FLORIDADEPARTMENTOFFINANCIALSERVICES
FLAIRSTUDY
DELIVERABLE5
Date:
Version:
04/09/2014
100
TableofContents
EXECUTIVESUMMARY.............................................................................................................................................1 CHAPTER1 1.1 BACKGROUND............................................................................................................................1 FLAIRStudyPurpose..............................................................................................................................2 1.1.1 ProjectScope............................................................................................................................................2 1.1.2 FLAIRStudyApproach.........................................................................................................................3 1.2 FFMISOverview.......................................................................................................................................4 1.2.1 FFMISGovernanceStructure............................................................................................................5 1.2.2 PlanningAndBudgetingSubsystem(LAS/PBS).....................................................................6 1.2.3 CashManagementSubsystem(CMS)............................................................................................7 1.2.4 PersonnelInformationSubsystem(PeopleFirst)....................................................................7 1.2.5 ProcurementSubsystem(MyFloridaMarketPlace)................................................................8 1.2.6 FLAIRSubsystem(FLAIR)...................................................................................................................9 1.2.7 ProjectAspire........................................................................................................................................10 1.3 CurrentStatePerformance...............................................................................................................12 1.4 LimitationswithFLAIRToday.........................................................................................................14 1.4.1 ConsequencesofFLAIRLimitations............................................................................................22 1.4.2 StatusQuoisNotanOption............................................................................................................23 1.5 SolutionGoalsandBenefitsMustSupportTheAgency’sMission....................................23 1.5.1 TheCFO’sMission................................................................................................................................23 1.5.2 CurrentStateChallengesandRisksRequireActionToBeTakenNow......................23 1.5.3 GuidingPrinciplesShapeTheDefinitionofSuccess............................................................24 1.5.4 LongTermVision.................................................................................................................................25 1.5.5 Go‐ForwardSolutionGoalsandBenefits..................................................................................26 1.6 OutsourcingConsideration...............................................................................................................29 1.7 IndexofFFMISRelatedLegalCitations.......................................................................................29 1.8 Chapter1Appendix.............................................................................................................................31 1.8.1 CHAPTER2 CMSBusinessApplicationSummary..........................................................................................31 OPTIONSANALYSIS..................................................................................................................1 2.1 SummaryofCurrentSituation............................................................................................................3 2.2 MarketConditionsandTrends...........................................................................................................4 2.2.1 TrendsinPublicSector........................................................................................................................4 2.2.2 TechnologyTrends..............................................................................................................................15 2.2.3 OtherConsiderations.........................................................................................................................19 2.3 CostBenefitAnalysis...........................................................................................................................28 FloridaDepartmentofFinancialServices
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2.3.1 MinimumCapabilitiesofaNewFinancialSystem...............................................................28 2.3.2 ExpectedBenefits.................................................................................................................................31 2.3.3 OptionDescriptions............................................................................................................................33 2.4 OptionsAnalysis....................................................................................................................................63 2.4.1 OptionAlignmentToVision,Goals,andObjectives.............................................................63 2.4.2 CostComparison..................................................................................................................................64 2.4.3 BenefitsComparison..........................................................................................................................67 2.4.4 RiskAnalysis...........................................................................................................................................72 2.4.5 SummaryAnalysis...............................................................................................................................78 2.5 APPENDIX................................................................................................................................................79 2.5.1 KeyThemesfromStateResearch.................................................................................................79 2.5.2 AdditionalStateResearch...............................................................................................................86 2.5.3 DetailedStateProjectProfiles.......................................................................................................90 2.5.4 RequiredSystemCapabilityJustification.................................................................................98 2.5.5 RiskJustifications...............................................................................................................................107 2.5.6 ListofSources......................................................................................................................................118 CHAPTER3 3.1 RECOMMENDATION................................................................................................................1 SupportforTakingActionNow.........................................................................................................1 3.1.1 SystemArchitecture..............................................................................................................................1 3.1.2 LackofNecessaryFunctionality......................................................................................................2 3.2 Recommendation–Option3:ReplaceFLAIRandCMSwithanERPSolution...............2 3.3 ProjectCriticalSuccessFactors.........................................................................................................7 3.3.1 EstablishaComprehensiveMulti‐TieredGovernanceModel.............................................7 3.3.2 ConfirmProjectFundingSource..................................................................................................15 3.3.3 ManageSystemCustomizations...................................................................................................17 3.3.4 InitiallyDeployaLimitedScopeofCoreFunctionality......................................................17 3.3.5 UtilizeaControlledPilottoValidatetheSolution...............................................................17 3.3.6 LeveragePhasedRollouttoAgencies.........................................................................................18 3.4 ChangesinStatuteandFinancialBusinessPractices.............................................................18 3.5 OutsourcingConsideration...............................................................................................................18 CHAPTER4 4.1 IMPLEMENTATIONSTRATEGY...........................................................................................1 ImplementationTimeline.....................................................................................................................6 4.1.1 Pre‐DDIPhase&Projecttracks....................................................................................................10 4.1.2 Pre‐DDIIntegrationWithDDIPhase.........................................................................................14 4.2 SystemDevelopmentandImplementation................................................................................15 FloridaDepartmentofFinancialServices
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4.2.1 Design,DevelopandImplement‐Phases.................................................................................15 4.2.1.1 ImplementFLAIR/CMSERPProjectTrack..............................................................................17 4.2.1.2 ImplementInformationWarehouse(IW)ProjectTrack..................................................18 4.2.1.3 Pilot‐FLAIR/CMSReplacementProjectTrack....................................................................18 4.2.1.4 CMSRolloutProjectTrack..............................................................................................................19 4.2.1.5 FLAIR/IWRolloutProjectTrack..................................................................................................20 4.2.1.6 ImplementPayrollERPProjectTrack.......................................................................................21 4.2.1.7 MFMPIntegrationProjectTrack.................................................................................................22 4.2.1.8 PeopleFirst(PF)IntegrationProjectTrack...........................................................................23 4.2.1.9 LAS/PBSIntegrationProjectTrack............................................................................................24 4.2.1.10 IndependentValidationandVerificationProjectTrack..............................................25 4.2.1.11 ProjectManagementOfficeProjectTrack..........................................................................26 4.2.1.12 OrganizationalChangeManagementProjectTrack....................................................27 4.2.1.13 WorkforceTransitionProjectTrack.....................................................................................28 4.2.1.14 Phase‐2ExpandedERPFunctionalityProjectTrack.....................................................29 4.2.1.15 Operation&MaintenanceProjectTrack.............................................................................30 4.3 OrganizationalChangeManagementandWorkforceTransition....................................32 4.3.1 OrganizationalChangeManagement........................................................................................32 4.3.1.1 OCMFunctionalModel......................................................................................................................34 4.3.1.2 OCMandWFTFrameworkandDeliverables.........................................................................35 4.3.1.3 CommunicationPlanning&Implementation........................................................................39 4.3.2 WorkforceTransition........................................................................................................................42 4.3.2.1 WorkforceTransitionStrategy.....................................................................................................42 4.3.2.2 WorkforceTraining............................................................................................................................44 4.3.2.3 DetailedDepartmentalImpactsandTransitionImplementationPlans...................45 4.4 Appendix...................................................................................................................................................48 4.4.1 Phase–1DDIImplementERPforFLAIR/CMS(Examples)............................................48 4.4.2 ImplementInformationWarehouse(IW)ProjectTracks(Examples).......................51 4.4.3 Pilot–FLAIR/CMSReplacementProjectTrack(Examples)...........................................53 4.4.4 CMSRolloutProjectTrack(ActivityExamples)....................................................................54 4.4.5 FLAIR/IWRolloutProjectTrack(ActivityExamples)........................................................55 4.4.6 MFMPIntegrationProjectTrack(ActivityExamples).......................................................57 4.4.7 PFIntegration/ImplementPayrollinERPProjectTrack(ActivityExamples)......57 4.4.8 Phase–1DDIIndependentVerificationandValidation.................................................58 4.4.9 Phase–2:ExpandedERPFunctionality(FLAIR/CMS)ProjectTrack........................60 FloridaDepartmentofFinancialServices
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4.4.10 OperationsandMaintenanceProjectTrack(Examples)..................................................61 4.4.11 OCMModel..............................................................................................................................................61 4.4.12 OCMFunctionalModelRoles&Responsibilities...................................................................62 4.4.13 TrainingandPerformanceSupportActivities.......................................................................67 4.4.14 CommunicationPlan..........................................................................................................................68 4.4.14.1 Stakeholders.....................................................................................................................................72 4.4.14.2 CommunicationEvent..................................................................................................................72 4.4.14.3 VehiclesofCommunication........................................................................................................73 4.4.14.4 ManagementofCommunications...........................................................................................73 CHAPTER5 PROCUREMENTANDCONTRACTMANAGEMENT.....................................................1 5.1 SummaryoftheFLAIR/CMSReplacementProject....................................................................2 5.2 GeneralTimelinewithProcurementsIndicated.........................................................................2 5.3 GeneralProcurementDiscussion......................................................................................................3 5.3.1 5.4 ProcurementRisks.................................................................................................................................5 GeneralContractingInformation......................................................................................................5 5.4.1 PerformanceStandards.......................................................................................................................5 5.4.2 PublicRecordsPolicy............................................................................................................................6 5.4.3 PersonswithDisabilitiesCompliance...........................................................................................6 5.4.4 ContractorNon‐PerformanceContingencyPlan.....................................................................6 5.5 FLAIR/CMSReplacementProjectandProcurementApproaches.......................................9 5.5.1 Pre‐DDIProcurement...........................................................................................................................9 5.5.2 DDIProcurement.................................................................................................................................14 5.5.3 Post‐DDIProcurement......................................................................................................................32 5.6 Chapter5Appendix.............................................................................................................................34 5.6.1 BusinessProcessRe‐engineeringKnowledgeAreas............................................................34 5.6.2 ProcurementSupportKnowledgeAreas..................................................................................34 5.6.3 OrganizationalChangeManagementKnowledgeAreas..................................................35 5.6.4 ProjectManagementOfficePerformanceandKnowledgeAreas.................................35 5.6.5 WorkforceTransitionKnowledgeAreas...................................................................................36 5.6.6 SystemsandDataStrategyKnowledgeAreas........................................................................37 5.6.7 IV&VKnowledgeAreas.....................................................................................................................37 5.6.8 InformationWarehouse(IW)KnowledgeAreas..................................................................37 ATTACHMENT1 ASSUMPTIONS.......................................................................................................................1 1.1 Methodology..............................................................................................................................................1 1.2 CostModelAssumptions.......................................................................................................................1 FloridaDepartmentofFinancialServices
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1.2.1 GeneralSupportingAssumptionsApplicabletoAllOptions.............................................1 1.2.2 Option1:EnhanceFLAIRCostAssumptions...........................................................................4 1.2.2.1 Option1:LaborAssumptions–Pre‐DDI...................................................................................4 1.2.2.2 Option1:LaborAssumptions–DDIPhase1...........................................................................6 1.2.2.3 Option1:LaborAssumptions–DDIPhase2........................................................................11 1.2.2.4 Option1:RequiredPurchaseAssumptions.........................................................................13 1.2.2.5 Option1:OngoingSupportAssumptions...............................................................................13 1.2.3 Option2:ReplaceFLAIRwithanERPSolutionCost–BenefitModel........................14 1.2.3.1 Option2:LaborAssumptions–Pre‐DDI................................................................................14 1.2.3.2 Option2:LaborAssumptions–DDIPhase1........................................................................15 1.2.3.3 Option2:LaborAssumptions–DDIPhase2........................................................................17 1.2.3.4 Option2:RequiredPurchaseAssumptions.........................................................................18 1.2.3.5 Option2:OngoingSupportAssumptions...............................................................................19 1.2.3.6 Option2:UpgradeAssumptions................................................................................................19 1.2.4 Option3:ReplaceFLAIRandCashManagementSystemswithanERPSolution
Cost–BenefitModel..........................................................................................................................................20 1.2.4.1 Option3:LaborAssumptions–Pre‐DDI................................................................................20 1.2.4.2 Option3:LaborAssumptions–DDIPhase1........................................................................21 1.2.4.3 Option3:LaborAssumptions–DDIPhase2........................................................................25 1.2.4.4 Option3:RequiredPurchaseAssumptions.........................................................................26 1.2.4.5 Option3:OngoingSupportAssumptions...............................................................................27 1.2.4.6 Option3:UpgradeAssumptions................................................................................................27 1.2.5 Option4:ReplaceFLAIR,CMS,MFMPandPeopleFirstwithanERPSolutionCost
ModelAssumptions............................................................................................................................................27 1.2.5.1 Option4:Pre‐DDILaborAssumptions....................................................................................27 1.2.5.2 Option4:LaborAssumptions–DDIPhase1........................................................................29 1.2.5.3 Option4:LaborAssumptions–DDIPhase2........................................................................31 1.2.5.4 Option4:RequiredPurchaseAssumptions.........................................................................32 1.2.5.5 Option4:OngoingSupportAssumptions...............................................................................33 1.2.5.6 Option4:UpgradeAssumptions................................................................................................33 1.3 UserGuide:BusinessCaseModels................................................................................................34 1.3.1 MiscellaneousVariableDefinitions..........................................................................................34 1.3.2 Variables:Resources(Rows52–150)....................................................................................37 1.3.3 Variables:Weeks(Rows151–250).......................................................................................37 1.3.4 RequiredPurchases(Rows251–258)...................................................................................37 1.3.5 CostTagging(ColumnE)...............................................................................................................37 FloridaDepartmentofFinancialServices
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1.3.6 InflationRates...................................................................................................................................38 1.3.7 OptionDescription..........................................................................................................................38 1.3.8 ScheduleIV‐BCrosswalk..............................................................................................................39 1.3.9 Existing/New...................................................................................................................................40 FloridaDepartmentofFinancialServices
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REVISIONHISTORY
DATE
AUTHOR
VERSION
4/9/2014
NorthHighland
100
CHANGEREFERENCE
FinalacceptedversionoftheFLAIRStudy.
QUALITYREVIEW
NAME
ROLE
DATE
FloridaDepartmentofFinancialServices
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EXECUTIVESUMMARY
TheFloridaConstitution(s.4(c),ArticleIV)andFloridaStatutes(Section17.001and215.94,
F.S.)identifytheChiefFinancialOfficer(CFO)asthechieffiscalofficer.Byvirtueofthe
position,theCFOisresponsiblefortheFloridaAccountingInformationResourceSubsystem
(FLAIR)andtheCashManagementSubsystem(CMS).Bystatute(Section215.94,F.S.)the
DepartmentofFinancialServices(DFS,Department)isthefunctionalownerofFLAIR.Asthe
designatedagencyheadforDFS,theCFOisalsotheExecutiveSponsorforthisstudy.
AsaresultoftheprovisolanguageinSection6ofthe2013GeneralAppropriationsAct,the
DepartmentprocuredtheservicesofNorthHighland,anindependentconsultingfirmwith
experienceinplanningpublicsectortechnologyprojects,tocompleteastudy(FLAIRStudy)
andtorecommendeitherenhancingorreplacingFLAIR.Forthestudy,thejointteamofDFS
andNorthHighlandisreferencedastheFLAIRStudyTeam(Team).Also,thestudyincludes
aninventoryofagencybusinesssystemsinterfacingwithFLAIR(Inventory)andan
assessmentofthefeasibilityofimplementinganEnterpriseResourcePlanning(ERP)System
fortheStateofFlorida.
Fundamentally,theprovisolanguageacknowledgeschangesarenecessarytoFLAIR,and
perhaps,CMS.Theprovisosummarizesthefouroptionstoevaluateas:
1.
2.
3.
4.
EnhanceFLAIR(Option1)
ReplaceFLAIR(Option2)
ReplaceFLAIRandCMS(Option3)
ReplaceFLAIR,CMS,MFMPandPeopleFirstwithastatewideERPsolution(Option4)
TheoutstandingbusinessquestionstoanswerintheFLAIRStudyregardingthe
recommendedoptionare:

IsthereanoptiontoenhanceFLAIRfromitscurrentstatetoamoremodernstateby
useofnewtoolsandfunctionalityeitherbyaddingcomponentsoroverhauling
existingcomponents?

Givencurrentconditionsandfutureexpectationsandobjectives,shouldFLAIRbe
replacedintotalandshouldCMSalsobereplaced?

WhatisthefeasibilityofimplementinganEnterpriseResourcePlanning(ERP)
systemfortheStateofFlorida?

WhatistheState’sreadinesstoimplementastatewideERPincludingthePurchasing
Subsystem(MyFloridaMarketPlace,MFMP)andPersonnelSubsystem(PeopleFirst)?
ToemphasizetheimpactoftheFLAIRStudy,readersanddecisionmakersshouldconsider
thescaleandscope.Inrelativeterms,iftheStateofFloridawasacountry,itsGrossDomestic
Productwouldbeamongthe20largestintheworld.IftheStateofFloridawasaprivate
sectorcorporation,its$90billionbudgetwouldearnaspotinthe“Fortune25.”Financial
managementforanenterpriseofthesizeandcomplexityoftheStateofFloridahasascope
andscalebestcomparedtotheotherlargestates(i.e.California,Texas,NewYork,Illinois,and
FloridaDepartmentofFinancialServices
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Pennsylvania),thelargestUSFederalagencies,andthelargest,mostcomplexnationaland
multi‐nationalprivatesectorcompanies.
TheFLAIRStudyincludesamarketscantouseasinputforthefinalrecommendationin
responsetothebusinessquestions.Themarketscanincluded(1)areviewofotherlarge
states’financialsystemmodernizationprojects,(2)inputfromselectStateagencieswith
diversebusinessneeds,(3)marketanalystrecommendationsforviablesoftwaresolutions,
and(4)interviewswithrelevantprivatesectorcompaniesincludingsoftwareandservice
providers.Also,thestudyrepresentsthelatestversionofseveralpreviousstudiescompleted
bypublic1andprivate2organizations.Allofthestudies,includingthisstudy,havecometo
similarconclusions.
TheconclusionofthisstudyistheStateofFloridashouldpursuethereplacementofFLAIR
andCMSwitha“CommercialofftheShelf”(COTS)ERPsolutionforthefinancialmanagement
processestosupporttheconstitutionalobligationsoftheCFO.ThereplacementofFLAIRand
CMSwill:

Mitigateriskassociatedwithafragileapplicationcodeenvironmentinarapidly
changingbusinessenvironmentwhichcanleadtosignificantoperational
interruptionsanddowntime(e.g.,creatingnewagencies,consolidatingagencies,
modifyingpayrollcalculations,addingnewdataelementstosupportfinancialcode
changes)

Implementastatewideaccountingsystemtoenforcestandardizationresultingin
futurebenefitsfromincreasedintegrationandatrueenterpriseperspectiveof
governmentfinancialoperations

Actasascalablefoundationtoevolveasbusinessneedschange

PositionFloridaforfutureinnovationwiththeabilitytoconsideratrueenterprise
system
CURRENTSTATUSOFFLAIRANDCMS
FLAIRandCMSarereferencestoaseriesoftechnicalsubcomponentsperformingvarious
financialandcashmanagementfunctions.Thesystemssupportthebusinessaspectsofthe
DivisionofAccountingandAuditing(A&A),theDivisionofTreasury(Treasury)andstate
agencyfinancialaccounting.
Acapable,flexibleandreliablefinancialmanagementsystemisamustforanenterprisethe
sizeofFlorida.FLAIRisnotkeepingupwiththeState’sevolvingandgrowingbusinessneeds
and,astimegoeson,theoperationalriskofrelyingonFLAIRonlyincreases.Thelimitations
1CouncilonEfficientGovernmentReporttotheGovernoronMyFloridaMarketPlace,PeopleFirstand
ProjectAspire,1/7/2008
2KPMGModernizationofStateGovernmentFinancialManagementBusinessPracticesStudy,
8/2/1999–2/15/2000;KPMGFLAIRReplacementFinalReport,3/8/2001
FloridaDepartmentofFinancialServices
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withFLAIRandtheassociatedimpacts(e.g.,proliferationofagencycompensatingsystems
andagencyuniqueprocesses)arenottrivialandnegativelyimpacttheoperational
productivityandthefinancialmanagementoftheState.
FLAIRisa30‐yearoldsystemwithanarrayoftechnology,oldandnew.Thecoretechnology
wasdevelopedinthe1970sandimplementedinthe1980s.Whilethesoftwareand
hardwareversionsarerelativelycurrent,theconstructoftheinternalsoftwarecomponents
andconfiguration(codinglanguageisoutdatedwithinthedatabase),andadministrationover
theyearspresentarigidandfragilefoundationinanenvironmentrequiringadynamic
responsetoeconomic,politicalandsocialchanges.
ThisstudyincludedaninventoryofagencysystemsinterfacingwithFLAIR.Toincrease
contextualaccuracy,theinventoryconsideredalsosystemsperformingfinancial
managementfunctionscommonplaceformoderncorefinancialmanagementsystems.Today
thenumberofagencycompensatingsystemsismorethan400.Thisnumberrepresentsa
33%increasefromasimilarstudyinin2000.Furthermore,75%ofthesesystemsare
approachingapointintimetheywillrequiresignificantresourcestomaintainandreplace.
TheFLAIRprogramminglanguageanddatafilestructurearenotcommonplaceand
resourcestosupportthetechnologyarescarceinthemarkettoday.Accordingtosoftware
industryanalysts,thecurrentprogramminglanguagedoesnotrankinthetop50in‐demand
today.FromanITsupportperspective,approximately42%ofFLAIRtechnicalsupport
employeeshave30ormoreyearsofservice.Astheseemployeesretireitwillrepresenta
significantlossofinstitutionalknowledgeandtechnicalexpertise.Replacingthetechnical
expertiseofamarketscarceresourceishighlyunlikely.Conclusively,theFLAIRstaff
memberswhomaydepartwithinthenextfiveyearsareseasonedandexperiencedexperts
withmanycombinedyearsofinstitutionalknowledgepresentingasignificantriskfor
enhancementandsupporttoFLAIRinthenearfuture.
ForCMSthereisasimilar,albeitmoremodernsituation,regardingsupportstaff.Whilea
significantportionofCMSfunctionalityisbeingreplacedbymoremoderntechnology,the
resourcepoolsupportinganddevelopingthemoderncomponentsisconstrainedbyasmall
numberofexisting,senioremployees.Thispresentsadditionalriskacrossthedomainand
functionsoftheTreasury.Mitigatingtheriskbybuildingacompleteprogrammingsupport
organizationisunrealistic.
FLAIRhasnotbeensignificantlyupgradedinthecontextofmodernizingthecoremodules.
Codingtechniqueshavechangedandthereisariskofprogramswithoutdatedprogramming
languagesoftwarestructurenotbeingproperlyupdatedwhenstatutorychangesaremade.
Thelastsignificantfunctionalupgradeoccurredinthelate90’swiththeadditionofthe
purchasingcard(P‐card)functionality.Lesssignificantenhancementscontinueandnone
significantlyimproveormoveforwardthebaseFLAIRtechnology.
FLAIRiscomprisedoffourcomponentstosupportaccountspayable,accountsreceivable,
financialstatements,cashprojectionsandforecastingandstatepayrollprocessing:

CentralAccountingComponent(CentralFLAIR)–mostlyusedbyA&Aforauditing,
maintainscashandbudgetarybalances,andfunctionsfortaxreporting
FloridaDepartmentofFinancialServices
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
DepartmentalAccountingComponent(DepartmentalFLAIR)–usedbyallagenciesto
reportgeneralledgerbalances,maintaindetailedaccountingrecords,manageassets,
andadministervendorfilesusedforpayments

Payroll–processesemployeepayments,taxreportingandotheragency
administrativepayrollfunctionsnotperformedbyPeopleFirst

InformationWarehouse(IW)–asthefinancialdataandreportingrepository,
maintainsfiveyearsoftransactionhistoryandusedprimarilytosupplydatato
agencyfinancialmanagementsystems
Priorto2013,theTreasuryusedfourteendifferentapplicationswhichweredevelopedat
variouspointsintimebetween1984and20023.Thenetresultofthevariousapplication
developmenteffortswasmultipledatabaseplatformstosupportmultipleprogramming
languages.Thedifficultytomaintainadequateresourceswiththecomplexskillsetneededto
supportsuchavarietyofplatforms,andintegrationamongplatformscanbecomeachallenge.
Furthermore,fromabusinessperspective,processescanbedisjointedandinterrupted
creatingmultipleentrypointsforinefficientandineffectivepractices.TheTreasuryfunctions
CMSservesare:

CashManagement

InvestmentManagement

AccountingManagement
Treasuryembarkedonatwophasemodernizationeffortwhichbeganin20094.Phase1
includedanintegratedapplicationtosupportcashmanagementprocessesincludingreceipts,
verifications,andchargebacksultimatelyupdatingthebankandstateaccountapplications.
ThefirstphaseofthemodernizationeffortwasimplementedinAugust2013.Alsoin2013,
theTreasurybeganthesecondphaseofmodernizationandthisphaseincludesvarious
processesforconsolidatedrevolvingaccounts,investmentaccounting,trustfundaccounting,
warrants,disinvestments,archives,agencyrepository,andreplacementofbankandstate
accounts.Thisphaseisinprogresswithanestimatedcompletiondateof2018.
Finally,therespectivesystemsandsubsystemsforFLAIRandCMSarenotintegrated.They
interactthroughexternalprogramsandfileexchanges.Thisistrueforeachofthe
subsystemsoftheFloridaFinancialManagementInformationSystem(FFMIS)including:

PlanningandBudgeting

FLAIR

CashManagement

Purchasing
3DFSTreasuryCashManagementSystemModularRedesignProjectJustification,10/27/2009
4CashManagementSystem,ProjectManagementPlan,DepartmentofFinancialServices,12/16/2011
FloridaDepartmentofFinancialServices
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
Personnel
FRAMEWORKFORTHEFLAIRSTUDYRECOMMENDATION
ThrougharigorousexercisefacilitatedfortheDFSexecutiveteam,avisionand
comprehensivesetofgoalswasestablishedasthebasistoevaluatethealternativesforFLAIR
fromthe2013GAAproviso.Theselectionofalternativesfromthe2013GAAproviso
languagemustsupport:
1. AreductionoftheState’sfinancialriskexposurethroughtechnologybuiltonthe
premisesofscalability,flexibility,andmaintainability
2. ImprovementintheState’sspecificdecisionmakingbycapturingaconsistentandan
expandablesetofdata
3. ImprovementintheState’sfinancialmanagementandaccountingcapabilitiesto
enablemoreaccurateoversightofbudgetandcashdemandstodayandinthefuture
4. Improvementinstateemployeeproductivity,reductionofoperationalcomplexity
andanincreaseofinternalcontrolsbyenablingstandardizationandautomationof
businessprocesseswithinandbetweenDFSandtheState’sothergovernmental
agencies
Thefinancial,operational,andotherbenefitsofimplementingnewtechnologyforFLAIRwill
haveasignificantimpactuponstategovernmentfromtheperspectiveofbusinessand
technology.Benefitsinclude:

Establishmentofthenecessarycornerstoneforanewintegratedfinancial
managementsystemwithtightlyintegratedfunctions(e.g.,generalledger,accounts
payable,etc.)

Inclusionofasignificantnumberofdatafieldswiththeabilitytodefineandchange
thefieldstoimprovetheState’smanagementofbudgetandunitcosts

Realizationofcostavoidanceduetoreducedagencyadministrativecoststhrough
processstandardization,overallsystemmaintenancecosts,andareducedneedfor
agency‐runfinancialmanagementsystemsandexternalfinancialdatarepositories
BUSINESSCASEFINDINGSANDRECOMMENDATIONS
TheFLAIRStudyaddressestheprimaryelementsforbusinesscasesinthePlanningand
BudgetingInstructionsontheFloridaFiscalPortal5relativetothe2013GAAfortheFLAIR
Study.Specifically,asdocumented,tosupportthefinalrecommendation,theFLAIRStudy
includes:
5StateofFloridaFiscalPortal,PlanningandBudgetingInstructions,BusinessCaseGuidelines&
Instructions
FloridaDepartmentofFinancialServices
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ExecutiveSummary:Page5

AnoptionsanalysisfortheenhancementorreplacementofFLAIRandCMSincluding
theimplementationofastatewideERPsolution

RecommendationssummarizingtheresultsoftheFLAIRStudy

Implementationelementstosupporttherecommendationfortheenhancementor
replacementofFLAIRandCMS

ProcurementandcontractingoptionsfortherecommendedcomponentsoftheFLAIR
Study
TheFLAIRStudyTeamconductedanoptionsanalysiswasperformedbyreferencingdata
gatheredfromextensivemarketresearch,specificFloridaagencyinterviews,andtargeted
interviewswithcomparablestates.Theanalysiswasbasedonsystemfunctionalityrequired
tomeettheState’sneeds.Commonthemesfromtheoptionsanalysisincludethefollowing:

Allstateswhohavemodernizedtheirsystemswithinthepasttenyearshavemoved
toanERPsolution

Enforcestandardizationofbusinessprocessesthroughgovernanceinsteadofmaking
individualcustomizations

Thelevelofgovernancestrengthisdirectlyrelatedtothelevelofsuccessand
outcomesoftheERPimplementations

Pre‐implementationactivitiesareessentialtotheoveralladoptionoftheERP
solutionsincludingpreparingforenterprise‐widechangeincludingbusinessprocess
re‐engineering,workforcetransition,andmanagementoforganizationalchange
Theimplementationcostofthefouroptionsrangebetween$219millionand$467million.
Thefouroptionsrangebetweensevenandfifteenyearstofullyimplementandachievethe
identifiedgoalsincludingasignificantreductioninoperationalandfinancialrisk,
simplificationoffinancialmanagementprocesses,andimprovedvisibilityandreportingata
statewidelevel.
Basedontheanalysiscompleted,theFLAIRStudyTeamrecommendstheStateofFlorida
replaceFLAIRandCMSwithacoreERPsolution(Option3).Thequantitativeandqualitative
factorsconsideredintheanalysisinclude:

Alignmenttodefinedmissionandsolutiongoals:
o
Options3and4aremostcloselyalignedtothemissionoftheCFOandthe
solutiongoalsspecificallybecausetheyrepresentastatewidesolutionwiththe
abilitytoenforcestandardizationandscaletoevolvingandchangingbusiness
requirementsoftheState
o
Options3and4improvetremendouslytheState’sfinancialmanagement
capabilitybyenablingmoreaccurateoversightofbudgetandcashdemandswhile
reducingoperationalcomplexitiesandincreasingstandardization
o
Options1and2donotsupportthemostbasicsystemcapabilityofasinglesystem
ofrecordforstatewidefinancialtransactionsandcashbalancesandincreasethe
operationalcomplexityoftheotheroptions
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


Riskanalysis:
o
Option3presentsthelowestriskratingoftheelementsevaluatedincluding
politicalandexecutivesponsorship,governance,funding,technicalresource
availability,agencybuy‐inandsupport,standardizationandintegrationwith
FMMISsystems
o
Option1hasthehighestriskprofilerelativetotheanalysisbecauseenhancing
FLAIRrequiresacompleterebuild
SolutionCosts‐bothimplementationandtotalcostofownershipover15years:
o
Option2hasthelowestimplementationcostbyapproximately3%fromOption3
($219millionversus$225million)
o
Options1and4aresubstantiallymorecostlytoimplement($467millionand
$383millionrespectively)
Timelinetoimplementandrealizepotentialbenefits
o
Option3hasbestrankingwitha7.9yeartimelineuntilbenefitsarepotentially
realizedrepresentinganominalimprovementoverOption2
Irrespectiveoftherecommendedoption,theFLAIRStudyTeamspentconsiderabletime
determininganimplementationapproachwiththeoverallobjectiveofachievingtheexpected
outcomesbyreducingtheriskinlarge,complexITprojectsofthisnature.Giventhelessons
learnedfromProjectAspire–goodandbad,inputfromthemarketscanincludingotherlarge
statesandFloridaagencies,theimplementationstrategytosupportthereplacementofFLAIR
andCMSmustconsiderthefollowing:

Anenhancedandeffectivegovernancestructureattheenterpriseandoverallproject
level

ThebusinessandITorganizationalunitswillundergosignificanttransformation

Extensivecommunicationandcoordinationwiththestateagenciesdirectlysupports
success

TheInformatonWarehouserequiresanoverhaulstartingwiththecreationofa
systemanddatastrategy

Businessprocessstandardizationisimperativetosupportanyfuturebenefitsgained
fromreplacingFLAIRandCMSwithanERPsolution
BasedontheelementsofsuccessforimplementinganewFLAIRandCMSderivedfrom
ProjectAspirelessonslearned,themarketscan,andindustryexperienceappliedtothelocal
environment,significantconsiderationwasgiventothereplacementapproach.TheTeam
developedandincorporatedthreecommonprinciples.Thefirstprincipleistocreatea
realisticplantocompletetheFLAIRandCMSreplacementproject.Thenextprinciple
incorporatesanumberofsmallerobjectivesalongadeliberatetimeline.Thefinalprinciple
acknowledgesthestatewideaspectoftheprojectandtheimpacttotheotherFlorida
agencies.Withthesecoreprinciplesapplied,theFLAIRandCMSreplacementprojectshould
occurasdescribedbelow:
FloridaDepartmentofFinancialServices
FLAIRStudy
ExecutiveSummary:Page7

ThefirsttwoyearswillconsistofactivitiestoprepareDFSforimplementation
includingdecisionpointsincorporatedalongthewaytoupdatethebusinesscaseand
evaluatedirection

ThefirstimplementationwillconsistofanewERPforcoreFLAIRandselectCMS
functions

Apilotwillbeheldpriortofullimplementationforadditionalagencies

Staggeredrolloutswilloccurwiththeagencies
ThisapproachallowstheStatetoprepareadequatelyandtoincorporatelessonslearned
whenmovingthroughthefullimplementation.
Usingresultsfromtheoptionsanalysiswork,Gartner6analystinput,andlessonslearned,the
methodofprocurementisamatterofalignmentwiththebuyingorganization.Selectingthe
softwareandservicesseparately(unbundled)isacommonapproachwhenthebasic
functionalityandusabilityofthesoftwarearepriorities.Otherwise,conductingasingle
procurementforsoftwareandservices(bundled)givesdeferencetoleveragingaservice
provider’sexperienceandcapabilitytoimplementandsupportERP.Bothmethodshave
beensuccessfullyusedtoselectanERPsystem.Likewise,bothmethodswereusedin
unsuccessfulprojectssothereisnocleardifferentiatorbetweentheprocurementmethods.
TheFLAIRStudyTeamrecommendsthefollowingmethodforFloridagiventhepast
experiencewithProjectAspireandanappropriatealignmenttocurrentandtofuture
objectives:

Conductasingleprocurementleveragingasoftwareselectionandtheexperienceof
anERPsystemintegratorresultinginasinglecontractforsoftwareandservices

Includecontractualrequirementsforthesoftwarevendortoreviewandtoconfirm
anycustomizationstotheirproductdoesnotinhibitfutureenhancementsand
upgrades

Incorporateperiodicreviewsofprogresswithminimumcriteriaforacceptanceto
assessaccuratelywhethertheimplementationiswithintoleranceforsuccessorto
identifysignsoftroubleandpreventcontinuedprogressuntilanyissuesare
remedied

Requirefinancialconsequencefornon‐performanceandterminationtoensurethe
Stateisprotectedandabletocontinuemovingforwardwithoutsignificantadditional
investment
TheDepartment’sprocurementandcontractmanagementprocess,whichisdocumentedin
theDFSContractManagementLifecycleandProcurementGuide,willbefollowedtodevelop
theprocurementdocumentsandcontract.
6Gartner,Incorporated,Foundedin1979,isatechnologyresearchandadvisorycompany.
FloridaDepartmentofFinancialServices
FLAIRStudy
ExecutiveSummary:Page8
CHAPTER1
BACKGROUND
KeyTakeawaysFromThisChapter
TheabilityoftheCFOandDFStoperformtheirrolesandresponsibilitiesandcomplete
thestatutorymissionisbecomingincreasinglydifficultgiventhesignificantlimitations
ofFLAIR.Anewfinancialmanagementsolutionisneedednowandtheneedforchange
canbeevidencedbythefollowing:

Agenciesareimplementingworkaroundsandfinancialrelatedbusiness
systemstofill“gaps”createdbyFLAIRlimitations.Theproliferationofthese
agencyuniqueprocessesandcomplementarysystemswillcontinueasbusiness
needschange.Theresultingimpactwillincreaseoperationalcomplexity
throughthecontinuedde‐standardizationofstatefinancialprocessesandan
increaseinmaintenanceandadministrativecosts.Thisconditionwillmakeit
moredifficultfortheCFOandDFStomanagetheState’sfinancialresources.

FLAIRisaninflexibleandfragilesystem.ItisnotkeepingupwiththeState’s
evolvingandgrowingbusinessneeds,andthestabilityofFLAIRisalsoa
concernwhenchangesorenhancementsaremadetoit.Systeminstability
introducessignificantoperationalrisk(i.e.,systemdowntime).
Ascalable,flexibleandmaintainablefinancialmanagementsystemisamustforan
enterprisethesizeofFlorida.
Itiscriticalthego‐forwardrecommendationaddressesthecurrentFLAIRlimitations,
achievesthedefinedsolutiongoals,andsupportstheCFOandDFSinperformingtheir
mission.
TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFlorida
Statutes.TheexhibitbelowprovidesthosestatutesapplicabletoChapter1Background.
FLORIDASTATUTE
287.0571(4)(b)
287.0571(4)(c)
287.0571(4)(d)
Adescription andanalysisofthestateagency’scurrentperformance,
basedonexistingperformancemetricsifthestateagencyiscurrently
performingtheserviceoractivity.
Thegoalsdesiredtobeachievedthroughtheproposedoutsourcingand
therationaleforsuchgoals.
Acitationtotheexistingorproposedlegalauthorityforoutsourcingthe
serviceoractivity.
Exhibit1‐1:Chapter1FloridaStatutes
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page1
1.1 FLAIRSTUDYPURPOSE
TheFLAIRStudywasconductedinaccordancewithprovisointhe2013GAArequiringthe
DepartmenttoanalyzefutureoptionsfortheFLAIRsubsystem.Theprovisodirectedthe
followingoptionsbeanalyzed:
5.
6.
7.
8.
EnhanceFLAIR
ReplaceFLAIR
ReplaceFLAIRandCMS
ReplaceFLAIR,CMS,MFMPandPeopleFirst
Theoutcomeofthisstudywillbe1)arecommendationtoreplaceorenhanceFLAIRandan
assessmentofthefeasibilityofimplementinganERPsystemfortheStateofFloridaand2)a
currentinventoryofallagencybusinesssystemsinterfacingwithFLAIR(theInventory).
1.1.1 PROJECTSCOPE
TheFLAIRStudyadherestotherequirementssetforthinthe2013GAAProvisoandin
Section287.0571(4),F.S.Scopeitemsinclude:

PrepareaninventoryofagencybusinesssystemsinterfacingwithFLAIR

AssesstheadvantagesanddisadvantagesofenhancingFLAIR

Assesstheadvantagesanddisadvantagesofreplacing:
o
FLAIR(Departmental,Central,IW,andPayrollcomponents)
o
FLAIRandCMS
o
FLAIR,CMS,MFMP,andPeopleFirst

AssessthefeasibilityofimplementinganERPsystemfortheStateofFlorida

IdentifyanyspecificchangesneededintheFloridaStatutesandtheState’sfinancial
businesspracticestofacilitatetherecommendedoption

Performastudyofthevariousgo‐forwardoptions,provideago‐forward
recommendation,andprepareafinalreporttitled“FLAIRStudy”

Completeanddeliverthefollowingbudgetscheduleswithinformationobtainedas
partofthestudywhererequired:
o
ScheduleIV‐B–InformationTechnologyProjects
o
ScheduleXII–OutsourcingorPrivatizationofaServiceorActivity(ifapplicable)
o
ScheduleXIIA,1‐3–Cost/BenefitAnalysis
ThefollowingitemsareoutofscopefortheFLAIRStudy:

Implementationofanyagencysystemenhancementsorreplacementsystems(i.e.,
agencybusinesssystems,agencyfinancialsystems,oragencyfinancialreporting
systems)
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page2

TechnicalassessmentofanyFFMISsubsystemorotherStatebusinesssystems
beyondanythingrequiredinSection287.0571,F.S.andinstructionsforFlorida’s
ScheduleIV‐BforFiscalYear2014‐15

Businessprocessanalysisanddevelopmentoffunctionalandnon‐functional
requirementsforanyFFMISsubsystemsorotherStatebusinesssystemsbeyond
anythingrequiredinSection287.0571,F.S.andinstructionsforFlorida’sScheduleIV‐
BforFiscalYear2014‐15

IdentificationorimplementationofoperationalandprocessimprovementsforDFSor
anyotheragencybusinesssystemorfunctionalprocess

Initiationorimplementationofanypolicyandlegalauthoritychanges
1.1.2 FLAIRSTUDYAPPROACH
TheFLAIRStudyemployedaphasedapproach(Exhibit1‐2:FLAIRStudyApproach).This
approachallowedforinformationtobegleanedinastructured,objectivemanner,resulting
inthedevelopmentoftwoprimarydeliverables:

AbusinesscasestudyonthealternativesfortheFLAIRsubsystemandafinal
recommendationtoreplaceorenhanceFLAIR,includinganyScheduleIV‐B(as
required)

Aninventory(describedinSection1.4.1)ofagencybusinesssystemsidentifyingthe
numberoffinancialmanagementrelatedsystems,outsideofFLAIR,inexistence
acrosstheStateprovidinganindicatorofhowagenciesarecompensatingforFLAIR
limitations
Exhibit1‐2:FLAIRStudyApproach
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page3
1.2 FFMISOVERVIEW
TheFFMISAct,establishedinJuly1997,authorizedinSections215.90‐215.96,F.S.,was
establishedtoplan,toimplement,andtomanageaunifiedinformationsystemforfiscal,
management,andaccountingsupportfortheState’sdecisionmakers.TheFFMISActhasthe
followinggoals:7

Strengthenandstandardizemanagementandaccountingprocedures

Strengtheninternalcontrols

Enablethepreparationofobjective,accurate,andtimelyfiscalreports

Reportonthestewardshipofofficialswhoareresponsibleforpublicfundsor
property

Providetimelyandaccurateinformationfordecisionmaking
TheFFMISActestablishedtheState’sfinancialmanagementinformationsystemknown
commonlybythesamenamesake,FFMIS.FFMISiscomprisedofLAS/PBS,CMS,PeopleFirst,
MFMP,andFLAIR.AnillustrationoftheFFMIStopographyisincludedbelowinExhibit1‐3.
Exhibit1‐3:FFMISTopography
7ListedgoalsareasynopsisofSection215.91(1‐3),F.S.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page4
EachFFMISsubsystemhasastatutorilyidentifiedfunctionalowneraswellasadditional
statutoryrequirementsasfollows:

LAS/PBS–TheExecutiveOfficeoftheGovernor(EOG)isthefunctionalowner.The
systemmustbedesigned,implementedandoperatedpursuanttoChapter216,F.S.

