiaAgency Strategic PlansConsumer boardsGovernor’s initiativesCommonwealth Strategic Plan for ITFederal and State mandatesNotes: Self-explanatory.
30AS AN AGENCY, WHAT DO I NEED TO DO? Identify business needs and prioritize potential investmentsDevelop Investment Business CasesResearch possible enterprise/collaboration opportunitiesUpdate the Agency Strategic Plan and Commonwealth Technology PortfolioNotes: Self-explanatory.
31AS AN AGENCY, WHAT DO I NEED TO DO? Evaluate, score, and rank IT investmentsPrioritize IT projectsNotes: Self-explanatory.
32AS AN AGENCY, WHAT DO I NEED TO DO NEXT? Translate business value into performance measuresDevelop detailed project plans and execute projects as directed in the Commonwealth Project Management StandardDevelop applications in accordance with statewide technical and data standards for information technologySubmit monthly status reports, requests for baseline adjustments greater than 10%, and IV&V reports for each Major IT Project (as scheduled)Notes: Self-explanatory.
33AS AN AGENCY, WHAT DO I NEED TO DO NEXT? Conduct Post Implementation Reviews on Major IT Projects using the asset performance measures established in the Control PhaseUse asset performance measures to measure the business valueDocument IT asset performanceAnalyze gaps between current business needs and performance of IT assetsMake a determination to maintain, migrate, improve, or retire each IT asset in the agency technology portfolioNotes: Self-explanatory.
34GOVERNOR’S MESSAGE: CONTINUOUSLY IMPROVE MANAGEMENT OF IT INVESTMENTS Optimize management, efficiency and productivity from our information technology investmentsAlign the Commonwealth’s business model and IT strategyImprove maintenance and operations planningIncrease transparency in our return on investmentProvide a comprehensive IT governance model for managing all the IT resources of the CommonwealthNotes:In January 2008, Governor Kaine sent the following letter to the Chairman of the IT Investment Board:The Commonwealth has made significant strides in the management of its informationtechnology resources since the establishment of the ITIB and VITA several years ago,particularly in the areas of project and infrastructure management.While these gains have been impressive, the Auditor of Public Accounts’ December 2007report on Information Technology Governance highlighted additional improvement opportunitiesin the areas of IT governance, portfolio management and IT budget oversight.I am recommending an improved approach to managing these areas with the assignmentof the Director of the Virginia Enterprise Applications Program to the position of ChiefApplications Officer (CAO). Recognizing the current budget constraints, and striving to leverageexisting Commonwealth resources, I am requesting your assistance in the development of anoperational plan to improve oversight and management of the areas listed above.Some of these responsibilities currently lie with the Chief Information Officer. Workingtogether, I am confident we can properly align these to optimize management, efficiency andproductivity from our information technology investments. These efforts will better align theCommonwealth’s business model and IT strategy, improve maintenance and operationsplanning, enhance enterprise application efforts, create data standards, increase transparency inour return on investment, and provide a comprehensive IT governance model for managing allthe IT resources of the Commonwealth.To see the IT Investment Board discussion regarding this request, go to page 3 of 6 of the ITIB meeting minutes for 1/17/08 at
35GENERAL ASSEMBLY’S MESSAGE: MANAGE IT INVESTMENTS MORE EFFECTIVELY § Information Technology Investment Board. “The Board shall be responsible for the planning, budgeting, acquiring, using, disposing, managing, and administering of information technology in the Commonwealth.”§ CIO. “Direct the development of policies and procedures for the effective management of information technology investments throughout their entire life cycles, including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement.”Notes:For links to enabling legislation for VITA and the ITIB, go to
36ITIM PORTFOLIO INFORMATION OVERVIEW (CURRENT AND FUTURE) Commonwealth Strategic Planning ProcessAssets Includes Services(Future)ITIM ProcessesProjects(Current)Commonwealth Technology Portfolio (ProSight)Notes:The Commonwealth Technology Portfolio (CTP) is the executive branch repository for technology investments, and is an aggregated view of individual agency projects and procurements supporting Commonwealth and agency business strategies. The CTP documents the current “as-is” view of projects and procurement, and facilitates selection of technology investments for the migration to the “to-be” enterprise architecture. The selection of technology investments, and migration to the "to-be" architecture, begins with a comprehensive analysis of the current ("as-is") technology portfolio. When the “as-is” state is understood, the Commonwealth can evaluate the ability of the portfolio to meet the strategic goals and objectives, and/or address critical business needs, and select IT investments that best support agency missions and the business activities of the Commonwealth. In the future, assets (infrastructure services and solutions) will be added to the CTP.Procurements(Current)
37A COMMONWEALTH ITIM SUCCESS STORY - DEQ Document Management ImplementationDEQ had a business need for consistent records management processes that included quick, efficient, and reliable electronic access to documentsDocumented need in the Agency Strategic PlanBusiness need aligned with the goals and objectives from the Council on Virginia’s FutureIdentified need for IT investment to CIONotes: Self-explanatory.
38A COMMONWEALTH ITIM SUCCESS STORY – DEQ (continued) Document Management ImplementationCommonwealth CIO reviewed the business case in the portfolio and saw a potential for an Enterprise effortDEQ worked with the CIO to consolidate document management requirements across the CommonwealthVEAP took lead on setting up Enterprise contractsEnterprise investment opportunity and resulting contracts would not have been identified without following ITIM best practicesNotes: Self-explanatory.