Beyond ERP & Survey Results Bob Sabo Executive Director, Public Sector Solutions

2 Topics Beyond ERP Survey Findings Transparency

3 Money Saving Idea The goats belong to Rent-A-Ruminant, a Vashon Island-based company that rents goats out to property owners and government agencies who need to clear vegetation. Rent-A-Ruminant was hired by the Seattle Department of Transportation.Rent-A-Ruminant

4 Money Saving Idea International Goat Landscapers and Laborers Union IGLLU

100% Custom – Fortran/Cobol – Punch Cards, COTS? ERP? What ’ s That? A Brief History of Business Applications 1970’s 1980’s 1990’s 2000’s… Internal (MIS only) – Mysterious people In cold rooms behind closed doors. Mainframe rules. First COTS/ERP Apps (GL/AP) but still mostly custom – End user terminals (green screen) appear Internal (MIS with some end user access.) Mainframe still rules but Mid range (and yes the PC) appears. ERP grows – Many more applications – PC/Client Server gives birth to “ Super User ” COTS takes the lead. Y2k a major driver Departmental – MIS no longer rules. Business users gain. Still Internally focused to organization Internet changes everything – Tremendous productivity gains/cost savings. Data for analysis, not just record keeping. Transparency is a major requirement. External Focus – Move outside Organization. Citizens, clients, vendors have access FOCUS

Five Key Trends in Government Software Applications Lean Processes Systematic and continuous process improvement COTS Increasing utilization of Commercial Off the Shelf Software Business Intelligence Using technology to support decision making Performance driving budget decisions Shared Services Multiple organizations benefiting from the same software and technology infrastructure. External Facing Applications/Services TransparencyCitizen Access Customer ServiceSocial Services

7 COTS – Commercial Off the Shelf Software SystemsIssues Old custom systems still around – UI systems average 22 years old (NASWA) – MMIS, Tax, some ERP 10+ years old Even 10 year old system not architected for external access Expensive to maintain Nearly Impossible to upgrade Excel Budgeting Fed/Special Reporting CAFR Multiple versions of the truth Hidden effort is still costly Multiple data handoffs Audit issues Vendors and customers have moved aggressively to replace Custom applications with Off the Shelf ones!

8 Topics Beyond ERP Survey Findings

9 Survey Results 24 States Responded Self Grade - Ability to deliver timely, useful financial reports to management 71% - budget reductions have had an impact on their ability to support financial reporting requirements and demand.

10 Survey Results - Timing 75 percent of the states note that it takes four to six months to complete and finalize the CAFR None of the states surveyed can complete the report in three months or less. However, two thirds of states note that they would like to complete and finalize the CAFR in fewer than 120 days. Is the bottleneck component units? Systems? Necessity?

11 Survey Results - Efficiency 33 % - CAFR process is extremely or somewhat inefficient 4% - four percent say that CAFR generation is completely automated. 71% - percent of the states noted that 25 percent to 50 percent of their financial staff’s time is spent on moving data or maintaining in-house developed routines to support the financial consolidation and reporting process. States are acting!

12 Survey Results – Data Analysis 25% - Of states surveyed note that inefficient manual processes pose the biggest challenge for analyzing data 25% - Not able to gain sufficient insight from their data and make use of it to drive actions or contribute to overall performance improvements 21% - Say their challenges divert time, money and resources from citizen programs or make it difficult to get timely information to managers who make decisions about funding and planning for these programs

13 Charting a Path Examine current processes – define and develop organization-wide priorities and strategies that include information architecture and transition timelines Evaluate technology options – choose flexible financial management technology tools that enable states to start small and add new functionality when they need it Open doors – select open, standards-based solutions that enable integration between disparate systems and data sources Think analytically – invest in business intelligence solutions that provide financial managers with the timely information they need to make more effective decisions Partner for success – work with trusted technology providers that can help define information management strategies and architecture requirements to capture, secure, analyze, use and share data effectively and in real-time across the organization

14 Topics Beyond ERP Survey Findings Transparency

15 Transparency Groundswell – All 50 states have transparency sites – Quality/comprehensiveness varies Following the Money 2011 – US Public Interest Research Group 2011 PIRG Report Online Access to Government Spending Data

16 Transparency Major Changes in Grades 2010 to 2012 Following the Money 2012 – US Public Interest Research Group 2012 PIRG Report Online Access to Government Spending Data

17 Transparency Following the Money 2012 – US Public Interest Research Group Major Changes in Grades 2010 to 2012

18 Indiana Transparency Portal

19 Define Transparency? 10 Criteria Goal – More than exposure Ratings for States, Cities, Counties, K12 Oracle Whitepaper: Transparency in the Public Sector: Its Importance and How Oracle Supports Governments Efforts

20 A Q &

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