CMS–TheCFOisthefunctionalowner.Thesystemmustbedesigned,implemented
andoperatedpursuanttoChapters17and215,F.S.

PeopleFirst–TheDepartmentofManagementServices(DMS)isthefunctionalowner.
Thesystemmustbedesigned,implementedandoperatedpursuanttoChapter
110.116,F.S.

MyFloridaMarketPlace–DMSisthefunctionalowner.Thesystemmustbedesigned,
implementedandoperatedpursuanttoChapter287,F.S.

FLAIR–DFSisthefunctionalowner.Thesystemmustbedesigned,implementedand
operatedpursuanttoChapters17,110,215,216,and287,F.S.
Thefunctionalownerforeachsubsystemisresponsibleformanaging,maintainingand
respondingtothedynamicdemandsofStategovernmentwithintheFFMISframework.A
summaryofrelevantFFMISstatutesisincludedinSection1.6,IndexofFFMISRelatedLegal
Citations.
1.2.1 FFMISGOVERNANCESTRUCTURE
TheFFMISActestablishestheFFMISgovernancestructure.FFMISisgovernedbyaFinancial
ManagementInformationBoard(FMIB,Board)andaFFMISCoordinatingCouncil(FFMIS
Council).TheBoardincludesthe:

Governor,astheChair

CFO

CommissionerofAgriculture

AttorneyGeneral
TheFMIBhasoverallresponsibilityformanagingandoverseeingthedevelopmentofFFMIS,
includingestablishingfinancialmanagementpoliciesandproceduresforexecutivebranch
agencies.TheFMIBisnotrequiredtomeetatanyspecificfrequency,andtheGovernororthe
CFOmaycallameetingoftheBoardatanytimetheneedarises.
TheFFMISCounciliscomposedofthefollowingindividualsortheirdesignees:

TheCFO,astheChair

CommissionerofAgriculture

TheDMSSecretary

TheAttorneyGeneral

TheDirectorofOfficeofPolicyandBudget
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page5

TheAuditorGeneral(non‐votingmember)

TheStateCourtsAdministrator(non‐votingmember)

AnexecutiveofficeroftheFloridaAssociationofStateAgencyAdministrative
ServicesDirectors(non‐votingmember)

AnexecutiveofficeroftheFloridaAssociationofStateBudgetOfficersordesignee
(non‐votingmember)
TheFFMISCouncilisrequiredbylawtomeetatleastannually.Theprimaryresponsibilityof
theCouncilistoreviewandtorecommendtotheBoardsolutionsandpolicyalternativesto
ensurecoordinationbetweenfunctionalownersofthevariousFFMISsubsystemstothe
extentnecessarytounifyallthesubsystemsintoafinancialmanagementinformationsystem.
AdditionaldutiesoftheFFMISCouncilinclude:

Conductstudiesandestablishcommittees,workgroups,andteamstodevelop
recommendationsforrules,policies,procedures,principles,andstandardstothe
BoardasnecessarytoassisttheBoardinitseffortstodesign,toimplementandto
perpetuateafinancialmanagementinformationsystem

RecommendtotheBoardsolutions,policyalternatives,andlegislativebudgetrequest
issuestoensureaframeworkforthetimely,positive,preplanned,andprescribed
datatransferbetweeninformationsubsystems

TorecommendtotheBoardsolutions,policyalternatives,andlegislativebudget
requestissuestoensuretheavailabilityofdataandinformationtosupportState
planning,policydevelopment,management,evaluation,andperformancemonitoring

ToreporttotheBoardallactionstakenbytheCouncilforfinalaction

Toreviewtheannualworkplansofthefunctionalownerinformationsubsystemsby
October1ofeachyear.ThereviewistoassessthestatusofFFMISandthefunctional
ownersubsystems.TheCouncil,aspartofthereviewprocess,maymake
recommendationsformodificationstothefunctionalownerinformationsubsystems
annualworkplans
1.2.2 PLANNINGANDBUDGETINGSUBSYSTEM(LAS/PBS)
LAS/PBSistheState’sbudgetingandappropriationsubsystem.
LAS/PBSisusedfordeveloping,preparing,analyzing,andevaluating
agencybudgetrequests.EOG’sOfficeofPolicyandBudget(OPB)uses
LAS/PBStodeveloptheGovernor’sbudgetrecommendationsandto
allocateandtocontroltheappropriations.TheLegislatureusesthe
subsystemtocreatetheappropriationsbills,includingtheproviso
andothercontrollinglanguageusedtodocumentlegislativeintent
andcreatethefoundationtoenabletheagenciestomanageand
performlegislativelyauthorizedorrequiredservicesandactivitiesconsistentwithsuch
legislativeintent.ThebudgetingandappropriationsprocessproducestheGAAandits
supplementsandamendments.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page6
1.2.3
CASHMANAGEMENTSUBSYSTEM(CMS)
TheTreasuryreceivesanddisbursescash,invests
availablebalances,andperformsrelated
accountingfunctions,cashmanagement
operations,andconsultations.TheTreasury
operatesseparateapplicationsknowncollectively
asCMStocarryoutitsresponsibilitiesof
monitoringcashlevelsandactivitiesinStatebank
accounts,forkeepingdetailedrecordsofcash
transactionsandinvestmentsforStateagencies,
andpayingofwarrantsandotherpayments
issuedbytheCFO.CMSinterfaceswithCentral
FLAIR,DepartmentalFLAIR,Departmentof
Revenuesystems,otherStateagencysystems,
FLAIRIW,andbankbusinesspartnersystems.
TheTreasuryisintheprocessofupgradingthecurrentCMSplatformtoaweb‐basedsystem.
Theupgradewilloccurintwophases.Phase1wentliveinAugust2013andestablisheda
newintegratedplatformandreplacedthreeexistingbusinessapplicationsincludingVerifies,
Receipts,andChargebacks.Phase2willreplacetheremainingCMSsubsystemapplications
andaddthecapabilitiestothenewintegratedCMSplatformdevelopedinPhase1.8Phase2
isscheduledtoimplementinstagesfrom2014through2018.
1.2.4 PERSONNELINFORMATIONSUBSYSTEM(PEOPLEFIRST)
PeopleFirstisaself‐service,secure,web‐basedpersonnel
informationsystemcomprisedofthefollowingmodules:
payrollpreparation,timeandattendance,recruitment,
benefitsadministration,humanresourcesmanagement,and
organizationalmanagement.Itisusedbyemployees,
managers,retirees,jobapplicants,andStatehuman
resources(HR)staff.Thesystemcurrentlysupportsmore
than200,000StateandUniversityusers.
DMSoutsourcedtheState’spersonnelfunctiontoNorthgateArinso,Inc.(NGA).Thecurrent
contractexpiresonAugust20,2016andhasanannualvalueover$36million.9
SAPsoftwareisthecurrentplatformforPeopleFirst.NGAhasperformedmorethan17,000
customizationstothesystemplatformandwebapplicationservers,and588interfaceshave
8RemainingCMSapplicationstobereplacedinPhase2include:FundAccounting,BankAccounts,
StateAccounts,Dis‐investments,InvestmentAccountingSystem,ConsolidatedRevolvingAccount,and
SpecialPurposeInvestmentAccounts.Adescriptionofeachbusinessapplicationcanbefoundinthe
Chapter1Appendix.
9PeopleFirstContract.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page7
beenbuilttoexchangedatabetweenthePeopleFirstsystemandexternalsystems(e.g.,
FLAIR,universitypersonnelsystems,insurancecarriers).Thesystemstreamlinesand
automatesmanyoftheState’sHRfunctions,andpromotespaperlessworkprocesses(e.g.,
timesheetsubmission,benefitstransactions,anddirectdeposit).
Inaccordancewithprovisointhe2013GAA,DMSprocuredKPMGtoconductabusinesscase
studytodeterminethebestandmostappropriatehumanresourcemodelforDMStoprocure
inafuturecompetitivesolicitation.ThebusinesscasestudywascompletedJanuary31,
2014.10
1.2.5 PROCUREMENTSUBSYSTEM(MYFLORIDAMARKETPLACE)
MyFloridaMarketPlaceisasecure,web‐basedprocurement
system.ItprovidesforStateprocurementstaffandvendorsto
exchangeproductsandservices.MFMPallowsvendorsto
registerwiththeStateanddisplayandmanagetheircatalogues
online.BuyersuseMFMPtofindproducts,placeorders,
approvepurchases,reconcileinvoicesandapprovepaymentall
withinonesystem.Procurementpersonnelcancreate
solicitationsinthesourcingmodulewhiletheanalyticsmodule
providesspendanalysisandreporting.ThesystemservesState
andvendorusersandsupportsabroadarrayofprocurementcapabilities.
DMSandAccenture,LLPexecutedacontractonOctober9,2002toimplementanAriba
procurementsolutionfortheStateofFlorida.TheStateofFloridaAribaapplication,known
asMFMP,isaCOTSpackagewithover300customizations.Thelargestshareofthe
customizations(28%)wasrequiredtointerfacewiththeState’saccountingsystem,FLAIR.11
MFMPhasover13,000Stateusersandnearly100,000registeredvendors.
ThecurrentMFMPcontractissettoexpireonJanuary31,2017andhasoptionsforrenewal;
theannualvalueofthecontractisover$10million.12
10January31,2014KPMGPeopleFirstBusinessCase.
11MyFloridaMarketPlaceBusinessCaseoftheeProcurementSolutions,August2011.
12MFMPContract.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page8
1.2.6 FLAIRSUBSYSTEM(FLAIR)
FLAIRistheState’saccountingsystem.It
supportstheaccountingandfinancial
managementfunctionsfortheState’sCFO
includingbudgetposting,receiptand
disbursementoffunds,payrollprocessing
andemployeeportal,andtheaccounting
informationfortheState’sComprehensive
AnnualFinancialReport(CAFR).
FLAIRconsistsofthefollowing
components:

PayrollAccounting:Processesthe
State’spayroll.Payrollcapabilities
arecontainedwithinFLAIR.

CentralAccounting:Maintains
cashbasisrecordsandisusedby
theCFOtoensureexpendituresare
madeinaccordancewiththe
legislativeappropriations.It
containscashbalancesandbudget
recordsaswellassupportstax
reporting;itisnotacomprehensive
GeneralLedger.

DepartmentalAccounting:
Maintainsagencies’accounting
recordsandisutilizedattheendof
eachfiscalyeartopreparefinancial
statementsinaccordancewithgenerallyacceptedaccountingprinciples.

InformationWarehouse:Areportinganddatarepositorysystemallowingusersto
accessCentralAccountinginformationandmostDepartmentalAccounting
informationinFLAIR.TheIWreceivesdatafromCentralFLAIR,DepartmentalFLAIR,
andPayroll.
FLAIRwasimplementedintheearly1980sbasedonsourcecodefromthe1970s.Itrunson
amainframeandisusedby36stateagencieswithapproximately14,000+individualusersat
400+accountingofficesitesthroughouttheState.FLAIRsupportsthefinancialoversight
managementoftheState’s$90billionbudget13andprocessesmorethan95million
accountingtransactionsannually.FLAIRalsopays180,000Statepersonnelannually.
13DFSmanagesanavailablebudgetofover$90billion(includescurrentfiscalyear’sbudgetand
carryoverbalancesfrompreviousfiscalyears).
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page9
ThelastsignificantfunctionalupgradetoFLAIRoccurredinthelate90’swiththeadditionof
thePurchasingCard(P‐card)functionality.Otherwise,FLAIRhasnotbeensignificantly
upgradedinthecontextofmodernizingthecoremodules.
1.2.7 PROJECTASPIRE
TheStateofFloridabegananefforttoupgradeandmodernizeitscoreoperationalsoftware
andITinfrastructure,specificallyitsaccounting,cashmanagement,procurementandhuman
resourcesfunctions,inFebruary2000.AstudywascompletedbyKPMGandprovidedhigh‐
leveldirectionforhowtheStatecouldachievethisgoal.Thecoreoftherecommendation
wasa“bestofbreed”approachpromotingspecializedapplicationsratedhighlyinspecific
functionalareasandwouldalsosupportenterprisewideintegration.Thestudyspawned
threeinitiatives:MFMP,PeopleFirst,andProjectAspire.ProjectAspirewastheprojectto
modernizetheState’sfinanceandaccountingsubsystems,FLAIRandCMS.Someofthe
originalgoalsofProjectAspirewereto:

ModernizeandunifytheState’saccountingandcashmanagementplatforms

Createanenterpriseintegrationarchitecturetoallowotherbusinesssystem
components(i.e.,Personnel,payroll,LAS/PBS,andeProcurement)tobeintegrated

EstablishflexiblefunctionalityandbeabletosupporttheneedsoftheStatewith
minimalornomodifications

Maintainmeaningfulmanagementinformationfordecisionmakers

Eliminate,totheextentpossible,agency‐specificsystemsbuilttoperformcritical
accountingfunctionsnotavailableinFLAIR
Afterconductingaprocurementforcombinedsoftwareandimplementationservicesinlate
2002,DFSselectedBearingPointtoimplementthePeopleSoftsoftwarepackage.The
BearingPointcontractwasforasix‐yeartermfromAugust27,2003toOctober1,2009.The
projectexperiencedsignificantchallenges.OnMay17,2007,aftercompletingdesignand
development,Aspirewassuspendedduringtestingduetosignificantconcernswithitsability
todeploysuccessfully.
GiventhestrongsimilaritiesbetweenProjectAspireandtheintentoftheFLAIRStudy
recommendation,itisimportanttoincludekeystrengthsandlessonslearnedfromAspire
intofutureplans.Thestrengthsandlessonslearned,gleanedfromfirsthanddiscussionswith
ProjectAspireteammembersandtwoStatesponsoredprojectlessonslearnedsessions14,are
identifiedbelowandhavebeenincorporatedintotheFLAIRStudy(seeExhibit1‐4:Project
AspireStrengthstoReplicateandExhibit1‐5:ProjectAspireLessonsLearned).
14GartnerProjectAspireEvaluation,May2007;andCouncilonEfficientGovernment:Reporttothe
GovernoronMyFloridaMarketPlace,PeopleFirstandProjectAspire,January2008.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page10
PROJECTASPIRESTRENGTHS
AgencyEngagementandCommunication:
 Eachagencyhadaliaisontotheproject,was
supportedbyanactiveagencyadvocacygroup,
andwasabletoprovidebusinessrequirements
 Projectteamestablishedstrongproject
communicationpractices(projectwebsite,
regularprojectNewsletter,regularmeetings
withliaisons,andprojectstatusreports)
GovernanceStructure:
 Astronggovernancestructurewasinstitutedon
Aspireandrolesandresponsibilitieswere
definedforeachlayerofthegovernance
structure;however,thecompositionofthe
seniorleadershipwasproblematic(seeProject
AspireWeaknessesbelow)
ContractManagement:
 Contracttermswithvendorwererigidand
enabledtheStatetowithholdpaymentwhen
deliverableswerenotmet
 ThecontractenabledDFStorebuffthevendor’s
requesttoswitchfromafixedfeecontracttoa
timeandmaterial(T&M)contract
WHEREINCORPORATEDINFLAIRSTUDY
Chapter4:ImplementationStrategy
 ProjectPlanning
 ChangeManagement
Chapter3: Recommendation
 GovernanceStructure
Chapter4:ImplementationStrategy
 ProjectGovernance/Project
ManagementOffice
Chapter5:ProcurementandContract
Management
 PerformanceStandards
Exhibit1‐4:ProjectAspireStrengthstoReplicate
Theexhibit(Exhibit1‐5)belowfocusesonweaknessesinProjectAspireandwheretheyare
incorporatedintotheFLAIRStudy:
PROJECTASPIREWEAKNESSES
GovernanceandSteeringCommitteeComposition:
 Didnotholdallmembersaccountabletotheir
responsibilitiesandescalatesituationswhere
memberswerenotmeetingexpectations
 DidnotidentifySteeringCommitteememberswith
relevantoperationalexperienceandwhowereable
to“diveintodetails”sodecisionswerewellfounded
 DidnotensureSteeringCommitteewasmaking
timelydecisionsandhadtheauthoritytomakeand
enforcedecisionsrelatedtothedesign,
development,implementationandrolloutofthe
recommendedsolution
Future‐StateVision:
 Didnotdefineaclearvisionforthefuture‐state
financialenvironmentandalignwithkey
stakeholders(FMIB,FFMISCouncil,andkey
agencies)toensurealignmentandtheirsupport
FloridaDepartmentofFinancialServices
FLAIRStudy
WHEREINCORPORATEDINFLAIRSTUDY
Chapter3:Recommendation
 GovernanceStructure
Chapter4:ImplementationStrategy
 ProjectGovernance/Project
ManagementOffice
Chapter1:Background
 SolutionGoalsandBenefits
Chapter4:ImplementationStrategy
 TransitionPlan
Chapter1:Page11
PROJECTASPIREWEAKNESSES
ProcessStandardization/MinimizeCustomization:
 Didnotaggressivelypromoteprocessre‐
engineering/standardizationandoppose
customizationofsoftwaretomatchexisting
businessprocessestoreduceimplementation
complexityandpromoteoperationalefficiencyand
consistencyacrosstheState
WHEREINCORPORATEDINFLAIRSTUDY
Chapter3:Recommendation
 GovernanceStructure
Chapter4:ImplementationStrategy
 BusinessProcessRe‐
engineering
Chapter5:ProcurementandContract
Management
 PerformanceStandards
Chapter5:ProcurementandContract
Management
 ProcurementApproachand
Strategy
DisciplinedProcurement:
 Didnotdefineandfollowadisciplinedand
structuredprocurementstrategyandapproachto
ensureallappropriateduediligencewascompleted
andawell‐informedpurchasedecision(s)couldbe
made
 Didnotdocumentvendorperformancemeasuresto
enabletheStatetogaugeprogressobjectivelyand
holdthevendoraccountabletoestablished
milestonesandprojectrequirements
QualifiedandExperiencedImplementationTeam:
Chapter4:ImplementationStrategy
 ProjectPlanning(Project
 Didnotestablishclearexpectationsaroundtheroles
Governance)
andresponsibilitiesofallprojectteammembersto
Chapter5:ProcurementandContract
reduceambiguityandgreateralignment
 Didnotholdprojectteammembersaccountablefor Management
 ProcurementApproachand
theirwork;andaddressresourceandskillissues
Strategy
aggressivelytominimizeimpacttothebroader
project
Exhibit1‐5:ProjectAspireWeaknesses
1.3 CURRENTSTATEPERFORMANCE
Anobjectivemethodtoassessthecurrentperformanceofafinancialmanagementsystemis
toreviewrelevantperformancemetrics.Keyperformancemetricsallowforcomparisonsof
likebusinessfunctionstobemadeacrossindustriesandorganizationsofdifferentsizes.
Trackingandreportingonkeyperformancemetricsisonewayorganizationscanevaluate
theiroperationalefficiencyandeffectivenessovertimeaswellasidentifyoperational
processestofocusimprovementeffortsupon.
ThedataproducedtodayaboutFLAIRandCMSandthefunctionstheysupportarenotkey
performancemetrics,rathertheyarevolumestatisticstoindicatethesheernumberandtype
oftransactionsflowingthroughthesystem.Thesevolumemeasuresarenotoptimizedto
supportDFSoragencymanagementdecisionmakingnordotheyallowforoperational
performancetobeassessed.Examplesofsomeofthetransactionvolumemeasurescaptured
canbefoundinExhibit1‐6.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page12
BUSINESSFUNCTION
FLAIRSTATISTICS15
AccountsPayable(AP)















AccountsReceivable(AR)
FinancialStatements
Payroll
FinanceFunctionOverall
TaxReporting
FundsManagement
NumberofWarrantsPrinted=8million
NumberofEFTPayments=6.7million
NumberofPurchasingCardPayments=700,000
Numberof1099sReported=12,000‐14,000
54,801ARrecordscreated
25AgenciesrecordARrecords
TimetoPrepareCAFR =7‐9months
PercentofPayrollbyDirectDeposit=96%
AccountingTransactions=~95million
NumberofUsers=~14,000+
NumberofRecordsinDataWarehouse=1.2billion
NumberofW9Records=~80,000
NumberofDepositsProcessed=740,612
AmountofDepositsProcessed=$83.48billion
AmountofInterestApportionedtoGeneralRevenue=
$103.5Million
Exhibit1‐6:CurrentFLAIRandCMSStatistics
Floridaisnotaloneinitsabsenceofgeneratingandtrackingoperationalperformance
metrics.Aspartofthisstudy,interviewswereconductedwithsevenotherstates,including
Virginia,Georgia,Pennsylvania,NewYork,Alabama,TexasandOhio.Noneofthestates
interviewedcurrentlyproduceoperationalperformancemetrics.
DuringthePre‐Design,DevelopmentandImplementationphase(Pre‐DDI)describedin
Chapter4:ImplementationStrategyandincludedaspartofthebusinessprocessre‐
engineeringefforts,itisrecommendedDFSestablishabaselinesetofoperational
performancemetrics.ThesebaselinemetricsenableDFSandtheStatetoobjectivelyassess
(1)themagnitudeofpotentialoperationalimprovementsand(2)operationalimprovement
progress.PotentialoperationalmeasurestoconsiderarecontainedinExhibit1‐7:Common
FinanceandAccountingMetrics.
BUSINESS
FUNCTION
Financial
Reporting
PERFORMANCECATEGORY



CycleTime
ProcessEfficiency
ProcessEfficiency
POTENTIALPERFORMANCEMETRICS



AnnualClose:Daystoclose
ManualJournalEntry(JE)percentageof
allJE
NumberofFullTimeEquivalents(FTE)
fortheprocessgroup"performfinancial
reporting"per$1Billionrevenue
15StatisticsfromFiscalYear2012‐2013.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page13
BUSINESS
FUNCTION
PERFORMANCECATEGORY
Accounts
Payable(AP)


ProcessEfficiency
POTENTIALPERFORMANCEMETRICS


Accounts
Receivable(AR)


ProcessEfficiency


Payroll


CycleTime
ProcessEfficiency


Finance
FunctionOverall


ProcessEfficiency
CostEffectiveness


Treasury
Management

ProcessEfficiency

NumberofFTEsfortheprocessgroup
"processaccountspayableandexpense
reimbursement"per$1Billionrevenue
NumberofAPinvoicesprocessedperAP
FTE
NumberofFTEsfortheprocessgroup
"processaccountsreceivable"per$1
Billionrevenue
NumberofremittancesprocessedperAR
FTE
Numberofbusinessdaystoprocess
payroll
NumberofFTEsfortheprocessgroup
"processpayroll"per$1Billionrevenue
NumberofFinanceFunctionFTEsper$1
Billioninrevenue
TotalcosttoperformtheFinance
FunctionperFinanceFunctionFTE
NumberofFTEsfortheprocessgroup
"managetreasuryoperations”per$1
Billionrevenue
Exhibit1‐7:CommonFinanceandAccountingMetrics16
1.4 LIMITATIONSWITHFLAIRTODAY
Intheabsenceofbeingabletousemetricstoevaluatetheoperationalperformanceofthe
current‐stateFLAIRsystem,aqualitativeassessmentwascompleted.Thisassessment,
leveraginginformationgleanedfromagencyinterviews17anddocumentation,identified
significantchallengesandlimitationswiththecurrentsystem.Thesechallengesand
limitationscanunderminetheState’sabilitytoefficientlyandeffectivelymanageitsfinances,
exposingtheStatetooperationalrisk,increasingstatewidemaintenancecosts,andreducing
organizationalproductivityduetoinconsistentbusinessprocesses.
TheidentifiedlimitationsofFLAIRtodayandtheirqualitativeimpactonthebusinessare
summarizedinExhibit1‐8:LimitationswithFLAIRToday.ThefollowingistheLegendfor
Exhibit1‐8.
LEGEND:
BusinessImpactScale:
‐Low
‐ Medium
‐High
16Source:AmericanProductivity&QualityCenter(APQC);www.apqc.org.
17“Deepdive”interviewswereconductedwiththefollowingagencies:DepartmentofTransportation,
DepartmentofRevenue,DepartmentofEnvironmentalProtection,DepartmentofFinancialServices,
DepartmentofManagementServices,andDepartmentofChildrenandFamilies.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page14
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page15
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
IMPLICATION
1.FLAIRdataiscompiledusing
MicrosoftAccessandExcelfor
preparationoftheFinancial
Statements(e.g.,CAFR).

2.FLAIRdoesnotsupportcash
forecastingataStatelevel.



3.FLAIRdoesnotsupporteither
theschedulingorconsolidationof
payments.


4.Accountingtransactionsare
notcapturedataconsistentlevel
ofdetail.


5.CurrentstructureofCentral
FLAIRlimitsabilitytointerface
encumbrancesfromexternal
systems(e.g.,MFMP).

FloridaDepartmentofFinancialServices
FLAIRStudy
INCREASED
OPERATIONAL
RISK
Sourcedataisbeingmanipulatedoutside
ofsystemincreasingriskoferrorsbeing
introduced
Effortexpendedtoreconcileandto
confirmfinancialfiguresincreasestime
andcoststoproducereports
Lackofsufficient,reliable,andtimely
informationresultsinamoreconservative
positionbeingtakenthanisrequired
influencingpotentialinvestmentearnings
Lackofsufficient,reliable,andtimely
informationhindersdecisionmakingand
couldresultinanunfavorableactionbeing
taken
Additionaleffortrequiredtosupport
paymentprocess(i.e.,numberofjournal
entries)
Stateincursadditionalbankingfeesand
cannottakeadvantageoffavorable
paymentterms
Differentprocessesandproceduresinuse
acrossagenciesincreasesenterprise‐wide
operationalcomplexity
Availabledata/informationcannotbe
leveragedinaconsistentmanner
ReducesDFS/CFO’svisibilityintothe
State’sliabilitiesandimpactsdecision
makingrelatedtotheState’scashposition
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
Chapter1:Page16
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
6.FLAIRdoesnotcontaina
receiptingfunctiontomanageand
totrackinvoices.
IMPLICATION


7.CentralandDepartmental
FLAIRdonotreconcilewithout
manualprocesses.

8.CMSmustbereconciledwith
CentralandDepartmentalFLAIR
sincetheyarenotonan
integratedfinancialplatform
(FLAIRandCMSarenot
integrated;theyinteractthrough
externalprogramsandfile
exchanges).
9.FLAIRdoesnothave
functionalitytokeepinteragency
transfersinbalance.
10.Warrantscannotbecharged
tomorethanoneaccount.






FloridaDepartmentofFinancialServices
FLAIRStudy
INCREASED
OPERATIONAL
RISK
Agencieshaveimplementedworkarounds
(i.e.,systems,processes)tosupporttheir
ARneeds
Itisnotpossibletogetastatewideviewof
outstandingARbalanceshindering
operationaldecisionmaking
Additionalagencyeffortandresources
requiredtocompletereconciliation
Amanualreconciliationeffortincreases
likelihoodoferrorsbeingintroduced
Additionaleffortandresourcesrequired
tocompletereconciliation
Manualreconciliationeffortsincrease
likelihoodoferrorsbeingintroduced
Requiresreconciliationefforttoensure
agencyaccountsarenotoutofbalance(in
particularatyearend)
Warrantsrequiring paymentfrom
multiplefundsrequirejournaltransfers
afterthepaymentisinitiallymadein
ordertoallocatethechargecorrectly
resultingineffortbeingexpendedand
potentialerrorsbeingmade
Increasescostwithnumberofwarrants
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
Chapter1:Page17
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
11.FLAIRhaslimited
Asset/InventoryManagement
functionality(e.g.,barcode
reading,track“highinterest”
itemswithoutneedingafinancial
valueortrackingdepreciation).
12.Thereisnofunctionalityfor
managementorstatewide
reportingoftheState’sresources:
 Assets
 Grants
 Projects
 Contracts
13.Reportingcapabilitiesare
limited.Unabletoreportat
statewidelevel(i.e.,amountsdue
totheState,vendorspend).
IMPLICATION





14.Agenciescannotforecastor
projectdifferentfinancialmodels
orscenariosthroughoutthefiscal
year(i.e.,“whatif”analysis).

FloridaDepartmentofFinancialServices
FLAIRStudy
INCREASED
OPERATIONAL
RISK
Agencieshaveimplementedtheirown
systemstomanagetheannualasset
inventoryprocesswhichincreasesupport
costsandprocesscomplexity
Oversight,management anddecision
makingrelatedtoStateresourcesismore
challenging
Manualprocessesandworkaroundsare
requiredtosupportreporting
requirementsandmanageresources(e.g.,
developmentandprocessingofcost
allocations,identificationof
eligible/ineligibleactivities)
Additionalreportingtools/systemsare
beingusedtoproducereportsincreasing
support/maintenancecomplexity,cost
andeffort
Dataismaintainedinmultiplesystems
andnotalwaysdefinedandused
consistentlyraisingcomplexityinusing
thedata/informationeffectively(i.e.,
betterpricingtermsbasedonvolume)and
increasingthetimeandefforttocreate
neededreports
Analysistoaddressmanagement
questionsmid‐yearrequiresmanual
processingandadditionalstaffeffortand
time
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
Chapter1:Page18
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
15.Businessuserscannotcreate
andrunadhocreportswithoutIT
resourceassistance.
IMPLICATION



FloridaDepartmentofFinancialServices
FLAIRStudy
INCREASED
OPERATIONAL
RISK
Reportcreationbecomesaprocess
needingmanagement
Timelinessofreportcreationisnot
alignedwiththeactualneedforthe
information
IncreasedcostforITsupporttocollect
dataandcreatereports
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
Chapter1:Page19
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
16.Technologyplatformis
outdated,inflexible,anddifficult
tomaintainandenhance.18
INCREASED
OPERATIONAL
RISK
IMPLICATION



Stabilityofsystemisaconcernwhen
changesorenhancementsaremade
leadingtodowntimeorpotentiallysystem
failure
Operationalcomplexityandcostandeffort
tointegrateFLAIRwithothersystems
increasesduetoageoftechnologyinuse
and“stovepipe”designofFLAIR
components
Enhancementsandchanges(e.g.,
add/subtractagencies,addfieldsto
transactiondetails)toFLAIRorganization
oraccountingchangesaredifficultand
costlytomakewhichhindersleadership’s
abilitytochangetheaccountingstructure
tosupportbetterfinancialmanagement
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
18FLAIRismorethan30yearsoldandisbuiltonanantiquatedprogramminglanguage(Natural).Naturaldoesnotrankinthetop50programing
languagesandaccountsforlessthan0.2%popularityoftheallprograminglanguagesmonitored.Source:TIOBEProgrammingCommunity
IndexforNovember2013.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page20
BUSINESSIMPACT
IDENTIFIEDLIMITATION/CHALLENGE
IMPLICATION
17.FLAIRlacksnecessary
functionalitytosupportthe
constructionofcostallocations
essentialforagenciestoallocate
costsrequiredbynumerousgrant
programs.

18.ThedesignofFLAIRresultsin
fourcashbalancesbeing
maintainedandmanaged(one
bankbalanceandthreebook
balances(CMS,Centraland
Departmental)).

19.ThedesignofFLAIRresultsin
payrollprocessingactivitiesbeing
completedinmultipleseparate
applications(PeopleFirst,Payroll,
CentralandDepartmentalFLAIR).





20.FLAIRdoesnotsupport
workflow/electronicdocuments.
INCREASED
OPERATIONAL
RISK

Agenciesuseworkarounds(i.e.,manual
processesorexternaltools/systems)to
generaterequiredcostallocationsand
meetreportingrequirements
Oncecalculatedcostallocationsneedtobe
re‐enteredintoDepartmentalFLAIR
exposingagenciestomanualentryerrors
oradditionalreconciliation
Monitoringmultiplecashbalances
requiresadditionalstaffandmanagement
attentionandreducesoperationalfocus
Significanteffortrequiredtokeepcash
balancesreconciled
Entryforerrorofmultiplebookbalances
toreconcile
Reconciliationeffortsarerequired
betweensystemsandoperational
complexityincreasessincepayrollrelated
calculationsandactivitiesarebeing
completedinmultiplesystems
Note:PeopleFirstcontainspayroll
capabilitiescurrentlysuppressedand
beingcompletedbyFLAIRPayroll
Manual,paperandemail basedreviewand
approvalprocessesaretimeintensive,
hardtotrack/monitor,andcouldresultin
requireddocumentationbeing
misplaced/notarchivedcorrectly
DECREASEIN
OPERATIONAL
EFFICIENCY/
EFFECTIVENESS
INCREASED
COSTS/LOST
REVENUE
SUBOPTIMAL
DECISION
MAKING
Exhibit1‐8:LimitationswithFLAIRToday
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page21
1.4.1 CONSEQUENCESOFFLAIRLIMITATIONS
AsillustratedinExhibit1‐8,FLAIRdoesnothavetheneededfunctionalityorabilitytoevolveto
meeteverchangingbusinessrequirements.Agenciesareincreasinglybecomingrelianton
workaroundsandcompensatingsystemstomeettheirfinancialmanagementbusinessneeds.
Theproliferationofcompensatingfinancialsystemsandagencyuniqueprocessescontinuesas
timepassesandbusinessneedschange.Theresultingimpactwillbeafurtherincreasein
operationalriskandcomplexityandareductioninorganizationalproductivity.Thiswillmake
itevenmoredifficultfortheCFO,DFS,andagenciestomanagetheState’sfinancialresources
effectivelyandefficiently.
ThemagnitudeandongoingnatureofagenciestryingtomakeupforFLAIRlimitationsare
demonstratedbythefindingsfromtheInventoryconductedaspartoftheFLAIRStudy.19
TheInventory(Attachment2)identifiedover400financialmanagementrelatedsystems;259
haveadirectinterfacetoFLAIR.Asimilarsysteminventorywascompletedintheyear2000by
KPMG,andatthetimethenumberoffinancialmanagementrelatedsystemswasapproximately
300.20Overtheintervening13yearperiod,therehasbeenovera33%increaseinthenumber
ofagencyfinancialmanagementrelatedsystems.Whilenotallagencysystemsdirectly
interfacewithFLAIR,theyrelyoninformationprovidedbyFLAIRdatatosupportrequired
financialprocesses.
ThelimitationswithFLAIRarenotnewandhaveexistedformanyyears.Over75%ofagency
businesssystemsareover5yearsoldandonly13%arelessthan3yearsold.Thisinformation
indicatesagencieshavebeencompensatingforFLAIRlimitationsformanyyearstobetter
supporttheevolvingfinancialmanagementneedsoftheiragency.

Theprimaryfinancialfunctiongapsbeingclosedbyagencycompensatingsystems
include:
o
AR/Receipting
o
CostAllocation
o
GrantAccounting
o
ManagementReporting
o
Asset/InventoryManagement
Basedoninterviewswiththeagenciessubmittingtheirbusinesssysteminterfaceinformation
andthedeeperdiveagencyinterviewscompleted,thereisanindicationalargenumberofthe
19Thepurposeoftheinventorywastoidentifythenumberoffinancialmanagementrelatedsystems,
outsideofFLAIR,inexistenceacrossthestateandprovideanindicationofhowagenciesare
compensatingforFLAIRlimitations.Deliverabletitle:FLAIRStudyAgencyBusinessSystemInventory,
March2014.
20KPMGBusinessCase:Chapter4–ITAssessment,February2000.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page22
agencybusinesssystemsidentifiedintheinventoryarepotentialcandidatesforretirement
oncethego‐forwardsolutionisimplemented.
1.4.2 STATUSQUOISNOTANOPTION
IftheStateofFloridawasacountry,itsGrossDomesticProduct(GDP)wouldbeamongthe20
largestintheworld.IftheStateofFloridawasaprivatesectorcorporation,its$90billion
budgetwouldearnaspotinthe“Fortune25.”FinancialManagementforanenterpriseofthe
sizeandcomplexityoftheStateofFloridahasascopeandscalebestcomparedtotheother
largestates(i.e.California,Texas,NewYork,Illinois,andPennsylvania),thelargestUSFederal
agencies,andthelargest,mostcomplexnationalandmulti‐nationalprivatesectorcompanies.
Acapable,flexibleandreliablefinancialmanagementsystemisamustforanenterprisethesize
ofFlorida.FLAIRisnotkeepingupwiththeState’sevolvingandgrowingbusinessneedsand,
astimegoeson,theoperationalriskofrelyingonFLAIRonlyincreases.Thelimitationswith
FLAIRandtheassociatedimpacts(i.e.,proliferationofagencycompensatingsystemsand
agencyuniqueprocesses)arenottrivialandnegativelyimpacttheoperationalproductivityand
thefinancialmanagementoftheState.
1.5 SOLUTIONGOALSANDBENEFITSMUSTSUPPORTTHEAGENCY’SMISSION
Regardlessofthego‐forwardrecommendation,itiscriticalthedefinedsolutiongoalsand
benefitsareclearlylinkedandsupporttheCFOandDFSinperformingtheirrolesand
responsibilities.Thefollowingsectiondemonstrateshowadirectconnectionwasestablished
betweentheCFO’smissionanddefinedsolutiongoalsandbenefits.
1.5.1 THECFO’SMISSION
TheCFOhasthelegalresponsibilityforsettlingandapprovingaccountsagainsttheStateand
maintainingallStatefundsandsecurities.Thisrole,andassociatedresponsibilities,areenabled
intheFloridaConstitutionandFloridaStatute(ArticleIV,Section4CandChapter17,F.S.,
respectively)andestablishthemissionfortheCFO.Subsequently,DFSexiststosupportthe
CFOinperforminghisroleandresponsibilities.Additionally,Section215.93,F.S.definesthe
functionalownerforeachFFMISsubsystemandthefunctionalowner’sresponsibilities.
Adefinedmissioniscriticalsinceitclarifiesthepurposeofanorganizationanditestablishes
theframeworkforoperationaldecisionmaking.Allcurrentandfutureactivitiesshould
supportthemission.Withoutaclearmission,resourcesmaybeallocatedsuboptimallyand
organizationaldecisionsandeffortsmaybeuncoordinatedandevenpotentiallycontradictory.
AchievingandsupportingtheCFO’smissionmustbeatthecenterofanypotentialgo‐forward
recommendation.
1.5.2 CURRENTSTATECHALLENGESANDRISKSREQUIREACTIONTOBETAKENNOW
TheabilityoftheCFOandDFStoperformtheirmissionisbecomingincreasinglydifficultgiven
thesignificantlimitationswithFLAIR.Anewfinancialmanagementsolutionisneedednowand
theneedforchangeisevidentbythefollowing:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page23

Agencieshaveimplementedandcontinuetoimplementworkaroundsandfinancial
relatedbusinesssystemstofill“gaps”createdbyFLAIRlimitations.Theproliferationof
theseagencyuniqueprocessesandcompensatingfinancialsystemswillonlycontinue
asbusinessneedschange.Theresultisanincreaseinoperationalcomplexity,
maintenanceandadministrativecosts,andincreaseddifficultyfortheCFOandDFSto
managetheState’sfinancialresources.Asecondaryimpactrelatedtothenumberof
agencyuniqueprocessesandhomegrownsystemswillbeanincreasedlevelof
complexitytotransitiontonewgoforwardsolution.

