South Carolina Enterprise Information System SCEIS Human Resources Spring Forum May 18, 2005

1 SCEIS Mission Standardize and streamline business processes Integrate government services and information systems of SC Adopt proven, best business practices in public sector Achieve a more cost effective and efficient delivery of service for stakeholders Finance, Procurement, Budgeting, Human Resources Access to timely, accurate and complete information Revolutionize the way SC government works for its citizens

WHAT?

3 SAP Includes Back Office Functionality Financials Budget Execution – Funds Management Project and Grant Management General Ledger Accounts Payable/Receivables Cash Management and Treasury Asset Management Travel Management Purchasing Inventory Management Budget Preparation What If Analysis Budget Modeling and Planning Human Resources/Payroll Organization and Position Management Personnel Administration Personnel Development and Training Recruitment and Applicant Tracking Compensation Management Benefits Administration Time Management Grievance Tracking EMPLOYEE SELF SERVICE (ESS) Payroll: Payroll Processing Work Flow Data Warehouse for SAP 7,000 Professional Licenses & 40,000 ESS Licenses

4 New SAP Product Suite – mySAP ERP 2004 NetWeaver SAP Enterprise Portal SAP Business Intelligence SAP Exchange Infrastructure runtime SAP Mobile Infrastructure SAP Auto-ID Infrastructure SAP Web Application Server SAP Solution Manager SAP Composite Application SAP NetWeaver Developer Studio SAP Treasury and Risk Mgmt. Transaction manager (asset mgmt) SAP Grants Management Manage programs from pre-award to post-award and reporting Strategic Sourcing Sourcing Capabilities (RFX and auctions) Strategic Capabilities (spend analysis, supplier evaluation and contract mgmt.) Supplier Relationship Management Contract negotiation and management Supplier management Catalogue content mgmt Self-service procurement Plan driven procurement Relationship monitoring SRM Vendor Employee Confirms goods delivered, services performed and enters invoices Supplier Enablement Order collaboration Supplier registration Supplier managed content CRM* (Customer Relationship Management) *although outside the scope of this project, CRM will provide additional functionality for the State as they move forward with other projects.

Project Team

6 SCEIS Partnership Project Sponsors n Comptroller General n State Chief Information Officer Integration Partners n BearingPoint n SAP n Team IA

7 SCEIS Executive Oversight Committee The SCEIS Oversight Committee will guide and coordinate SCEIS from a statewide strategic perspective. It will provide direct executive support for the project, including working with the executive and legislative leadership of the State to promote the project. Nat Kaminski, Comptroller Generals Office, (Chairman) Steve Osborne, Budget and Control Board, (Vice Chairman) Marshall Evans, Governor's Office Frank Rainwater, State Treasurers Office Brenda Hart, Senate Finance Committee Ben Homeyer, House Ways and Means Committee Chuck Fallaw, Chief Information Office Marcia Adams, Department of Motor Vehicles John Bourne, Department of Mental Health Sheila Breitweiser, SC School for the Deaf and Blind Harry Cooper, Department of Revenue Wendell Price, Department of Social Services

8 Central Project Team

9 Implementation Support Provided By Central Staff n System will be operational at central level before agency waves begin (fewer implementation issues) n Central support staff with functional leads to: –Direct blueprint design discussions –Assist agencies with implementation issues –Develop central policies and procedures n On-site project management teams to support agency implementations n SCEIS Web site with policy and procedure documents, training information, FAQs, etc. n Help Desk Support n Software, technical infrastructure and technical support personnel n Software upgrades, patches, etc. n Ongoing maintenance

Timeline

11 SCEIS Rollout Template A template that outlines a conservative approach to minimize risk has been adopted. It involves producing an Enterprise Blueprint, Pilot Implementation, Central Government Implementation and finally bringing groups of agencies online in waves. FY 2004 –05 Enterprise Blueprint* Design and technical planning phase for Statewide Implementation Central Government Implementation Production Implementation of Central Government Functions Agency Implementations Agency Implementations in Waves (3-6 months each) Pilot Implementation Isolated Pilot Implementation to Validate Blueprint 6-9 Months 6-12 Months 12 – 18 Months 3-6 Month Waves *Enterprise Blueprint – An enterprise blueprint represents our house plans for Statewide implementation. It provides the basis for revising and optimizing the States Business Processes.

12 SCEIS Financials/Materials Management and Budgeting - Proposed Rollout Plan Three high level enterprise projects: Financials/Materials Management, Budgeting, and Human Resources/Payroll will be implemented at a central level and rolled out to the agencies in waves. In general, agencies will implement financials/materials management, and budgeting, followed by human resources and payroll. The timeline for the first two modules is as follows: FY 2006 – 07 thru FY FY 2006 –07FY 2005 – 06 FY 2004 –05 Enterprise Financials Project Kickoff Financial/Materials Management Business Blueprint Initiated (6-9 months) By September 2004 July 2006 Enterprise Financials and Go Live: Financial/Materials Management Central State Agencies & First Wave Agencies Target Go Live July 2006 – June 2009 Enterprise Financials & Agency Waves Rollout of Remaining Agencies Until Completed (3 –6 month Waves) Enterprise Financials Implementation Phase Financial/Materials Management Implementation Phase Begins By July 2005 December 2005 Enterprise Budgeting Project Kickoff Budgeting Business Blueprint / Implementation Phase begins August 2004 Central Support Staffing Central Support Team Staffing and Training Begins July 2006 – June 2009 Enterprise Budgeting Go Live Budgeting will be implemented Concurrent with Financials

