IPMA Forum 2012
T-12 Improving IT Financial Transparency
Insights into managing IT spending
Tuesday, May 22 1:00PM-2:00PM
Moderator:
Larry Dzieza, Office of the Chief Information Officer
1
Strategic Action 2:
Improve Accountability and Insight into IT
• Purpose of this session is to present a little
and listen a lot.
• Your participation in sharing your insights and
questions are needed.
• What are the IT financial issues driving your
organization?
2
Strategic Action 2:
Improve Accountability and Insight into IT
OCIO Lead: Larry Dzieza & Bob Zych, OCIO
Agency Lead & Executive Sponsor: Bharat Shyam, OCIO
The following objectives are part of the strategy:
– Work with DES to lead a transparency and accountability initiative
• Help agencies learn more about their IT spend
• Drive improvements
– Partner with OFM to present an IT budget that is more transparent
than in the past
3
The Context of IT Financial Management
The Legislature interest in IT financial issues has never
been higher.
OFM has initiated several efforts to set a better
foundation for ITFM.
• Tracking IT spending in AFRS (X,Y coding)
• Introducing state agencies to Gartner’s total cost of
ownership model.
• Convening a collaborative IT data improvement
effort
4
IT Improvement Direction
• Make information about IT spending visible and
meaningful.
• Less one-off, one-time data wrangling, more reliance on
systems of record;
• Move beyond data for compliance and provide tools to
improve IT management and ops;
• Provide both an agency and an enterprise perspective on
IT spending and metrics; and
• Mine the data to drive decisions, inform opportunities for
improvements, justify investment asks and save money.
5
Hard Earned TCO Knowledge
Enter Apptio
• Our Gartner total cost of ownership effort was the first
phase in a greater effort to achieve a better understanding
of our agencies’ IT cost.
• The result: Overall, we are in-line with the other
“federated” IT enterprises.
• We knew that there are tools available that can ease the
data reporting burden, provide greater insight, model
alternative approaches and help plan for the future.
• We are progressing to complete an agreement with Apptio
to provide a tool for all agencies to use.
7
Apptio Builds On Your TCO Knowledge
Apptio Builds On Your TCO Knowledge
Phase 1 Deployment - High Level Scope
• Objective: Ready to support State budgeting activities in late Oct / Nov;
transform IT through financial transparency and accountability
• Time Period: May – Oct 2012
• Financial Transparency:
– CTS: provide improved Bill of IT for IT Services delivered to other State of WA
agencies
– Top 45 agencies: provide high level service costing analysis of IT operating
expenditures; analysis at the financial, resource tower and service category
views
– Create standard costing structure to analyze, compare and consolidate
agency budgets across multiple models
• 2013 Budgeting
– Use existing budgeting process for agencies submission in August
– Configure Apptio Budget & Finance model to import, consolidate and present
parallel view of IT 2013 budget submission
10
Phase 2 Deployment - High Level Scope
• Objective: Transform IT across the agencies to focus on Service
Optimization and reduce the State’s overall IT spend
• Time Period: Nov 2012 – Mar 2013
• Service Optimization
– CTS: visibility into infrastructure utilization and service costs to provide
better information to make decisions on transitioning other agency
infrastructure services to CTS
– All agencies: deeper analysis into application TCO and infrastructure
utilization and costs
– CTS: transition to a chargeback Bill of IT to the State agencies
– DSHS and DES: provide showback Bill of IT to the department heads within
their agency for the IT Services delivered to support the agency
11
Proposed Deployment Agency Grouping:
Month
Agency Count
1
10
2
10
3
11
4
10
5
2
6
2
Grand Total
45
Sum of Annual Budget
$
528,438,630
$
85,744,949
$
204,587,829
$
107,351,271
$
51,727,940
$
10,820,715
$
988,671,334
Avg of Annual Budget % of Annual Budget
$
52,843,863
53.4%
$
8,574,495
8.7%
$
18,598,894
20.7%
$
10,735,127
10.9%
$
25,863,970
5.2%
$
5,410,358
1.1%
$
21,970,474
100.0%
Comment
Top priority, agencies to provide TBMAs
Next priority, " "
Next priority, " "
Next priority, " "
Next priority, " "
Low priority, may limit to GL reporting
List of Agencies by Group (descending order of IT Spend)
Month 1
Agency
Department of Social and Health Services
Consolidated Technology Services
Department of Employment Security
Department of Enterprise Services
Department of Labor and Industries
Department of Corrections
Department of Transportation
Department of Health
Department of Revenue
Department of Licensing
Month 4
Agency
Liquor Control Board
State Investment Board
Community and Technical College System
Office of the Insurance Commissioner
The Evergreen State College
Office of Administrative Hearings
State Lottery Commission
Washington State Criminal Justice Training
Commission
Recreation and Conservation Funding Board
Washington State Gambling Commission
Grouping
Over30M
Over30M
Over30M
Over30M
Over30M
Over30M
Over30M
Over10M
Over10M
Over10M
Month 2
Agency
Department of Ecology
Department of Natural Resources
Department of Veterans' Affairs
Washington State Health Care Authority
Department of Retirement Systems
Washington State Patrol
State Parks and Recreation Commission
Department of Agriculture
Department of Fish and Wildlife
Superintendent of Public Instruction
Month 5
Grouping Agency
Cabs
Eastern Washington University
OCIO/COE Washington State University
HiEd
Other
HiEd
Cabs
Cabs
Cabs
Central Washington University
Higher Education Coordinating Board
Western Washington University
Grouping
Over10M
Over10M
OCIO/COE
Other
Other
Over10M
Other
Other
Other
Over10M
Month 3
Agency
University of Washington
Military Department
Department of Financial Institutions
Western Washington University
Department of Early Learning
Department of Commerce
Office of the Attorney General
Utilities and Transportation Commission
Board of Industrial Insurance Appeals
Office of the State Treasurer
Office of the State Auditor
Office of the Secretary of State
Grouping
HiEd
Other
Other
Other
Other
Other
OCIO/COE
Cabs
Other
Other
Other
Grouping
HiEd
HiEd
HiEd
HiEd
HiEd
Cabs
Cabs
12
Moderator:
Larry Dzieza, OCIO
Panel Members: Bharat Shyam, OCIO
Greg Leskinen, Apptio
Bob Zych, OCIO
13
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T-12 Improving IT Financial Transparency