FLAIRisafragilesystemdeveloped30yearsago,anditcannotevolvetomeetthe
State’severchangingbusinessandfinancialmanagementneeds.Thefragilityis
representedbythecomplicationsandinstabilityarisingfromrequiredchangesto
supportbusinessandpolicyneeds,e.g.,changingagencynamesorpayrollcalculations.

FLAIRisaninflexiblesystembasedontheunderlyingprogramminganddatastructure.
Thisisdemonstratedbythelimitedpotentialtoadddataelements.Thelimitingfactor
isthestructureoftheprogrammingmodules.

ResourcesneededtomaintainFLAIRarescarceandarebecomingmorelimited.Over
40%ofpersonnelsupportingFLAIRhaveatleast30yearsofserviceandarecurrently
eligibleforfullretirement.Thelossofirreplaceableinstitutionalknowledgeandlackof
qualifiedresourcestosupportFLAIRincreasesfutureoperationalriskwhenchangesto
thesystemareneededorsystemissuesneedtoberesolved.Resourceknowledgeis
criticalsincesystemdocumentationmaynotalwaysbeaccurateanduptodate.

FLAIRcannotsupporttheDepartment’sortheState’sfinancialmanagementneeds.
FLAIRcannotforecastcashdemandsatastatelevelnordoesitcontainfunctionality
supportingoperationalefficiency(i.e.,workflow,automatedreconciliation)andcannot
promotecostsavings/revenuegeneration(i.e.,NetDiscounts,interestearnings).

FLAIR,andtheFFMISsubsystems,aredesignedandoperatedinawaynotconduciveto
supportinganenterprise‐widesolution.Ifthestateeverwantstomovetowardsan
enterprise‐widesolution,itneedstoestablishaflexiblefoundationtoallowfor
evolution(i.e.,addcapabilities)andtobeacatalystforfuturestatewideoperational
efficiencyandeffectivenessefforts.
1.5.3 GUIDINGPRINCIPLESSHAPETHEDEFINITIONOFSUCCESS
Guidingprinciplesprovidetheframeworkfordecisionmakingandsupportobjectivescreated
tomeetthestatedprinciples.Thedevelopedguidingprinciplesmusttakeintoaccountthe
currentstateenvironment(i.e.,risksandchallenges,markettrends21)andwhatisrequiredfor
theCFOandDFStoperformtheirmission.Additionally,theguidingprinciplesmustbealigned
totheauthoritygrantedbystatute.Threeguidingprinciplesweredevelopedaspartofthe
FLAIRStudy(seeExhibit1‐9:FLAIRStudyGuidingPrinciplesandSupportingStatutes).
21MarkettrendinformationcanbefoundinChapter2:OptionsAnalysis.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page24
GUIDINGPRINCIPLES
SUPPORTINGSTATUTES
Implementastatewidefinanceandaccounting
systemtoenforceprocessstandardization,
promoteeconomiesofscale,andenable
comprehensive,accuratefinancialinformation
tobeproduced.
215.93:Noagencyshallestablish/maintainsystems
whichduplicateanyoftheinformationsystemsof
FFMIS.
216.102:Financialinformationmustbecontained
withinFLAIR.
216.141:TheCFOshalluseFLAIRinthe
performanceofandaccountingforallofhisorher
constitutionalandstatutorydutiesand
responsibilities
215.91: FFMISsubsystemsshallbedesignedto
incorporatetheflexibilityneededtorespondtothe
dynamicdemandsofStategovernment.
215.93:FFMISshallbeupgradedasnecessaryto
ensureefficientoperationandtoprovide
informationfortheeffectiveoperationofState
Government.
215.91: FFMISshallbeaunifiedinformation
system.FFMISisusedforthecollection,processing,
andreportingoffinancialmanagementdatarequired
forefficientandeffectiveoperation.
Implementanevolvingsolutionableto
respondandsupporteconomic,politicaland
socialchangesinatimelymanner.
Implementasolutiontosupportatruestate‐
wide,unifiedinformationsystem.
Exhibit1‐9:FLAIRStudyGuidingPrinciplesandSupportingStatutes
1.5.4 LONGTERMVISION
Priortomakingarecommendationonanygo‐forwardsolution,itiscriticaltohaveavision
clearlyarticulatingfutureobjectivessupportedbythestatutorymission.Thevisioncanbeused
asthebasisforlong‐termplanning.Thevisionshouldincorporatethekeyelementsofthe
guidingprinciples.
AspartoftheFLAIRStudy,DFSleadershipcreatedthefollowingvisionstatement
encapsulatingtheguidingprinciplessupportedbyenablingstatutes:
Implementastatewideaccountingsystemtoenforcestandardization,actsasa
scalablefoundationtoevolveasbusinessneedschange,andpositionsFloridafor
futureinnovationasitconsidersatrueenterprise‐widesolution.
Thevisionshouldbesomethinganorganizationcanstrivetowardsforthenext5,10,or15
years.Additionallythereshouldbeclearlinkagebetweenthevisionandthemission.The
diagrambelow(Exhibit1‐10:RelationshipbetweenMissionandVision)illustrateshowthe
missionandvisionareconnectedandinterrelated.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page25
Exhibit1‐10:RelationshipbetweenMissionandVision
1.5.5 GO‐FORWARDSOLUTIONGOALSANDBENEFITS
TheFLAIRStudyvisionstatementsetsthefuturedirection.Itiscriticaltohavedefinedgoals
alignedtothevisionand,iftheyarerealized,theyaddressthecurrentFLAIRlimitations,
supportthemission,anddeliverbusinessvalue.ThesolutiongoalsidentifiedfortheFLAIR
Studyare:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page26
Exhibit1‐11:VisionandSolutionGoals
MoredetailsoneachsolutiongoalandtheirassociatedexpectedvaluetotheDepartmentand
Floridaareintheexhibitsbelow.
Exhibit1‐12:Goal1DescriptionandBusinessValue
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page27
Exhibit1‐13:Goal2DescriptionandBusinessValue
Exhibit1‐14:Goal3DescriptionandBusinessValue
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page28
Exhibit1‐15:Goal4DescriptionandBusinessValue
1.6 OUTSOURCINGCONSIDERATION
Thereiscurrentlynoexistingorproposedlegalauthoritytooutsourceorprivatizeanymaterial
componentofFLAIR.
1.7 INDEXOFFFMISRELATEDLEGALCITATIONS
ThereareseveralFloridaStatutesdirectlyorindirectlyimpactingFFMIS.Thetablebelow
(Exhibit1‐16)representsanindexofthemostrelevantcitationsandprovidescontextforthe
scopeofFFMISanditssubsystems,theauthorityandresponsibilitiesofthekeyrolesand
governingbodiesoverseeingandmanagingFFMISanditssubsystems,andhighlevelfunctional
requirementsforFFMISanditssubsystems.Asthestateevaluatesaframeworkforgovernance
andbusinessprocessreengineering,modificationstothesestatutesshouldbeconsideredto
supporttherecommendedsolution.
ARTICLE/STATUTE
Article4(Section
4c),Florida
Constitution
SUMMARYOFSTATUTE/STATUTEHIGHLIGHTS

Introducestherolesandhigh‐levelresponsibilitiesoftheState’s
ExecutiveBranch,specificallytheroleandresponsibilitiesoftheCFO.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page29
ARTICLE/STATUTE
SUMMARYOFSTATUTE/STATUTEHIGHLIGHTS
17

110.116

215.86

215.90–215.96



216.102(2)

216.141

216.151

287

DefinestherolesandresponsibilitiesoftheCFO.TheCFOisthechief
fiscalofficeroftheStateandisresponsibleforsettlingandapproving
accountsagainsttheStateandkeepingallStatefundsandsecurities.
InadditiontotheFFMISAct,thepersonnelinformationsystem
(PeopleFirst)mustbedesigned,implemented,andoperatedpursuant
tothisstatute.
EachStateagencyandthejudicialbranchshallestablishandmaintain
managementsystemsandcontrolstopromoteandtoencourage
compliance;economic,efficient,andeffectiveoperations;reliabilityof
recordsandreports;andsafeguardingofassets.Accountingsystems
andproceduresshallbedesignedtofulfilltherequirementsof
generallyacceptedaccountingprinciples.
Statutescollectivelycanbecitedasthe“FloridaFinancial
ManagementInformationSystemAct.”TheFFMISActwasestablished
toplan,implement,andmanageaunifiedinformationsystemwhich
providesfiscal,management,andaccountinginformation.
TheFFMISActestablishedtheFMIBandFFMISCoordinatingCouncil;
anddefinestheirauthorityandtheirrolesandresponsibilities.
TheFFMISActidentifiesthefunctionalownerofeachFFMIS
subsystem;anddefinestheirauthorityandtheirrolesand
responsibilities.
Statutehighlights responsibilitiesoftheCFOrelatedtofinancial
informationwhichmustbecontainedwithinFLAIR.
StatutedescribeshowtheEOGwillutilizeFFMISdataintheplanning
andbudgetingprocesstoprovideforeffectivemanagementpractices
fortheefficientoperationsofallStateagenciesandthejudicial
branch.
StatuteauthorizestheEOGtoprepareananalysisofthelegislative
budgetrequestssubmittedbyStateagenciesandthejudicialbranch
coveringtheirrespectiveoperationalandfixedcapitaloutlay
requirements.
Statutedescribestherequirementsforprocuringmaterialsand
serviceswithintheStategovernmentandauthorizesDMStodevelop
aneProcurementsolution.
Exhibit1‐16:IndexofFFMISRelatedLegalCitations22
TheremainingchaptersoftheFLAIRStudypresenttheanalysisperformedonthefouroptions
specifiedintheGAAproviso,recommendsago‐forwardsolution,includesaprocurementand
contractmanagementapproachandpresentsanimplementationstrategytotransitionDFSand
theStatefromthecurrentsolutiontotherecommendedsolution.
22Moreinformationonlegalcitationscanbefoundathttp://www.flsenate.gov/Laws/Statutes.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page30
1.8 CHAPTER1APPENDIX
1.8.1 CMSBUSINESSAPPLICATIONSUMMARY
Thetablebelow(Exhibit1‐17)providesmoreinformationonthebusinessapplications
containedwithintheCMSsubsystem.TheTreasuryisintheprocessofupgradingthecurrent
CMSplatformtoaweb‐basedsystem.Theupgradewilloccurintwophases.Phase1,which
wentliveinAugust2013,establishedanewintegratedplatformandreplacedthreeexisting
businessapplications.ThebusinessapplicationsreplacedwereVerifies,Receipts,and
Chargebacks.Phase2willreplacetheremainingCMSsubsystemapplicationsandaddthe
capabilitiestothenewintegratedCMSplatformdevelopedinPhase1.Phase2isscheduledto
implementinstagesfrom2014through2018.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page31
CMSAPPLICATIONNAME
Verifies
Receipts
Chargebacks
FundAccounting
BankAccounts
StateAccounts
Dis‐Investments
InvestmentAccounting
System
CertificatesofDeposit
ConsolidatedRevolving
Account(CRA)
SpecialPurposeInvestment
Accounts(SPIA)
WarrantProcessing
APPLICATIONCAPABILITYDESCRIPTION
UsedtoprocessandstoreagencydepositdetailsforverificationinFLAIR
andreconcileTreasury’sBankAccountswithTreasuryBankAccount
Ledgers(producedbyBankAccountSystem).
Usedtobalanceandstoredailydepositandreturneditemdetailsprocessed
inFLAIR
UsedtoaccountforallreturneditemschargedtotheTreasuryBank
Accounts.
PerformsaccountingfunctionsforinvestedTrustFundsandSpecialPurpose
InvestmentAccounts(SPIA)andallocatesinvestmentearningstothe
GeneralRevenueTrustFund,TrustFunds,andSPIA.Afiletransferincluding
investmentanddis‐investmentjournaltransfersisreceivednightlyfrom
FLAIRCentralAccounting.Also,amonthlyfiletransferissenttothe
InformationWarehouse.
UsedtoaccountforallTreasuryassetsincludingbankaccountbalancesand
investmenttransactions.ThisprocessrecordstheassetsoftheTreasuryby
postingbankandinvestmentactivitytobankaccount/investmentledgers.
UsedtoaccountforallTreasuryassetsbystatefundtype.Thissystemis
usedforthereconciliationofTreasuryandFLAIRCentralAccountingcash
accountbalances.AmonthlyfiletransferissenttoFLAIRCentral
Accounting.ThisprocessproducestheTreasury’saccountingofStatefunds
whichisusedbyFLAIRCentralAccountingtoreconciletheiraccounting
records.
Usedtoliquidatetrustfundinvestments.Adailyfiletransferincludingdis‐
investmentjournaltransfersissenttoFLAIRCentralAccounting.
UsedtoaccountforallinvestmentsmadebytheTreasuryinternaland
externalportfoliosandincludesinterestamountstobeallocated.Fund
Accountingisusedtoapportiontheinterest.
UsedforaccountingforTreasury’sCertificateofDepositProgram.
Usedtoaccountforallagencyparticipantbankingactivitiesassociatedwith
RevolvingFunds.
UsedfortransfersinandoutoftheSpecialPurposeInvestmentAccount.
ThisprocessrelatestoinvestmentsprovidedforinSection17.61,F.S.
Usedtoverifyandpaywarrantsandsupportreconciliation.Adailyfileis
senttoandreceivedfromCentralFLAIR.
Exhibit1‐17:CMSBusinessApplicationCapabilities
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter1:Page32
CHAPTER2
OPTIONSANALYSIS
KeyTakeawaysFromThisChapter
Chapter2presentsananalysisoftheoptionstoenhanceorreplaceFLAIR,identifies
theminimumsetofcapabilitiesrequiredofanewfinancialmanagementsystemin
Florida,anddescribestheexpectedbenefitsthesystemwouldbringtotheState.To
accomplishthis,theanalysisreliesonthebackgroundinformationpresentedin
Chapter1,includingthemissionoftheCFO,thelimitationsoftheexistingFLAIR
system,andtheDFSgoalsandobjectivesaswellas:

AsummaryoftheintensiveprocessesadoptedbyStateAgenciesinresponse
totheshortcomingsofFLAIR

Researchintohowotherstateshaveaddressedsimilarproblemsinthepast

StudyofthecurrentlandscapeoftheERPsoftwaremarket
Thefouroptionswhichaddresstheminimumcriteriaaredescribedindetailalong
with:

HowwelleachoptionalignstotheDFSgoalsandobjectives

Theestimatedcostsandresourcesrequiredtoimplementandmaintaineach
solution

Atimelineforthedeliveryoftheexpectedbenefits

Riskassociatedwitheachoption
TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFlorida
Statutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter2Options
Analysis.
FLORIDASTATUTE
287.0571(4)(e)
287.0571(4)(f)
287.0571(4)(g)
Adescriptionofavailableoptionsforachievingthe goals.Ifstate
employeesarecurrentlyperformingtheserviceoractivity,atleastone
optioninvolvingmaintainingstateprovisionoftheserviceoractivity
shallbeincluded.
Ananalysisoftheadvantagesanddisadvantagesofeachoption,
including,ataminimum,potentialperformanceimprovementsandrisks.
Adescriptionofthecurrentmarketforthecontractualservicesthatare
underconsiderationforoutsourcing.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page1
FLORIDASTATUTE
287.0571(4)(h)
287.0571(4)(i)
Acost‐benefitanalysisdocumentingthedirectandindirectspecific
baselinecosts,savings,andqualitativeandquantitativebenefitsinvolved
inorresultingfromtheimplementationoftherecommendedoptionor
options.Suchanalysismustspecifytheschedulethat,ataminimum,
mustbeadheredtoinordertoachievetheestimatedsavings.All
elementsofcostmustbeclearlyidentifiedinthecost‐benefitanalysis,
describedinthebusinesscase,andsupportedbyapplicablerecordsand
reports.Thestateagencyheadshallattestthat,basedonthedataand
informationunderlyingthebusinesscase,tothebestofhisorher
knowledge,allprojectedcosts,savings,andbenefitsarevalidand
achievable.Asusedinthissection,theterm“cost”meansthereasonable,
relevant,andverifiablecost,whichmayinclude,butisnotlimitedto,
elementssuchaspersonnel,materialsandsupplies,services,equipment,
capitaldepreciation,rent,maintenanceandrepairs,utilities,insurance,
personneltravel,overhead,andinterimandfinalpayments.The
appropriateelementsshalldependonthenatureofthespecificinitiative.
Asusedinthisparagraph,theterm“savings”meansthedifference
betweenthedirectandindirectactualannualbaselinecostscomparedto
theprojectedannualcostforthecontractedfunctionsorresponsibilities
inanysucceedingstatefiscalyearduringthetermofthecontract.
Adescriptionofdifferencesamongcurrentstateagencypoliciesand
processesand,asappropriate,adiscussionofoptionsfororaplanto
standardize,consolidate,orrevisecurrentpoliciesandprocesses,ifany,
toreducethecustomizationofanyproposedsolutionthatwould
otherwiseberequired.
Exhibit2‐1:ApplicableStatutesforChapter2
Therearefouroptionsincludedinprovisolanguageinthe2013GAAfortheupgradeor
replacementofFLAIR.ThepurposeofthisChapteristodefineandprovideanevaluationof
thebenefitsandimpactsofeachoptionagainsttheneedsoftheStateofFlorida.
ThisChapterbeginswithasummaryofthecurrentchallengesexperiencedacrosstheState
relatedtotheuseofFLAIR,includingtheimpactofFLAIRontheState’sagencies.Itthen
containsanoverviewofhowthesechallengeshavebeenaddressedbyotherstatessimilarin
sizeandcomplexitytoFlorida,includingareviewofrecentimplementations,ananalysisof
trendswithrespecttofinancialsystemsinthepublicsector,andadescriptionofother
importantindustrytrends.Thisisfollowedbyanoutlineofhowthesoftwaremarkethas
addressedthesechallenges.
TheChaptercontinueswithadetaileddescriptionofeachoftheoptionstoaddresstheFLAIR
systemincludingadetaileddescriptionoftheoption,ahighlevelimplementationtimeline,
costandresourceestimates,andtheadvantagesanddisadvantagesoftheoption.Following
theoptiondescriptionsarekeyconsiderationsFloridamustaddresswhenanalyzingthe
differentoptions.Finally,theChapterendswithacomparisonofeachoftheoptionsrelated
totheneedsoftheState.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page2
2.1 SUMMARYOFCURRENTSITUATION
FLAIRwasdesignedandbuilttoautomatebusinessprocessesastheyexistedinthe1980’s
andtheearly1990’swhenlargeportionsoftheState’sbusinesswereperformedmanually.
Inthelate1990’s,departmentaltransactionfunctionalitywasaddedtoFLAIR,andthe
original“CentralFLAIR”applicationwasnotintegratedbecauseitwouldhavebeentoo
complextorewriteitatthatpoint.Thishasledtothecurrentprocessingenvironmentwhere
theState’sfinancialsaremanagedintwopartiallylinkeddatabaseswhichrequiresignificant
effortbyagenciesandDFStoreconcile.
Asbusinesshaschangedoverthepasttwentyyears,minorupdateshavebeenmadetoFLAIR
byaddingonexternalfunctions,mostnotablyaninformationwarehouseforenhanced
reporting;however,thecoretransactionanddatacapabilitieshavenotchangedtomeetthe
needsofthestateincluding:

FlexibilitytosupportnewfunctionaldemandsasStateGovernmenthaschanged

Greaterabilitytosupportstatewidereportingandinformationstandardization

Modernuserexperienceandbasicfunctionalityexpectedfromamodernsystemfor
increasedproductivity

Abilitytoprocesstransactionsinareal‐timeornearreal‐timemannertosupport
agencyoperations

Supportfordecisionmakingaroundcashmanagementincludingavailablecash
balances

Abilitytomaintainasinglesetofbooksforthestatewhichisusablebyagenciesfor
theirreporting,andDFSforauditandreview

Supportforbusinessprocessimprovementssuchasworkflowanddocument
management

UseofcurrenttechnologytoenabletheDivisionofInformationSystems(DIS)to
properlymaintainandgrowthesystemusingavailableresources
ThechangeintheoverallbusinesslandscapesinceFLAIRwasdevelopedhasforcedtheState,
DFS,andagenciestochangethewaytheyinteractwithconstituentsandeachother.Because
FLAIRhasnotbeenupdatedinthepasttwodecades,agencieshavebeenforcedtodevelop
theirownsystemstomanagefinancialtransactionsandreporting,usingFLAIRaslittleas
possible.

Individualagencysystemshaveincreasedapproximately33%since200023witha
correspondingneedforsupportandmaintenanceofthesesystems
23300agencysystemsreportedintheFebruary2000KPMGBusinessCase:Chapter4–ITAssessment
comparedwith424agencysystemsidentifiedduringtheinventoryconductedaspartofthisproject.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page3

Withtheproliferationofagencysystems,theabilitytoprovidemeaningfulstatewide
reportinghasdecreasedduetoalackofstandardizationacrosstheagenciesand
systems

Functionalitywhichisbeneficialtothestate,suchasintegratingencumbrance
checkingintoMFMP,orinterfacingagencytransactionsystemsdirectlywithFLAIR
hasbeendifficultorimpossibleduetotheunderlyingarchitectureandthebatch
natureofFLAIRprocessing
2.2 MARKETCONDITIONSANDTRENDS
ToprovidecontexttothereviewoffinancialmanagementsystemoptionsforFlorida,the
FLAIRStudyTeamreviewedhowcomparablestatesandthesoftwaremarketshave
addressedchallengeslikethosefacedbyFloridaoutlinedinChapter1andSection2.1ofthis
Chapter.Theteamthenreviewedandassessedadditionaldetailaroundsomeofthemore
prominenttrendsandhowtheycouldimpactthesolutionrecommendation.
2.2.1 TRENDSINPUBLICSECTOR
Overtime,publicsectororganizationsandtheirconstituentshaveincreasedthedemands
theyplaceontheirfinancialoperationsteamsandthesystemswhichsupportthem.Whether
itisadesireforgreateroperationalefficiency,fasterprocessingtimes,advancedreporting,
moretransparencyandaccountability,dataanalyticsorintegrationwithanever‐changing
arrayofnewend‐usertechnologiesandmobiledevices–therequirementsexpectedofpublic
sectorfinancialdepartmentsareconstantlystressingtheiravailableresources.
Asaresult,modernfinancialsystemshaveevolvedrapidlyoverthepasttenyearsandoffer
solutionswhichcanhelpaddressthesebaselinerequirementsandassociatedissues.The
marketnolongerprovides‘green‐screen’,text‐basedsystemsandmulti‐daybatchprocessing
cyclesliketheFLAIRsystem.Itnowoffersfullyintegratedweb‐basedreplacementsforthese
legacysystemswithintuitive,modernuserinterfacesandnearreal‐timetransaction
processingandreporting.
Manypublicsectorentitieshavetakenadvantageofthesenewtechnologiesandhavebegun
(orrecentlycompleted)financialmanagementsystemandbusinessoperations
transformationprojectsoftheirown.Afterreviewingthecurrentstateofthefinancial
managementsystemsatthetop30statesbytotalexpenditure,theFLAIRStudyTeamchosea
groupofsevenpeersforfurtheranalysis.TheselectedpeergroupisoutlinedintheExhibit
belowalongwiththereasonfortheirinclusion.Amorecompletelistofthetop30statesand
somekeycomparativeinformationisincludedintheAppendixtothisChapterinSection
2.5.2.
Thesestateswereselectedbasedprimarilyonthesizeoftheirbudgetandtheirrelative
complexityofoperationsinrelationshiptoFlorida.TheFLAIRStudyTeamfocusedonstates
whohadcompletedorwereengagedinfinancialsystemmodernizationinitiativesinrecent
yearsandhavemadedifferentdecisionsonsoftware,outsourcingstrategy,fundingmodel,
andbusinessprocessre‐engineeringapproaches.TheExhibitbelowreflectstheFLAIRStudy
Team’sanalysis:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page4
FINANCIAL
MANAGEMENT
SOFTWARE,
YEAR
FINANCIAL
HR/PAYROLL
MANAGEMENT SOFTWARE
SYSTEMCOST
ANDYEAR
(MILLIONS) IMPLEMENTED
STATE
STATERANK/
2013STATE
BUDGET24
(MILLIONS)
NY
2/$133,500
PeopleSoft
(2011)
4yrs.
200‐ 24026
PeopleSoft
(2005)

TX
3/$93,000
PeopleSoft
(2011)
3yrs.
145 ‐ 18027
PeopleSoft
(2012)

PA
4/$66,900
SAP
(2002)
3yrs.
140‐ 16028
SAP
(2004)

OH
8/$57,900
PeopleSoft
(2008)
4yrs.
100‐ 12029
PeopleSoft
(2008)

VA
12/$43,400
PeopleSoft
(2014)
5yrs.
115‐ 13530
PeopleSoft
(2014)

IMPLEMENTED,
DURATION25
REASONINCLUDED
Largestate
budgetand
recentERP
implementation
success
Largestate
budgetandto
surveyastate
whichisstillin
theprocessof
goingthroughan
ERP
implementation
Comparablestate
budgettoFlorida
andsuccessful
statewideERP
implementation
Comparablestate
budgettoFlorida
andoutsourcing
model
In‐process
implementation
withuniquepilot‐
agencyapproach
24NationalAssociationofStateBudgetOfficers(NASBO)ExpenditureReport2011‐2013
25Informationprovidedduringstateinterviews.Implementationtimeshavebeenroundedup.
26Includesestimatedimplementationcostsforthefinancialmanagementsystemandcomptroller
portionsoftheprojectbasedoninformalcostrangesprovidedbyprojectparticipants.
27Estimatefromoriginal2008businesscaseforstatewideimplementationmodifiedbasedoncurrent
DOTimplementation.
28Estimatedrangebasedontotalprojectcostof$225million,assuming2/3ofprojectcostfor
financials.
29TheOhioOfficeofBudgetandManagementsetbudgetat$158millionforthefullERP,assuming2/3
costforfinancials.
30Estimatedrangeforinitialstatewideimplementation(includingDOT)basedonstateinterviewand
projectbriefingfromSeptember10,2012.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page5
FINANCIAL
MANAGEMENT
SOFTWARE,
YEAR
FINANCIAL
HR/PAYROLL
MANAGEMENT SOFTWARE
SYSTEMCOST
ANDYEAR
(MILLIONS) IMPLEMENTED
STATE
STATERANK/
2013STATE
BUDGET24
(MILLIONS)
GA
14/$41,100
PeopleSoft
(1999)
2yrs.
50 ‐ 7031
PeopleSoft
(1999)

AL
27/$24,200
CGI
Advantage
(2002/2015
)
4yrs.
50‐ 7032
CGI
Advantage
(2002/
2015)

IMPLEMENTED,
DURATION25
REASONINCLUDED
Oneofthefirst
statesto
implementan
ERPsolutionand
hasundergone
severalupgrades
Stateactively
usingCGI
Advantageandin
processof
statewide
upgradewith
extensiveprocess
re‐engineering
Exhibit2‐2:PeerGroupStatesChosenforComparison
Foreachstateinthepeergroup,theFLAIRStudyTeaminterviewedtheexecutivesponsor
responsibleforfinancialoperationsand/orprojectdirectorresponsibleforthefinancial
managementsystem.Theinterviewquestionsfocusedonthe:

Structureoffinancialoperationswithinthegivenstate

Financialmanagementtechnologysolutionchosenandtheselectionprocess

Benefitsderivedfromthesolution

Infrastructure(people,technology,andgovernance)requiredtosuccessfully
implementandmaintainthesystemsolution

LessonslearnedandrecommendationsfortheStateofFloridaasitconsiders
enhancingorreplacingFLAIR
Inadditiontoconductingresearchwiththestatesdirectly,theFLAIRStudyTeamconsulteda
numberofothersourcestoobtainindustrytrends.Thesesourcesincluded:
31Rangeforstatewidefinancialimplementationin1998fromComputerworldarticle,“DespiteOdds,
GeorgiaHitsItBigWithERPSystem”October9,2000.
32Estimatedrangeforbusinessprocessre‐engineeringandupgradeofthefinancialsystemprovided
duringAlabamainterview
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page6

Interviewswithrepresentativesfromthethreeleadingpublicsectorfinancial
managementsoftwareproviders(Oracle,SAP,andCGI)

Interviewswithanumberofleadingpublicsectorsystemintegrators(IBM,CGI,
Accenture,Deloitte)

AconferencecallwitharesearchanalystatGartner,Inc.whospecializesinpublic
sectorfinancialsystemtrends

Numerousresearchpapersandstudiesfocusingontheimplementationof
commercialofftheshelf(COTS)ERPsystemsatthestatewidelevel3334
Fromthisresearchandthestateinterviews,thefollowingkeythemesemerged:

UseofERPSolutions:StatesareadoptingandimplementingERPsolutionsto
supportcorestatewidefinancialmanagementincludingfinancialreportingas
opposedtodevelopingnewtechnologiesin‐house.Ofthestatewidefinancialsystem
implementationsoverthepasttenyears,allhavebeenERPsolutionsincluding
PeopleSoft,SAP,andCGIAdvantagesoftware.

Cross‐AgencyStandardization:Statesabletomandateandenforceconsistent
businessprocesseshadloweroverallsupportandmaintenancecostsbecauseofthe
processstandardizationaswellastheabilitytolimitagency‐specificcustomizations.
Uniqueagency‐specifictransactionswererequiredtobeinterfacedleveraginga
standardinterfaceprotocol.

StrongEnterpriseandProjectGovernance:Stateswhohavesuccessfully
implementednewenterprisefinancialmanagementsystemsallhadclearlydefined
projectgovernancestructureswhichdefinedprocessesfordecisionmaking.In
addition,theprojectsthatenactedsignificantbusinessprocesschangehadclearly
definedenterprisegovernancetodirectstatewidepolicyandinteractionbetween
competingpriorities.

BusinessProcessRe‐engineering(BPR)PriortoImplementation:Asawayto
avoidcustomizationinthenewsystemandachievebenefitssooner,manystates
underwentaperiodofBPRpriortotheimplementationphase.Stateswhodidnot
performBPRhadlargevolumesofcustomizationsandgenerallyhadtowaituntil
theyperformedthere‐engineeringtoachieveexpectedprojectbenefits.

LimitSystemCustomizations:AbestpracticeinsuccessfulstatesistouseERP
functionalityasdesignedandkeepcustomizationsforcorefinancialtransactionsand
reportingtoaminimum.Limitingcustomizationsreducestheimplementationand
33PNNarayan,MartinBenison,andNaomiWyatt,“TheStateofERPintheStates,”TheNational
AssociationofStateChiefInformationOfficers2008AnnualConference(Milwaukee,WI),September
2008
34MassimilianoClapsandIvyI.Anderson,“TrendsinStatewideERPImplementations,”Gartner,
October5,2009.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page7
maintenancecostofapackagedsystemandenablestheStatetotakeadvantageof
newfunctionalityviaregularvendorupgrades.

SystemIntegrator(SI)SelectioncanbeasImportantasSoftwareSelection:
Whileprocurementstrategiesvariedwidely(SIfirst,softwarefirst,combined
selection,etc.),almosteveryoneinterviewedstressedtheselectionoftherightSIcan
beasimportantastheselectionoftherightsoftwarepackage.TheSIwascriticalto
thesuccessofeachoftheinterviewedstates’ERPprojects,providingexpertiseduring
systemdesign,configuration,testing,andendusertraining.

PhasedImplementationApproach:Ingeneral,stateshavetakenaphased
approachtotheimplementationofnewenterprisefinancialmanagementsystems,
oftenrevampingcentralsystemsfirstbeforeaddressingagencyconcerns.Aphased
approachallowstheStatetotackletheinitiativeinsmaller,moremanageablepieces,
realizingbenefitssooneroftenbeforechangesinadministration.

FocusonOrganizationalChangeManagement(OCM):Innearlyeverycase,OCM
playedakeyroleinensuringasuccessfulimplementation.Keycomponents
addressedbysuccessfulstatesincludeorganizationaltransformation,internal
communication,jobtraining,systemtraining,andexternal(public)communication.

PartnerwithKeyAgencies:Toensuresuccess,manystateschosetopartnerwitha
keyagencyoragenciesasapartoftheinitialimplementation.Thesepartnerships
ensuredagencyneedswereconsideredduringthedeployment,servedasanexample
ofsuccessthatmadeiteasiertoonboardotheragenciesinlaterphasesorwere
vehiclestoprovideadditionalsourcesoffunds.

ExistenceofanAgencyChargebackCostingModel:FundingmodelsforERP
initiativesvariedamongstthestatesinsomecapacity,butmosthadsomeelement
whereanagencywaschargeddirectlyeitherforongoingoperations,orfor
developmentofspecialfunctionality.

CombinationofIn‐HouseandOutsourcedSupport:Moststatesinterviewedare
currentlyhostingtheirfinancialmanagementsystemswithinstate‐rundatacenters
orondedicatedoutsourceddatacenters.Inaddition,abouthalfofthestates
interviewedoutsourcedatleastpartoftheirongoingapplicationsupport.
Additionalinformationontheenterprisesystemsenvironmentateachstatesurveyedis
includedintheAppendixtothisChapterinSection2.5.1.
2.2.1.1 SUMMARYOFSTATEINFORMATION
TheExhibitbelowsummarizestheresultsoftheresearchintoongoing(andrecently
completed)enterprisefinancialmanagementsystemreplacementinitiativesinthepeer
group.TheresultsaresummarizedinExhibit2.3belowandadditionaldetailforeach
interviewedstateislocatedinSections2.5.2and2.5.3oftheAppendix:

State–StatesformallyinterviewedbytheFLAIRStudyTeam

FinancialSolution–Theselectedfinancialmanagementsoftware,go‐livedate,and
primarySI
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page8

HR/PRSolution–TheselectedHumanResourcesandPayrollsoftware,
implementationdaterange,andprimarySI

ProcurementStrategy–MethodofselectingsoftwareandSI

FundingModel–Methodforinitialimplementationandongoingsystemfunding

OngoingSystemSupport–Modelusedbythestateforsystemsupport(in‐housevs.
outsource)

BPR–IndicateswhetherornotthestatewentthroughaperiodofBPRaspartofthe
implementation
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page9
FINANCIAL
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
HR/PR
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
NY
PeopleSoft
(2011)
Deloitte/IBM
PeopleSoft
(2005)
IBM

Unbundled

TX
PeopleSoft
(2011)
Deloitte35
PeopleSoft
(2012)
Deloitte

Unbundled

PA
SAP
(2002)
BearingPoint
SAP
(2004)
BearingPoint

Unbundled

STATE
PROCUREMENT
STRATEGY
FUNDINGMODEL

Initial
Project
Funding&
Ongoing
Support:
Appropriatio
n
Initial
Project
Funding&
Ongoing
Support:
Appropriatio
n
Initial
Project
Funding:
Appropriatio
n
Ongoing
Support:
Agency
Chargeback
ONGOINGSYSTEMSUPPORT
BPR

Inhouse,
(approx.150
employees)

Performed
process
standardizationas
partofinitial
implementation

Outsourcedto
Xerox

Limitedaspartof
initial
implementation

In‐house(approx.
100employees)

Limitedduring
initialphase
Performingas
partofcurrent
upgrade

35Go‐livedatesrepresentinitialsystemusagebythefirstwaveofparticipatingagencies.Rolloutofadditionalagenciesisexpectedtotake
betweenfiveandsevenyears.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page10
STATE
VA
FINANCIAL
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
HR/PR
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
PeopleSoft
(2014)
Accenture
PeopleSoft
(2014)
Accenture
PROCUREMENT
STRATEGY

Bundled‐
Integrators
pitchedbest‐
fitsoftware
and
implementat
ionstrategy
FUNDINGMODEL


OH
PeopleSoft
(2008)
Accenture
PeopleSoft
(2008)
Accenture

Bundled


PeopleSoft
(1999)
Cedar
Crestone
GA
PeopleSoft
(1999)
Cedar
Crestone

Bundled


FloridaDepartmentofFinancialServices
FLAIRStudy
Initial
Project
Funding:
50%
Treasury
Loan/50%
fromVDOT
Ongoing
Support:
Agency
Chargeback
Initial
Project
Funding&
Ongoing
Support:
Agency
chargeback
Additional
Payroll
processing
charge
Initial
Project
Funding:
Appropriatio
n
Ongoing
Support:
Agency
Chargeback
ONGOINGSYSTEMSUPPORT
BPR
Hardware
outsourcedto
Northrop
Grumman
AccentureandVA
staff:Application
support,
Database
Administration,
Development

Performing
process
standardizationas
partofinitial
implementation

Outsourcedto
Accenture

Performed
process
standardizationas
partofinitial
implementation

In‐house(approx.
60employees)

Limitedduring
initialphase
Performingas
partofcurrent
upgrade



Chapter2:Page11
STATE
FINANCIAL
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
HR/PR
SOLUTION,YEAR
IMPLEMENTED,
INTEGRATOR
CGIAdvantage CGIAdvantage
(2002/
(2002/
planned2015 planned2015
upgrade)
upgrade)
CGI
CGI
AL
PROCUREMENT
STRATEGY

Bundled‐
Software
Selection
(2010)to
confirm
integrator
FUNDINGMODEL


Initial
Project
Funding:
Appropriatio
n
Ongoing
support:
Agency
Chargeback
ONGOINGSYSTEMSUPPORT

Outsourcedto
CGI,buthostedin
statedatacenter
BPR


Limitedduring
initialphase
Performingas
partofcurrent
upgrade
Exhibit2‐3:SummaryofStateSurveyResults
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page12
2.2.1.2 SUMMARYOFAGENCYINFORMATION
TobetterunderstandthewaysinwhichstateagenciesinteractwithFLAIRinthecourseof
theirbusinessoperations,theFLAIRStudyTeamconductedinterviewswithasampleof
agenciestoobtainarepresentationoftheinputs,needs,andattitudestowardFLAIR.During
thoseinterviews,corefunctionalbusinessownersprovideddescriptionsofthewaystheir
agencyperformstheprimarybusinessprocesseswhichinteractwithFLAIRincluding:

Generalledgerandfinancialreportingfunctions

Budgetingandbudgetreporting

Contractsmanagementandpurchasing

Accountspayable

Cashreceipting,invoicing,andmanagingreceivables

Projectandgrantmanagementaccountingandmanagement

Assetandinventorymanagement
Thefocusoftheinterviewsanddiscussionswereoncurrentbusinessprocessesrelatedto
financialtransactionstoidentifypotentialneedsoropportunitiesrelatedtotheuseofa
centralaccountingandfinancesystem.
ThefollowingExhibitoutlinestheagenciesinterviewedalongwiththemajorreasonfor
includingeachintheinterviewprocess:
AGENCY
REASONFORINCLUSION
DepartmentofFinancialServices
Representativeofasmalleragencywithbroadneeds
DepartmentofManagement
Services
DepartmentofTransportation
(DOT)
DepartmentofRevenue(DOR)
Smallagencywithbroadneeds,alsoincludesoversightofMFMP
andPeopleFirst
Large,complexagencywithdetailedneeds,particularlyaround
project,contract,andgrantsmanagementandreporting
Mediumcomplexityagencythatprovidescentralizedprocessing
(receipting)forotheragencies
Largeagencywithfocused agencybusinesssystemsand
significantexternalreportingneeds,particularlyrelatedto
federalgrants
Mediumagencywithbroadneedsincludingpointofsaleand
grantsmanagement
DepartmentofChildrenand
Families(DCF)
DepartmentofEnvironmental
Protection(DEP)
Exhibit2‐4:AgenciesIncludedinProcessOutreach
Fromourinterviews,multiplethemesbecameapparentregardingtheuseofFLAIRbythe
agenciesincluding:

AgencieshavefinancialmanagementneedswhicharenotbeingmetbyFLAIRand
havethereforeimplementedtheirownsystemstomeettheseneeds
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page13

TheFLAIRinterfaceisinconvenient,andagenciesminimizetheirinteractionwithit

IntegrationwithFLAIRistechnicallydifficult,andthetechnologyusedcauses
limitationstoagencyfunctionality

Agencieshavehadtodevelopreportingcapabilitiesandworkaroundsolutionsdueto
limitationsinFLAIR
UnmetBusinessNeeds
Inadditiontotheirspecificagencybusinesssystems,alloftheagenciesinterviewedhad
commonbusinessprocesseswhichfedintooruseddatafromDepartmentalFLAIRwhere
theyhadacquiredandmaintainedtheirownsystemstoperformthisfunction.Some
examplesofthisinclude:

Everyagencyinterviewedmaintainseitheramanualorautomatedaccounts
receivablesystemwheretheytrackreceivables,manuallyreportbaddebtstoDFSas
needed,orrecordreceivablesmanuallyintoFLAIRattheendoftheyear.

