4Our Aim“Programme Athena is about creating shared solutions for London public sector organisations to gain the opportunity and ability to deliver significant efficiencies and service improvements for ICT-enabled support service functions such as Finance, Procurement and HR.”
5Why? Savings Cash savings, e.g. through reduced systems Efficiency gains, e.g. through reduced procurementCost avoidance, e.g. by joint development and upgradesCapacity building, e.g. by sharing processesPerformance improvement, e.g. by having best practiceStrengthening our resilienceTransforming our service offeringProviding a catalyst for partneringEstablishing a regional model…………….doing something that makes sense
6Overall Athena outcomes: Reduction in the number of systems and suppliers meaning reduced annual running costs and one-off costsSolutions that are accessible to all London boroughs providing flexibility for the state of readinessBoroughs enabled to share back office staff, so as to reduce costs, provide resilience and improve skillsLondon sharing back office systems in the same way as other organisations across the country6
7Our Starting Position Organisations have common suppliers and systems 4 suppliers providing 28 finance systems in London4 suppliers providing 23 of the procurement systems in London4 suppliers providing 29 of the payroll/HR systems in LondonProcuring and managing systems and suppliers as individual boroughsSignificant cost variations between boroughs
8Our Starting Position – cont’d Organisations are not fully utilising all the modules available to them to service these core needsOrganisations are utilising the modules differentlyOrganisations are not getting the benefits and efficiencies from a fully integrated solutionOrganisations set processes around the systems which are not consistently applied and which may or may not be efficientOrganisations are using different processes yet deliver exactly the same servicesICT is one of the main barriers preventing organisations connecting
9Our Journey Standardise Consolidate Share services Cut cost Use market Managed servicesShare servicesTransformation of resources management
10How we are making the journey By radically reducing the existing systems and costs through sharing so that boroughs are able to share back office functionsBy increasing commonality of processes to reduce the number of separate systems and the different ways of using these systemsThe two key themes running through a number of work streams:Enabling through commonalityValue through shared solutionsCost of ownership and processes are seen as fundamental for understanding the benefits
11The History Original concept Launch Initial reactions Market involvementHow the approach changedResources in the past
12Where we are now Three mobilised projects: Oracle (6 boroughs, plus 10 possible)SAP (2 boroughs)Neutral (3 boroughs, plus 16 possible)Other SAP and Oracle boroughs working togetherAgresso and Cedar evaluating options and preparing business casesCommon metrics draftedCost of ownership on back office systems being gatheredGroups being created for Midland Trent and NorthgateInformation on procurement systems being gathered and strategy developed
13Resourced Team Programme Director (part time) Programme Manager Programme SupportFinance work streamHR work streamProcurement work streamCost of ownership, metrics and benefitsCommunications (part time)
14Our Governance Lead Chief Executive Programme Sponsors Project Leads Professional leads
18One Cedar Led by a Director of Finance Boroughs involved: Camden IslingtonHackneySenior Officer group overseeing and guidingProject ManagerSupplier providing support and advice
19The journey being considered Can systems support & development teams be shared?Can contracts be converged or there be joint procurement going forward?Can processes be agreed to help future sharing?Can boroughs agree the configuration of a new solution based on best practice across all three boroughsCan the upgrade to e5.3 provide the opportunity?
20Factors being considered Is it Greenfield or Brownfield?Is it multi-entity or multi-company?Can it be scalable and how?Are there quick wins?
21How it’s being undertaken Workshops of various staff on:General ledgerAccounts receivableAccounts PayableBusiness intelligenceGathering core information e.g. interfaces, modulesSharing “as is” and developing “to be” processesScoping the options and discussing the featuresGathering metricsAgreeing Golden RulesIdentifying quick wins
22Challenges Catalogues and Procurement Strategies Differences organisationallyWhere images are heldAssessing the implicationsDifferent levels of benefitsExisting contractual arrangements
23Some of our Golden Rules Where possible GL codes are not held in interfacesThere should be standard subjective and sub-nominal listing with the same descriptorsThe production of the returns should be produced from E5 at the push of a button with 95% accuracyModules should have standard interfaceThe approval and coding should be at the point of initial procurementCoding should be auto-generated
25One Agresso Led by a Director of Finance Boroughs involved: EalingHounslowKingstonSuttonRedbridge (withdrawn)Operational group overseeing and guidingSupplier involved
26Where we are Outline business case drafted This involved: Gathering core information, e.g. interfaces, modulesScoping the options and discussing the featuresGathering metricsSupplier requested to provide alternative options and modelsBusiness case still not compelling
27Challenges Getting a reasonable return on investment Unbundling hosting arrangementsImplementation costsUnderstanding the implicationsDifferent levels of benefits for each borough
28How we are moving forward Approach is to look to align boroughs to reduce implicationsSharing “as is” and considering “to be” processes using work of Cedar to maximise alignmentConsider systems support opportunitiesFurther work on hostingConfirm Golden RulesContinue with quick winsDoFs discussing strategic direction
