1. Leveraging the Power of your ERP to Help Transform Operations NASC Conference March 17, 2016

2. Presenter: John Traylor Executive Deputy Comptroller for Operations, State of New York Managing the enterprise financial system that supports the business of New York State government

3. Project Overview: Statewide Financial System

4. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 3 Project Overview New York’s financial system of record since April 2012 70 of 78 State Agencies use SFS online (21,000 users) Centralized vendor file with over 150,000 vendors Approximately $150 billion in FY 2014-2015 payments 8.5M vouchers processed annually (~ 22,000 daily) More than 35 legacy systems retired to date Recently completed a successful mid-year upgrade

5. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 4 The SFS Journey: 2009 to 2016 Division of Budget (DOB) Office of the State Comptroller (OSC) One Single Statewide System (SFS) Before 2009, two independent financial systems (financial management and accounting) were being created. The economic downturn led to a review of both projects and a decision to combine projects and create one single statewide system - SFS. Oracle PeopleSoft was selected as the software. Deloitte and IBM were kept as system integrators. KPMG was selected to provide IV&V.

6. Develop Sustainable Governance Processes

7. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 6 Joint Governance Structure Division of the Budget (DOB) Office of the State Comptroller (OSC) Advised by Change Control Board “Voice of the Business” Budget and Resources Jointly Controlled Supported by KPMG IV&V Services Advised by Agency CFO Advisory Board “Voice of the Customer” Joint Governance Board (JGB)

8. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 7 SFS Organization Structure From Project to Program to Agency?

9. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 8 Prioritizing Enterprise Objectives SFS Director Controls Operational Events And Break/Fix Work Project Charter For Major Projects And Assignment Of Project Officers For Project Ownership Review By Change Control Board (CCB) And Business Case Required For Minor Projects Approved Work To SFS PMO Unit For Resource Loading, Timeline Estimation, Monitoring And Coordination Input / Feedback From CFO Advisory Board On SFS “Roadmap” and Individual Implementation Approach SFS Uses a Disciplined Process to Prioritize Work

10. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 9 Defining The Objectives Clearly Estimated Timeline (Key Milestones)Project Sponsor, Leader And TeamRisks And Potential MitigationSuccess MetricsIn Scope/Out Of Scope AnalysisStakeholdersGoals and objectivesProblem statement Charter And Business Case Process Seeks To Get Project Objectives Stated Clearly Proposals Reviewed By SFS Leadership and/or Change Control Board (CCB) Joint Governance Board (JGB) Approves Major Projects

11. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 10 Enhancing Project Governance MULTIPLE TECHNIQUES USED TO HELP EXECUTE PROJECTS SUCCESSFULLY Training Materials & Agency Job Aids Learning Management System Webinars Investment in Training Capture quantitative/qualitative metrics Metrics In testing, training, post go-live Agency Scorecards Agency Interviews JGB Summaries IV&V Review Iron Out Performance Issues Limit Black Out Period Where Possible “Full Dress Rehearsals” (FDRs) Trouble Shooting Calls, User Groups One-on-one Lab Individual Agency Agency Support Defect Resolution Reviews Agency Transaction Reviews Focus on Stabilization

12. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 11 Evolving The Perception Of Agencies New York State created a Business Service Center (BSC) in 2011 to serve as its shared service organization for Financial and HR processing SFS has tried to adopt a “best practice” approach to financial processing Standardize and avoid customization where possible Leverage the ERP to gain efficiencies- better, faster, cheaper Work with agencies to re-engineer their business process SFS works with OSC, DOB and BSC to help push agencies toward best practice approach (a continual challenge) Use of requisitions and pre-encumbrances Contract lines Travel and expense eInvoice and electronic payments

13. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 12 Leveraging The Software To Transform Many Benefits Can Only Be Achieved By Reengineering Business Processes To Take Advantage Of Automation, Workflow And “Digital Finance” Don’t Underestimate Change Management And Business Process Reengineering Effort (Cloud Makes This Even More Important) Biggest Challenge Is Taking Advantage Of Software’s Inherent Business Logic To Truly Transform The Way Agencies Do Business Remember Einstein’s Definition Of Insanity

14. Maximize the Benefits of the Upgrade Process

15. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 14 Focusing on The Business Leverage SFS to standardize financial processes Retire legacy finance systems in agencies Pilot and then expand new functionality to customers After enabling core accounting and finance functions in 2012, SFS focused on enabling technology that met enterprise business needs Reduces timeline, scope and risk Builds operating platform that others can see in action Successfully used in latest upgrade with asset management and project costing modules “Pilot Agency” Concept Used to Test and Implement New Functionality with a Lead Agency Before Onboarding Others

16. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 15 Realizing Benefits Immediately Another 40 agency systems costing $18 million annually can now be targeted for retirement (and avoid another $27 million in potential replacement costs) Retire Legacy Systems E-mail dispatch of POs, auto-sourcing, e-invoicing Agency Productivity Savings Use procurement data to negotiate better pricing Avoid late payment interest, aims for payment discounts Consolidate revenue collection/banking services, streamline treasury functions Cost Savings and Cost Avoidance Budget re-architecture provides better real-time picture of State’s financial condition More complete and accurate project cost data Better asset data – “knowing what we own” Improved Information And Controls

17. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 16 The Next Wave of Agencies Agencies with Bulk Load Transactions Now On SFS Roadmap for Consolidation Extend Asset Management and Enterprise Services Automation (Project Costing) to these Agencies This Will Allow New York to Retire More Legacy Systems In These Agencies DOT Big Outlier- Complexity Of Their Project Management And Federal Billing Systems Will Take Time To Retire Final Integration of Procure-to- Pay Process

18. State of New York NASC Presentation 2016 “ Leveraging the Power of your ERP to Continuously Transform Operations ” 17 The Roadmap for Future Growth

19. Questions? Feedback?