Agencieswithsignificantallocations,particularlywherepaymentsareprocessed
frommultiplesourcesarechallengedwithFLAIR’sinabilitytomakeadisbursement
frommorethanoneaccountandfund.Theseagencies(includingDCF,DEP,DFS,and
DOT)haveagencysystemstofacilitatethecalculationandprocessingofallocationsto
track,enter,andreconcilethisdistribution.

Agencieshaveindividualsystemsormanualprocessestotrackandprovidereporting
foractualtobudgetexpendituresbecauseoflimitationsofFLAIRreportingandthe
levelofdetailatwhichtransactionsarerecorded.

Theprocessforpostingandallocatingpayrollexpensesiscumbersome.Whenthe
payrollispaid,FLAIRmakesaone‐sidedentryintothecashledgerinCentralFLAIR
andprovidesaseparateprogramwithasuggestedexpensedistributionforthe
agenciestomakeintoDepartmentalFLAIR.Theagenciesspendalargeamountof
timeensuringthatlabordistributionisproperlyenteredandthatCentraland
DepartmentalFLAIRremainproperlyreconciled.
InconvenientInterface
TheagenciesinterviewedeitherindicatedtheFLAIRinterfacewasdifficulttouse,(including
DCFandDFS),ortheydidnotuseFLAIR;havingdevelopedalternatesystemswhichinterface
dataintoFLAIR(e.g.,DEPhasdevelopedanapplicationtofacilitatetransactioninputinto
FLAIRandDOTemployeesusetheirownbusinesssystemswhichinterfaceintoFLAIRfor
mostfinancialtransactions).
TechnicalDifficultiesInterfacingwithFLAIR
ThereweretwoprimarytechnicaldifficultiesidentifiedwhenworkingwithFLAIR.Thefirst
wasthelackofastandard,moderninterfaceprotocol.Thisnegativelyimpactstheabilityof
agencysystemstosharedatawithFLAIRandpreventedanautomatedinterfaceforvalidating
availablebudgetwhencreatingrequisitionsorpurchaseordersinMFMP.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page14
AsecondtechnicallimitationinFLAIRisthefactthesystemisprimarilybatchbased,
meaningmanyofthetransactionsenteredduringthedayareprocessedovernightwiththe
results(includingerrorreports)notavailabletousersuntilthenextday.DEP,DOT,DFS,and
DMSallmaintainreconciliationprocesseswhichwerecreatedtokeepdatafromtheircore
businesssystemsreconciledwiththetransactionaldatainFLAIR.
ManyoftheseagencybusinesssystemsdonotintegratewithFLAIRandrequiremanual
entriesonaperiodicbasis.Thereare,ofcourse,risksassociatedwiththisincludingthe
possibilityofhumanerrormadeinthetransferofdataandtheabsenceofmaterialdatainthe
systemonatimelybasis.DCFisoneagencyfacingthisissue.Forreceipting,theyhaveaFee
MaintenanceSystemwhichdoesnotinterfacewithFLAIRandrequiresamanualupload.
ReportingLimitations
AnothercommonpointofcontentionwithFLAIRisitsinabilitytoproduceusefulreportsor
dataextractsinareadilyusableformatforagencyconsumption.Agenciesoftenextract
FLAIRdataandmaintainitintheirowndatawarehouseeitherbecauseFLAIRdoesnothave
allofthedesireddata.OrincaseswhereFLAIRreportsareused,thereportsrequire
extensiveformattingandcleanupeffortinExcelbeforetheycanbeused.DOTforexample,
pullsaccountsreceivablereportsfromitsownReceiptsProcessingSystem(RPS).DMSand
DEPontheotherhandcreditFLAIRforhavingsufficientdata,butwhentheypullassetand
otherbasicfinancialreportsfromFLAIR,theymustperformanextensivemanualeffortin
Exceltomakethedatareadableforuse.
2.2.2 TECHNOLOGYTRENDS
Overthepastfifteenyears,themarketforpublicsectorenterprisefinancialmanagement
systemshasconsolidatedconsiderablywithafewsoftwarevendorsemergingwiththe
breadthoffunctionalityrequiredtosupporttheoperationsofalargestate.Whiletherehave
beenveryfewnewenterprisesoftwarecompanieswhohavedevelopedpointsolutions,none
haveaddressedthechallengesoffinancialmanagementatthestatewidelevel.Thefollowing
vendorswereidentifiedasleadersinthismarketplacebasedonstateinterviewsandindustry
research:36

OraclePeopleSoft

SAP

CGIAdvantage

Workday37
36IndustryResearchconfirmedbyGartneranalystconferencecallonDecember9,2013and2013
GartnermagicquadrantforERP.
37WorkdayisnotconsideredaleaderintheStateERPspacebasedoninstallbase,butwasincluded
becauseofitsstatusasanupandcomingsoftwarepackage.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page15
2.2.2.1 ORACLEPEOPLESOFTINPUBLICSECTOR
Oracle’sPeopleSoftERPsoftwarehasbeenthemostcommonchoiceforstateandlocal
governmentswith12ofthetop30statesusingthesolution.Oracle’sERPsolutionshave
beenknownfortheirservice‐orientedframework,makingPeopleSoftaparticularlygoodfit
forgovernmentorganizations.Theyhavemodulestohandlethemainaspectsofpublic
sectorbusiness.Thesemodulescanperformkeyfunctionsforawidearrayoforganizations,
bothintheprivateandpublicsectors.38
PeopleSoftisalsoknownforthesuperiorityofitshumanresourcesfunctionality.TheirUser
ProductivityKittoolisapowerfulfeatureforend‐usertraining.Itsout‐of‐boxfitforpublic
sectorbusinesshasmadeitthetopchoiceforstategovernments.Aswithallenterprise
software,successfulimplementationofPeopleSoftrequiresasignificantinvestmentandoften
resultsinradicalchangesinthewaybusinessisperformed.39
ThetopERPsoftwareintegrators,includingAccenture,Deloitte,andIBMperformPeopleSoft
integrationservices.SecondtierintegratorslikeCherryRoadTechnologiesandCiberare
startingtomakeapushandarebeginningtobeconsideredviableoptionsasintegratorsfor
largeorganizationslikestategovernments.Integratorstypicallyliketofollowaphased
approachtoimplementationbywhichdifferentwavesofagenciesarebroughtontothenew
systemoneafteranother.The“big‐bang”approachhasbeenfollowedinafewplacesto
implementHR/Payrollfunctionalityacrossallstateagenciesatonetime,butthishasnot
beenthenorm.
PeopleSofthasbeenthemostcommonchoiceasastatewideERPsolutionsincetheboomof
theseinitiativesroughlyadecadeago.Georgia,Virginia,Ohio,Texas,andNewYorkareafew
examplesofstateswhohaveselectedPeopleSoft.Georgiahasfoundsuccesswithitssystem
sinceitwentlivein1999andhasseenmajorimprovementsinfinancialmanagement,
HR/payroll,andprocurementfunctionality.Virginiahastheirsysteminplaceattwo
agencies,andhasplanstoexpandstatewideinthecomingyears.Ohiohasseensignificant
improvementsintheirfinancialmanagementoperationssincetheyimplementedPeopleSoft
inplacein2008.
2.2.2.2 SAPINPUBLICSECTOR
SAP’scoreERPsolutionforprivatesectorbusinesshasbeenoptimizedtofittheoperations
andcomplywiththestandardsofstateandlocalgovernments.Thecoresolutioncansupport
themainbusinessfunctionsforstateandlocalgovernments.TheinherentfeaturesofSAPfor
PublicSectorhaveallowedstatesusingtheapplicationtoexpandthecapabilitiesoftheir
systemtoimprovetheirabilitytomanagepublicfunds,deliverbetterservicetocitizens,
38MeetingwithPeopleSoftRepresentatives,December17,2013
39OraclePeopleSoftApplicationsOverview
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page16
streamlinethetaxcollectionprocess,ensuresafetyandsecurityofthecommunity,and
securelymanagemobiledevicesanddelivercontent.4041
SAPisamarketleaderforlargebusinesses.TheStateofFloridafitsthisdescriptionasit
operatesabusinesswhichwouldcomfortablyplaceitamongsttheFortune500intheprivate
sector.SAPisknownforhighqualityapplicationswhichcanbedeployedasanintegrated
bundleormodularlywiththecapabilityoffutureintegrationofothermodules.Their
applicationsholdanadvantageoverthecompetitionformanufacturingandmovementof
goods.Thetopsystemintegrators,includingIBM,Accenture,andDeloitte,allprovideSAP
implementationservices.
PennsylvaniawasoneofthefirststatestoundertakeastatewideSAPimplementation
project,havingmadethetransitionin2002.TheyusedBearingPoint,acquiredbyDeloitte,
forintegrationservices.Upgradesprovideachallengeforthestateduetocustomizations
madeearlyintheproject.NorthCarolinaalsousedBearingPointastheintegratorforitsSAP
HR/Payrollsystemin2008.Aftersuccesswiththisproject,theyarepoisedtotransitiontheir
financialmanagementfunctionstoaSAPsolution.4243
2.2.2.3 CGIADVANTAGE
CGIhasdevelopedtheirCGIAdvantagesolutionspecificallyforstateandlocalgovernments.
ThisseparatesthemfromOracleandSAP,whotooktheapproachofmodifyingand
expandinganexistingcommercialsolution.CGIAdvantagetypicallyrequiresfewer
customizationsthansomeoftheothercommercialpackagesbecauseitwasdevelopedforthe
publicsector.ThesystemhasspecialcapabilityforComprehensiveAnnualFinancial
Reporting(CAFR)andforkeepinginlinewiththeCashManagementImprovementAct
(CMIA).4445
CGIalsoheavilypromotestheir“ManagedAdvantaged”software‐as‐a‐servicemodel,which
hasbeenselectedbyseveralstatesincludingAlaska,Colorado,andWyoming.46Thismodel
lessenstheburdenonstateITstaffforsystemmaintenancebyputtingitinthehandsofCGI
andmakessystemcostsmorepredictable.CGIisasmallerplayerintheERPworldanddoes
nothavethesameinstalledbaseasSAPorOracle.47
OnlyCGIperformsintegrationservicesforitsCGIAdvantagesoftware.Thus,bychoosingCGI
softwareasthebest‐fitsoftware,aprocurementstrategyforservicesis,bydefault,alreadyin
40SAPforPublicSectorProductOverview
41MeetingwithSAPRepresentatives,December11,2013
42InterviewconductedwithformerNorthCarolinaStateComptroller,December6,2013.
43“StateofNorthCarolina:StandardizingtheProcessofDeliveringGovernmentServices,”August,
2008.
44CGIAdvantageERPOverview
45MeetingwithCGIRepresentatives,December17,2013
46CGIAdvantageERPManagedAdvantageOverview
47CGIManagedAdvantageOverview
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page17
place.Therearepositivesandnegativestothismodel.ProblemscouldariseiftheCGIteam
isunabletosuccessfullycompleteanimplementationsincethereisnosecondarymarketof
availableintegrators.
SeveralstateshaverecentlyselectedorconfirmedCGIAdvantage.Alabamahasbeen
operatingwithlegacymainframeAMS(nowCGI)Advantagesoftwareforcentralaccounting
andHR/Payrollforthepast25years,andisintheprocessofamajorupgradewhichincludes
significantbusinessprocessre‐engineering.ByOctober2015,theyplanonhaving20state
agenciesliveonthenewsystem.Thetimelinecallsforallstateagenciestomakethis
transitioninthenext5years.48ArizonahasalsoselectedCGIAdvantagesoftwarefor
statewidefinancialmanagement.ThenewsystemwillintegratewiththeState’sexisting
humanresourcesinformationsystem.49
2.2.2.4 WORKDAY
OneothersolutionthathasbeenmakingheadwayintheERPmarketisWorkday,whichisa
relativelynewplayerinthemarket,havingbeenfoundedin2005.Workdayisuniquefrom
theothermajorERPsoftwarevendorsinthattheyfullysubscribetothesoftware‐as‐a‐
service(SaaS)modelwherethesoftwareishostedinthecloudandallparticipantssharethe
sameapplicationcode.TheirsolutionsforFinancialManagementandHumanCapital
Management(HCM)areinplaceatover600companiesacrosstheprivateandpublicsectors
withapproximatelyhalfoftheseclientsimplementingtheir“fullplatform,”ofbothFinancial
ManagementandHumanCapitalManagementmodules.5051
BychoosingWorkday,anycustomerisfullycommittingtoaSaaSmodel,whichinherently
hasadvantagesanddisadvantages.Workdaypridesitselfonitsabilitytokeepevery
customeruptodateonitsmostcurrentversion,theeaseofsystemaccessonmobiledevices,
andtheuser‐friendlinessofitsinterface.CustomizationsarenotpossibleundertheSaaS
model,andanyuniqueneedsmustbemetthroughconfigurationoroutsideofthesystem.
Theupgradeprocessislesspainfulthanitiswiththetraditionalsoftwareandsupportmodel
astheyaremadeautomaticallywithoutthehindranceofcustomizations.Upgradecostsare
builtintothesubscriptioncostoftheservice.
Thearrayoftop‐tiersystemintegratorsincludingAccenture,Deloitte,andIBMhavebeen
buildingtheirWorkdaypracticesoverthelastfewyears.MostofWorkday’spublicsector
customersareatthelocallevel.Theydidachieveonelarge‐scalestatecontractoftheirHCM
solutioninNebraskain2012.Itwasduringthisimplementationgovernment‐specific
businessfeaturesweredeveloped.52Workday’sHCMsolutionwasalsorecentlyselectedfor
48AlabamaInterview,December20,2013.
49CGIAdvantageERPProductOverview
50WorkdayProductOverview
51MeetingwithWorkdayrepresentativesconductedonFebruary5,2014.
52DougHenschen,“WorkdayWinsMoreCustomersforCloudApps,”InformationWeek,August,1,
2012.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page18
theStateofMaryland.Todate,therehavenotbeenanyimplementationsofWorkday’s
FinancialManagementsolutionatthestatelevel.
2.2.3 OTHERCONSIDERATIONS
Duringthemarketanalysisandcomparablestateinterviews,anumberofitemscameup
whichcouldhavesignificantimpactandneedtobeconsideredaspartofthesolution
analysis.Eachoftheseitemsisdefinedinthissectionandassessedwithrespecttothe
objectivesofthestudyusingacombinationofindustryresearch,comparisonagainstthe
financialmanagementenvironmentofsimilarstates,andtheprofessionalexperienceofthe
FLAIRStudyTeam.Thetopicscontainedwithinthissectionandtheirreasonforinclusion
follow:

UseofERPSoftware:Backgroundandconsiderationsrelatedtothistopicarecritical
incomparingtheFLAIRenhancementorreplacementoptionsincludedinproviso

OutsourcingofBusinessOperations:Asignificantindustrytrendistheoutsourcing
ofbusinessoperations(aswasintendedwiththeimplementationofthePeopleFirst
project)

OutsourcingofApplicationSupport:Onesignificanttrendidentifiedduringthe
statemarketanalysisandwillhaveamaterialimpactonthefutureofFLAIRishow
theapplicationwillbesupported

SoftwareLicensing:Themodelforlicensingapplicationsoftwarecanhaveanimpact
ontheoverallfinancingandsupportoftheimplementedsystem

FundingModels:Fundingoftheinitialfinancialmanagementsystem
implementationandongoingapplicationmaintenanceandsupportisacriticalitemto
ensuresuccessoftheproject

ImplementationCostDrivers:TheseitemswereidentifiedbytheFLAIRStudy
Teamduringresearchincludingdiscussionswiththestatepeergroupandformthe
basisforthecostmodelsdevelopedandpresentedlaterinthisChapter
2.2.3.1 USEOFINTERNALLYDEVELOPEDSOFTWAREVS.COMMERCIALOFFTHESHELFERPSOFTWARE
ThefirstfundamentalquestiontoaddressiswhetherFloridashoulddevelopitsnext
generationoffinancialmanagementsoftwareinternallyorpurchaseandimplementa
commercialofftheshelf(COTS)ERPsoftwarepackage.
Ifthestatechoosestodeveloptheapplicationinternally,itwillneedtodevelopandthen
maintainasignificantlevelofveryspecificskillsandcapabilitiesinthecreationand
maintenanceofapplicationsoftware.Inaddition,asthemarketchanges,DFSwillhaveto
continuetomakechangestokeepupsoastoavoidarepeatofthecurrentsituationwith
FLAIR.
ThefollowingExhibitcontainsthebenefitsandtrade‐offsofcustomdevelopmentcompared
tothepurchaseofanERPsolution:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page19
FACTOR
DEVELOPINTERNALLY
Scalability53

Stability54



Customdevelopedsolutionsare
typicallytailoredtothespecific
needofanorganizationandare
oftenbuiltwithoutregardfor
scalabilityorfuture
customizations.Therefore,
theseapplicationstendtobe
lessscalablethantheiroffthe
shelfcounterparts.
Becausecustomdeveloped
solutionsaretailoredtoan
organization’sexactbusiness
requirements,theytendtobe
extremelystablesolongas
requirementsdonotchange.
Customdevelopedsolutions
tendtostruggleindynamic
environmentsbecausechanges
oftenrequireextensive
programminginsteadofminor
configuration.
Supportinglargecustom
developmentsoftwaresystems
canbecomeachallengein
organizationswherestaff
turnoverishigh.
IMPLEMENTERP

Providersofofftheshelf
softwaretypicallybuilditto
supporttheneedsofmany
organizationsofdifferentsizes
andcomplexities–therefore
theirproductsinherently
supportbothscalabilityand
change.

Unlessitisheavilycustomized,
ERPsoftwareistypicallyvery
stable,havingbeenthoroughly
testedandusedbythousands
ofcustomers.
Inmostcases,offtheshelf
softwarevendorsprovide
supportandkeepbase
technologycurrentaspartof
anannualmaintenance
contract.

53ReferencestheflexibilityoftheidentifiedoptiontoadapttothechangingdemandsoftheState.
54Referencestheimpactoftheidentifiedoptionontheoverallstabilityofthestate’ssystemsand
businessprocesses.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page20
FACTOR
Cost55
DEVELOPINTERNALLY



Forlargescalesystems,initial
developmentand
implementationcostscanbe
higherthanthepurchaseofERP
softwareastheStatewould
havetodo100%ofthedesign
anddevelopment,whereby
purchasinganERP,the
developmentcostsarespread
acrossallofthevendor’s
customers.
Longtermmaintenancecosts
aretypicallyhigherforcustom
developedsolutionsbecause
organizationswhichcustom‐
buildsoftwaremustmaintain
deepsoftwaredevelopment
skillspostimplementationto
supportupgrades.
CurrentFLAIRsupportcosts
arenotcomparabletosupport
ofamodernapplication
becausetheFLAIRsystemhas
notbeenupdatedonaregular
basistokeepupwiththe
demandsoftheState.
IMPLEMENTERP


Forlarge‐scaleandcomplex
applications,itistypicallyless
expensivetobuysoftware
fromavendorwhocan
aggregatethecostof
developmentacrossalloftheir
clients.
WhenmaintaininganERP,
thereisasupportcostwhich
mustbepairedtothevendor
eachyear,butthisistypically
offsetbylowerdevelopment
staffcoststherebyproviding
greaterstability.
55Therelativeimpactofeachoptiononthetotalcostofownership.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page21
FACTOR
Easeof
Implementation
56
DEVELOPINTERNALLY


ReferenceStates

Customdevelopedsolutions
alloworganizationstocreate
softwaretoexactlymatcha
businessprocess.Where
processesarestandardized,this
canbealargebenefit,butin
Florida,wherethereislimited
standardizationbetweenthe
agencies,thisdoesnotprovide
abenefit.
Customdevelopedsolutions
typicallytakesignificantly
longertodevelopand
implementthanERP
alternativesbecauseevery
functioninthesystemhastobe
designed,developedandtested,
takingsignificantnumbersof
internalandexternalresources.
Acquiringthenecessary
resourcesmaybedifficultfor
theState.
None–allsurveyedstatesare
eitheralreadyonERPsystems
oraremigratingfromcustom
systemstoERPforfinancial
transactionprocessing.
IMPLEMENTERP




ERP softwarehasmany
commonprocessesbuiltin
andcanbeusedasatemplate
tohelpFloridaimprove
operations.
ERPsoftwareenforcesprocess
standardizationandrequires
projectgovernanceto
facilitatechangestobusiness
processtominimizecustom
developmentforaneffective
implementationand
supportablesolution.
Shorterimplementationto
benefitsrealizationifproperly
managedbecausesoftwareis
configured,notcreatedfrom
scratch.
Alabama,Georgia,Ohio,
Pennsylvania,NewYork,
Texas,Virginia.
Exhibit2‐5:UseofERPSoftwareSummary
2.2.3.2 OUTSOURCINGOFBUSINESSOPERATIONS
Onesignificantopportunityfacingstatesandpublicsectorentitiestodayistheoptionto
outsourcesegmentsoftheiroperations.Traditionally,outsourcinghasbeendiscussedinthe
contextofInformationTechnologysystems,butisnowalsooftendiscussedrelatedtospecific
businessprocesses.Thedecisiontooutsourceabusinessprocessorfunctionisamixof
strategic,financial,andculturalconsiderations.
Processeswhicharegoodcandidatesforoutsourcingexhibitsomeofthefollowing
characteristics:

Clearlydefinedserviceandmethodforengagingtheservice

Standard,repeatableprocesswhereclearmeasuresandmetricscanbeestablished
andtracked
56Therelativeimpactofeachoptionrelatedtocomplexityandsuccessfulabilitytodeploythesolution.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page22

Theprocessbeingoutsourcedrequiresveryspecificskillsthataredifficultto
maintain

Notcoretothemissionoftheorganization
Managementoffinancialtransactions,data,andreportingisthecorebusinessandthedirect
responsibilityofDFS.Outsourcingthesecorefinancialprocessesdoesnotmeetthecriteria
aboveandwouldthereforenotbeagoodcandidatefordiscussionaspartoftheFLAIR
assessment.
ThepayrollfunctioncurrentlyperformedbyDFSincludesagrosstonetpaycalculationand
datavalidationstepforinformationthatisoriginallyenteredandprocessedthroughthe
State’sPeopleFirstsystem.DFSisthenresponsibleforsettlingthepayrollandwithholding
obligationsoftheState.Althoughthereareviableprivatesectoroptionsavailable,payrollis
consideredcoretothemissionofDFSandiscurrentlynotconsideredagoodcandidatefor
outsourcing.
2.2.3.3 OUTSOURCEAPPLICATIONSUPPORT
Atrendhasbeendevelopingforyearsintheprivatesectortowardoutsourcingsupportof
informationtechnology.Intheinterviewswithcomparablestates,aroundhalfarecurrently
outsourcing,orareplanningtooutsource,someportionofthemanagementandsupportof
theirenterprisefinancialmanagementsystems.
Applicationsupportforanenterprisesystemtypicallyincludesarangeofactivitiessuchas:

Maintenanceofthehardwareandtechnicalinfrastructuretosupportthesystem

Maintenanceofthesoftware,ensuringitisavailableandworkingasdesigned

Managementandmaintenanceofupgradesandenhancementrequests

Managementofongoingknowledgeactivitiessuchassystemtraining
ThefollowingExhibitoutlinesthebenefitsandtrade‐offsofoutsourcingsystemsupport
functions:
FACTOR
Scalability
OUTSOURCED

Anoutsourcedsolutionishighly
scalablebecausethe
responsibilityformanagingthe
resourcesandcapabilitiesfall
withthecontractedprovider,
minimizingtheimpacttothe
customer.Thestrengthofthe
contractandcontractmanager
willhaveadirectimpactonthe
abilitytomakechanges.
FloridaDepartmentofFinancialServices
FLAIRStudy
INTERNALLYMANAGED

Dependingonjobmarket
conditions,itmaybedifficult
forpublicsectororganizations
toidentify,train,hireand
retainskilledapplication
supportspecialistsinternally,
causingscalabilityissues.
Chapter2:Page23
FACTOR
OUTSOURCED
Stability

Cost


Easeof
Implementation
ReferenceStates


Astrongprocurementwhich
resultsintherightvendor
managedbyastrongcontract
willprovideaverystable
supportenvironment.
Outsourcedapplicationsupport
resourcestendtocosts
significantlymorethanusing
internalresources.
Outsourcedsupportcanbe
morecosteffectiveforahighly
specificskillneededonan
infrequentbasis(e.g.adatabase
administratorwhoisneeded
onceperquarter.).
Outsourcedapplicationsupport
isamatureindustry,making
transitioningtoathirdparty
managedservicesprovidera
relativelystraight‐forward
process.
Virginia,Ohio,Alabama,Texas
(partial)
INTERNALLYMANAGED

Stabilityofthesupport
environmentisbasedonthe
abilitiesandavailabilityof
internalstaffresources.

Internalresourcesareusually
significantlylessexpensive
thanoutsourcedresources.
Specific,infrequentlyused
skillscanbemorecostlyand
difficulttomaintainwith
employeesrequiring
significanttrainingand
certificationforinfrequently
usedskills.
Providingsupportinternally
requiresactivemanagementof
afullsupportorganization.
Dependingonjobmarket
conditions,hiringskilledstaff
tosupportapplications
internallymaybechallenging.
Pennsylvania,Georgia,New
York




Exhibit2‐6:Outsourcedvs.InternallyManagedApplicationSupport
2.2.3.4 FUNDINGMODELS
Statewidefinancialmanagementapplicationsarecomplexandexpensivetoacquireand
maintain.Therearetwobasicmodelsforsystemfunding.Inone,thebudgetforthefinancial
systemisappropriatedbytheowningentity.Theotherisacharge‐backmodelwhereeither
theimplementationcostsoroperationsandmaintenanceofthesystem(orboth)are
allocatedtotheparticipatingagenciesbasedonsystemusage.Inthismodel,eachagencyhas
toincludesystemusageintheirannualbudgetrequest.
AgencyChargebackModels
Ofthestatesinterviewed,themajorityfundedtheirinitialimplementationthrougha
legislativeappropriation,althoughVirginiaisfinancingtheirimplementationandrepaying
thecostswithplannedassessmentsfromtheparticipatingagencies.Afterthesystemislive,
themajorityofthestatesinterviewed,includingAlabama,Georgia,Ohio,Pennsylvania,and
Virginia,plantooraresupportingtheirstatewidefinancialsystemthroughchargesto
participatingagencies.
Themodelsforthechargebackofcostsvarybasedontheorganizationandoversight.From
researchwiththeinterviewedstates,theonesusingachargebackmodelsharedthefollowing
characteristics:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page24

Costsformanagingthesystemarespreadacrossparticipatingagenciesusingeithera
chargebasedondirectusagewhereactualusageis‘billed’totheagencyafterthefact
(costrecoverymodel),orabudgetaryassessmentcalculatedbasedonaprevious
period’susage

HRcostsaretypicallyallocatedbasedonthenumberofemployeesasthisrepresents
themostreadilyavailableconsistentmetric

Financialsystemcostsaretypicallyallocatedbasedonamixofthefollowingtwo
elements:
o
Numberofkeytransactionsperformedbytheagency(e.g.,JournalEntry,PO,
APWarrant,etc.)
o
Dollarspend,eitherinspecifictransactionsortotalbudgetfortheagency
Therearespecificbenefitsandchallengeswithimplementinganagencycharge‐backsystem.
Multiplestates,includingVirginiahadtogetlegislationpassedtosupportchargingagencies
foruseofthestatewidesystem.Inaddition,whenchargingforfunctionalityandsupport
thereisthepotentialfordiscordamongagencieswherethelargeragencieswithmorebudget
(likeDOT)canhavemoreswayoverprojectscopedecisionsiftheyoffertodefraythecostsof
theadditionalfunctionality.Inaddition,thechargebackmodelcanbecomplexandrequire
significantmaintenance.Oneofthemajorbenefitsofacharge‐backmodelisagencieshavea
directcostforusingthesystem,andforanyupgradesimplemented,makingtheparticipating
agenciestakeamoreproactiveroleinmanagingsystemrequestsandonlyaskingfortruly
requiredfunctionality.
DirectAppropriation
FloridacurrentlyusesadirectappropriationmodelwhereDFSreceivesfundingtosupport
FLAIR.MyFloridaMarketPlaceisalsofundedthroughlegislativeappropriation.Oneofthe
benefitsofthismodelisitisverysimpletoadministerandwouldnotrequireanychangesin
currentstatute.Inaddition,therewouldbenotransitionorlearningcurverequiredforthe
legislatureortheagencies.
SomechangesinthecurrentappropriationmodelwouldbeextremelybeneficialforDFSand
theState.First,anongoingcommitmenttothesupportofFLAIRanditsassociatedcosts
couldbeachieved.Onereasonthecurrentsystemhasstagnatedisalackofadequatefunding
forongoingmaintenanceandupgradestokeepupwithtechnologyandtheneedsofthe
agencies.Inaddition,becauseofthenatureofsoftwaresystemprojects,ifaprojectis
delayed,unspentfundsmayneedtoberetainedfromoneyeartothenext.
AlternateFundingOptions
Inadditiontoabudgetaryappropriation,therearealternatesourcesoffundingwhichmaybe
availabletoFloridatosupportdevelopmentormaintenanceofanimprovedFLAIRsystem.
Eachoftheseoptionscomewithlimitationsandwouldrequiresignificantadditionalanalysis:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page25

Externaltransactionfee–MFMPcurrentlychargesvendorsa1%feeforallsales
madetotheState.Thismodelcouldpotentiallybeexpandedorenhancedtohelp
supportthepaymentprocessingandvalidationthatisperformedbyFLAIR.

Treasuryinterestcharges–interestonstatefundsiscurrentlyanincomesourcefor
Treasurywhichissubsequentlyprovidedtoagenciesasincome.Whilemodest,it
mightbeanoptiontoapportionsomeofanyincreaseininterestincomeduetobetter
cashmanagementtofromanimprovedFLAIRandCMStosupportthenewFLAIR
system.
2.2.3.5 LICENSINGMODELS
Therearetwoprimarymodelsforenterprisesoftwarelicensing,eitheraper‐useroran
enterpriseor‘site’license.Aper‐userlicensecostisexactlyasitsounds,thesoftware
companychargesaspecificcostforeachuseraccessingthesystem.Thesecostsmaybe
furtherrefinedbythefunctionaccessedbyanemployee(e.g.auserwhoisonlyusing
reportingmaycostlessthanauserwhoisperformingaccountingtransactions).An
enterpriselicenseiswhereanorganizationpaysaflatamountandthereisthenno
incrementalchargeperemployeeusingthesoftware.
Thepricingmodelissetbythesoftwarevendor.Thisanalysisispresentedtoinformthe
overallevaluation,butthelicensingmodelwillbedrivenbythesoftwarevendorchosen,as
opposedtobeingaprimarychoiceDFSandthestatewillmake.
ThefollowingExhibitoutlinesacomparisonbetweenperuserandenterprisesoftware
licenses.
FACTOR
PERUSER
Scalability

Stability
Cost


Easeof
Implementation

ENTERPRISE
Costandusageofthesoftware
 Softwarecostisfixedanddoes
isdirectlyscalabletothe
notchangewiththenumberof
numberofemployeesusingthe
usersorvolume
systemwheretheStatewould
payanincrementalamountfor
eachuseraccessingthesystem
Notapplicabletothisanalysis
 Notapplicabletothisanalysis
Thecostcomparisonforthelicensingmodelmustbeaddressedaspartof
theprocurementprocessaseitheroptioncouldendupmorebeneficialto
theStatedependingonthenumberofusers,howthevendorsetsupthe
systemcost(enterprisewide,byfunction,etc.)andtheactualcostfor
eachmodel
Wherethereisahighcostto
 Becausethereisno
usethesystem,employees
incrementalcost,employees
withminimalneedsmaybe
canbeencouragedtousethe
keptoutofthesystem,leading
systemforanypossible
toofflineprocesses
function
Exhibit2‐7:LicensingModelSummary
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page26
2.2.3.6 PROJECTGOVERNANCEMODELCONSIDERATIONS
ProperprojectgovernancewillbecriticaltothesuccessoftheimplementationandtheState
receivingtheexpectedbenefitsfromthisproject.Thereareseveralinterrelatedelementsto
beaddressed.Anoverviewoftheseelementsispresentedinthissection,withaspecific
recommendationpresentedinChapter3ofthisstudy.Thefollowingelementswerepresent
insomecapacityineachoftheinterviewedstatesaswellasourresearch:

ExecutiveCommitment–Asystemandprojectwhichhasstatewideimpactmust
havetheactivesupportofthehighestlevelofinvolvedpartiestosetpolicy,support
decisionmaking,andprovideresources.Eachreferencehadoneormultiple
executivesponsorstodrivetheproject.Forexample,inNewYork,therewereco‐
sponsorsfromtheDivisionofBudget(ExecutiveBranch)andtheComptrollerto
facilitatethenecessarycoordinationbetweentransactionentry,audit,andpayment
approval.OtherstatesincludingAlabama,Georgia,Pennsylvania,andVirginia,had
cabinetlevelmembersontheexecutivesteeringcommittee.

InvolvementbyAllImpactedParties–Whilesystemsaretypicallyownedbyone
centralcontrolagency,allstateagencieswhousethesystemshouldhaveactiveinput
intothedecisionmakingprocessforthescopeofthesystem,priorityof
enhancementsandupgrades,andtherolloutprocessandtimingforanychanges.In
manyofthestatesinterviewedincluding,Alabama,Georgia,NewYork,Pennsylvania,
andVirginia,agencyrepresentativeshaddirectseatsontheprojectsteering
committeeduringtheimplementation.

Multi‐LevelStructure–Becauseanenterprisesystemhasmanyfacetsapplicableto
eithersmallgroupsofusers,ormayimpactallemployeesacrosstheState,successful
governancewillhavedecisionsthataremadeattherightlevel.Followingarethekey
levelsforthegovernancestructure:
o
Executive–Establishingandenforcingtheoverallvisionoftheproject,
makingoverallpolicydecisionsandresolvingissuesbetweenjurisdictionsare
criticalelementsandifnotperformedinanefficientmannercanhave
significantnegativeimpactsonaprojectasbroadasthereplacementofthe
statewidefinancialsystem.
o
Project–Fromtheinitiationoftheprojectuntiltransitiontosteady‐state
support,afocusedprojectgovernanceteamwillmakeprojectresource,scope,
budget,andtimelinedecisionsalongwithaddressingandresolvingproject
issues.Thislevelofgovernanceiswhatistypicallyreferredtoasthe‘steering
committee’andwaspresentineachoftheinterviewedstateprojects.
o
Functional–Duringandaftertheimplementation,manyofthedecisions
requiredbytheprojectarerelatedtohowspecificbusinessfunctionsare
performedacrossthestate.Anexampleofafunctionalgovernanceteam
wouldbeastatewideaccountspayableworkinggroupwhoprovide
recommendationsandinputtotheprojectsteeringcommitteeonwhatdata
shouldbeinavendorfile,orhowtorecordandmanagevendorpayment
terms.ManyofthestatesincludingAlabama,NewYork,Pennsylvania,and
Texascreatedandusedfunctionalgroupsduringandafterimplementation.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page27
2.2.3.7 TECHNOLOGYSOLUTIONCOSTDRIVERS
Therearemanyindividualcostelementswhichhaveanimpactontheoverallcostofan
enterprisefinancialmanagementsystem.Generally,theseindividualcostelementsare
combinedintothefollowingthreecategories:

RequiredPurchases:Thesecostsincludealltheup‐frontitemswhichmustbe
purchasedtoenhanceanexistingsystemordeployanewone.Thisincludessoftware
licenses,computerhardwareanddatacenterfacilitiesandequipmentaswellasany
infrastructuretechnologysystemsrequiredtosupportthenewsystem(e.g.,Directory
Services,SecurityServices,etc.).

Implementation:Thesecostsincludethein‐houseandcontractedlaborrequiredto
deployanewenterprisesystem.Majorcostcomponentsincluderequirements
development,projectoversight,softwareinstallationandconfiguration,software
development,systemintegration,reportdevelopment,dataconversion,testingand
qualityassurance,processre‐design,organizationalchangemanagement,project
teamtraining,andendusertraining.