29Information about the approach on mobilised projects
31One Oracle Project involving 6 boroughs: Lambeth, Brent, Barking & Dagenham,Croydon, Havering and Lewisham Memorandum of understandingWorking together towards establishing a shared service for finance and procurement transactional processing and HR transactional processing services; all delivered using Oracle E-Business Suite Release 12
32Background Driver was the need to upgrade to Release 12 Procurement has taken place and is now completedTen other London boroughs have been named along with Kent CC on the OJEU, so as to have the option to access at a future pointUsing the other boroughs as critical friends to assist as well as help maintain engagementFramework governance agreement developed for each stage
33How we are undertaking it Various work packages set out scope and concepts agreed by Governance BoardStrong Leadership and GovernanceGathering core information e.g. interfaces, modulesSharing “as is” and developing “to be” processesScoping the options and discussing the featuresGathering metricsAgreeing principlesIdentifying quick wins
34Current PositionCapGemini awarded systems integrator and systems hostingMobilisation and implementation phases commencedLicensing and support being finalisedWork packages continuing with boroughs leading different aspectsAssessing benefits achieved to date
36One SAP Project involving 2 boroughs: Haringey and Waltham Forest Memorandum of understandingWorking together towards establishing a shared service for finance and procurement transactional processing and HR transactional processing services; all delivered using Oracle E-Business Suite Release 12
37Some of our guiding principles Collaborate and work towards developing a common solution based on best practicesMaximise use if functionality and sharing potentialMinimise workarounds the systemMaximise opportunity to innovateMinimise transition effort and cost where possible
38How we are undertaking it Procurement requesting options, which includes a single instanceCompetitive dialogueDeveloping a local government solutionSAP providing supportReviewed “as is”Focused on an outcomes perspectiveStrong Leadership and Governance
39Current Position and Next Steps Evaluation of the Invitation to Participate completedSuccessful bidders to discuss and propose solutions through competitive dialogueVisits to reference sitesEvaluation of final proposed solutionsAward January 2013
41Tri-Borough Project Procurement Project involving 3 boroughs: Hammersmith & Fulham, Westminsterand Kensington & ChelseaNumber of other boroughs named on the OJEUScope includes HR, Finance, e-Sourcing, Business Intelligence and Property Asset Data Management across 4 lotsFramework via competitive dialogue
42DriversSupports the Tri-borough programme including front office changeContracts expiringFinancial SavingsBenefits of a managed service
43How we are undertaking it Various programme work streams and activitiesStrong Leadership and GovernancePreparing the business for changeCan procure a set of managed services including software as a serviceFramework is for 4 years, enabling call-offs of up to 5 years, plus a 3-year extension possibilityClear unit pricing with volume discounts
44Current Position and Next Steps Competitive dialogue commencingOther preparation work taking place within boroughs, including:business changestransition arrangementsclient arrangementsContract award December 2012
46Issues being faced Investment in current systems Understanding cost of ownershipTransition costsModules; legacy systems and interfacesExisting or new; Tier 1 or Tier 2; multi-company or multi-entity
47Issues being faced (cont.) Loss of identity and controlThe need for compromiseCommunications and engagement within the boroughs is important and must be promotedWorking across boroughs and through peer groups requires relationships and trust to be builtThe slowest holding others upAn honest broker is a key role and needs to be considered as part of resourcing arrangementsDetail is required, however too much detail then means that the end is never in sight. Clear leadership is required to strike a balance.
48Issues being faced (cont.) Several flavours of vanilla best practise processesDifferent interpretations when collating informationProcurement rules cause complexities along with differing views on the rulesLack of consistency in the legal adviceThe market does have something to contribute, and it is worth listening to suppliersConvergence, and ensuring the ability to continue to do this, is fundamentalIt is complicatedStrong governance is essential
49Our advice when starting a project Agree outcomes wanted and end visionGather information, including:Software versions and modulesServices that are using the systemsRelated contract arrangements including end date, annual costInterfaces in and outWhat environments existHow system is supported, maintained and hostedCosts against key areasLevels of investment and whenDevelopment plans, e.g. mobile working and upgradesAny critical paths, e.g. procurements or upgrades.
50Our advice when starting a project (cont.) Understand who is best to lead whatAgree some core metrics for performance aspectsAgree tactical strategy, including:Which boroughs are up for what; can support be shared now“As is” process workshop with aim to understand what each other do; learn some quick wins that could happen (e.g. joint development) as well as devise some golden rulesHave “to be” process workshopsConsider options and evaluateComplete the specification of what is wantedUnderstand boroughs gap analysis and implicationsJustification approach.
51Finally, why the name “Athena”… Goddess of WisdomA War Goddess focusing on strategy rather than bloodshedProvided resources that delivered many things