13 SCEIS Human Resources & Payroll Proposed Rollout Plan The HR/PR plan calls for a pilot implementation of the central HR/PR systems and a representative agency. Followed by agency implementations 3-6 months waves coordinated with their Financial implementation. Enterprise HR/PR Project Kickoff Human Resources & Payroll Business Blueprint Initiated (6 months) By Jan 2006 March 2007 Enterprise HR/PR Pilot Go Live: HR/PR Pilot Central State Agencies & First Wave Agencies Target Go Live April 2007 – June 2009 Enterprise HR/PR Agency Waves Rollout of Remaining Agencies Until Completed (3-6 month Waves) Enterprise HR/PR Pilot Implementation Phase HR/PR Pilot Implementation Phase Begins By July 2006 By Dec 2005 Central Support Staffing HR/PR Central Support Staffing & Training FY 2006 –07 FY FY 2006 – 07 thru FY

14 SCEIS Master Plan and Timeline

Costs

16 Statewide Implementation - Non-Recurring Costs Deliverables Currently Included n Business Blueprints for Finance, HR/Payroll and Budget n Implementation of All State Agencies – Excluding Lump Sum Funded Agencies n Implementation of All Central Systems n SAP Software Licenses: mySAP Business Suite7,000 Employee Self Service40,000 3rd Party SAP PR & Support50,000 Strategic Sourcingstatewide Supplier Enablement500 SRM Vendor Employee20,000 Treasury40 Grants1,500 SCEIS Non- Recurring Costs Spread over 5 Year Implementation $62.8 Million

17 Statewide Implementation - Non-Recurring Costs Deliverables Currently Includes n Document Management Equipment/Software for Agencies Central Offices n Enterprise Help Desk Software n NIGP Code Software n Data Center Hardware n End User Training (SAP, Imaging, etc.) n Central Support Staff Training n Change Management Fund ($5 million) n Contingency ($2.5 million) SCEIS Non- Recurring Costs Spread over 5 Year Implementation $62.8 Million

18 Proposed Cost Allocation Methodology Total estimate one-time costs to implement SCEIS statewide is $62.8 million The costs will be allocated with 25% paid centrally and 75% funded by the agencies $15.7 million of these costs will be funded centrally $47.1 million will be funded by state agencies Agency Portion due at Go Live date

19 Statewide Implementation - Recurring Costs Includes n Annual Maintenance - SAP Software n Annual Maintenance - Document Management Hardware and Software n Annual Maintenance - Data Center Hardware n Central Support Staff Costs n State Data Center Operations SCEIS Recurring Costs At full Implementation Grow to $12.3 Million

20 Proposed Model for Allocation of Recurring Costs n We believe that SCEIS recurring costs should be monitored, controlled and disbursed centrally for the following reasons: - SAP is single system and will be maintained by a central staff - Costs can be evaluated and controlled better centrally - Provides leverage in resolving performance/contract problems - Eliminates internal administrative costs - Ensures accountability to the Legislature n Recurring costs grow to $12.3 million at full implementation

Legislative Update

22 Legislative Actions n FY 2005 – 2006 Budget Approved – New Funding 5,500,000 – Non Recurring Funds 1,826,000 – Additional Recurring Funds n SCEIS Related Provisos/Resolution SCEIS Proviso (72.83) SCEIS Agency Funds Proviso (72.103) SCEIS Agency Funds Joint Resolution (H3799)

23 SCEIS Proviso n States the General Assemblys mandate to implement SCEIS for all agencies with the exception of lump-sum agencies n Recognizes and empowers the SCEIS Oversight Committee n Requires agencies to implement SCEIS within the framework provided for in the Business Case Study n Allows for scope and implementation schedule issues to be handled by the SCEIS Oversight Committee n Provides for reporting to both the Executive and Legislative leadership

24 SCEIS Agency Fund Proviso and Joint Resolution H3799 n Each agency can establish a Special Account for the sole purpose of funding non-recurring SCEIS implementation costs n Agency can transfer funds into this Special Account at the discretion of the agency head n Total funds transferred into this Account are specifically designated for SCEIS implementation and cannot exceed agencys projected implementation costs n Account would be exempt from the calculation of any mid-year budget reduction n Unexpended balance in the Account would be carried forward from year-to-year until agencys SCEIS implementation is completed n Account is monitored by the Comptroller Generals Office n JOINT RESOLUTION H3799 pending to allow Funds to be allocated

25 Next Steps - Agency Agency will be provided updated implementation cost information before end of current FY Determine any FY05 funds available for savings toward implementation costs pending Joint Resolution H3799 approval Identify internal team to organize and manage Agencys SAP implementation including a primary contact point for the Enterprise Support Group – HR/PR Blueprint to begin Jan Identify Agency requirements and develop any questions concerning the scope of SAP Project (i.e., functionality, reports, interfaces with other systems, etc.)

26 Contact SCEIS WEBSITE: Pat OCain, Project Director - CG Chuck Fallaw, Project Director – CIO Jim Sexton, Program Manager

Questions & Answers