OperationsandMaintenance:Thesecostsincludealllaborandmaterialsrequired
tosupporttheenterprisesystemoverthecourseofitsfulllifecycle.Major
componentsofthiscategoryincludesoftwaremaintenance,productionsupportand
training,softwaredevelopment,plannedfutureupgrades,processimprovements,
changemanagementrelatedtoupgrades,infrastructuresupport,system
administration,ongoinghardware,datacenterfacilities,andotherequipment
maintenancecosts.
2.3 COSTBENEFITANALYSIS
TheStateofFloridaneedstoaddresstheshortcomingsofitsexistingfinancialmanagement
systemasoutlinedwithinChapter1,andsection2.1ofthisChapter.Thissectionofthestudy
describeseachoptionindetail,providingalistofexpectedbenefitsandidentifyingthe
advantagesanddisadvantagesofeachsolution.
2.3.1 MINIMUMCAPABILITIESOFANEWFINANCIALSYSTEM
ToproperlyevaluatethesolutionsavailabletotheStateforimprovingitsfinancial
managementsystem,theFLAIRStudyTeamdefinedaminimumsetofcapabilitieseach
optionmustfulfillbaseduponthefollowingcriteria:

ThemissionoftheCFOandotherexistingstatutes

ThelimitationstofinancialmanagementposedbythecurrentFLAIRsystem

TheState’sguidingprinciples,goals,andobjectivesforanewsolutionforfinancial
management

ResearchintohowFloridaAgencies,otherstatesandthesoftwaremarkethave
respondedtothechallengescausedbyFLAIR’scurrentlimitations
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page28
TheExhibitbelowcontainsthelistofminimumcapabilitiesidentifiedtomeetthe
requirementsoffinancialmanagementwithinFlorida.Additionaldetailregardingeach
capabilityiscontainedinAppendixSection2.5.4.
LEGEND: Theshadingofthestarsdescribestherelativesupportandlevelofjustificationfor
includingtheenumerateditemasaminimumcapability.
‐High
‐Medium
FloridaDepartmentofFinancialServices
FLAIRStudy
‐Low
Chapter2:Page29
MINIMUMCAPABILITIES
1.
2.
Singlesystemofrecordforstatewide
financialtransactionsandcashbalances
GeneralLedger(G/L)
3.
AccountsPayable(A/P)
4.
BasicAccountsReceivable(A/R)
5.
BankReconciliation
6.
PayrollCalculation,Verificationand
Payment
BudgetandEncumbranceManagement
7.
8.
Real‐timeornearreal‐timetransaction
processing
9. Warrantspaidfrommultiple account
combinations
10. Electronicworkflowandrouting
11. Effectivedatingoftransactions
12. Supportforindustrystandard
communication/systemintegration
protocols
13. Useofmodernprogramminglanguages
anddatabasetechnologies
14. Multipleenvironmentstosupport
testingandmigration
15. Minimizeoreliminateuseofthe
mainframeandtakeadvantageofa
multi‐tierapplicationarchitecture
16. Flexibledatabasearchitecturethat
supportsmultiplefields
FloridaDepartmentofFinancialServices
FLAIRStudy
MARKETRESEARCH
STATERESEARCH
AGENCYRESEARCH
GUIDINGPRINCIPLES,GOALSAND
OBJECTIVES
LIMITATIONSOFEXISTINGSYSTEM
MISSIONOFTHECFO,EXISTINGSTATUTE
OROTHERPOLICY
JUSTIFICATIONFORINCLUSION
Chapter2:Page30
MINIMUMCAPABILITIES
17. Abilitytoreportonastandardizedsetof
data
18. Storageofdevelopedqueries,views,and
reports
19. Modernsetofreportingtoolsforexport
andanalysisofdata
20. Self‐servicereporting
21. Asset,Project,ContractandGrants
Accounting
22. Modern,user‐friendlyinterfaces
23. Electronicdocumentstorageand
attachments
24. Directinterfacewithproductivitytools
suchasMicrosoftExcel
MARKETRESEARCH
STATERESEARCH
AGENCYRESEARCH
GUIDINGPRINCIPLES,GOALSAND
OBJECTIVES
LIMITATIONSOFEXISTINGSYSTEM
MISSIONOFTHECFO,EXISTINGSTATUTE
OROTHERPOLICY
JUSTIFICATIONFORINCLUSION
Exhibit2‐8:MinimumRequiredSystemCapabilitiesandJustificationforInclusion
2.3.2 EXPECTEDBENEFITS
ImplementingafinancialmanagementsystemwiththecapabilitiesdescribedintheExhibit
abovewilldelivernumerousbenefitstotheState.Keybenefitscanbegroupedinoneof
threecategories;reductionofrisk,operationalimprovements,orimproveddecisionmaking.
ReductionofRisk
Bymodernizingitsfinancialmanagementsystem,theStatewillsignificantlyreducerisks
whicharepresentduetobothFLAIR’sageandtheunderlyingtechnologywhichsupportsit.
Specificareasofriskreductioninclude:

Riskofacatastrophicsystemfailurewouldbesignificantlyreducedbymovingtoa
neworenhancedsystem
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page31

Systemsupportandmaintenancechallengeswouldbesignificantlyreducedbecause
movingtoamoderntechnologyplatform/ERPsolutionwouldmakeidentifyingand
retainingskilledtechnicalstaffmucheasier

Riskandinstabilityresultingfromalackofdocumentationwithinthecurrentsystem
wouldberesolvedduringtheimplementationofthenewsystem

Businessrisksassociatedwiththelackofflexibilityandscalabilityofthecurrent
systemwillbereducedoreliminatedbyenhancingorreplacingFLAIRwithamodern
system
OperationalImprovements
Amodernizedfinancialmanagementsystemwilldelivernumerous,materialbenefitsthat
willimprovetheefficiencyandeffectivenessoffinancialmanagement.Specificexamples
include:

Encumbrancesareinterfacedfromexternalsystemsandtraceableonallpayable
transactions

FLAIRusesasinglecommondatabaseremovingtheneedforthecurrentintegration
andreconciliationbetweenCentralandDepartmentalFLAIR

Inter‐agencytransfersandeliminationsareautomaticallyprocessedandbalanced

Warrantscanbepaidfromanyaccountcombinationentered

Thenewsystemsupportstheconsolidationandschedulingofpaymentsbasedondue
datesandpaymentterms

Anaccountsreceivablesystemthatsupportstrackingandreportingofmoniesowed
tothestate

CMScheckreconciliationandcashavailabilityfunctionssharedatawithFLAIR
transactionsremovingtheneedtoreconcilethem

Thestatemaintainstwocashbalances(bookinthenewsystem),andthebank
balance,reducingthetimespentoncashreconciliation

Thesystemmaintainseffectivedatesfordataandtransactions

Thesystemsupportsworkflowprocessingandelectronicdocumentmanagement

Systemsupportresourceshaveacommonskillsetandcanbeeasilyrecruitedor
contractedfrommultiplesources

Thenewsystemincorporatesstandardfunctionalitytosupportbarcodereadingand
moreefficientinventoryprocessing

Standardfunctionalitysupportsbasictrackingandaccountingforassets,grants,
projects,andcontracts
ImprovedDecisionMaking
Thenewsystemwilloffersignificantlyimprovedreportingcapabilitiesonceoperationalized,
whichwillallowtheStatetomakebetterfinancialdecisions.Specificexamplesinclude:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page32

Financialsystemdatawillbeavailablethroughqueriesfromtheinformation
warehousereducingtheneedforMSAccessandExcelforpreparationoftheFinancial
Statements(e.g.,CAFR)andmanagementreports

Agingofaccountspayableandaccountsreceivableaswellasothercashforecasting
reportswillbeavailabledirectlyfromthesystem

Accountingtransactionsarecapturedataconsistentlevelofdetailacrossthestate,
leadingtobetterreporting

Dataandreportingtoolsareavailabletosupportstatewidereportingofkeymetrics
(e.g.,vendorandcategoryspend)

BusinessuserscancreateandrunadhocreportsandqueriesasneededwithoutIT
resourceassistance

Applicationmaintainsaflexible,standardizedChartofAccounts(CoA)structure
supportingstatewidereportingwhilegivingagenciestheabilitytocategorize
expensesatalowerlevelofdetailasneeded

Agenciescanforecastfinancialperformancethroughouttheyear(e.g.,“whatif”
analysis)
2.3.3 OPTIONDESCRIPTIONS
The2013GAAProvisolanguagefortheFLAIRStudyprojectincludedrequirementsto
evaluatethefollowingsolutionsastohowbesttheywouldaddresstheissuesidentified
earlierinthisChapter:
9. EnhanceFLAIR
10. ReplaceFLAIR
11. ReplaceFLAIRandCMS
12. ReplaceFLAIR,CMS,MFMPandPeopleFirst
Thecommercialsoftwaremarketcommonlylabelssoftwarewhichcanperformthefunctions
requiredbytheStateasEnterpriseResourcePlanning(ERP)software.ERPisbusiness
processmanagementsoftwarethatallowsanorganizationtouseasystemofintegrated
applicationstomanagethebusinessandautomatebackofficefunctions.CommontoallERP
systemsarecorefinancialtransactions(generalledger,accountspayable,accounts
receivable,assetaccounting),andbasicprocurement(purchasing,contracts,andreceiving).
ERPsystemsalsoincludeadditionalfunctionssuchasprojectandgrantstracking,human
resources,andpayroll.Tobeconsistentwithstandardindustrydefinition,thetermERPis
usedwhenreviewingtheoptionstoreplaceFLAIR.
Asummaryofthesystemcomponentsandfunctionalitywhichwillbeaddressedineach
optionisincludedintheExhibitbelowalongwithanindicationofwhetherfunctionalityis
Coreandthereforeincludedfortheoption,consideredExpanded,andwouldbeincludedin
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page33
Phase2oftheimplementationorInterfaced57fortheoptionbecausetheexistingsystems
willaddressthoseneeds.TheExhibitbelowoutlinestheincludedfunctionsforeachofthe
fouroptionsconsidered.
BudgetLedger
CashLedger
AccountsReceivable
AccountsPayable
W9
EFT
1099
Warrants
GeneralLedger
ProjectAccounting
AssetAccounting
GrantsAccounting
InformationWarehouse/Reporting
Payroll
GrantsManagement
ContractManagement
ProjectManagement
AssetManagement
CMS:Receipts
CMS:Verifies
CMS:Chargebacks
CMS:TrustFundAccounting
CMS:InvestmentAccounting
CMS:Disinvestments
CMS:BankAccounting
CMS:StateAccounts
CMS:CRA
CMS:AgencyRepository(DocMgmt.)
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Expanded
Expanded
Expanded
Expanded
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Expanded
Expanded
Expanded
Expanded
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FUNCTION
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION1:
ENHANCEFLAIR
OPTION2:
OPTIONSCONSIDERED
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Expanded
Expanded
Expanded
Expanded
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
Expanded
Expanded
Expanded
Expanded
Core
Core
Core
Core
Core
Core
Core
Core
Core
Core
57Interfacedreferstoboththeelectronicandmanualmovementofdatabetweensystems.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page34
CMS:WarrantProcessing
CMS:Investments(Trading)58
CMS:SPIA59
CMS:Archive60
MFMP:Purchasing
MFMP:Receiving
PeopleFirst:HumanResources
LAS/PBS:Budgeting
FACTS:GrantsAdministration
FACTS:ContractAdministration
AgencyBusinessSystems61
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Expanded
Expanded
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Expanded
Expanded
Interfaced
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FUNCTION
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION1:
ENHANCEFLAIR
OPTION2:
OPTIONSCONSIDERED
Core
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Interfaced
Expanded
Expanded
Interfaced
Core
Interfaced
Interfaced
Interfaced
Core
Core
Core
Interfaced
Expanded
Expanded
Interfaced
Exhibit2‐9:SystemFunctionComparisonbyOption
Eachofthefouroptionsisdescribedindetailincludingthefollowingelements:

Anoverviewofthesolutionincludingafuturestatesystemdiagramandalistof
includedfunctions

Ahigh‐levelimplementationtimelineincludingdescriptionsofthemajorphases

Ayear‐by‐yearbreakdownoftheexpectedcostsassociatedwiththesolution

Asummaryofresourcesrequiredforimplementation

Alistofadvantagesanddisadvantages
58Investmentmanagement(trading)functionalityisnotstandardtoERPsoftwareandisnot
recommendedforinclusion;however,accountingforinvestmentswouldbeincludedintheERPto
provideastatewideviewoffinancialaccounting.
59SpecialPurposeInvestmentAccount(SPIA)transactionsandaccountmanagementfunctionalityis
notstandardtoERPsoftwareandisthereforenotrecommendedforinclusion;however,accounting
forinvestmentswouldbeincludedintheERPtoprovideastatewideviewoffinancialaccounting.
60TheCMSarchivewouldremainonCMS,alltransactionsprocessedinthenewsystemwouldbe
availablefromthenewsystemforreportingorreview.
61Whilereplacingagencybusinesssystemsisnotspecificallywithinthescopeofthisproject,itis
expectedthatwithadditionalfunctionalityinFLAIR,certainagencysystemswouldbecomeobsolete
(orredundant).
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page35
2.3.3.1 OPTION1:ENHANCEFLAIR
Ascurrentlyconstructed,FLAIRdoesnotmeettheminimumsetofcapabilitiesrequiredfor
managingFlorida’sfinancesassupportedintheprevioussection(seeExhibit2‐8).
EnhancingthecurrentsystemratherthanreplacingitwithpackagedERPsoftwareisthefirst
optiontoconsider.
TheExhibitbelowcontainsananalysisofthescopeoftheenhancementtoFLAIRrequiredto
supportaselectionoftheminimumcapabilitiesdefinedintheprevioussectionofthis
Chapter.Thesecapabilitieswereselectedforillustrativepurposesduetotheirrelative
importanceandoverallimpactonthescopeoftherequiredenhancements.
SELECTIONSFROMMINIMUMSETOF
CAPABILITIES(EXHIBIT2.8)
1
Singlesystemofrecordfor
statewidefinancialtransactions
IMPACTONENHANCEMENTSCOPE



8
Real‐timeornear‐realtime
transactionprocessing



10 Electronicworkflow



FloridaDepartmentofFinancialServices
FLAIRStudy
Asinglesystemofrecordforstatewidefinancial
transactionsdoesnotexisttoday.
Toestablishasinglesystemofrecordforstatewide
financialtransactions,corecomponentsofCentralFLAIR
(cashledger)andDepartmentalFLAIR(generalledgerfor
Agencies)willneedtobecombined.
ThisconsolidationofCentralandDepartmentalFLAIR
representsafundamentalchangetoarchitectureofthe
existingsystem.Implementingthischangewouldrequire
nearlyallsystemcomponentsandinterfacestobe
rewritten.
FLAIRascurrentlyconstructedisabatchbasedsystem
whichdoesnotsupportreal‐timetransactionprocessing.
Whilebatchbasedfinancialsystemsdostillwidelyexistin
boththepublicandprivatesector,theycanintroduce
processingdelaysifinformationmustbemovedbetween
multiplesystemsorsystemcomponentstocompletea
transaction.
Forexample,inFLAIR,asimplefundstransfertransaction
cantakeasmanyasfivedaystoprocessduetoaday‐long
delayeachtimeinformationis“batched”andtransferred
betweenCMS,CentralFLAIR,DepartmentalFLAIRand
agencysystems.
Addingreal‐timeprocessingcapabilitiestoFLAIRisa
fundamentalchangerequiringnearlyallcoreprocessing
modulesandsub‐componentsofthesystemtobe
rewritten.
FLAIRdoesnotsupportelectronicworkflowcapabilitiesor
automation.Thislackofautomationsignificantlyreduces
operationalefficiencies.
Addingelectronicworkflowcapabilitiestoasystemwhich
doesnotinherentlysupportitwouldrequiresignificantre‐
work.
ToaddworkflowcapabilitiestoFLAIR,allcoremodulesof
thesystemwouldneedtoberewrittentoincludethis
capabilityandinterfacestoallothersystemswouldneed
tobeupdated.
Chapter2:Page36
SELECTIONSFROMMINIMUMSETOF
CAPABILITIES(EXHIBIT2.8)
11 Effectivedatingoftransactions
IMPACTONENHANCEMENTSCOPE



17
Flexibledatabasearchitecture
whichsupportsmultiplefields


24 Modern,user‐friendlyinterfaces




FloridaDepartmentofFinancialServices
FLAIRStudy
FLAIRdoesnotinherentlysupporttheabilitytoprovidean
effectivedateforeachtransactionposted.
Withouteffectivedatingoftransactions,significant
operationalinefficienciesareintroducedwhentryingto
produceaccuratereports,astediousmanualadjustments
arenecessary.
Whileaddingtheabilitytoeffectivelydatetransactions
wouldnotnormallyrequireasignificantupgradetoa
modernfinancialsystem,FLAIR’slimitationsmakeadding
thiscapabilityallbutimpossiblewithoutupdatingthedata
modelandexpandingthenumberoffieldsavailablefor
eachtransaction.Thesetwoactivitieswouldessentially
constitutearewriteoftheentiresystem.
FLAIRcurrentlyrunsfromanon‐relationaldatabasewith
limitedfields.
Addingadditionaldatafieldsforaprocessentailsmaking
changestotheunderlyingarchitectureofFLAIRwhich
wouldmandatechangestoeveryfunctionandsub‐
componentreferencingthedataelement.
UsersinteractwithFLAIRtodayusingtextbasedTN3270/
5250connectionswhicharetypicalofmainframebased
applications.
Thecurrentuserinterfaceisfunctional,butisnotuser
friendlyandcanbechallengingforanewusertolearn
comparedtoawindowsorwebbasedinterface.
Onesolutiontothisproblemistointroduceamodernweb‐
basedfront‐endtoFLAIR,externaltothecoresystem,
throughwhichemployeeswouldinteractwiththesystem.
Whileaddressingthiscapabilitywithaweb‐frontend
wouldnotrequireFLAIRtoberewrittenitwouldstill
requireamulti‐yearefforttoimplementandwouldnot
addressanyoftheothercoreissuesinherentwithinthe
system.
Chapter2:Page37
SELECTIONSFROMMINIMUMSETOF
CAPABILITIES(EXHIBIT2.8)
13 Useofmodernprogramming
languagesanddatabase
technologies
IMPACTONENHANCEMENTSCOPE




o
o

Theexistingsystemiswrittenontopofagingtechnology
platformswhicharenolongerwidelyused(Natural/
ADABAS).Inonestudy,Naturaldoesnotrankwithinthe
top50programminglanguagesutilizedandaccountsfor
lessthan0.2%popularityoftheallprogramming
languagesmonitored.62
Inadditiontointroducingfunctionalandtechnical
limitations,thetechnologyplatformsonwhichFLAIRhas
beendevelopedmakeidentifyingandretainingstaff
challenging.
Movingtomoremoderntechnologyplatformswill
necessarilyrequireafullsystemrewrite.
Whiletoolsareavailableinthemarketplacewhichcan
speedtheprocessoftransitioningfromNatural/ADABAS
tomoremoderndatabase/programminglanguages,there
aresignificantdrawbackstothisapproach:
Toolstoautomateplatformconversionarenotinexpensive
andcanintroducesignificantrisks.
Whileconversiontoolscandecreaseimplementation
times,deployingFLAIRonanewtechnologyplatform
usingthesetoolswillstillrequireasignificant,multi‐year
effort.
Whilemodernizingthetechnologyplatformssupporting
FLAIRwouldhelpreducetheriskofacatastrophicsystem
failureandwouldalleviatesomeofthestaffingchallenges
currentlyfacedbyDFS,itwouldnotaddressotherkey
requirementsofanewsystem(ex:creatingasinglesystem
ofrecordforstatefinancialtransactions,providing
electronicworkflow,introducingreal‐timeprocessing
capabilities,etc.).
Exhibit2‐10:ImpactofMinimumCapabilitiesonEnhancingFLAIR
TheanalysisclearlyshowsenhancingFLAIRinawaywhichaddressesallofFlorida’s
requiredcapabilitiesforanewfinancialmanagementsystemwillrequiretheentiresystem
berewritten.Thisincludesnotonlyanupdateofthetechnologyplatformsanduser
interfacesbutalsoaredesignoftheunderlyingsystemarchitecture,consolidationofCentral
andDepartmentalFLAIR,andupdateofthedatamodel.
RewritingFLAIRwillrequireasignificantlylargerinvestmentthanprovidingincremental
enhancementstotheexistingsystem–butwithoutperformingthisrewrite,itisnotpossible
fortheStateofFloridatoaddressallofitsrequiredfinancialmanagementcapabilities.
62Source:TIOBEProgrammingCommunityIndexforNovember2013.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page38
ThefollowingpagescontainadescriptionoftheeffortrequiredtorewriteFLAIR,including
anestimatedprojecttimelineandananalysisofcostsandrequiredresources.
SolutionOverview
TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolutionwithin‐
scopecomponentshighlightedingreyandoutlinedwithaboldredline.Keycharacteristics
ofthissolutionincludetheconsolidationofexistingCentralandDepartmentalFLAIRintoa
singleplatform,referredtobelowasNewFLAIR.
Exhibit2‐11:Option1:EnhanceFLAIRScopeIllustration
ImplementationTimeline
ThefollowingExhibitshowsatimelineandahigh‐levelimplementationplanforrewriting
FLAIR.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthe
followingpages.Detailedassumptionssurroundingthisapproachcanbefoundin
Attachment1tothisstudy.
Pleasenotethekeymilestoneshavebeenannotatedwithcallouts.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page39
FY
14‐15
Activities
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
Pre‐DDI
ArchitectureandSISelected
Planning,Re‐engineering,andProcurement
DDIPhase1:Re‐WriteFLAIR(CentralandDepartmental)
Design
Build/Test
FFMISSystemIntegration
DDIPhase2:AgencyOnboarding
PilotandSystemUpdates
Legacy FLAIR
Retired
NewFLAIRRollout
DDIPhase3:Payroll
Design
Build/Test
PilotandUpdates
LegacyPayroll
Retired
RollOut
DDIPhase4:AdditionalFunctionality
Design
Build/Test
PilotandUpdates
RollOut
DDIPhase5:InformationWarehouse
InformationWarehouseRedesign
InformationWarehouseImplementation
OperationsandMaintenance
SupportExistingFLAIR
SupportNewFLAIR
CostBreakdown(inthousands)
Implementation
MaintenanceCosts‐ExistingFLAIR
MaintenanceCosts‐NewFLAIR
ResourceEffortBreakdown
Implementation
TotalSupportTeam
People FirstContractExpires
$7,581
$11,216 $28,324 $20,576 $34,347 $35,149 $35,663 $40,568 $46,088 $60,727 $56,652 $55,697 $23,143
$16,870 $17,123 $17,380 $17,641 $17,905 $18,174 $18,446 $18,723 $19,004 $19,289 $19,578 $19,872
$0
$0
$1,544
$44
$44
$44
$9,044
$44
$44
$6,171
$5,062
$0
32
49
87
86
140
142
142
159
179
218
184
184
93
38
47
165
165
165
165
165
165
165
165
165
226
295
311
165
165
165
MFMPContractExpires
Pre‐DDI:Beforeanysoftwaredevelopmentcanbegin,asignificantamountofpre‐
implementationworkmustoccur.Specifictasksinthepre‐design,development,and
implementation(DDI)phaseincludebusinessprocessre‐engineering,establishment
ofprojectgovernancestructures,andorganizationalchangemanagementactivities.
Inaddition,asignificantstrategicplanningeffortaroundinformationtechnologywill
needtooccurincludingtheselectionoffuturestatetechnologyplatformsand
planningforthetransformationofthetechnologyorganization.
Anumberofprocurementswillalsoneedtooccurtosupportthisphase–bothfor
acquisitionoftheselectedtechnologyplatformsaswellasforasoftwaredeveloper/
systemintegratorwhowillassistwiththedevelopment.
63TheResourceBreakdownintheExhibitprovidestheexpectedtotalannuallaboreffortforeachyear.
Duetotimingofresourceneed,skills,andotherfactors,actualstaffingmayvary.
FloridaDepartmentofFinancialServices
FLAIRStudy
$7,143
$0
$22,412 $16,374 $18,452 $23,866 $33,446
Exhibit2‐12:Option1Timeline63

$4,561
Chapter2:Page40
AlsoduringPre‐DDI,theprojectteamwillworkcloselywithDMStoevaluatethebest
platformandoptionforreplacementofFLAIRpayroll.Thisevaluationwill
correspondwiththerenewalofthecurrentPeopleFirstcontract.

DDIPhase1:RewriteFLAIR:Thisactivitywillconsistof3rdpartyandState
resourcesworkingtogethertoredesignanddevelopanewfinancialmanagement
systemfortheState.ThisactivitywillreplicatethefunctionalityofexistingCentral
andDepartmentalFLAIRwithanumberofkeyenhancementsincluding:
o
ConsolidationofexistingCentralandDepartmentalFLAIRfunctionalityto
createasinglesystemofrecordforstatewidetransactionsandcashbalances
o
Standardizationofdatasetstoallowforbetterreportingandimproved
decisionmaking
o
Useofmoderntechnologyplatforms,programminglanguagesanddatabases
o
Allotherfunctionslistedintheminimumsetofcapabilitiesatthebeginningof
thisChapter
Duringthisphaseoftheprojectsignificanteffortswillbeundertakentointegratethe
newfinancialmanagementsystemwithotherFFMISsystems,includingtheexisting
MFMP,PeopleFirst,CMS,LAS/PBS,andtheexistingFLAIR.

DDIPhase2:AgencyOnboarding:Toensuresuccessfuldeploymentand
acceptanceofthenewsystem,agencieswillbemigratedtothenewsysteminphases
overatwoandahalfyearperiod(followingan18monthpilotwithoneortwo
agencies,includingDFS).Specificagencieswhowillbebroughtonlineduringeach
phaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,
willingnesstosupportmigrationtothenewsystem,andneed.

DDIPhase3:Payroll:Oncethecorefunctionalityforthenewsystemhasbeen
developed,existingpayrollprocesseswillberedevelopedtotakeadvantageofthe
capabilitiesofthenewsystem.Specificimprovementscouldinclude:

o
Abilitytoapplypayrolltransactionsdirectlytodepartmentaccounts
o
Abilitytosourcepayrolltransactionsfrommultiplefunds
o
Redevelopmentofthepayrollcalculationsystem,includinganevaluationof
PeopleFirstasanalternativesolutionforthisfunction
DDIPhase4:AdditionalFunctionality:Oncecoresystemfunctionalityhasbeen
developedandtherollouttostateagencieshasbegun,thefocuswillshifttothe
developmentofadditionalfunctionalitybuildinguponandfurtherimprovingthe
State’sfinancialmanagementcapabilities.Specificfunctionalitydevelopedwill
include:
o
Grantmanagement
o
Assetmanagement
o
Projectmanagement
o
Contractmanagement
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page41
Itisimportanttonotewhiledevelopmentoftheseadditionalcapabilitieswillbewell
underwayatthecloseofthe15yearanalysiswindow,itisnotexpectedtobe
availabletorollouttotheagencieswithinthe15years.


DDIPhase5:InformationWarehouse(IW):Akeypartoftheenhancementof
FLAIRwillberedesigningtheIW.ThenewIWwilltakeadvantageofthecapabilities
ofthenewsystemtoprovideadvancedreportingcapabilitiestoagencyusersand
improvetheirdecisionmakingcapabilities.Keytasksinthisphasewillinclude:
o
Workingwithbusinessoperationsteamstostandardizedatadefinitionsso
improvementscanbemadetothedatawarehouseandreportingfunctions
o
Deployadditionalanalyticcapabilitiestotakeadvantageofnewdatacoming
intothesystem.Thismayrequiretheprocurementofadditionalthirdparty
softwareandtools
OperationsandMaintenance:ThecurrentFLAIRsystemwillneedtobe
maintaineduntilithasbeendecommissioned.ThenewFLAIRsolutionwillneed
supportandmaintenancebeginningpartwaythroughtheimplementation,thus
creatingaperiodwherethereismaintenanceandsupportrequiredforbothsystems.
CostBreakdown
Basedontheimplementationtimelinedefinedabove,theestimatedcostsforrewritingFLAIR
areoutlinedintheExhibitbelow.Detailedinformationonthederivationofthesecosts
estimatescanbefoundinAttachment1tothisstudy.
COSTCATEGORY
ImplementationCost
ExistingFLAIRSupportCosts
NewFLAIRSupportCosts
SolutionTotalCostofOwnership
AMOUNT(MILLIONS)
$467.4
$225.1
$131.5
$824.0
Exhibit2‐13:Option1SummaryCosts
InExhibit2‐13above,thesolutiontotalcostofownershipisthesumofthefollowing
components:

ImplementationCost:Internal(employeetime)andexternal(contractors/
purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR

NewFLAIRSupportCost:ExpensesassociatedwithsupportingthenewFLAIR
solutionduringandafteritsimplementation

ExistingFLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriorto
itsretirement
AnannualbreakdownofinformationisrepresentedgraphicallyinthefollowingExhibit:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page42
Exhibit2‐14:Option115YearCostSummary64
ResourceBreakdown
RewritingFLAIRisnotatrivialtaskandwillrequireasignificantnumberofinternaland
externalresourcestoexecutesuccessfully.TheExhibitbelowestimatesthetotalworkeffort
inannualequivalentsforinternalandexternalresourcesrequiredtocompletetheproject:
Option1:ImplementationResourceEffort
250
200
150
100
50
0
FY14‐
15
FY15‐
16
FY16‐
17
FY17‐
18
FY18‐
19
FY19‐
20
FY20‐
21
FY21‐
22
FY22‐
23
FY23‐
24
FY24‐
25
FY25‐
26
FY26‐
27
FY27‐
28
FY28‐
29
ExternalResourceEffort
17
26
46
45
74
75
75
84
95
111
93
93
47
20
25
InternalResourceEffort
15
23
41
41
66
67
67
75
84
107
91
91
46
18
22
Exhibit2‐15:Option1ImplementationResourceEffort
64TheNewFlairmaintenancecostsrepresentedpriortogo‐liveprimarilyincludehardwarecosts,
includingamajorhardwareupgradeinFY20‐21.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page43
AdvantagesandDisadvantages
ThefollowingExhibitoutlinestheadvantagesanddisadvantagesofimplementingOption1:
ADVANTAGES





Solutionismodernizedandprovides
enhancedfunctionality(e.g.,new
interfaceframework/information
broker)
Solutionisbuilttobusiness
requirements(i.e.,yougetexact
functionalityyouwant)
Impactofchangeonstaffislessthan
packageERPsolutionsince
terminologywouldbesimilarto
currentsolution
SourcingofITresourcesismuch
easiersincesolutionisbuilton
moderntechnology
Costandtimingofupgradesand
solutionsenhancementsiscontrolled
bytheagency(notanERPsoftware
provider)
DISADVANTAGES








Implementationofthenewsystem
extendsbeyondthe15yearanalysis
timeframe
Whenimplementationiscomplete,
DFSmustkeepateamofsoftware
developersonhandtocontinuously
researchanddevelopsystem
enhancementstoensuretheproduct
doesnotbecomeoutdatedsoonafter
deployment
Significantlikelihoodsolution
functionalitywillbecomestagnant
throughlackofadequate
maintenanceandsupport(similarto
whathappenedwithFLAIR)
InterfacingwithCMSwillcontinue
multiplecashbalancesthatmustbe
reconciled
Businessprocessesarelimitedto
solutiondesignandbusiness
requirements(i.e.,notbasedon
inherentbestpracticesinapackage
softwareproduct)
Softwaredesignanddevelopment
timelinewillbelongerthana
packagedERPsolution
Implementationcostissignificantly
higherthanOption2andOption3.
FFMISapplicationswouldrequire
modificationstointegratewithnew
solution(i.e.,designandprocessing
changeswillbenecessary)
Exhibit2‐16:Option1AdvantagesandDisadvantages
2.3.3.2 OPTION2:REPLACEFLAIR
ThesecondoptionavailabletotheStateistoreplacecoreFLAIRcomponentswithERP
software.Specificcomponentsaddressedwouldinclude;

CentralFLAIR

DepartmentalFLAIR

InformationWarehouse

Payroll
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page44
SolutionOverview
TheExhibitbelowprovidesapictorialrepresentationofthesolutionforOption2:
PeopleFirst
BusinessSystems
Mainframe
LAS/PBS
Agency/Other
Personnel
Information
System
NewFLAIR
(Custom)
Payroll
Treasury
1099
W9
PrimaryAccess
Budget
Ledger
A&AUsers
CMS
EFT
CashLedger
Warrants
Accounts
Receivable
Accounts
Payable
General
Ledger
Project
Accounting
Asset
Accounting
Grants
Accounting
PrimaryAccess
AgencyUsers
Cash
Mgt
Investment
Mgt
Accounting
Mgt
FACTS
GrantsandContract
Administration
MyFlorida‐
MarketPlace
FLAIR
InformationWarehouse
Reporting
Procurement
Exhibit2‐17:Option2:ReplaceFLAIRScopeIllustration
ImplementationTimeline
ThefollowingExhibitshowsatimelineandahigh‐levelimplementationplanforreplacing
FLAIR.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthe
followingpages.Detailedassumptionssurroundingthisapproachcanbefoundin
Attachment1tothisstudy.
Keymilestoneshavebeenannotatedwithcallouts.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page45
FY
14‐15
Activities
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐2
Pre‐DDI
ERPSolutionandSISelected
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementERPforFLAIR
DeployInformationWarehouseforERP
CentralFLAIRRetired
PilotERPSolution
FLAIR/IWRollout
DepartmentalFLAIRRetired
ImplementPayrollinERP
LegacyPayrollRetired
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
CostBreakdown(inthousands)
Implementation
MaintenanceCosts‐FLAIR
MaintenanceCosts‐ERP
ResourceEffortBreakdown
Implementation
Support‐FLAIR
Support‐ERP
$6,753
$9,846
$39,062 $30,798 $37,482 $31,008 $31,883
$16,870 $17,123 $17,380 $17,641 $14,128 $10,161
$0
$0
$8,733
$5,285
$3,183
$5,738
$10,686
$6,349
$6,573
$0
$0
$0
$260
$264
$268
$272
$276
$280
$284
$28
$10,719 $17,285 $22,334 $30,140 $27,367 $29,911 $27,978 $32,791 $29,585 $28,931 $29,258 $34,0
30
43
87
117
87
53
59
9
43
42
25
165
165
165
165
125
84
44
3
3
3
3
3
3
3
3
‐
‐
25
51
91
132
147
162
162
162
162
162
162
162
162
People FirstContractExpires
36
MFMPContractExpires
Exhibit2‐18:Option2Timeline65
Pre‐DDI

Beforeanysoftwareconfigurationordevelopmentcanbegin,asignificantamountof
pre‐implementationworkmustoccur.Specifictaskswillincludebusinessprocessre‐
engineering,establishmentofprojectgovernancestructures,andorganizational
changemanagementactivities.Inaddition,asignificantstrategicplanningeffort
aroundinformationtechnologywillneedtooccurincludingplanningforthe
transformationofthetechnologyorganization.

Anumberofprocurementswillalsoneedtooccurtosupportthisphase.Key
componentsincludetheselectionofanERPsoftwarevendorandasystemsintegrator
toassistwiththeimplementationoftheERPsolution.

AlsoduringPre‐DDI,theprojectteamwillworkcloselywiththeDMStoevaluatethe
bestplatformandoptionforreplacementofFLAIRpayroll.Thisevaluationwill
correspondwiththerenewalofthecurrentPeopleFirstcontract.
DDIPhase1:ImplementERPSolution
65TheResourceBreakdownintheExhibitprovidestheexpectedtotalannuallaboreffortforeachyear.
Duetotimingofresourceneed,skills,andotherfactors,actualstaffingmayvary.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page46


ImplementERPforFLAIR:DFSwillworkwiththechosenSItoconfigurethe
functionalityoftheexistingCentralFLAIRwithintheERPsolution.Inparallelwith
thisdevelopment,DFSwillalsobuildandconfigureDepartmentalFLAIRfunctionality
withintheERPsolution.Keycomponentsofthisstepinclude:
o
BuildinganinterfacebetweenthenewERPsolutionandexisting
DepartmentalFLAIR
o
ConfiguringtheERPsystemtosupportthebusinessprocessesdefinedinthe
minimumsetofcapabilities
o
Scoping,developing,andtestingintegrationswiththeotherFFMISsystemsto
ensurethenewERPsystemwilloperateefficientlywiththeotherFFMIS
componentsystemsincludingCMS,MFMP,PeopleFirst,andLAS/PBS
DeployInformationWarehouse(IW)forERP:Inadditiontoconfiguringcore
CentralandDepartmentalFLAIRfunctionalityinthenewERPsolution,thisphaseof
theprojectwillincludeare‐designanddeploymentofthecurrentDFSIW.
DeployingtheIWwillincludeprocurementandimplementationofnewtechnologyto
supportdatawarehousing,reportingandbusinessintelligenceaswellas:

o
Workingwithbusinessoperationsteamstostandardizedatadefinitionsso
improvementscanbemadetothedatawarehouseandreportingfunctions
o
Deployingnewanalyticcapabilitiestotakeadvantageofdatacomingintothe
system
PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenew
system,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafull
fiscalyear.Participatingagencieswillberequiredtodiscontinueuseoftheold
systemduringthepilot.
Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordfor
statewidecashbalances;however,financialresultsinthenewsystemshould
reconciledirectlywithCentralFLAIR.Oncethepilotofthenewsystemissuccessful,
CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agencieswillbemigratedtothenewsystem
inphasesoveratwoyearperiod.Specificagenciestobebroughtonlineduringeach
phaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,
willingnesstosupportmigrationtothenewsystem,andneed.
OnceallagenciesaremigratedtotheERPsolution,DepartmentalFLAIRwillbe
retired.

ImplementPayrollinERP:Payrollprocesseswillbere‐designedtotakeadvantage
ofthecapabilitiesofthenewERPsolution.Specificimprovementsmayinclude:
o
Abilitytoapplypayrolltransactionsdirectlytodepartmentaccounts
o
Abilitytosourcepayrolltransactionsfrommultiplefunds
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page47
o
Redevelopmentofthepayrollcalculationsystem,includinganevaluationof
PeopleFirstasanalternativesolutionforthisfunction
DDIPhase2:ExpandERPFunctionality

OncecoresystemfunctionalityhasbeenimplementedwithinthenewERPsystem
andtherollouttoStateagencieshasbegun,thefocuswillshifttotakingadvantageof
inherentcapabilitiesofthechosenERPsolutiontoexpandandimproveuponthe
State’sfinancialmanagementcapabilities.Specificfunctionalityexpectedtobe
developedincludes:
o
Grantmanagement
o
Assetmanagement
o
Projectmanagement
o
Contractmanagement
OperationsandMaintenance

SupportExistingandERPFLAIR:ThecurrentFLAIRsystemwillneedtobe
maintaineduntilithasbeendecommissioned.ThenewERPsystemwillrequire
supportandmaintenanceduringthepilottestingprocess.Thiswillcreateaperiod
wherethereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingup
withavailablevendorupgrades.Theseupgradestypicallyincludetheincremental
additionofnewfunctionality,securityupdatesandbugfixesandothersystem
enhancementswhichensurethesystemremainssupportedbythevendor.Three
upgradesoftheERPsystemareplannedoverthe15‐yearwindow–twominor
upgrades‐‐typicallypointreleaseswherenewfunctionalityisnotconfiguredand
rolledouttoendusers‐‐andamajorreleaseincludingtheimplementationofnew
capabilities.
CostBreakdown
Basedontheimplementationtimelinedefinedabove,theestimatedcostsforimplementing
anERPsolutiontoreplaceFLAIRaredescribedintheExhibitbelow.Detailedinformationon
thederivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.
COSTCATEGORY
ImplementationCost
FLAIRSupportCosts
ERPSupportCosts
SolutionTotalCostofOwnership
AMOUNT(MILLIONS)
$219.4
$100.8
$329.1
$649.3
Exhibit2‐19:Option2SummaryCosts
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page48
IntheExhibitabove,thesolutiontotalcostofownershipisthesumofthefollowing
components:

ImplementationCost:Internal(employeetime)andexternal(contractors/
purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR

FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriortoits
retirement

ERPSupportCost:ExpensesassociatedwithsupportingthenewERPsolution
duringandafteritsimplementation
Anannualbreakdownofinformationisrepresentedgraphicallyinthefollowingdiagram:
Exhibit2‐20:Option215YearCostSummary
ResourceBreakdown
TheExhibitbelowestimatesthetotalworkeffortinannualequivalentsforinternaland
externalresourcesrequiredtocompletetheproject:
Option2:ImplementationResourceEffort
140
120
100
80
60
40
20
0
FY14‐
15
FY15‐
16
FY16‐
17
FY17‐
18
FY18‐
19
FY19‐
20
FY20‐
21
FY21‐
22
FY22‐
23
FY23‐
24
FY24‐
25
FY25‐
26
FY26‐
27
FY27‐
28
FY28‐
29
ExternalResourceEffort
16
23
46
62
46
24
27
5
23
18
9
15
0
0
0
InternalResourceEffort
14
20
41
55
41
29
32
4
20
24
16
21
0
0
0
Exhibit2‐21:Option2ImplementationResourceEffort
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page49
Advantages/Disadvantages
TheadvantagesanddisadvantagesforthisoptionareoutlinedintheExhibitbelow:
ADVANTAGES







Solutionbasedonindustrystandard
technologyinfrastructure
Solutionleveragesindustrystandard
practicesforcorebusinessprocesses
Vendorupgradeswillensuresolution
continuestoevolveandgrow(i.e.,add
newfunctionality/capabilities)
Fasterdesign,development,and
implementation(DDI)cyclesrelativeto
custombuiltsolutions
Easiertoidentifyandacquireresources
tosupportsolution
ProvidesamodernizedERPfoundation
toallowforfurtherstateenterprise
integrationinthefuture(e.g.,CMS,
Procurement)
Solutionestablishesaconsistentsetof
accountingdatadefinitions
DISADVANTAGES






Failstoleveragethepotential
processimprovementstocash
reconciliationprocesses
InterfacingwithCMSwillcontinue
multiplecashbalancesthatmustbe
reconciled
Costs,timeline,andupgrade
scheduledictatedbyasystem
integrator
Packagesolutionrequiresextensive
businessprocessre‐engineeringto
supportstandardbusinessprocesses
Packagesolutionwouldrequirestaff
tolearnnewbusinessterminology
andprocesses
FFMISapplicationswouldrequire
modificationstointegratewithnew
solution
Exhibit2‐22:Option2AdvantagesandDisadvantages
2.3.3.3 OPTION3:REPLACEFLAIRANDCMS
ThefollowingprovidesadditionalcontextaroundthescopeforOption3:ReplaceFLAIRand
CMS.


ReplacethefourmaincomponentsofFLAIRwithanERPsoftwarepackage:
o
CentralFLAIR
o
DepartmentalFLAIR
o
InformationWarehouse
o
Payroll
LeveragethechosenERPsolutiontoreplacetheexistingCashManagementSystem
(CMS)administeredbytheTreasury
SolutionOverview
TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolution:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page50
Exhibit2‐23:Option3:ReplaceFLAIRandCMSScopeIllustration
ImplementationTimeline
ThefollowingExhibitshowsthetimelineandhigh‐levelimplementationplanforreplacing
FLAIRandCMS.Descriptionsofeachphasealongwithbasicassumptionsareincludedonthe
followingpages.Detailedassumptionssurroundingthisapproachcanbefoundin
Attachment1tothisstudy.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page51
FY
14‐15
Activities
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
Pre‐DDI
ERPSolutionandSISelected
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementERPforFLAIR/CMS
DeployInformationWarehouseforERP
CentralFLAIRRetired
CMSRetired
PilotERPSolution
CMSRollout
FLAIR/IWRollout
DepartmentalFLAIRRetired
ImplementPayrollinERP
LegacyPayrollRetired
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
CostBreakdown(inthousands)
Implementation
MaintenanceCosts‐FLAIR
MaintenanceCosts‐ERP
ResourceEffortBreakdown
Implementation
Support‐FLAIR
Support‐ERP
People FirstContractExpires
$6,753
$9,846
$40,407 $31,666 $38,897 $32,362 $32,179
$16,870 $17,123 $17,380 $17,641 $14,169 $10,077
$0
$0
$4,944
$6,838
$5,157
$3,183
$5,738
$10,686
$6,349
$6,573
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,235 $22,923 $31,642 $29,783 $32,422 $30,585 $35,496 $32,388 $31,835 $32,264 $37,199
30
43
91
121
91
57
59
9
43
42
25
36
‐
‐
‐
165
165
165
165
125
83
42
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
27
52
95
135
150
165
165
165
165
165
165
165
165
MFMPContractExpires
Exhibit2‐24:Option3Timeline66
Pre‐DDI

Beforeanysoftwareconfigurationordevelopmentcanbegin,asignificantamountof
pre‐implementationworkmustoccur.Specifictaskswillincludebusinessprocessre‐
engineering,establishmentofprojectgovernancestructures,andorganizational
changemanagementactivities.Inaddition,asignificantstrategicplanningeffort
aroundinformationtechnologywillneedtooccurincludingplanningforthe
transformationofthetechnologyorganization.

Anumberofprocurementswillalsoneedtooccurtosupportthisphase.Key
componentsincludetheselectionofanERPsoftwarevendorandanSItoassistwith
theimplementationoftheERPsolution.

AlsoduringPre‐DDI,theprojectteamwillworkcloselywiththeDMStoevaluatethe
bestplatformandoptionforreplacementofFLAIRpayroll.Thisevaluationwill
correspondwiththerenewalofthecurrentPeopleFirstcontract.
66TheResourceBreakdownintheExhibitprovidestheexpectedtotalannuallaboreffortforeachyear.
Duetotimingofresourceneed,skills,andotherfactors,actualstaffingmayvary.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page52
DDIPhase1:ImplementNewFLAIR


ImplementERPforFLAIR/CMS:DFSwillworkwiththechosenSItoconfigurethe
functionalityoftheexistingCentralFLAIRwithintheERPsolution.Inparallelwith
thisdevelopment,DFSwillalsobuildandconfigureDepartmentalFLAIRfunctionality
withintheERPsolution.Keycomponentsofthisstepinclude:
o
BuildinganinterfacebetweenthenewERPsolutionandexisting
DepartmentalFLAIR
o
ConfiguringtheERPsystemtosupportthebusinessprocessesdefinedinthe
minimumsetofcapabilities
o
ConfiguringtheERPsystemtosupportcurrentCMSfunctionality
o
Scoping,developing,andtestingintegrationswiththeotherFFMISsystemsto
ensurethenewERPsystemwilloperateefficientlywiththeotherFFMIS
componentsystemsincludingMFMP,PeopleFirst,andLAS/PBS
DeployInformationWarehouse(IW)forERP:Inadditiontoconfiguringcore
CentralandDepartmentalFLAIRfunctionalityinthenewERPsolution,thisphaseof
theprojectwillincludeare‐designanddeploymentofthecurrentDFSIW.
Thiswillincludeprocurementandimplementationofnewtechnologytosupportdata
warehousing,reporting,andbusinessintelligenceaswellas:

o
Workingwithbusinessoperationsteamstostandardizedatadefinitionsso
improvementscanbemadetothedatawarehouseandreportingfunctions
o
Deploymentofnewanalyticcapabilitieswhichtakeadvantageofdatacoming
intothesystem
PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenew
system,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafull
fiscalyear.Participatingagencieswillberequiredtodiscontinueuseoftheold
systemduringthepilot.
Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordfor
statewidecashbalances;however,financialresultsinthenewsystemshould
reconciledirectlywithCentralFLAIR.Assumingthepilotofthenewsystemis
successful,CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agencieswillbemigratedtothenewsystem
inphasesoveratwoyearperiod.Specificagenciestobebroughtonlineduringeach
phaseoftherolloutwillbechosenbasedonacombinationoftheirsize,complexity,
willingnesstosupportmigrationtothenewsystem,andneed.
OnceallagenciesaremigratedtotheERPsolution,DepartmentalFLAIRwillbe
retired.

ImplementPayrollInERP:Payrollprocesseswillbere‐designedtotakeadvantage
ofthecapabilitiesofthenewERPsolution.Specificimprovementsmayinclude:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page53
o
Abilitytoapplypayrolltransactionsdirectlytodepartmentaccounts
o
Abilitytosourcepayrolltransactionsfrommultiplefunds
o
Redevelopmentofthepayrollcalculationsystem,includinganevaluationof
PeopleFirstasanalternativesolutionforthisfunction
DDIPhase2:ExpandERPFunctionality

OncecoresystemfunctionalityhasbeenimplementedwithinthenewERPsystem
andtherollouttostateagencieshasbegun,thefocuswillshifttotakingadvantageof
inherentcapabilitiesofthechosenERPsolutiontoexpandandimproveuponthe
State’sfinancialmanagementcapabilities.Specificfunctionalityexpectedtobe
developedincludes:
o
Grantmanagement
o
Assetmanagement
o
Projectmanagement
o
Contractmanagement
OperationsandMaintenance

SupportExistingandERPFLAIR:ThecurrentFLAIRsystemwillneedtobe
maintaineduntilithasbeendecommissioned.ThenewERPsystemsolutionwill
needsupportandmaintenanceduringthepilottestingprocess,creatingaperiod
wherethereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingup
withavailablevendorupgrades.Theseupgradestypicallyincludetheincremental
additionofnewfunctionality,securityupdatesandbugfixesandothersystem
enhancementswhichensureyoursystemremainssupportedbythevendor.Three
upgradesoftheERPsystemareplannedoverthe15yearwindow–twominor
upgrades–typicallypointreleaseswherenewfunctionalityisnotconfiguredand
rolledouttoendusers–andamajorreleasewhichwillincludetheimplementationof
newcapabilities.
CostBreakdown
Basedontheimplementationtimelinedefinedabove,theestimatedcostsforimplementing
anERPsolutiontoreplaceFLAIRandCMSareasfollows.Detailedinformationonthe
derivationofthesecostsestimatescanbefoundinAttachment1tothisstudy.
COSTCATEGORY
ImplementationCost
FLAIRandCMSSupportCosts
ERPSupportCosts
SolutionTotalCostofOwnership
FloridaDepartmentofFinancialServices
FLAIRStudy
AMOUNT
$224.6Million
$98.4Million
$344.6Million
$667.6Million
Chapter2:Page54
Exhibit2‐25:Option3SummaryCosts
IntheExhibitabove,thesolutiontotalcostofownershipisthesumofthefollowing
components:

ImplementationCost:Internal(employeetime)andexternal(contractors/
purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR

FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIRpriortoits
retirement

ERPSupportCost:ExpensesassociatedwithsupportingthenewERPsolution
duringandafteritsimplementation
AnannualbreakdownofinformationisrepresentedgraphicallyinthefollowingExhibit:
Exhibit2‐26:Option315YearCostSummary
ResourceBreakdown
TheExhibitbelowestimatesthetotalworkeffortinannualequivalentsforinternaland
externalresourcesrequiredtocompletetheproject:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page55
Option3:ImplementationResourceEffort
140
120
100
80
60
40
20
0
FY14‐
15
FY15‐
16
FY16‐
17
FY17‐
18
FY18‐
19
FY19‐
20
FY20‐
21
FY21‐
22
FY22‐
23
FY23‐
24
FY24‐
25
FY25‐
26
FY26‐
27
FY27‐
28
FY28‐
29
ExternalResourceEffort
16
23
48
64
48
26
27
5
23
18
9
15
0
0
0
InternalResourceEffort
14
20
43
57
43
31
32
4
20
24
16
21
0
0
0
Exhibit2‐27:Option3ImplementationResourceEffort
Advantages/Disadvantages
TheadvantagesanddisadvantagesforthisoptionarecontainedintheExhibitbelow:
ADVANTAGES








Solutionbasedonindustrystandard
technology
Solutionleveragesindustrystandard
practicesforcorebusinessprocesses
(e.g.,order‐to‐cash,procure‐to‐pay)
Vendorupgradeswillensure
solutioncontinuestoevolveand
grow(i.e.,addnew
functionality/capabilities)
Fasterdesign,development,and
implementation(DDI)cyclesrelative
topurecustombuiltsolution
Easiertoidentifyandsource
resourcestosupportsolution
ProvidesamodernizedERP
foundationtoallowforfurtherstate
enterpriseintegrationinthefuture
Singleintegratedplatformautomates
andsimplifiescomplexcash
reconciliationprocess
Solutionestablishesasolid
foundationtoextendtheERP
platformtootherbusinessfunctions
(e.g.,procurement)
DISADVANTAGES




Investmenttimelineandupgrade
scheduledictatedbytheERPvendor
Packagesolutionrequiresextensive
businessprocessre‐engineeringto
supportstandardbusinessprocesses
Packagesolutionwouldrequirestaff
tolearnnewbusinessterminology
andprocesses
FFMISapplicationswouldrequire
modificationstointegratewithnew
solution
Exhibit2‐28:Option3AdvantagesandDisadvantages
2.3.3.4 OPTION4:REPLACEFLAIR,CMS,MFMP,ANDPEOPLEFIRST
ThefollowingprovidesadditionalcontextaroundthescopeforOption4:ReplaceFLAIR,
CMS,MFMP,andPeopleFirst.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page56


ReplacethefourmaincomponentsofFLAIRwithanERPsoftwarepackage:
o
CentralFLAIR
o
DepartmentalFLAIR
o
InformationWarehouse
o
Payroll
LeveragethechosenERPsolutiontoreplacetheexistingcashmanagementsystem
(CMS)runbytheTreasury,MFMP,andPeopleFirst
TheExhibitbelowprovidesapictorialrepresentationofthescopeofthissolution:
Exhibit2‐29:Option4:ReplaceFLAIR,CMS,MFMP,andPeopleFirstScopeIllustration
ImplementationTimeline
ThefollowingExhibitshowsatimelineandhigh‐levelimplementationplanforreplacing
FLAIR,CMS,MFMP,andPeopleFirst.Descriptionsofeachphasealongwithbasic
assumptionsareincludedonthefollowingpages.Detailedassumptionssurroundingthis
approachcanbefoundinAttachment1tothisstudy.
Keymilestoneshavebeenannotatedwithcallouts.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page57
FY
14‐15
Activities
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
Pre‐DDI
ERPSolutionandSISelected
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementERPforFLAIR/CMSandProcurement
DeployInformationWarehouseforERP
CentralFLAIRRetired
PilotERPSolution
CMSRetired
CMSRollout
DepartmentalFLAIRandMFMPRetired
FLAIR/IWRollout
ImplementHRandPayrollinERP
PeopleFirstandLegacy
PayrollRetired
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
CostBreakdown(inthousands)
Implementation
MaintenanceCosts‐FLAIR
MaintenanceCosts‐ERP
ResourceEffortBreakdown
Implementation
Support‐FLAIR
Support‐ERP
People FirstContractExpires
$7,489
$10,829 $33,728 $33,153 $50,580 $41,394 $35,740 $38,751 $42,624 $29,270 $36,006 $23,257
$16,870 $17,123 $17,380 $17,641 $17,481 $13,396
$0
$0
$7,576
$9,614
$8,483
$3,506
$0
$0
$0
$0
$262
$0
$0
$0
$0
$0
$15,449 $22,309 $28,848 $27,537 $29,139 $30,878 $37,465 $33,716 $37,716 $34,772 $39,692
32
47
117
128
134
116
78
89
106
125
120
54
36
‐
‐
165
165
165
165
165
123
81
41
‐
‐
‐
‐
‐
‐
‐
‐
‐
26
52
94
135
150
165
165
165
165
165
165
165
165
MFMPContractExpires
Exhibit2‐30:Option4Timeline67
Pre‐DDI

Beforeanysoftwareconfigurationordevelopmentcanbegin,asignificantamountof
pre‐implementationworkmustoccur.Specifictaskswillincludebusinessprocessre‐
engineering,establishmentofprojectgovernancestructures,andorganizational
changemanagementactivities.Inaddition,asignificantstrategicplanningeffort
aroundinformationtechnologywillneedtooccurincludingplanningforthe
transformationofthetechnologyorganization.

Anumberofprocurementswillalsoneedtooccurtosupportthisphase.Key
componentsincludetheselectionofanERPsoftwarevendorandaSItoassistwith
theimplementationoftheERPsolution.
DDIPhase1:ImplementERPSolution

ImplementERPforFLAIR/CMSandProcurement:DFSwillworkwiththechosen
SItoconfigurethefunctionalityoftheexistingCentralFLAIRwithintheERPsolution.
Inparallelwiththisdevelopment,DFSwillalsobuildandconfigureDepartmental
FLAIRfunctionalitywithintheERPsolution.Keycomponentsofthisstepinclude:
BuildinganinterfacebetweenthenewERPsolutionandexisting
DepartmentalFLAIR
o
67TheResourceBreakdownintheExhibitprovidestheexpectedtotalannuallaboreffortforeachyear.
Duetotimingofresourceneed,skills,andotherfactors,actualstaffingmayvary.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page58

o
ConfiguringtheERPsystemtosupportthebusinessprocessesdefinedinthe
minimumsetofcapabilities
o
ConfiguringtheERPsystemtosupportcurrentCMSfunctionality
o
ConfiguringtheERPsystemtosupportcurrentcoreMFMPfunctionality–
includingpurchasingandreceiving
o
Scoping,developing,andtestingintegrationswiththeotherFFMISsystemsto
ensurethenewERPsystemwilloperateefficientlywithanyremainingFFMIS
componentsystemsincludingLAS/PBS
DeployInformationWarehouse(IW)forERP:Inadditiontoconfiguringcore
CentralandDepartmentalFLAIRfunctionalityinthenewERPsolution,thisphaseof
theprojectwillincludeare‐designanddeploymentofthecurrentDFSIW.
Thiswillincludeprocurementandimplementationofnewtechnologytosupportdata
warehousing,reporting,andbusinessintelligenceaswellas:

o
Workingwithbusinessoperationsteamstostandardizedatadefinitionsso
improvementscanbemadetothedatawarehouseandreportingfunctions
o
Deploymentofnewanalyticcapabilitieswhichtakeadvantageofdatacoming
intothesystem
PilotERPSolution:Toensuresuccessfuldeploymentandacceptanceofthenew
system,DFSwillpilotthenewERPsolutionwithahandfulofselectagenciesforafull
fiscalyear.Participatingagenciesarerequiredtodiscontinueuseoftheoldsystem
duringthepilot.
Duringthepilot,CentralFLAIRwillstillserveastheofficialsystemofrecordfor
statewidecashbalances,howeverfinancialresultsinthenewsystemshouldreconcile
directlywithCentralFLAIR.Assumingthepilotofthenewsystemissuccessful,
CentralFLAIRwillthenberetired.

FLAIR/IWRollout:Followingthepilot,agenciesaremigratedtothenewsystemin
phasesoveratwoandahalfyearperiod.Specificagenciesbroughtonlineduring
eachphaseoftherolloutarechosenbasedonacombinationoftheirsize,complexity,
willingnesstosupportmigrationtothenewsystem,andneed.Onceallagenciesare
migratedtotheERPsolution,DepartmentalFLAIRisretired.

ImplementHRandPayrollinERP:FollowingthedeploymentofCentraland
DepartmentalFLAIR,CMSandMFMPinthenewERPsystemthefocuswillshiftto
configuringhumanresourcesfunctionalitywithinthenewsystem.Allfunctions
currentlycontainedwithinPeopleFirstwillbemigratedintotheERPsystemand
accesswillberolledoutstatewidefollowingapilotwithasubsetofagencies.
DDIPhase2:ExpandERPFunctionality

OncecoresystemfunctionalityisimplementedwithinthenewERPsystemandthe
rollouttostateagencieshasbegun,thefocusshiftstotakingadvantageofinherent
capabilitiesofthechosenERPsolutiontoexpandandimproveupontheState’s
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page59
financialmanagementcapabilities.Specificfunctionalityexpectedtobedeveloped
includes:
o
Grantmanagement
o
Assetmanagement
o
Projectmanagement
o
Contractmanagement
OperationsandMaintenance

SupportExistingandERPFLAIR:ThecurrentFLAIRsystemneedstobemaintained
untilithasbeendecommissioned.ThenewERPsystemsolutionwillneedsupport
andmaintenancebeginningduringpilottestingprocess,creatingaperiodwhere
thereisamaintenanceandsupportneedforbothsystems.

UpgradeERP:AcriticalpartofowningandoperatinganERPsystemiskeepingup
withavailablevendorupgrades.Theseupgradestypicallyincludetheincremental
additionofnewfunctionality,securityupdatesandbugfixesandothersystem
enhancementsthatensurethatyoursystemremainssupportedbythevendor.Three
upgradesoftheERPsystemareplannedoverthe15yearwindow–twominor
upgrades‐‐typicallypointreleaseswherenewfunctionalityisnotconfiguredand
rolledouttoendusers‐‐andamajorreleasethatwillincludetheimplementationof
newcapabilities.
CostBreakdown
Basedontheimplementationtimelinedefinedabovetheestimatedcostsforimplementingan
ERPsolutiontoreplaceFLAIR,CMS,MFMP,andPeopleFirstaredescribedinthefollowing
Exhibit.Detailedinformationonthederivationofthesecostsestimatescanbefoundin
Attachment1tothisstudy.
COSTCATEGORY
ImplementationCost
FLAIRSupportCosts
ERPSupportCosts
SolutionTotalCostofOwnership
AMOUNT(MILLIONS)
$383.1
$111.9
$354.7
$849.7
Exhibit2‐31:Option4SummaryCosts
IntheExhibitabove,thesolutiontotalcostofownershipisthesumofthefollowing
components:

ImplementationCost:Internal(employeetime)andexternal(contractors/
purchases)expendituresrequiredtoimplementanERPsolutiontoreplaceFLAIR,
CMS,MFMP,andPeopleFirst

FLAIRSupportCost:ExpensesassociatedwithsupportingFLAIR,CMS,MFMP,and
PeopleFirstpriortoitsretirement
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page60

ERPSupportCost:ExpensesassociatedwithsupportingthenewERPsolution
duringandafteritsimplementation
AnannualbreakdownofinformationisrepresentedgraphicallyinthefollowingExhibit:
Exhibit2‐32:Option415YearCostSummary
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page61
ResourceBreakdown
TheExhibitbelowestimatesthetotalworkeffortinannualequivalentsforinternaland
externalresourcesrequiredtocompletetheproject:
Option4:ImplementationResourceEffort
160
140
120
100
80
60
40
20
0
FY14‐
15
FY15‐
16
FY16‐
17
FY17‐
18
FY18‐
19
FY19‐
20
FY20‐
21
FY21‐
22
FY22‐
23
FY23‐
24
FY24‐
25
FY25‐
26
FY26‐
27
FY27‐
28
FY28‐
29
ExternalResourceEffort
17
25
62
68
71
57
37
43
52
60
55
24
24
0
0
InternalResourceEffort
15
22
55
60
63
59
41
46
54
65
65
30
12
0
0
Exhibit2‐33:Option4ImplementationResourceEffort
Advantages/Disadvantages
TheadvantagesanddisadvantagesforthisoptionarecontainedintheExhibitbelow:
ADVANTAGES








Solutionbasedonindustrystandard
technology
Solutionleveragesindustrystandard
practicesforcorebusinessprocesses
(e.g.,order‐to‐cash,procure‐to‐pay)
Vendorupgradeswillensure
solutioncontinuestoevolveand
grow(i.e.,addnew
functionality/capabilities)
Fasterdesign,development,and
implementation(DDI)cyclesrelative
topurecustomizedsolution
Easiertoidentifyandsource
resourcestosupportsolution
Singleintegratedplatformautomates
andsimplifiescomplexcash
reconciliationprocess
Solutionprovidesasingleintegrated
platformsupportingstatewide
financialmanagement
Dataconsolidatedonsingleplatform
facilitatesenhanceddecisionmaking
andanalysis
DISADVANTAGES





Criticalprojectandenterprise
governanceissuesneedtobe
addressedandimplementedbefore
thisoptionwouldbefeasible
Investmenttimelineandupgrade
scheduleddictatedbytheERP
vendor
Packagesolutionrequiresextensive
businessprocessre‐engineeringto
supportstandardbusinessprocesses
Packagesolutionwouldrequirestaff
tolearnnewbusinessterminology
andprocesses
Planningandimplementation
activitiesaremorecomplexsince
theyneedtoincludePeopleFirstand
MFMPgo‐forwardplansand
contractualrequirements(through
August2016andJanuary2017,
respectively)
Exhibit2‐34:Option4AdvantagesandDisadvantages
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page62
2.4 OPTIONSANALYSIS
Inadditiontoconsideringtheadvantagesanddisadvantagesofeachoptionpresentedinthe
previousSectionofthisstudy,theStatemustcarefullyconsiderotherfactorsinmakinga
selection.Theoptionsanalysisisstructuredaroundthefollowingfourelements:

OptionAlignmenttoGoalsandObjectives

CostComparison

BenefitsComparison

RiskAnalysis
2.4.1 OPTIONALIGNMENTTOVISION,GOALS,ANDOBJECTIVES
Chapter1,Section1.5introducedaprojectvisionstatementandfoursolutiongoalsandtheir
associatedbusinessvalue.Thevisionprovidesdirectiononwhatistryingtobeachievedby
anypotentialsolutionandabasisforfutureplanning;whilethesolutiongoalsprovidea
minimumsetofcapabilitieswhichmustbemetbyanypotentialsolution.Establishinga
minimumsetofcapabilitiesiscriticalinordertoensurealloptionsarecomparedtoa
commonstandard.Thiscommonbasewillallowoptioncosts,timelines,andcapabilitiesto
becomparedinaconsistentmanner.
Aspartoftheanalysis,eachoptionwasassessedagainstthevisionstatementandfour
solutionsgoals.Thisassessmentwasqualitativewiththealignmentpresentedforeach
optionrelativetotheotheroptions.TheExhibitbelowreflectstheoutputofthisqualitative
assessment:
EVALUATIONOFQUALITATIVECRITERIA
Vision:Implementastatewideaccountingsystemwhich enforces
standardization,actsasascalablefoundationtoevolveasbusiness
needschange,andpositionsFloridaforfutureinnovationasit
considersatrueenterprise‐widesolution.
Goal#1:ReducetheState’sriskexposurebyharnessingmodern
financialmanagementtechnologybuiltonthepremisesofscalability,
flexibility,andmaintainability.
Goal#2:Improvestateandagencyspecificdecisionmakingby
capturingaconsistentandanexpandablesetofdata.
FloridaDepartmentofFinancialServices
FLAIRStudy
OPTION4:REPLACE
FLAIR,CMS,MFMP,AND
PEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
Chapter2:Page63
EVALUATIONOFQUALITATIVECRITERIA
Goal#3:ImprovetheState’sfinancialmanagementcapabilitiesto
enablemoreaccurateoversightofbudgetandcashdemandstoday
andinthefuture.
Goal#4:Improvestaffproductivity,reduceoperationalcomplexity
andincreaseinternalcontrolsbyenablingstandardizationand
automationofbusinessprocesseswithinandbetweenDFSand
agencies.
CombinedAlignment68
RelativeCorrelationtoStatedSolutionGoal:
OPTION4:REPLACE
FLAIR,CMS,MFMP,AND
PEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
1.6
1.8
2.8
Medium
(2)
Low(1)
3
High(3)
Exhibit2‐35:OptionAlignmenttoVisionandGoals
2.4.2 COSTCOMPARISON
Belowisanoverviewoftheresultsofthecostmodelingexercise.Foreachoptiondescribed
inSection2.3ofthisdocument,theteammodeledcostsovera15yearwindowstartingin
July2014(FY14‐15).Thistimeframewasselectedforanumberofreasons,including:

Inalloptionsanalyzed,therequiredminimumcapabilitiescanbeachievedduringa
15yearwindow.Benefitsarerelatedtoimplementationoftheminimumcapabilities
andshouldalsobeginwithinthiswindow.69

Ineachcase,a15yearwindowprovidesvisibilityintonotonlythecostsof
implementationbutalsosupportcostsforthesystemonceitreachessteadystate.
Itisimportanttonotetheselectionofa15yearwindowisnotinanywayindicativeofthe
lifespanofthenewFLAIRsystem.Inallcasesitshouldfaroutlivethetimelinesbuiltintothe
models.
68Thecombinedalignmentscoreistheaverageofthealignmentofeachoptiontothefourgoalsand
visionscoredonascaleof1to3witha3havingthehighestalignment.
69Implementationoftheminimumcapabilitieswillbecompletebytheendofyear15forOption1,but
someoftheenhancedfunctionalitymaynotbecomplete.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page64
TheExhibitbelowsummarizesexpectedtotalcostofownershipforeachoptionoverafifteen
yearperiodstartinginJuly2014(FY14‐15).
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
COSTCATEGORIES(INMILLIONS)
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
ImplementationCost
$467.4
$219.4
$224.6
$383.1
FLAIRSupportCosts
$225.1
$100.8
$98.4
$111.9
NewFLAIR(ERP)SupportCosts(includingUpgrades)
$131.5
$329.1
$344.6
$354.7
SolutionTotalCostofOwnership
$824.0
$649.3
$667.6
$849.7
2.5
3
2.9
2.4
Comparativescore70
Exhibit2‐36:SummaryOptionCostComparison
IntheExhibitabove,thesolutiontotalcostofownershipisthesumofthefollowing
components:

ImplementationCost:Internal(employeetime)andexternal(contractors/
purchases)expendituresrequiredtodesignandimplementthesolutiontoreplace
FLAIR

NewFLAIR(ERP)SupportCost:Expensesassociatedwithsupportingthecurrent
FLAIRsystempriortoitsretirement

ERPSupportCost:ExpensesassociatedwithsupportingthenewFLAIRreplacement
solutionduringandafteritsimplementation
TheExhibitbelowcomparesthetotalcostofownershipgraphicallyforeachofthefour
options:
70Thecomparativecostscoreiscalculatedonascaleof1to3withthelowestcostassigned3andthe
othervaluesdistributedbasedontheirpercentagedifferencefromthelowestcost.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page65
Exhibit2‐37:OptionTotalCostofOwnershipComparison
CostComparisonSummary
Basedonbothimplementationcostandtotalcostofownershipovera15yearperiod,the
differencesbetweenoption2andoption3islessthantwopercent,makingthemeffectively
costneutral,withOption4beingthemostexpensive.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page66
2.4.3 BENEFITSCOMPARISON
Oneofthekeydifferentiatorsbetweenthefouroptionsanalyzedisthetimelineforthedeliveryoftheexpectedbenefits.TheExhibit
belowsummarizestheexpecteddeliveryyearforeachofthebenefitsoutlinedinSection2.3.2ofthisdocument.
DELIVEREDWHEN….
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
OPTION1:
BENEFIT
ENHANCEFLAIR
OPTIONSCONSIDERED
ReductionofRisk
Riskofacatastrophicsystemfailurewouldbesignificantly
reducedbymovingtoaneworenhancedsystem.
Systemsupportandmaintenancechallengeswouldbe
significantlyreducedbecausemovingtoamodern
technologyplatform/offtheshelfsolutionwouldmake
identifyingandretainingskilledtechnicalstaffmucheasier.
Riskandinstabilityresultingfromalackofdocumentation
withinthecurrentsystemwouldberesolvedduringthe
implementationofthenewsystem.
Businessrisksassociatedwiththelackofflexibilityand
scalabilityofthecurrentsystemwillbereducedor
eliminatedbyenhancingorreplacingFLAIRwithamodern
system.
FloridaDepartmentofFinancialServices
FLAIRStudy
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Chapter2:Page67
DELIVEREDWHEN….
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
OPTION1:
BENEFIT
ENHANCEFLAIR
OPTIONSCONSIDERED
OperationalImprovements
Encumbrancesareinterfacedfromexternalsystemsand
tractableonallpayabletransactions.
CentralFLAIRandDepartmentalFLAIR shareacommon
databaseandthereisnoneedtoreconcilethetwo.
Inter‐agencytransfersandeliminationsareautomatically
processedandbalanced.
Warrantscanbepaidfromanyaccountcombination
entered.
Thenewsystemsupportstheconsolidationandscheduling
ofpaymentsbasedonduedatesandpaymentterms.
Anaccountsreceivablesystemwhichsupportstrackingand
reportingofmoniesowedtothestate.
FloridaDepartmentofFinancialServices
FLAIRStudy
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Chapter2:Page68
CMScheckreconciliationandcashavailabilityfunctions
sharedatawithCentralandDepartmentaltransactions
removingtheneedtoseparatelyreconcilethem.
Thestatemaintainstwocashbalances(bookinthenew
system),andthebankbalance,reducingthetimespenton
cashreconciliation.
Thesystemsupportsworkflowprocessingandelectronic
documentmanagement.
Systemsupportresourceshaveacommonskillsetandcan
beeasilyrecruitedorcontractedfrommultiplesources.
Thenewsystemincorporatesstandardfunctionalityto
supportbarcodereadingandmoreefficientinventory
processing.
Standardfunctionalitysupportsbasictrackingand
accountingforassets,grants,projects,andcontracts.
DELIVEREDWHEN….
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
OPTION1:
BENEFIT
ENHANCEFLAIR
OPTIONSCONSIDERED
FY
26‐27
FY
21‐22
FY
20‐21
FY
21‐22
FY
26‐27
FY
21‐22
FY
20‐21
FY
21‐22
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
AdditionalFunctionality(Phase
2)complete
FY
29‐30
FY
24‐25
FY
24‐25
FY
26‐27
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)orCMSRollout
Complete
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)orCMSRollout
Complete
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page69
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
DELIVEREDWHEN….
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
BENEFIT
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
ImprovedDecisionMaking
Financialsystemdatawillbeavailablethroughqueriesfrom
theinformationwarehousereducingtheneedforMSAccess
andExcelforpreparationoftheFinancialStatements(e.g.
CAFR)andmanagementreports.
Agingofaccountspayableandaccountsreceivableaswellas
othercashforecastingreportswillbeavailabledirectlyfrom
thesystem.
InformationWarehouse
Complete
FY
22‐23
FY
21‐22
FY
21‐22
FY
22‐23
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Accountingtransactionsarecapturedataconsistent levelof
detailacrossthestate,leadingtobetterreporting.
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
InformationWarehouse
Complete
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
FY
22‐23
FY
26‐27
FY
21‐22
FY
21‐22
FY
21‐22
FY
21‐22
FY
22‐23
FY
22‐23
Dataandreportingtoolsareavailabletosupportstatewide
reportingofkeymetrics(e.g.vendorandcategoryspend).
Businessuserscancreateandrunadhocreportsand
queriesasneededwithoutITresourceassistance.
FloridaDepartmentofFinancialServices
FLAIRStudy
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
Chapter2:Page70
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
DELIVEREDWHEN….
Applicationmaintainsaflexible,standardizedChartof
Accounts(CoA)structurewhichsupportsstatewide
reportingwhilegivingagenciestheabilitytocategorize
expensesatalowerlevelofdetailasneeded.
Agenciescanforecastfinancialperformancethroughoutthe
year(i.e.,“whatif”analysis).
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
BENEFIT
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Agencyrolloutcomplete
(CentralandDepartmental
FLAIRreplaced)
FY
26‐27
FY
21‐22
FY
21‐22
FY
22‐23
Exhibit2‐38:BenefitsRealizationbyOption
BenefitsRealizationSummary
Akeyassumptionoftheoptionanalysisisthattheidentifiedbenefitswillberealizeduponsuccessfulcompletionoftheimplementation.
Thedifferenceishowsoonthesebenefitscanberealized.Averagingthenumberofyearsitisexpectedtotaketorealizeeachbenefit,the
followingsummarycomparisonshowsthatthereisnegligibledifferencebetweenthetimetobenefitforoptions2and3withoption1
takingsignificantlylonger:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page71
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
REPLACEFLAIR
OPTION2:
OPTION1:
ENHANCEFLAIR
OPTIONSCONSIDERED
Averagetimetobenefit(years)
12.8
8.1
7.9
8.9
Comparativescore71
1.8
2.9
3
2.7
Exhibit2‐39:AverageTimetoBenefitbyOption
2.4.4 RISKANALYSIS
Allfouroptionsbeingevaluatedarecomplexandchallenging.Implementationtimelinesaremeasuredinyears(notweeksormonths)
andrequiresignificantresourcesinvestedtoachievesuccessfulcompletion.Becauseofthecomplexityandbreadthoftheoptions,they
sharemanyofthesameriskswiththedifferencebeingthelikelihoodandseverityofimpactofeachoftherisks.TheExhibitbelow
highlightsthecommonriskswhichmaybeencounteredduringtheimplementationregardlessoftheselectedoption:
71Thecomparativetimetobenefitscoreiscalculatedonascaleof1to3with3representingtheshortestaveragetimetobenefit,andtheotherbenefit
timesdistributedbasedonthepercentageofadditionaltimeittakestoachievebenefits.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page72
RISK
Lossofpolitical/executivesponsorship
POTENTIALIMPACTS


Failedimplementation
Benefitsnotrealized
MITIGATIONSTRATEGIES



Ineffectivegovernanceprocessesprevent
decisionmaking





Increasedcustomizations
Highersupportcosts
Benefitsnotrealized
Budgetoverruns
Failuretomeetimplementationtimeline





Fundingnotavailable


Failedimplementation
Benefitsnotrealized


Thirdpartysoftwaredevelopersand/or
ERPimplementationexpertsnotavailable
FloridaDepartmentofFinancialServices
FLAIRStudy



Failedimplementation
Budgetoverruns
Failuretomeetimplementationtimeline

Educateexecutiveleadership onthecurrent
risksandchallengesfacedwithcurrent
environment
Documentgo‐forwarddirectionandtimelinein
Statute
Structureimplementationtoachieve
incrementalsuccesses
Define agovernancestructuredenoting
authoritytomakedecisionsandenforcepolicy
acrossFFMIS
Establishcleardefinitionofdecisionswhichcan
bemadewithintheprojectandwhat
decisions/approvalneedtoberaisedtoahigher
level
Clarify/modifyStatutestoenforceprocess
standardization
Communicatetoagenciesatthebeginningofthe
projecttheexpectationsrelatedtoprocess
standardizationandcustomizations–only
customizationsrequiredtomeetstateor
federalstatuteswillbecompleted
Executiveleadershipmustcommittomaking
harddecisionsaroundagencyrequests,not
everyrequestcanbeaccommodated
Establishfundingmechanismswhich are
documentedinstatute
Completetheprojectinphasestolowerfiscal
commitmentswhilestillmovingforwardwith
winsandprogressfortheState
Ensureadequatebudgetisavailabletoacquire/
retaintheappropriatetechnicalresources
Chapter2:Page73
RISK
FLAIRusersnotabletoadapttonew
systemandprocesses
Lackofagencybuy‐inandsupport
POTENTIALIMPACTS
MITIGATIONSTRATEGIES




Failedimplementation
Benefitsnotrealized
Budgetoverruns
Failuretomeetimplementationtimeline




Failedimplementation
Benefitsnotrealized
Failuretomeetimplementationtimeline





Agenciesdonotassignanadequate
numberofresourcestotheproject



Failedimplementation
Budgetoverruns
Failuretomeetimplementationtimeline


DFSmaynothavetheskills,experienceor
stafftodesign,develop,test,androllout
thesolution



Failedimplementation
Budgetoverruns
Failuretomeetimplementationtimeline




Businessprocessesnotchanged
FloridaDepartmentofFinancialServices
FLAIRStudy


Failedimplementation
Benefitsnotrealized

Determineearlyinprojectifkeyresource/skill
gapsexistanddevelopstrategiestoaddress
(training,strategichiring,etc.)
Investsignificantresourcesintodevelopingand
executingacomprehensivechangemanagement
andorganizationaltransitionplan
Educateagencyleadership ontherisksand
challengesfacedwithcurrentenvironment
Includeagenciesinprojectleadershipand
includethemthroughouttheprocess
Usephasedimplementationapproachtobuild
momentumandsupport
Documentgo‐forwarddirectionandtimelinein
statute
Identifyandcommunicateagencyresource
needsatthebeginningoftheproject;set
expectationsoftheirrequirements/time
commitment
EscalateresourceissuestoProjectLeadership
quicklyandaddressimmediately
Definepart‐timecommitmentsrequired
Establishastronggovernancemodeland
projectmanagementstructuretomonitor
progressandguideimplementation
SupplementDFSstaffwithanexperiencedand
seasonedSI
Increasepaylevelsforspecifictechnical
positionstoensurerecruitmentandretention
Conductbusinessprocessimprovementeffort
atbeginningofprojectandchallengethestatus
quo
Chapter2:Page74
RISK
POTENTIALIMPACTS
Integrationissueswithexistingagency/
FFMISsystemsincludingmanagingaround
contractupdatesforbothPeopleFirstand
MFMP
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
upgrades







Failedimplementation
Budgetoverruns
Failuretomeetimplementationtimeline
Increasedcustomizations
Highersupportcosts
Highersupportcosts
Shortenedsolutionlifespan
MITIGATIONSTRATEGIES





Ensurephasedapproachtosystem
developmentandrollout
Buildextratimeintobudgetstosupport
integrationchallengesastheyarise
Includeupgraderequirementsinto
procurementdocuments,longtermstrategic
plans,andbudgets
Documentastrategicplanandenhancement
roadmapwhichisupdatedannually
Leverageenterprisegovernancestructureto
defineintegrationpointsbetweenFLAIRandall
FFMISsubsystems
Exhibit2‐40:SummaryofCommonImplementationRisks
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page75
EachoftherisksidentifiedintheExhibitaboveapplytothefoursolutionoptionsindifferent
ways.Dependingonthecharacteristicsofeachsolution,thelikelihoodoftheriskaffecting
theimplementationwillvaryfromlowtohighasdoesthepotentialimpact.
Usingtheriskratingmatrixbelow,theFLAIRStudyTeamdeterminedtheseverityofeach
riskidentifiedintheExhibitaboveforeachofthefoursolutionoptions.Thesearepresented
asfollows:
Exhibit2‐41:RiskRatingMatrix
RiskRatingsforOptionsConsidered
ThefollowingExhibitcontainsriskratings(R)representingthesumofthelikelihood(L)and
impact(I)foreachoftheoptionsconsidered.Duetothesizeandcomplexityoftheendeavor,
anyoftheoptionshavesignificantrisk;andsomeoptionsarehigherriskthanothers.
RISK
Lossofpolitical/executivesponsorship
FloridaDepartmentofFinancialServices
FLAIRStudy
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
OPTION1:
L=LikelihoodofOccurrence
I=ImpactonProject
R=RiskRating
ENHANCEFLAIR
OPTIONSCONSIDERED
L
I
R
L
I
R
L
I
R
L
I
R
H
H
H
L
H
M
L
H
M M H H
Chapter2:Page76
RISK
L
Ineffectiveprojectgovernanceprocesses
L
preventdecisionmaking
Fundingnotavailable
Thirdpartysoftwaredevelopersand/
orERPimplementationexpertsnot
available
FLAIRusersnotabletoadapttonew
systemandprocesses
Lackofagencybuy‐inandsupport
Agenciesdonotassignanadequate
numberofresourcestotheproject
DFSmaynothavetheskills,experience
orstafftodesign,develop,test,androll
outthesolution
Businessprocessesnotchanged
I
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
OPTION1:
L=LikelihoodofOccurrence
I=ImpactonProject
R=RiskRating
ENHANCEFLAIR
OPTIONSCONSIDERED
R
L
I
R
L
I
R
L
I
R
H M
L
H
M
M
H
H
H
H H
H
H
H M
H
H M
H
H
H
H H
H
H
H
L
H
M
L
H
M
L
H M
L
H M
M
H
H M
H
H
M H H
M
H
H
L
H
M
L
H
M
H
M
M
M
L
M
L
L
M
L
M M M
M
H
H
L
H
M
L
H
M
L
H M
H M
M
H M
M M
L
M
M
L
L
M
L
L
M
L
M M M
M
H
L
M
L
L
M
L
L
H M
Integrationissueswithexistingagency/
FFMISsystemsincludingmanaging
L
aroundcontractupdatesforbothPeople
FirstandMFMP
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
H
upgrades
AggregateCombinedRisk72
1.7
Likelihood/Impact
L=Low
2.5
2.5
M=Medium
H H
M
L
L
2.1
H=High
72Theaggregatecombinedriskisanaverageofthecombinedriskforeachoptionusingthescaleofa
lowriskbeing3,mediumrisk2,andahighriskbeing1.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page77
L
RISK
I
Low(3)
CombinedRisk
L
I
R
L
OPTION4:REPLACE
FLAIR,CMS,MFMP,
ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
R
REPLACEFLAIR
OPTION1:
L=LikelihoodofOccurrence
I=ImpactonProject
R=RiskRating
ENHANCEFLAIR
OPTIONSCONSIDERED
I
R
Medium(2)
L
I
R
High(1)
Exhibit2‐42:RiskRatingsofConsideredOptions
2.4.5 SUMMARYANALYSIS
Thetablebelowprovidesacomparisonofthefouroptionsacrosseachofthekeyelementsof
alignmenttogoals,cost,benefitachievement,andrisk.
REVIEWCATEGORY
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
AlignmenttoVisionandGoals
1.6
1.8
2.8
3
TotalCostofOwnership
2.5
3
2.9
2.4
AchievementofBenefits
1.8
2.9
3
2.7
Risk
1.7
2.5
2.5
2.1
CombinedComparison
1.9
2.6
2.8
2.6
Exhibit2‐43:SummaryOptionComparison
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2:Page78
2.5 APPENDIX
Thisappendixcontainsthefollowingsections:

KeyThemes

AdditionalStateResearch

DetailedStateProfiles

MinimumCapabilityJustification

RiskDetails
2.5.1 KEYTHEMESFROMSTATERESEARCH
Thissectioncontainsadditionaldetailonthekeyimplementationthemesidentifiedfromthe
stateinterviewsandsummarizedinsection2.2.1.Theyare:

UseofERPSolutions

Cross‐AgencyStandardization

StrongEnterpriseandProjectGovernance

BusinessProcessRe‐engineeringPriortoImplementation

LimitSystemCustomizations

SystemIntegratorSelectioncanbeasImportantasSoftwareSelection

PhasedImplementationApproach

FocusonOrganizationalChangeManagement

PartnerwithKeyAgencies

ExistenceofanAgencyChargebackCostingModel

CombinationofIn‐houseandOutsourcedSupport
2.5.1.1 DETAILEDINFORMATION
UseofERPSolutions
StatesareadoptingERPsoftwareforcorestatewidefinancialmanagementincludingfinancial
reportingasopposedtodevelopingnewtechnologiesin‐house.
Severalstatesstillusecustom‐builtsoftwareforbusinessoperations,butthemajorityhave
optedtomakethetransitiontoanERPsolution.Allstatesinterviewedhaveundergonean
ERPinitiativewithinthepastfifteenyears.Thistrendaroseoutoftherealizationthat
customsystemscouldnotbemaintainedwiththeretirementofkeyworkersandtheshiftin
availablesupportforlegacytechnologies.Newemployeeswouldlikelynothavethe
knowledgenecessarytooperatethisoutdatedtechnology.Somestates,including
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page79
PennsylvaniaandGeorgia,haveachievedstatewiderolloutandareontheupgradepathwhile
otherslikeVirginiaandTexashaveonlyimplementedtheirnewsolutionatafewstate
agencies.
Therearealargenumberofsoftwarevendorsinthemarket,butwithstategovernment
operationsbeingaslargeandcomplexastheyare;allstatesinterviewedhavechosentop‐tier
software.ThesesolutionsareOracle’sPeopleSoft,SAP,andCGIAdvantage.NewYork,Texas,
Virginia,Ohio,andGeorgiachosePeopleSoft.OfthestatesinterviewedSAPandCGI
Advantagewereonlychosenbyonestateeach,PennsylvaniaandAlabamarespectively.
However,anexpandedscanshowsthatbothofthosesoftwarepackagesareinuseinother
states.
Cross‐AgencyStandardization
Stateswhowereabletomandateandenforceconsistentbusinessprocesseshadlower
overallsupportandmaintenancecostsbecauseoftheprocessstandardizationaswellasthe
abilitytolimitagency‐specificcustomizations.Uniqueagency‐specifictransactionswere
requiredtobeinterfacedleveragingastandardinterfaceprotocol.
Ofthestatesinterviewed,mosthadeithercompletedorhadplanstocompleterolloutsof
theirnewsolutionsinallstateagencies.Pennsylvaniawasthefirsttodosowhentheywent
livewithstatewidefinancialsandHR/Payrollfunctionalityby2004.Ohiowastheonestate
interviewedwhodidnothaveanall‐agencyplanfirmlyestablished.Whilemoststate
agenciesinOhiohavemadetheswitch,theirDepartmentofTransportation,forexample,has
not.Concernsoverthelimitationsofprojectandgrantsmanagementfunctionalitywithinthe
newfinancialmanagementsystemhavedriventhemtostayontheirlegacysystem.
NewYorkbeganwithamodelwherebylargerandmorecomplexagenciesmaintainedtheir
legacysystems,butinterfacedtransactionsintothenewPeopleSoftsystem.Inthiscase,the
newsystembecamethestatewidesystemofrecord,andagencieswererequiredtoprovidea
specificleveloftransactionaldetailinthenewstatewideChartofAccounts.Anunforeseen
outcomeoftheprojectwasmanyofthesmalleragenciesendedupbandingtogetherand
beingservicedbyanewstatewidesharedservicesorganization.
StrongGovernance
Stateswhosuccessfullyimplementednewenterprisefinancialmanagementsystemshad
clearlydefinedgovernancestructuresforstatewidepolicyandsystemusageincluding
definingdecisionmakingprocessesandaclearprojectscope.
Steeringcommitteesandoversightboardshavebeenestablishedinallinterviewedstatesfor
leadershipandimportantprojectdecision‐making.Withoutastronggovernancestructurein
place,decisionscantakealongtimetobemade.Akeyelementofsuccessfulgovernanceis
activeparticipationandcooperationbythegoverningparties.NewYorkhasasimilar
segregationbetweenexecutivebranchagenciesandtheircomptrollerasFloridahasbetween
theexecutiveagenciesandtheCFO.Theirimplementationwassuccessfulafteractive
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page80
participationwasestablishedonthesteeringcommitteewithadecisionmakingmember
fromeachcontrolagency.
InTexas,aprimarysteeringcommitteewasassembledattherecommendationofabusiness
casecreatedtoassessthefeasibilityofimplementingastatewideERPsolution.Thissteering
committeewastaskedwithgoinginfrontofthelegislaturetogeneratethefundingforthe
initiative.Oncefundswereappropriated,aseparatesteeringcommitteewasbuiltforproject
decisionmaking.Severalstateshadsimilarmodelsinplaceforgovernancewithanadded
layerunderneath.Pennsylvaniahadsub‐committeesoffunctionalbusinessarealeaderswho
couldvoicetheirneedsforthenewsystem.Thisensuresvoicesoftheend‐usersarebeing
heard.
BusinessProcessRe‐engineeringPriortoImplementation
Asawaytoavoidcustomizationinthenewsystem,manystatesunderwentaperiodof
businessprocessre‐engineering(BPR)priortotheimplementationphase.Stateswhodid
notperformprocessre‐engineeringhadlargevolumesofcustomizationsandgenerallyhad
towaituntiltheyperformedthere‐engineeringtoachieveexpectedprojectbenefits.
Stateagenciesoftenhavetodealwithuniquerequirementsintheireverydaybusiness.To
accommodatetheseneeds,theyhavebeenbuildingcustomizationsintotheirlegacysystems
foryears,andhavebecomefullydependentonthem.Everystateinterviewedencountered
thisissue,andseveralrecommendedperformingbusinessprocessanalysisandre‐
engineeringpriortosystemimplementation.
Virginiare‐engineereditsbusinessprocessintheyearpriortosoftwareandintegrator
selection.Theyformedtheirbusinessprocessrequirements,andallowedintegratorstopitch
theirservicesafterdeterminingthebest‐fitsoftware.Whenaskedaboutlessonslearned,
Pennsylvaniasupportedtheideaofperformingbusinessprocessre‐engineeringpriorto
implementation.NewYorkalsorecommendedanalignmentofbusinessprocessesto
inherentsystemcapabilitieswherepossible.Bymappingoutfuturebusinessprocessestofit
theout‐of‐boxsoftwarecapabilities,astatecouldavoidcustomization,havehighereaseof
training,andincreasingefficiency.Ohiounderwentbusinessprocessre‐engineering
subsequenttoinitialgo‐live,butdidsopriortosystemupgrades.Therewillrarelybea
perfectfit,makingsmallcustomizationsunavoidable,buttheycanbedealtwithinan
upgrade.
LimitSystemCustomizations
AbestpracticeforsuccessfulstateswastouseERPfunctionalityasdesignedwhilekeeping
customizationsforcorefinancialtransactionsandreportingtoaminimum
Moststatessurveyedplacedheavyemphasisontheirdesiretokeepcustomizationtoa
minimum.Systemswithheavycustomizationpresentmajorchallengesduringtheupgrade
process.SuchhasbeenthecaseinPennsylvania,whichtookonanefforttoreversethe
customizationswithintheirSAPsystemtoaccommodateupgrades.Texasalsoindicated
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page81
severaloftheirlarger,morecomplexagencieshavefelttheneedforcustomizationto
accommodatebusinessprocesses,andtheycouldencounterproblemswithupgrades.
Allstates,particularlyVirginia,admittedcertaincustomizationswillbeunavoidable,
primarilyforthecomplexagencies.Inthesecases,theyrecommendedrequestsfor
customizationbebroughtinfrontofagoverningbodywhocouldassessandgiverulingon
thenecessityofthecustomization.Onlythosewhoareabsolutelyvitaltoanagency’sunique
operationsshouldbeallowed.Processeswhichcanbetweakedslightlytofitout‐of‐box
softwarecapabilityshouldbeadjustedassuch.
SystemIntegratorSelectioncanbeasImportantasSoftwareSelection
Whileprocurementstrategiesvariedwidely(integratorfirst,softwarefirst,combined
selection,etc.),almosteveryoneinterviewedstressedtheselectionoftherightintegratoris
asimportantastheselectionoftherightsoftwarepackage.
Everystateinterviewedstressedtheabsolutenecessityofhavingstrongintegrationsupport.
Theyallchosetorelyononeofthetopintegratorsinthemarket.ThelistincludesIBM,
Deloitte,Accenture,andCGI(specificallyfortheCGIsoftware).Virginiahaspleasedwith
theirimplementationpartnerandhassignedacontractwiththemforoperationsand
maintenancesupport.Incontrast,Texasfacedchallengeswiththeinitialconfigurationand
rolloutoftheirPeopleSoftimplementationandexpandedtheirsupportforthesystemand
futurerolloutstoincludeanadditionalvendor.
Althougheachsoftwarepackagehasdifferentstrengthsandcapabilities,alltheviable
softwarepackageshavehadsuccessesandfailuresinthepublicsector.Thecauseforfailure
ismostoftenrelatedtotheintegrationapproachandsupport,notthesoftware.Thesoftware
willonlybeabletomeetacertainpercentageoftheState’srequirementsoutofthebox.The
integratorcancomeupwithcreativesolutionstobridgethatgapandenablethesystemto
supportbusinessoperations.Implementationwilltakeseveralyears,soitisimportantto
haveatrustingrelationshipwiththeintegrator,andbeconfidenttheycandeliverontheir
timeline.
PhasedImplementationApproach
Ingeneral,stateshavetakenaphasedapproachtotheimplementationofnewenterprise
financialmanagementsystems,oftenrevampingcentralsystemsfirstbeforeaddressing
agencyconcerns.
WiththemanymovingpiecesassociatedwithstatewideERPinitiatives,moststatesadopta
phasedimplementationstrategy.Withthistypeofstrategy,asingleorseveralleadagencies
wouldsuccessfullyimplementthenewtechnologybeforeanewwaveofagenciesmadethe
change.Bybreakingtheoverallimplementationintopieces,goalsbecomemorevisibleand
manageable.Phasedimplementationmightalsobetheonlyoptionforcertainstatesfor
budgetaryreasons,whichiswhyamulti‐yearphasedimplementationisoftenthemost
realisticmodel.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page82
InVirginia,theDepartmentofTransportation(VDoT)andtheDepartmentofAccounts
agreedtoleadtheeffort.VDoTwentlivewiththeirsolutionin2011,followedthenextyear
byDOA.Theseagencieswerethechampionsforanewsystembecauseofbusinessneeds
thatwerenotbeingmetbytheirlegacysystems.Therearetworemainingwavestotheir
implementationtimeline.Thefirstwaveofagencieswillbebroughtontothesystemby
October2014andthesecondwavebyFebruary2016.Alabamaisalsofollowingaphased
implementationapproachwithtwentystateagenciesscheduledtogoliveontheirnewCGI
AdvantagesolutionbyOctober2015.Theremainingagencieswillundergoimplementation
inseveralphasesoverthecomingyears.
Theimportanceof“gettingawin,”asitwasputinseveralstateinterviews,wasacausefor
transitioningagencieswithsimplebusinessprocessesontothenewsystemfirst.Ohio
followedthisformat.Thisisbeneficialforstateswhoarelookingtohavemeasurableresults
beforeanadministrationchange.Otherstates,VirginiaandTexasforexample,triedtackling
arguablytheirmostcomplexagency,theirDepartmentsofTransportation,attheoutset.If
successisachievedforcomplexagencies,thesimpleronesshouldpresentlessofastruggle
adjustingtothenewsystem.
FocusonOrganizationalChangeManagement
Innearlyeverycase,organizationalchangemanagementplaysakeyroleinensuringa
successfulimplementation.
WhicheveroptionFloridaultimatelychooseswillleadtochangesintheday‐to‐dayjobsof
employeesacrossthestate.Thepeoplesideofthetransitionwillbeequallyimportantasthe
technologypiece.Theprojectteamislikelytofacepushbackfromsomeoftheseemployees
astheyaretakenoutoftheirroutines.Thebenefitsrealizedwillhavetobereinforced
throughoutthedurationofthissystemtransformation.Tohavethesestateemployeesbuyin
tothevisionandmissionoftheproject,strongleadershipwillbenecessary.
NewYorkhadanentireteamdedicatedtoagencyoutreachservingasaliaisonbetweenthe
agenciesandtheproject,helpingtofacilitateprojectactivitiesandtosupportindividual
changeleadersateachagencyduringthetransition.Virginiaindicatedtheirimplementation
includesasubstantialchangemanagementeffort.Theyhavebeenusingacombinationof
web‐basedandclassroomtrainingtoteachemployeeshowtointeractwiththenewinterface.
InOhio,asistypicallythecase,theexternalOCMteamwasresponsibleforbuildingtraining
materialsandleadingstrategy.ItwasalsomadeapparentintheinterviewwithAlabamathat
changemanagementwillbecrucialbecausetheywillbemakingatransitionfromprimarily
paper‐basedprocessestoanear‐paperlessenvironment.
PartnerwithKeyAgencies
Toensuresuccess,manystateschosetopartnerwithakeyagencyoragenciesasapartofthe
initialimplementation.Thesepartnershipsensuredagencyneedswereconsideredduring
thedeployment,servedasanexampleofsuccessthatmadeiteasiertoonboardother
agenciesinlaterphasesorwerevehiclestoprovideadditionalsourcesoffunds.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page83
StatewideERPinitiativessometimesariseoutofthebusinessneedsofoneorseveralkey
agenciesnotbeingmet.InAlabama,forexample,itsMedicaidAgencywaslimitedbycurrent
systemfunctionality.Theprospectofanewstatewidesolutionaroseoutofthatneed.
VirginiaandTexas,aspreviouslymentioned,partneredwiththeirDepartmentsof
Transportationtoleadtheimplementation.TheDepartmentofAccountsinVirginiaandthe
agenciesundertheCommissionofHealthandHumanServicesinTexasalsoservedasleaders
fortheirstates’ERPprojects.
Asuccessfulimplementationataleadagencyprovestootherstateagenciesthatbenefitscan
berealizedfromthetransition.Therolloutataleadagencyservesasamodelforsubsequent
rollouts.Lessonslearnedfromtheleadagencycanbuildefficienciesforthesesubsequent
rollouts.Partneringwithaleadagencyalsoensuresthevoicesofend‐usersarebeingheard.
ExistenceofanAgencyChargebackCostingModel
FundingmodelsamongstthestatesfortheirERPinitiativesdifferedinsomecapacity,butall
hadsomeelementwhereanagencywaschargeddirectlyeitherforongoingoperations,orfor
developmentofspecialfunctionality.
Legislativeappropriations,agencychargeback,andoftenamixofthetwoseemedtobethe
mostpopularoptionsforsystemfunding.Treasuryloansrepresentanothersourceof
funding,butwerenotsocommonlyused.Thechallengewiththisfundingmodelisitis
difficulttogetfundingfortheinitialinvestmentfromagencieswhoarenotyetseeing
benefits.Onlyoncetheyhavemadethetransition,canthechargebejustified.Forthis
reason,thelegislatureoftenhashadtoappropriatefundstokick‐starttheproject.Thiswas
thecaseforseveralofthestatesweinterviewedincludingNewYork,Texas,Pennsylvania,
andGeorgia.
Theagencychargebackmodelrequiresafeeauseragencypaystothemaintainingagencyfor
useofthesystem.Theratesatwhichuseragenciesarechargedwerebasedonaformulathat
takesintoaccountthenumberoftransactionsprocessedornumberofusers.Thelevelof
complexityvariedamongthestatesinterviewed.
Pennsylvania,Ohio,andVirginiarepresentafewofthestateswhoutilizeachargebackmodel.
Pennsylvaniareceivedinitialprojectfundingfromappropriations,butsupportsongoing
systemoperationsthroughagencychargeback.Virginiagottheirinitialfundingfroma
treasuryloan,andthentransitionedtoachargebackmodelforsupportandtorepaytheloan.
Ohiohasusedanagencychargebackfundingmethodfromthebeginning.
CombinationofIn‐HouseandOutsourcedSupport
Moststatesarecurrentlyhostingtheirfinancialmanagementsystemswithinstate‐rundata
centers,buttheystillleverageconsultantstoassistwithsoftwaremaintenanceandcomplex
systemupgrades.
Findingsfromthestateinterviewsidentifiedamixtureofin‐houseandoutsourcedsupport.
Bothhardwareandpeopleforapplicationsupport,databaseadministration,and
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page84
developmentarebeingoutsourcedatleastinpart.Manyofthesoftwarevendorsandsystem
integratorspromotetheuseoftheirresourcesforsystemmaintenanceandprovide
advantagestoimplementationpricingifasupportmodelispartofthecontract.Itcanbe
difficultforstatestohireandretainemployeeswiththelevelofexpertiseneededtomaintain
complexsystems,whichisonereasonoutsourcedsupporthasbecomefairlypopular.
Ohio,aPeopleSoftuser,hasinlargepartoutsourcedITinfrastructureandapplication
supporttoAccenture.Somestatescontinuetorelyprimarilyoninternalstatestafffor
supportallowingforstaffaugmentationasrequired.NewYork,forexample,doesnotutilize
anyformofoutsourcingforsystemmaintenance.Theyusedanintegrator(IBM)for
implementationservices,butallothersystemsupportisdonewithstatestaff.Asahybrid
model,VirginiaoutsourcesinfrastructuresupporttoNorthropGrumman,buthasa
combinationofinternalstatestaffandAccenturecontractorswhocarryoutdatabase
administration,applicationsupport,development,andothermaintenancetasks.Thisis
perhapsthemostfavorableoptionsincecontractorsprovideexpertiseatarelativelyhigh
cost.Internalstatestaffcanhandleaportionofthesystemsupportatarelativelylowercost
thanadditionalcontractors,whocanbeleveragedasneeded.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page85
2.5.2 ADDITIONALSTATERESEARCH
ThefollowingExhibitisaconsolidationofbasicresearchonstatefinancialmanagementandHR/Payrollsystems.Theserepresent
thetop30statesintermsoftotalexpenditures.TheExhibitshowstherangeoftechnologysolutionoptionschosenaswellasthe
yeartheywereorwillbeimplemented.Finally,the“AdditionalComments”columnexpressesthereasonsforselectingNewYork,
Texas,Virginia,Pennsylvania,Georgia,Ohio,andAlabamaformorein‐depthanalysis.
STATE
RANK/2013STATE
SPENDING73(MILLIONS)
FINANCIALMANAGEMENT
SOFTWARE
HR/PAYROLLSOFTWARE
CA
1/$199,400
PeopleSoft
(2012)
CustomLegacy
2/$133,500
PeopleSoft
(2011)
PeopleSoft
(2005)
NY
ADDITIONALCOMMENTS

N/A

Largestatebudget
andrecentERP
implementation
success
Largestatebudget
andtosurveyastate
thatisstillinthe
processofgoing
throughanERP
implementation
Comparablestate
budgettoFloridaand
successfulstatewide
ERPimplementation

TX
PA
3/$93,000
PeopleSoft
(2011)
PeopleSoft
(2012)
4/$66,900
SAP
(2002)
SAP
(2004)

73NationalAssociationofStateBudgetOfficers(NASBO)ExpenditureReport2011‐2013
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page86
RANK/2013STATE
SPENDING73(MILLIONS)
FINANCIALMANAGEMENT
SOFTWARE
IL
5/$65,700
CustomLegacy
(SAMS)
(Legacy)
FL
6/$63,000
CustomLegacy
(FLAIR)
PeopleFirst(SAP)
MA
7/$59,300
CGIAdvantage
(2010)
OH
8/$57,900
NJ
STATE
ADDITIONALCOMMENTS

IssuedRFPfor
statewideFinancial
andHR/Payroll
(2013)
N/A
PeopleSoft
(2010)

N/A
PeopleSoft
(2008)
PeopleSoft
(2008)

9/$48,600
CustomLegacy
(NJCFS)
CustomLegacy
Comparable state
budgettoFloridaand
outsourcingmodel
N/A
MI
10/$47,300
CustomLegacy(Michigan
Administrative
InformationNetwork‐
MAIN)
(1994)
LawsonHR/Payroll
(1994)
NC
11/$46,600
CustomLegacy
(NCAS)
SAP
(2008)
VA
12/$43,400
PeopleSoft
(2014)
PeopleSoft
(2014)
WI
13/$41,300
PeopleSoft
(2015)
PeopleSoft
(2017)
FloridaDepartmentofFinancialServices
FLAIRStudy
HR/PAYROLLSOFTWARE







IssuedRFPfor
softwareselection
(2012)
IssuedRFPfor
softwareintegrator
selection(2013)
N/A
In‐process
implementationwith
uniquepilot‐agency
approach
N/A
Chapter2Appendix:Page87
STATE
RANK/2013STATE
SPENDING73(MILLIONS)
FINANCIALMANAGEMENT
SOFTWARE
HR/PAYROLLSOFTWARE
ADDITIONALCOMMENTS

GA
14/$41,100
PeopleSoft
(1999)
PeopleSoft
(1999)
WA
15/$35,000
CustomLegacy(Agency
FinancialReporting
System‐AFRS)
SAP
(2006)
MD
16/$34,900
CustomLegacy
(FMIS)
CustomLegacy
(StatePayrollSystem)

MN
17/$31,300
PeopleSoft
(2011)
PeopleSoft
(2011)

Beginningprocessto
implementWorkDay
forHR/Payroll
N/A
TN
18/$30,400
PeopleSoft
(2009)
PeopleSoft
(2009)

N/A
CO
19/$28,800
CGIAdvantage
(2014)
CustomLegacy

N/A
AZ
20/$28,500
CGIAdvantage
(2014)
LawsonHR/Payroll

CT
21/$27,600
PeopleSoft
(2008)
PeopleSoft
(2008)

Intheprocessof
implementingCGI
Advantage
N/A
LA
22/$27,000
SAP
(2011)
CustomLegacy
(StatewideFinancial
ManagementApplication
–SFMA)
SAP
(2001)

N/A

N/A
OR
23/$27,000
FloridaDepartmentofFinancialServices
FLAIRStudy
Oneofthefirststates
toimplementanERP
solutionandhas
undergoneseveral
upgrades
N/A

CustomLegacyPayroll
System
Chapter2Appendix:Page88
STATE
RANK/2013STATE
SPENDING73(MILLIONS)
FINANCIALMANAGEMENT
SOFTWARE
HR/PAYROLLSOFTWARE
IN
24/$26,400
PeopleSoft
(2009)
PeopleSoft
(2009)

N/A
KY
25/$25,600
CGIAdvantage
(2006)
SAP
(2011)

N/A

Stateactivelyusing
CGIAdvantageandin
processofstatewide
upgradewith
extensiveprocessre‐
engineering

N/A

N/A
ADDITIONALCOMMENTS
CGIAdvantage
(2002/2015)
CGIAdvantage
(2002/2015)
AMS(nowCGI)Advantage
andBrass
(2000)
SAP
(2010)
AMS(nowCGI)Advantage
andBrass
(2001)
SAP
(2010)
29/$21,800
CGIAdvantage
(2014)
CGIAdvantage
(2015)

N/A
30/$20,900
PeopleSoft
(2003)
PeopleSoft
(2006)

N/A
AL
26/$24,200
MO
27/$23,400
SC
28/$22,000
WV
OK
Exhibit2‐44:AdditionalStateInformation
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page89
2.5.3 DETAILEDSTATEPROJECTPROFILES
Thefollowingsectionscontaindetailedinformationgatheredfromstateinterviewsaswellas
additionalresearch.
2.5.3.1 NEWYORK
In2009,NewYorkformedtheStatewideFinancialSystem(SFS)Program.Theirgoalwasto
implementanintegratedstatewideenterprisefinancialmanagementsolutiontoreplacetheir
legacyCentralAccountingSystem(CAS)andseveralexistingagencyfinancialsystems.They
establishedtheChangeControlBoard,acollaborationofrepresentativesfromtheGovernor’s
OfficeandtheStateComptroller’sOffice,toleadprojectstrategyanddecision‐makingaround
newsystemcapabilitiesandenhancements.Aseparatesteeringcommitteegathered
feedbackfromstateagenciesontheimpactoftheimplementationandcommunicatedwith
theChangeControlBoard.
Initialandongoingsystemfundingwasappropriatedbythelegislature.Thesefundswere
generatedfromten‐yearbondsobtainedbythestate.PriortotheselectionofanERP
solution,Gartnerperformeda“buildvs.buy”analysiswhichultimatelysupportedthestate’s
decisiontobuyacommercialofftheshelfsoftwarepackage.Procurementforsoftwareand
thesystemintegratoroccurredseparatelywiththestateselectingPeopleSoftFinancialsand
thensubsequentlyselectingIBMforimplementationservices.Duringimplementation,New
Yorkutilizedroughly160contractors.TheIn‐scopefunctionalityforthenewsystem
includedgeneralledger,accountsreceivable,accountspayable,procurement,grants,and
billing.Therewasnolegislativemandateforagenciestousethenewsystem,andsome
continuetointegratelegacysystemswiththeERP.NewYorkfocusedonimplementing
PeopleSoftwithasfewcustomizationsaspossible,andwereabletouseover90%outofthe
boxfunctionality.
TheinitialrolloutwasdonefortheDepartmentofGeneralServicesin2012.Therewere
delaysinthetimeline,whichNewYorkindicatedwasusedtorepeatdataconversion
rehearsalsandtesting.Ongoingsystemsupportishandledbyover100stateemployeeswith
outsidecontractorsasnecessary.
NewYorkhasrealizedanumberofbenefitsfromthisinitiativeincludinghavingonesource
offinancialtruth,standardizedandimprovedbusinessprocess,andincreasedbusiness
processautomation.Additionally,theyprovidedseverallessonslearnedfromtheirproject.
Theyindicateditwouldhavebeenfavorabletoprocuresoftwareandthesystemintegratorin
onecontracttoprovideasinglepointofaccountabilityforsoftwareandmodifications.In
hindsight,thestatealsowouldhavedelayedthedatawarehousepieceoftheprojectuntil
afterinitialgo‐live.Theyalsoregrettednothavingmoreagencyrepresentativesonthe
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page90
projectteamduringinitialdesigntocommunicateagencyneeds.Theywillcontinuetheir
efforttobringagenciesontothenewsystem.7475
2.5.3.2 TEXAS
In2007,TexasidentifieditsneedforastatewideERPsystemtostreamlineprocessesofmany
ofitsmajorfunctions.In2008,thestatecontractedSalvaggio,TealandAssociatestoperform
abusinesscasestudytodeterminewhatthesystemsneedsofthestatewereandtoprovide
recommendationsofpossiblesolutions.By2010,thestatelegislatureapprovedaneightyear
ERPproject.CalledProjectONE,thegoalwastoimplementfunctionalityforfinancialsand
HR/Payrollwithnewenterprisesoftware.TheimplementationsoffinancialsandHR/Payroll
functionalityarebeingcarriedoutseparately.
Asaresultofthebusinesscase,anexecutivesteeringcommitteewasformedtopromotethe
needforanewsystemtothelegislature.Whenfundingwasappropriated,anothersteering
committeewasformedforprojectdecisionmaking.Asagenciesarebeingaddedtothe
system,thegovernancestructureisexpanding.
PeopleSoftwasselectedasthebest‐fitsoftwaretomeettocomplexbusinessneedsofTexas’
morethan150agencies.ThenewsystemwillbecalledCAPPS(CentralAccountingand
Payroll/PersonnelSystem)andwillserveastheState’sERPsystemgoingforward.Deloitte
wassubsequentlychosenasthesystemintegrator.
Financialfunctionstobesetinplacebytheendoftheprojectincludegeneralledger,
accountspayable,accountsreceivable,procurement,grants,andprojectcosting.HR
functionalitywillincludecoreHR/payroll,timeandlabor,enterpriselearningmanagement,
enterpriseperformancemanagement,andrecruiting.
TheDepartmentofInformationResources,theDepartmentofTransportation,andthefive
agencieshousedunderHealthandHumanServicesCommissionemergedastheinitialpilot
agenciesafterexpressinglimitationstotheircurrentsystemsinmeetingtheirneeds.When
difficultieswereencounteredwiththeDepartmentofTransportation,Texastransitionedtoa
“HubModel”forimplementation,inwhichtheagencieswithmorecomplicatedbusiness
processesweregivenacopyofthesoftwaretoformtheirowninstanceandmakethe
necessarycustomizationsthemselves.Go‐liveforfinancialfunctionalityoccurredin2011for
DIR,andisstillbeingrolledoutinotheragencies.ForHR/Payrollfunctionality,theagencies
whoareapartoftheHealthandHumanServicescommissionwentlivein2012.
TexascurrentlyhasacontractwithXeroxtoprovidesystemmaintenance.Theircontract
withDeloittecanbeusedforfuturedeploymentsatstateagencies,butXeroxisalsobeing
74NewYorkInterview,December10,2013.
75NewYorkStatewideFinancialSystemSite,2014.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page91
usedinthiscapacityatthispointintime.Thestateexpectsittotakeanotherfivetotenyears
beforeCAPPSisfullyimplementedstatewide.7677
2.5.3.3 VIRGINIA
In2006,theCommonwealthofVirginiaestablishedtheVirginiaEnterpriseApplications
Program(VEAP)toperformabusinesscaseonthecurrentstateoftheirfinancialsystems.
Theyalsoevaluatedthefeasibilityofreplacingthecurrentsystemwithnewenterprise
software.Theninlate2009,theCommonwealthembarkedontheCardinalProject,a
statewideERPeffort.TheDepartmentofTransportationalongwiththeDepartmentof
Accountsagreedtospearheadtheproject.ProjectCardinalisgovernedentirelyunderthe
DepartmentofAccountswithadministrativeresponsibilityundertheGovernor.The
DepartmentofTransportationfundedfiftypercentoftheprojectwiththeotherhalfcoming
fromatreasuryloan.
Beforeprocuringsoftwareandanintegrator,Virginiaunderwentaone‐yearbusinessprocess
re‐engineeringperiod,duringwhichtheyinternallydevelopedalistofsystemrequirements.
Theythenpresentedtheserequirementstoagroupofintegratorswhoeachselectedthebest
fitsoftwareandpitchedanimplementationplantoVirginiarepresentatives.Accenturewas
chosentoleadtheimplementationofPeopleSoft.They,alongwithateamofstatestaff,
continuetoprovideapplicationsupport,databaseadministration,development,andgeneral
maintenance.Heavycustomizationwithinthesystemforspecificagencyneedshascaused
problemsinthepastforVirginia.Thistimearound,everycustomizationtothenewsystem
hastobeapprovedbythesteeringcommittee.
Projectscopeinvolvedastatewidereplacementofalegacyfinancialmanagementsystem
withthePeopleSoftfinancialmanagementpackage.Thefirstphaseoftheprojectwasto
implementnewgeneralledger,accountsreceivable,accountspayable,timeandattendance,
projectaccounting,andprocurementfunctionalityforVDoT.Theyfocusedonperforming
processreengineeringandchangingbusinessprocessinsteadofthesystemwherever
possibleresultinginasmallpercentage(lessthan15%)ofrequirementsrequiringa
customization.Inthistransition,5,000enduserswerethoroughlytrained.Cardinalwas
successfullydeployedatVDOTin2011andatDOAin2012.Theremainingstateagencies
willbebroughtonthrough2016.Asagenciesarebroughton,achargebackapproachwill
takeeffectforthecontinuedfundingofthesystem.Theratesatwhichagenciesarecharged
willdependonusageandwillbelegislativelyapproved.Aportionoftherateisforthe
repaymentoftheinitialtreasuryloan.Thisprojectwillresultinimprovedreporting,
decisionmaking,functionality,standardizeddata,andconsistentprocessesacrossagencies.78
7980
76TexasInterview,January15,2014.
77TexasProjectONESite,2014.
78VirginiaInterview,December4,2013.
79VirginiaCardinalProjectSite,2010.
80VirginiaEnterpriseApplicationsDivisionSite,2014.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page92
2.5.3.4 PENNSYLVANIA
In2001,theCommonwealthofPennsylvaniaembarkedonastatewideERPinitiative.The
initiative,namedImaginePA,wastaskedtoimproveprocessesforthefivekeyfunctionsof
accounting,budgeting,humanresources,payroll,andprocurement.Withoneofthenation’s
largesttechnologybudgetsat$250million,Pennsylvaniatookononeofthemostrobust
publicsectorERPimplementationsdoneinanystatetodate.TheStateestablishedtheCIO
AdvisoryCounciltoassistwithscopingandplanningofthisproject,andalsocontractedthe
GartnerGrouptoprovidetheirexpertiseinthisarea.
Twoyearspriortoprojectkickoff,Pennsylvaniaperformedtheapplicationselectionatwhich
timetheydeterminedSAPwasthebestfitfortheirneeds.Intheyearleadinguptoofficial
projectinitiation,BearingPointwasselectedforintegrationservices.Forallfinancial
functionality,thesystemhadbeensuccessfullyimplementedinthreewavesforallagencies
bysummer2002.Themostdifficultagencies,includingPennDOT,weretransitionedinthe
lastphase.ImplementationofHR/Payrollcapabilitiesforallagencieswasdonewitha“big‐
bang”approachbyearly2004.Theprojectredefinedthefinancialmanagementand
HR/Payrollsystemsusedby53oftheState’sagenciesandover70,000users.Therewasa
significantfocusonOrganizationalChangeManagement(OCM)duringallphasesofthe
projectincludingengagingafulltimeOCMteam,thedevelopmentofanextensive
ambassadornetworktoeachparticipatingagency,andweavingchangemanagementintoall
phasesoftheprojectfrominitialdesignthroughfinalroll‐out.
TheCommonwealth’sIntegratedEnterpriseServicesBureauwasestablishedastheproject
lead,operatingwithabout155employeesacrossitsthreedivisions(1)technicaloperations
(2)businessoperations(3)programoperationsandsupport.Technicaloperationsstaff
consistofDatabaseadministrators,SAPsecuritypersonnel,developers,andothersupport
staff.Thebusinessoperationsteamfocusesonthefinance,HR/Payroll,andaccounting
functions.Theprogramoperationsstaffdealswithprojectmanagement,budget
management,andotherinternalmatterssuchashelptickets.SomeIESstaffwerepulled
fromstateagenciesforthedurationoftheproject,andreturnedtotheiragenciesafter
completionoftheimplementation.
AsteeringcommitteecomprisedoftheSecretaryofAdministration,theComptroller,theCIO,
andseveralcorebusinessowners(Procurement,HR,&Budget)actedastheleadgoverning
bodyoverthesystem.Duringtheimplementationproject,thiscommitteewasreferredtoas
theAdvisoryCommittee.TherealsoexistsaseparateOperatingCommitteemadeupofcore
businessrepresentativeswhichinteractwithteammanagersforfeedbackonday‐to‐day
operationsthatcanthenbecommunicatedtotheSteeringCommittee.Theexisting
governancestructureisnotestablishedinstatestatute.
Theinitialprojectfundingwasfromlegislativeappropriation.Forfundingofongoing
operations,achargebackmethodisusedforallservicedagencies.Costsavingswerenot
realizeduntilafterthelegacysystemswerecompletelyshutoff.
Sinceimplementation,Pennsylvaniahasundergoneonesignificantupgrade.Future
upgradeswillbedonewithupgradepackstoavoidmoredramaticcoresystemupgrades.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page93
End‐usertrainingwasdonebythesystemintegratornomorethan60daysbeforego‐live.81
8283
2.5.3.5 GEORGIA
In1999,GeorgiawasoneofthefirststatestogolivewithandERPsolutionforfinancial
managementandHR/Payrollfunctions.PeopleSoftwasdeterminedtobethebestfitforthe
State’sbusinessneeds.Thesolutionhasbeendeployedinallstateagencieswiththe
exceptionoftheDepartmentofLaborforanumberofyears.Moduleswhicharecurrentlyin
useincludecoreHR/Payroll,timeandlabor,generalledger,accountspayable,accounts
receivable,procurement,andbudgeting.Intotal,thereareabout80,000systemusersforthe
variousfunctions.
Georgiausesanagencychargebackmodelforsystemfunding.Atthebeginningofeachyear,
aflat‐rateestimateforsystemusageischargedtoeachuseragency.Specificsystem
modificationsarerequestedbyindividualagenciesandarechargedseparatelytothose
agencies.Asteeringcommitteeisresponsibleforsystemoversightanddecision‐making.
Threeandfiveyearplanshavebeendevelopedandareupdatedannuallybythissteering
committee.
Thesystemhasbeenupgradedfourtimes.AccentureandDeloittecarriedoutthefirsttwo
upgrades,andthetwomorerecentupgradeshavebeenexecutedbyinternalITstaff.Inthe
interviewwithGeorgiaitwasindicatedtheexpertiseofexternalresourcesmadethefirsttwo
upgradessmootherthanthemorerecentones.
Georgiamadetwoimportantpointswhenaddressingtheirlessonslearned.Theyfirst
suggestednottostrivetomakethenewsystemperformliketheoldone,andtotake
advantageoftheopportunitytore‐designandstandardizebusinessprocesses.Theyalso
stressedtheextensivechangemanagementeffortthatwillresultfromaprojectofthis
magnitude.TheywereoperatingonalegacymainframesystempriortothePeopleSoft
implementation,andthedramaticchangethatoccurredfromthetransitionwasdifficultfor
manyemployees.848586
81PennsylvaniaInterview,December6,2013.
82WilliamWagnerPh.D.andYvonneLedererAntonucciPh.D.,AnAnalysisoftheImaginePAPublic
SectorERPProject(Proceedingsonthe37thHawaiiInternationalConferenceonSystemSciences,
2004)1‐8.
83“TheCommonwealthofPennsylvaniatoImproveStateGovernmentThroughPartnershipwithSAP
PublicSectorandEducation,”SAP,pressrelease.June14,2000.
84GeorgiaInterview,December9,2013.
85“StateofGeorgiaImplementsOracle’sPeopleSoftApplicationstoStreamlineFinancialManagement
andHumanResourcesProcesses,”OracleCorporation,pressrelease.June20,2007.
86“GeorgiaStatePurchasingDivisionImprovesStatewideStrategicSourcingwithOracle’sPeopleSoft
EnterpriseApplications,”OracleCorporation,pressrelease.August8,2011.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page94
2.5.3.6 OHIO
In2003,thestateofOhioperformedabusinesscasetoassesstheirneedforanewfinancial
managementandHR/Payrollsystem.By2005,theyselectedAccenturetoimplement
PeopleSoftforthesestatefunctions.ThesystemwasgiventhemonikerOAKS,meaningthe
OhioAdministrativeKnowledgeSystem.OAKSwasaconsolidationoffourmainframelegacy
systemsinoperation.Go‐liveforHumanCapitalManagement(HCM)functionsincluding
payrollandbenefitsoccurredinJanuary2008.Thefinancialfunctionsincludinggeneral
ledger,accountsreceivable,andbasicprocure‐to‐paywerebroughtoninJune2008.A
customrewriteoftheirlegacysystemwasneveraseriousoptionforOhio.
Asteeringcommitteeconsistingofseniorleadersofeachofthecorebusinessareaswas
responsibleformakingimportantprojectdecisions.Smaller‐scaledecision‐makingfellunder
thebusinessadvisoryleadershipgroupscomposedofotherOhiostatestaffthatspecializein
thevariousbusinessfunctions.Thegovernancestructureisnotestablishedinstatestatute.
OhiooutsourcedmuchofitsITsupportforOAKSin2009toAccenture.Someimportant
lessonswerelearnedduringtheimplementationoftheirnewsystem.Ohiobelievesitisvital
tokeepcustomizationstoaminimumbymandatingstateagenciestomoveontothenew
systemandpromotestandardizedprocesses.TheyimplementedOAKSwithaverylow
instanceofcustomizations.Notallstateagencieswererequiredtomakethetransition,
whichhasbeenlookedbackonasamistake.Currently,oneoftheirmorecomplexagencies,
theirDepartmentofTransportation,isassessingthefeasibilityofmakingthejumptoOAKS.
Additionalgrantsandprojectmanagementfunctionalitymustbeaddedbeforethiscantake
place.Theyalsostressedtheimportancetoofstrongintegrationsupportforbuilding
trainingmaterialsandleadingprojectstrategy.87888990
2.5.3.7 ALABAMA
Forthepast25years,theStateofAlabamahasrunitsfinancialandHRsystemswithAMS
Advantagesoftware.Agencyaccountingandprocurementsystemsareseparatefromthe
corefinancialandHRsystems,butinterfaceviacrosswalktables.Allprocessingisdone
overnightinbatches.Around2010,theydecidedtoproceedwithastatewideERP
implementationofCGIAdvantage3.9,andwouldsubsequentlyplanforanupgradetoversion
3.10.CGIisprovidingimplementationservices.
TheinitiativeisafourtofiveyearprojecttobringallstateagenciesontotheCGIAdvantage
solutionforfinancialsandprocurement.ByOctober2015,thegoalisfortwentyagenciesto
havesuccessfullymadethistransition.Thiswillcompletelychangethewayaccountingis
87OhioInterview,December23,2013.
88“AccenturetoDesign,Implement,andSupportOhio’sNewStatewideERPSystem,”Accenture,press
release.May4,2005.
89HiltonCollinsandMattWilliams,“OhioSharedServicesUsesEnterpriseSystemtoConsolidateState
Financials,”August31,2010.
90OhioAdministrativeKnowledgeSystem,“OutsourcingProgramOverview,”November9,2011.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page95
doneinAlabamabymovingawayfromamanual,paper‐intensiveprocesstoapaperlessand
streamlinedone.Fundingfortheprojectiscomingfromacombinationofchargebackand
appropriations.Whenthesystemiscompletelyupandrunning,itwillbefullyfundedby
agencychargebacks.Afterallstateagencieshaveimplementedfullfinancialmanagement,
procurement,andbudgetingcapabilitiesbyOctober2016,HR/Payrollisplannedtobe
addressedwithinthenextyear.
Athree‐tiergovernancestructurewasestablishedforthisproject.AnExecutiveOversight
CommitteeconsistingoftheFinanceDirector,AssistantFinanceDirectorforOperations,the
StateTreasurer,theSecretaryofIT,andonesenioragencyrepresentativewereresponsible
forestablishingtheprojectcharterandmeetquarterlyforprojectupdates.AnExecutive
SteeringCommitteeisdesignedtobethegoverningbodyforthesystem.Therepresentatives
areresponsibleformakingstrategicdecisions.Anadditionalsteeringcommitteehasbeen
assembledforday‐to‐daydealingsthatgetreportedtotheExecutiveSteeringCommittee.9192
93
2.5.3.8 ADDITIONALSTATERESEARCH
Asapartofthemarketscan,informalinterviewswereconductedtowiththeformerNorth
CarolinaStateComptrollerandmembersoftheCaliforniaFinancialInformationSystemsfor
California(Fi$Cal)projecttoobtainadditionalinformation.DuetothestatusofERPatboth
ofthesestates,theywerenotincludedasprimaryreferencesforFlorida.Summarynotesfor
eacharebelow.
NorthCarolina
In2003,NorthCarolinainitiatedProjectBEACON,BuildingEnterpriseAccessforNorth
Carolina’sCoreOperatingNeeds.Thisinitiativewasaimedataddressingtheneedto
consolidateandimprovetheefficiencyoftheiragencyHR/Payrollsystems.Astudy
conductedbyDeloitteprovidedjustificationfortheinvestment.AcrosstheState’s34state
agencies,30separateHR/Payrollsystemswereinuseresultingin30differentpayrollcycles.
Inaddition,stateemployeesdidnothaveacentralportaltoaccessforHR‐relatedissuesand
questions.
FromApril2006toJune2008,NorthCarolina,withthehelpofsystemintegrator
BearingPoint,implementedSAP’sHumanCapitalManagementsolution.Byearly2008,North
Carolinawasabletogolivewithitsnewsolution.Thissolutionhelpedthemdrastically
reducethenumberofmonthlypayrollcyclesfrom30to2,andcreatedacentralcontact
authoritytoaddressemployeequestionswiththeBEACONEnterpriseSupportTeamShared
91AlabamaInterview,December20,2013.
92ThomasL.White,“StateofAlabama:HowanERPProjectbecameaSegmentedApproach,”The
NationalAssociationofStateAuditors,Comptrollers,andTreasurersAnnualConference(Seattle,WA),
March22,2012.
93GetSMARTStateBusinessSystemsProjectBriefing,May29,2008.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page96
Servicesorganization.Anemployeeportalwasalsocreatedforaneasy‐to‐usewayof
updatingbenefits,payroll,andtimekeepinginformation.
WiththesuccessofthisportionoftheBEACONproject,NorthCarolinaplanstomoveforward
withtheBudgetandFinancialsInitiativetoimprovetheprocessesofcriticalfinancial
functions.Thisinitiativehasseendelaysduetoissuesoverprojectfunding.9495
California
TheStateofCalifornialaunchedtheFI$CalandMyCalPAYSprojectsin2005.Sincethe
initiation,MyCalPAYS,thepayrollproject,hashitseveralroadbumps.Theywereforcedto
terminateanintegratorafterfailuretoimplementpayrollfunctionality.Afterthisinitial
attempt,theyturnedtoanSAPsystemforpayrollandalmostimmediatelywerestruckwith
majorissuesregardingincorrectpaymentsbeingmadetoemployeesinthesmalldeployment
group.ThisledtotheterminationofthecontractwithSAP.
Forfinancials,CaliforniaselectedPeopleSoftandHyperionsolutions.Hyperionwillgive
Californiamorerobustreportingpower.TheprojectaimedtoadvancetheState’sbudgeting,
accounting,procurement,andcashmanagementfunctions.Accenturewasselectedbythe
statetointegratetheirPeopleSoftandHyperionsolutionswithminimalcustomizations.CGI
initiallywontheintegrationservices,buttheirpricewasmateriallyhigherthanAccenture’s.
Softwareandintegratorprocurementswerecarriedoutseparately.96
94InterviewconductedwithformerNorthCarolinaStateComptrollerRobertPowell,December6,
2013.
95NorthCarolineProjectBEACONSite,2008.
96FI$CalProjectSite,2013.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page97
2.5.4 REQUIREDSYSTEMCAPABILITYJUSTIFICATION
ThefollowingExhibitcontainsadditionaldetailandexplanationaroundtherequiredsystem
capabilities:
REQUIREDSYSTEMCAPABILITY
1.
Singlesystemofrecordfor
statewidefinancial
transactionsandcash
balances
REASONFORINCLUSION









2.
GeneralLedger(G/L)






FloridaDepartmentofFinancialServices
FLAIRStudy
MissionoftheCFO: necessarytoprovideefficientreporting
ofstatewideexpenditures.
Section215.93,F.S.:Noagencyshallestablish/maintain
systemswhichduplicateanyoftheinformationsystemsof
FFMIS.
Section216.141,F.S.:Financialinformationmustbe
containedwithinFLAIR.TheCFOshalluseFLAIRinthe
performanceofandaccountingforallofhisorher
constitutionalandstatutorydutiesandresponsibilities.
LimitationsofExistingSystem:Atanygiventime,Treasury
andtheagenciesaremonitoringfourdifferentcash
balancesresultingfromlackofreal‐timeintegrationof
CentralandDepartmentalFLAIR.
GuidingPrinciples:Implementastatewidefinanceand
accountingsystemenforcingprocessstandardization,
promoteseconomiesofscale,andenablescomprehensive,
accuratefinancialinformationtobeproduced.
GoalsandObjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
AgencyResearch:Multipleagencies,includingDEP,DFS,
DOT,andDMSindicatedtheyspendsignificanttime
reconcilingandmanagingtheiravailablecash.
StateResearch:Manystates,includingGA,NY,OH,andPA
areusingtheirERPsystemsasthestatewidesystemof
record.
MarketResearch:ERPsystemsprovideasingledatabase
fortransactions,programmaticallyenforcingonevaluefor
anygiventransaction.
MissionoftheCFO: CoretoCFO’sroletomanagethe
accountsoftheState.
Section216.141,F.S:Financialinformationmustbe
containedwithinFLAIR.
LimitationsofExistingSystem:CentralFLAIRdoesnot
haveaG/L,requiringadditionalreconciliationwith
doubleentrytransactionsmadeinDepartmentalFLAIR.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
StateResearch:Eachstateinterviewedwasusinga
standarddouble‐entryG/LinherentintheirERPsystem.
MarketResearch:G/Lfunctionalityisaninherentfeature
inallstatelevelcommercialERPsoftware.
Chapter2Appendix:Page98
REQUIREDSYSTEMCAPABILITY
3.
AccountsPayable(A/P)
REASONFORINCLUSION






4.
BasicAccountsReceivable
(A/R)






5.
BankReconciliation





FloridaDepartmentofFinancialServices
FLAIRStudy
MissionoftheCFO: necessarytoprovideefficientcontrol
andreportingofstatewideexpenditures.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
LimitationsofExistingSystem:FLAIRlackstheabilityto
schedulepaymentsbasedonpaymenttermsanddoesnot
automaticallygenerateliabilitieswithprocurement
transactions.
AgencyResearch:DEP,DOR,andDOThavesignificant
manualprocessandexternalsystemstoaddress
limitationswiththecurrentA/PfunctionalityinFLAIR.
StateResearch:Allstateswhoimplementedanew
financialmanagementsystemincludedA/Pfunctionality.
MarketResearch:A/Pfunctionalityisaninherentfeature
inallcommercialsoftwarewhichwasconsidered.
MissionoftheCFO: Core toCFO’sroletomanagethe
accountsoftheState.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
LimitationsofExistingSystem:FLAIRcannotrecord
invoiceinformationandtrackAPforagencies.
AgencyResearch:Everyagencyinterviewedhadtheneed
totrackaccountsreceivableand23ofthe31agenciesin
thesysteminventoryhavesystemstomanageA/R.
StateResearch:Allstateswhoimplementedanew
financialmanagementsystemincludedtheA/Rfunction.
MarketResearch:A/Rfunctionalityisaninherentfeature
inallcommercialsoftwareconsidered.
MissionoftheCFO:Coretoresponsibilitytomanagethe
accountsoftheState.
LimitationsoftheExistingSystem:Bankreconciliationhas
beenbuiltintoCMS,butonlyforsomebanksand
transactions.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
AgencyResearch:Treasuryandalloftheagenciesspend
significanttimereconcilingbetweenthefourcurrentcash
balances.DOTexpressedtheirdesireforanimproved
cashreconciliationprocess.
MarketResearch:Accountreconciliationisstandardin
mostERPsystems.
Chapter2Appendix:Page99
REQUIREDSYSTEMCAPABILITY
6.
PayrollCalculation,
VerificationandPayment
REASONFORINCLUSION





7.
BudgetandEncumbrance
Management







FloridaDepartmentofFinancialServices
FLAIRStudy
MissionoftheCFO: necessarytoprovideefficient
validation,control,andreportingofstatewide
expenditures.
LimitationsofExistingSystem:Thepayrollsystem
currentlyrecordscashinCentralFLAIR,butdoesnot
makeentriesforpayrollintoDepartmentalFLAIR,causing
thepotentialforoutofbalanceentries.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
AgencyResearch:DOTandDCFexplainedthecomplex
processwhichtakeplaceandtheflowofdatainandoutof
FLAIRforpayrollprocessing.
StateResearch:Texas,Pennsylvania,Georgia,Ohio,and
Alabamahaveimplementedorplantoimplementthe
payrollfunctionalitywithintheircommercialsoftware
package.
MissionoftheCFO: necessarytoprovideefficient
validation,control,andreportingofstatewide
expenditures.
LimitationsofExistingSystem:FLAIRcanrecordan
encumbrance,butitsstructurewillnotpermitthistobe
easilyinterfaced.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
AgencyResearch:DOTidentifiedFLAIR’sinabilityto
encumberfundsovermorethanoneyearasahindrance
ontheiroperations.
AgencyResearch:DCFstrugglesthroughamanually
intensiveprocesstotransferbudgetdatafromLAS/PBSto
FLAIR.
StateResearch:PennsylvaniaandGeorgiaincludedthe
budgetingfunctionwhentheyimplementednewsystems.
Alabamaplanstodoso.
MarketResearch:Budgetingandencumbrance
functionalityisaninherentfeatureinallcommercial
softwarewhichwasconsidered.
Chapter2Appendix:Page100
REQUIREDSYSTEMCAPABILITY
8.
Real‐timeornearreal‐time
transactionprocessing
REASONFORINCLUSION






9.
Warrantspaidfrom
multipleaccount
combinations




FloridaDepartmentofFinancialServices
FLAIRStudy
LimitationsofExistingSystem:Proliferationofagency
uniqueprocessesand“shadow”systems1)increasesthe
difficultyinmanagingtheState’sfinances,2)exposesthe
Statetooperationalrisk,3)increasestheState’s
administrativeandsupportcosts,and4)decreases
operationalefficiencyandeffectiveness.Theseshadow
systemsoftencommunicatewithFLAIRonaonce‐daily
basismeaningactionisnotalwaysbeingtakenonthe
mostaccuratedata.
LimitationsofExistingSystem:Atanygiventime,Treasury
ismonitoringfourdifferentcashbalancesthatresultfrom
lackofreal‐timeintegrationofDepartmentalandCentral
FLAIR.
LimitationsofExistingSystem:Nightlybatchprocessing
delayssometransactionswithmultiplestepsuptothree
daysbeforetheyarefinalized.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
StateResearch:OtherstatesimplementingERPhave
eitherrealtimetransactions,orwheretherearebatches,
multiplerunsperday.
MarketResearch:AllofthecommerciallyavailableERP
packageshavereal‐timeorlimitedbatchprocessingfor
coretransactions.
Section 215.91,F.S.: FFMISsubsystemsshallbedesignedto
incorporatetheflexibilityneededtorespondtothe
dynamicdemandsofStateGovernment.
LimitationsofExistingSystems:FLAIRrequiresonlyone
fundandaccountcodeforeachwarrant,necessitating
manualallocationsinsteadoftheabilitytoenter
distributionfullyonthepaymentinstrument.
Goalsandobjectives:Improvestaffproductivity,reduce
operationalcomplexityandincreaseinternalcontrolsby
enablingstandardizationandautomationofbusiness
processeswithinandbetweenDFSandagencies.
AgencyResearch:DOT,DEPandDCFnotedthisasacause
forconsiderableefforttoallocatedisbursementstoall
appropriateaccounts.
Chapter2Appendix:Page101
REQUIREDSYSTEMCAPABILITY
10. Electronicworkflowand
routing
REASONFORINCLUSION






11. Effectivedatingof
transactions





12. Supportforindustry
standardcommunication/
systemintegration
protocols







FloridaDepartmentofFinancialServices
FLAIRStudy
Section 215.93,F.S.: FFMISshallbeupgradedasnecessary
toensureefficientoperationandtoprovidenecessary
informationfortheeffectiveoperationofState
Government.Workflowisnecessaryforefficientand
effectiveoperationinbusinesstoday.
LimitationsofExistingSystems:FLAIRlacksany
interactiveworkflowtoroutorapprovetransactions.
Goalsandobjectives:Improvestaffproductivity,reduce
operationalcomplexityandincreaseinternalcontrolsby
enablingstandardizationandautomationofbusiness
processeswithinandbetweenDFSandagencies.
AgencyResearch:DEPidentifiedFLAIR’slackofworkflow
asasystemlimitationwhichhindersefficiency.
StateResearch:Themajorityofthestatesinterviewedare
implementingelectronicworkflowandpushingtoward
limitingpaperprocessingwherepractical.
MarketResearch:Workflowfunctionalityisaninherent
featureinallcommercialsoftwarestudied.
MissionofCFO:Providesaccurate audittrailsforkey
transactions.
LimitationsofExistingSystems:FLAIRcannoteffective
datetransactionsorstaticdata,causingreconciliation
issues.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
StateResearch:Allofthestatesinterviewedusesystems
thateffective‐datetheirtransactions.
MarketResearch:CurrentERPsystemshaveeffective
datingoftransactionsasastandardcapability.
Section 215.91,F.S.: FFMISshallbeaunifiedinformation
system.
Section215.92,F.S.:FFMISshallensuretheefficient
operationofanintegratedfinancialmanagement
informationsystem.
LimitationsofExistingSystem:Lackofintegrationisoneof
theKeyChallengestheStatefaceswithFLAIR.
Goalsandobjectives:ReducetheState’sriskexposureby
harnessingmodernfinancialmanagementtechnology
builtonthepremisesofscalability,flexibility,and
maintainability.
GuidingPrinciples:Implementasolutionwhichsupportsa
truestatewide,unifiedinformationsystem.
StateResearch:Alloftheinterviewedstateshave
extensiveinterfacesbetweentheirERPsystemsand
externalagencysystems.
MarketResearch:AllcurrentERPsystemshavetoolsand
capabilitiestointerfaceeasilyandinastandardmanner
withexternalsystemsandprocesses.
Chapter2Appendix:Page102
REQUIREDSYSTEMCAPABILITY
13. Useofmodern
programminglanguages
anddatabasetechnologies
REASONFORINCLUSION




14. Multipleenvironmentsto
supporttestingand
migration




15. Minimizeoreliminateuse
ofthemainframeandtake
advantageofamulti‐tier
applicationarchitecture




16. Flexibledatabase
architecturewhich
supportsmultiplefields




FloridaDepartmentofFinancialServices
FLAIRStudy
Goalsandobjectives: ReducetheState’sriskexposureby
harnessingmodernfinancialmanagementtechnology
builtonthepremisesofscalability,flexibility,and
maintainability.
LimitationsofExistingSystem:FLAIRisafragilesystem
andisexposingtheStatetooperationalrisk.Withan
outdatedprogramminglanguage,theavailabilityof
resourceswithproperknowledgetomaintainitissparse.
StateResearch:Alloftheinterviewedstateswerelooking
tomakeuseofmoderntechnology.
MarketResearch:AvailableERPsoftwareiswrittenusing
moderntools,andiskeptuptodatebythesoftware
companies.
Section215.93,F.S.: FFMISshallbeupgradedasnecessary
toensureefficientoperationtoprovidenecessary
informationfortheeffectiveoperationoftheState
Government.Tomeetthisobligationwhenperforming
upgrades,atestingenvironmentwillbenecessary.
LimitationsofExistingSystem:Duetothecurrent
architecture,thereisnotestinstanceofFLAIR,meaning
anychangescanonlybemadedirectlyintotheproduction
system.
Goalsandobjectives:ReducetheState’sriskexposureby
harnessingmodernfinancialmanagementtechnology
builtonthepremisesofscalability,flexibility,and
maintainability.
StateResearch:Allofthestatesinterviewedhavemultiple
environmentstosupportdevelopment,testingand
productioninstancesoftheirfinancialmanagement
system.
LimitationsofExistingSystem: FLAIRisafragilesystem
andisexposingtheStatetooperationalrisk.Mainframe
technologyisoutdated,andtherearebetteralternatives.
Goalsandobjectives:ReducetheState’sriskexposureby
harnessingmodernfinancialmanagementtechnology
builtonthepremisesofscalability,flexibility,and
maintainability.
StateResearch:Allofthestatesinterviewedhavemoved
offofmainframesfortheirfinancialsystems.
MarketResearch:AvailableERPsoftwareisdevelopedto
runonmodernarchitecture;noneofthenewersystems
arewrittentoworkonamainframesystem.
Section 215.91,F.S.: FFMISsubsystemsshallbedesignedto
incorporatetheflexibilityneededtorespondtothe
dynamicdemandsofStateGovernment.
LimitationsofExistingSystem:FLAIRisinflexibleandnot
meetingtheState’sfinanceandaccountingneeds.
Goalsandobjectives:Improvestateandagencyspecific
decisionmakingbycapturingaconsistentandan
expandablesetofdata.
MarketResearch:AvailableERPsoftwareisdeveloped
withaflexibledatastructure.
Chapter2Appendix:Page103
REQUIREDSYSTEMCAPABILITY
17. Abilitytoreportona
standardizedsetofdata
REASONFORINCLUSION






18. Storageofdeveloped
queries,views,andreports




19. Modernsetofreporting
toolsforexportand
analysisofdata






FloridaDepartmentofFinancialServices
FLAIRStudy
MissionoftheCFO.Requiredtoprovideaccurate
statewidereportingofexpenditures.
LimitationsofExistingSystem:Statewidereportingis
currentlylimitedbyavailabilityofdataandthefact
agenciescanusethesamefieldwithinDepartmental
FLAIRfordifferingpurposes.
AgencyResearch:Everyagencywhowasinterviewed
identifiedissueswiththereportingcapabilitiesofFLAIR.
Goalsandobjectives:Improvestateandagencyspecific
decisionmakingbycapturingaconsistentandan
expandablesetofdata.
AgencyResearch:Agenciescurrenthavemultipleexternal
systemstheyuseforreportingbecausetheycannotget
desiredreportsfromFLAIR.
MarketResearch:Reportingagainstmultipledata
elementsisstandardfunctionalityinallofthecommercial
ERPsystems.
LimitationsoftheExistingSystem:FLAIRlackstheability
tosaveandstoreusergeneratedreports,creatinga
proliferationofextrareports.
Goalsandobjectives:Improvestateandagencyspecific
decisionmakingbycapturingaconsistentandan
expandablesetofdata.
StateResearch:Allstatesinterviewedeitherhaveorare
implementingthiscapabilitywiththeirERP
implementations.
MarketResearch:Allcommercialsoftwarepackagesin
considerationhavetheseabilities.
MissionoftheCFO.Requiredtoprovideaccurate
statewidereportingofexpenditures.
LimitationsofExistingSystem:Userscannotexportdatain
aformatwhichcanbeeasilymanipulatedinasecondary
tool,(e.g.MSExcel)
Goalsandobjectives:Improvestateandagencyspecific
decisionmakingbycapturingaconsistentandan
expandablesetofdata.
AgencyResearch:Alloftheagenciesinterviewedhave
theirowntoolsandprocessestoaddresslimitationswith
exportingformatteddataintoExcel.
StateResearch:Allstatesinterviewedhadadataanalysis
capabilitywithsomeusingtoolswithintheirsoftware,
andothersusingexternalBusinessIntelligence(BI)
reportingtools.
MarketResearch:Allcommercialsoftwarepackagesin
considerationhavetheseabilities.
Chapter2Appendix:Page104
REQUIREDSYSTEMCAPABILITY
20. Self‐servicereporting
REASONFORINCLUSION





21. Asset,Project,Contract
andGrantsAccounting






FloridaDepartmentofFinancialServices
FLAIRStudy
LimitationsofExistingSystem: Allagenciesinterviewed
developedseparatereportingcapabilitiesbecausethe
dataavailablefromFLAIRreportscouldnotbeusedby
averageemployees.
Goalsandobjectives:Improvestateandagencyspecific
decisionmakingbycapturingaconsistentandan
expandablesetofdata.
AgencyResearch:Agenciesspendsignificanttimeand
resourcesestablishingreportingtoolsbecausethey
cannotgetdesireddatafromFLAIR.
StateResearch:Alloftheinterviewedstateshavesome
userqueryandreportingcapabilitieswithintheirERP
tools.
MarketResearch:AlloftheERPsystemshavetheability
foruserstogeneratereports,queries,andexportdataas
neededforexternalanalysis.
MissionoftheCFO: Accountingforalltheseitemsispartof
managingtheaccountsoftheState.
LimitationsofExistingSystems:FLAIRlacksthis
functionality,requiringagenciestouseexternalsystems
fortrackingkeyinformation.
Goalsandobjectives:ImprovetheState’sfinancial
managementcapabilitiestoenablemoreaccurate
oversightofbudgetandcashdemandstodayandinthe
future.
AgencyResearch:DEPandDOTnotedthelimitationsof
FLAIR’sgrantsmanagementcapabilitiesandhave
implementedtheirownsystemsandprocessestotrack
theirgrants.
StateResearch:NewYork,Texas,andOhiohaveadded
specificgrantsmanagementapplicationsinadditionto
theircorefinancialmanagementsystem.
MarketResearch:Somelevelofthisfunctionalityis
standardinalloftheavailableERPpackages.
Chapter2Appendix:Page105
REQUIREDSYSTEMCAPABILITY
22. Modern,user‐friendly
interfaces
REASONFORINCLUSION






23. Electronicdocument
storageandattachments






24. Directinterfacewith
productivitytoolssuchas
MicrosoftExcel




LimitationsofExistingSystem:FLAIRhasatextbased
interfacewhichislimitedandhasnotbeenchangedin
overtwentyyears.
Goalsandobjectives:Improvestaffproductivity,reduce
operationalcomplexityandincreaseinternalcontrolsby
enablingstandardizationandautomationofbusiness
processeswithinandbetweenDFSandagencies.
AgencyResearch:Allagenciesinterviewedexpresseda
desireforamodernwebinterfacewithDEPindicating
theycreatedadataentryapplicationspecificallysotheir
employeeswouldnothavetousetheFLAIRinterface.
AgencyResearch:InanexerciseconductedintheVisioning
Sessionon12/4/2013,manyparticipantsfromDISagreed
anewwebinterfaceshouldbeapartoftheNewFLAIR.
StateResearch:NewYork,Ohio,andVirginiawereableto
useweb‐basedtrainingtoteachusershowtousebasic
functionsofthenewsystemwithoutneedingclassroom
training.
MarketResearch:Thisisaninherentfeatureinall
commercialsoftwarewhichwasconsidered.
MissionofCFO: Recordsmanagementispartof
maintainingtheaccountsoftheState.
LimitationsofExistingSystem:FLAIRcannotmaintainany
attachmentsforworkfloworonlinerecordmanagement.
Goalsandobjectives:Improvestaffproductivity,reduce
operationalcomplexityandincreaseinternalcontrolsby
enablingstandardizationandautomationofbusiness
processeswithinandbetweenDFSandagencies.
AgencyResearch:DEPandDOTrecognizedelectronic
documentstorageasacapabilitywhichwouldimprove
theiroperations.
StateResearch:Documentattachmenthelpstheefficiency
ofbusinessprocessesandisinuseinNY,TX,andVA.
MarketResearch:Thisisaninherentfeatureinall
commercialsoftwarewhichwasconsidered.
LimitationsofExistingSystem: Userscanaccesssome
FLAIRdatafromtherepository,butitisnotformatted.
Thereisnoabilitytoimportdatafromspreadsheetsintoa
transactionscreen.
Goalsandobjectives:Improvestaffproductivity,reduce
operationalcomplexityandincreaseinternalcontrolsby
enablingstandardizationandautomationofbusiness
processeswithinandbetweenDFSandagencies.
AgencyResearch:DOTandDEPwouldlikethenewsystem
toexportreportsanddataintoExcelsotheycanbuildand
manipulatepivottables.
MarketResearch:Thisisaninherentfeatureinall
commercialsoftwarewhichwasconsidered.
Exhibit2‐45:RequiredSystemCapabilityJustification
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page106
2.5.5 RISKJUSTIFICATIONS
ThissectioncontainsadditionaldetailexplainingthelikelihoodandimpactratingsgiventoeachriskinSection2.4.4.
Option1:EnhanceFLAIR
RISK
Lossofpolitical/executivesponsorship
Ineffectivegovernanceprocessesprevent
decisionmaking
Fundingnotavailable
Thirdpartysoftwaredevelopersand/or
ERPimplementationexpertsnot
available
FloridaDepartmentofFinancialServices
FLAIRStudy
IMPACTEXPLANATION
Lossofexecutivesponsorshipcouldimpact
supportforfunding,staffing,anddecisionmaking
withimpactsincluding:
 Failedimplementation
 Benefitsnotrealized
Ineffectivedecisionmakingduringthe
implementationprocesscouldhaveimpactstoall
facetsoftheprojectincluding:
 Increasedcustomizations
 Highersupportcosts
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Iffundingisnotmadeavailable,itmaybe
impossibletocompletekeyaspectsoftheproject.
BecausetheelementsofFLAIRaretightly
interconnected,missingonepieceoffunctionality
hasadominoeffectontherestofthesystemand
couldpreventimplementationresultingin:
 Failedimplementation
 Benefitsnotrealized
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
LIKELIHOODEXPLANATION


Longtimelineforproject
implementationandslowbenefits
deliverytimelinemakesitmorelikely
theprojectwillloseexecutivesupport
overtimethanwithotheroptions.
FLAIRiscontrolledbyasingle
departmentmakingcross‐agency
governancelessofanissuethanwith
otheralternatives.

Longimplementationtimeframeand
highcostscouldresultinproblems
fundingtheproject.

Thedevelopmentofanewenterprise
financialmanagementsystemwill
requirehighlevelarchitectswhichmay
notbeavailabletothestate.
Chapter2Appendix:Page107
RISK
FLAIRusersnotabletoadapttonew
systemandprocesses
Lackofagencybuy‐inandsupport
Agenciesdonotassignanadequate
numberofresourcestotheproject
DFSmaynothavetheskills,experience
orstafftodesign,develop,test,androll
outthesolution
Businessprocessesnotchanged
FloridaDepartmentofFinancialServices
FLAIRStudy
IMPACTEXPLANATION
Ifusersdonotadaptandusethesystem,there
willbesignificantnegativedownstreamimpacts
thatcouldresultin:
 Failedimplementation
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Positiveagencyparticipationwillgreatly
improvetheimplementation,butDFScanupdate
FLAIRandforcechangesonthestate.Potential
impactsare:
 Failedimplementation
 Benefitsnotrealized
 Failuretomeetimplementationtimeline
Agencyresources(includingDFS)arenecessary
tocompletetheproject.Someresourcescanbe
contractedifnecessary.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Businessprocesschangeisrequiredtoachieve
anyoftheidentifiedbenefits.Impactsinclude:
 Failedimplementation
 Benefitsnotrealized
LIKELIHOODEXPLANATION

Therewillbeasignificantchangein
businessprocessandsystem
functionalityimpactingusers’daytoday
lives.

IfFLAIRismodifiedinawaywhichis
unpopularwiththeagencies,theymay
slowlyreducetheirrelianceonthe
system.

Thelongtimeframeandthepotentialfor
lackofsupportatbothexecutiveand
agencylevelcouldresultinan
inadequatenumberofresourcesbeing
assignedtotheproject.

Thedevelopmentofanewenterprise
financialsystemwillrequirehighlevel
architectswhichmaynotbeavailableto
thestate.

Custombuildingsoftwareincreasesthe
likelihoodthesystemwillbebuiltto
existingrequirementsratherthan
makingprocessimprovements.
Chapter2Appendix:Page108
RISK
IMPACTEXPLANATION
Integrationissueswithexistingagency/
FFMISsystemsincludingmanaging
aroundcontractupdatesforbothPeople
FirstandMFMP
InterfacesarerequiredforFLAIRtofunctionand
willbeanimportantpartofthenewsystem
architecture.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
 Increasedcustomizations
 Highersupportcosts
Ongoingmaintenanceisnecessarytoenablethe
systemtosupportbusinessoperations.Impacts
include:
 Increasedsupportcosts
 Shortenedsolutionlifespan
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
upgrades
LIKELIHOODEXPLANATION



Integrationwithothersystemsshould
improvewiththedevelopmentofanew
system.
Similartothegovernanceissue,FLAIRis
controlledbyasingledepartment
makingintegrationissueswithother
agencieslesslikelythanwithother
alternatives.
Withcustombuiltsoftware,the
developmentofallbugfixes,upgrades
andresearchanddevelopmentmustbe
handledinternally.Aswasthecasewith
theoriginalFLAIR,theseupgradesare
oftennotperformedandovertime
systemsbecomeoutofdateandneedto
bereplaced.
Exhibit2‐46:Option1RiskExplanations
Option2:ReplaceFLAIR
RISK
Lossofpolitical/executivesponsorship
FloridaDepartmentofFinancialServices
FLAIRStudy
IMPACTEXPLANATION
Lossofexecutivesponsorshipcouldimpact
supportforfunding,staffing,anddecisionmaking
withimpactsincluding:
 Failedimplementation
 Benefitsnotrealized
LIKELIHOODEXPLANATION

Phasedapproachtoprojectincludingpre‐
implementationworklimitexposuretolossof
political/executivesponsorship.
Chapter2Appendix:Page109
RISK
IMPACTEXPLANATION
Ineffectivegovernanceprocessesprevent Ineffectivedecisionmakingduringthe
decisionmaking
implementationprocesscouldhaveimpactstoall
facetsoftheprojectincluding:
 Increasedcustomizations
 Highersupportcosts
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Fundingnotavailable
Iffundingisnotmadeavailable,itmaybe
impossibletocompletekeyaspectsoftheproject.
BecausealloftheelementsofanERPare
interrelated,missingonepieceoffunctionality
hasadominoeffectontherestofthesystem.
 Failedimplementation
 Benefitsnotrealized
Thirdpartysoftwaredevelopersand/or Therightskilledresourcesarecriticalto
ERPimplementationexpertsnot
successfulcompletionoftheprojectwithimpacts
available
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
FLAIRusersnotabletoadapttonew
Ifusersdonotadaptandusethesystem,there
systemandprocesses
willbesignificantnegativedownstreamimpacts
thatcouldresultin:
 Failedimplementation
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
FloridaDepartmentofFinancialServices
FLAIRStudy
LIKELIHOODEXPLANATION

FLAIRiscontrolledbyasingledepartment
makingcross‐agencygovernancelessofan
issuethanwithotheralternatives.

Phasedapproachtoprojectincludingpre‐
implementationworklimitsexposuretoloss
offunding.

Identifyingandhiringresourcestoimplement
/supportanyofthemajorpublic‐sectorERP
packagesshouldnotbeachallenge,thereby
minimizingexposuretothisrisk.

Therewillbeasignificantchangein
businessprocessandsystem
functionalityimpactingusers’daytoday
lives.
Chapter2Appendix:Page110
RISK
Lackofagencybuy‐inandsupport
Agenciesdonotassignanadequate
numberofresourcestotheproject
DFSmaynothavetheskills,experience
orstafftodesign,develop,testand
rolloutthesolution
Businessprocessesnotchangedto
increaseefficiencies
CMSmaintenancetakesadditional
resourcesormaintenanceisnotkeptup
andCMSbecomesobsolete
Integrationissueswithexistingagency/
FFMISsystemsincludingmanaging
aroundcontractupdatesforbothPeople
FirstandMFMP
FloridaDepartmentofFinancialServices
FLAIRStudy
IMPACTEXPLANATION
Positiveagencyparticipationwillgreatly
improvetheimplementation,butDFScanupdate
FLAIRandforcechangesonthestate.Potential
impactsare:
 Failedimplementation
 Benefitsnotrealized
 Failuretomeetimplementationtimeline
Agencyresources(includingDFS)arenecessary
tocompletetheproject.Someresourcescanbe
contractedifnecessary.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
 Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwith
impactsincluding:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Businessprocesschange isrequiredtoachieve
anyoftheidentifiedbenefits.Impactsinclude:
 Failedimplementation
 Benefitsnotrealized
LIKELIHOODEXPLANATION

Reducesexposuretopushbackbyother
agenciesislimitedgivenFLAIRiscontrolled
byasingledepartment.

Thecompactimplementationtimelineand
limitedscopereducethelikelihoodthat
resourcesassignedbytheagencieswillbean
issuewiththisoption.

Identifyingandhiringresourcestoimplement
anyofthemajorpublic‐sectorERPpackages
shouldnotbeachallenge,therebyminimizing
exposuretothisrisk.

GivenonlyFLAIRwillbereplacedinthis
option,itispossibletheorganizationwillnot
looktomodifyexistingbusinessprocessesor
takeadvantageofnewcapabilities.

InterfacesarerequiredforFLAIRtofunctionand
willbeanimportantpartofthenewsystem
architecture.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
 Increasedcustomizations
 Highersupportcosts


Integrationwithothersystemsshould
improvewiththedevelopmentofanew
system.
SinceFLAIRiscontrolledbyasingleagency,it
reducestheriskofintegrationissues.
Chapter2Appendix:Page111
RISK
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
upgrades
IMPACTEXPLANATION
Ongoingmaintenanceisnecessarytoenablethe
systemtosupportbusinessoperations.Impacts
include:
 Increasedsupportcosts
 Shortenedsolutionlifespan
LIKELIHOODEXPLANATION

Researchanddevelopmentofupgradesare
handledbyERPsoftwarevendors,thereby
reducingthenumberofstateemployees
requiredtosupportthistaskandlimitingrisk.
Exhibit2‐47:Option2RiskExplanation
Option3:ReplaceFLAIRandCMS
RISK
IMPACTEXPLANATION
Lossofpolitical/executivesponsorship
Lossofexecutivesponsorshipcouldimpact
supportforfunding,staffing,anddecisionmaking
withimpactsincluding:
 Failedimplementation
 Benefitsnotrealized
Ineffectivegovernanceprocessesprevent Ineffectivedecisionmakingduringthe
decisionmaking
implementationprocesscouldhaveimpactstoall
facetsoftheprojectincluding:
 Increasedcustomizations
 Highersupportcosts
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Fundingnotavailable
Iffundingisnotmadeavailable,itmaybe
impossibletocompletekeyaspectsoftheproject.
BecausealloftheelementsofanERPare
interrelated,missingonepieceoffunctionality
hasadominoeffectontherestofthesystem.
 Failedimplementation
 Benefitsnotrealized
FloridaDepartmentofFinancialServices
FLAIRStudy
LIKELIHOODEXPLANATION

Phasedapproachtoprojectincludingpre‐
implementationworklimitexposuretolossof
political/executivesponsorship.

Somegovernanceissuesmayariseintegrating
FLAIRwithCMS.

Phasedapproachtoprojectincludingpre‐
implementationworklimitsexposuretoloss
offunding.
Chapter2Appendix:Page112
RISK
Lackofagencybuy‐inandsupport
Thirdpartysoftwaredevelopersand/or
ERPimplementationexpertsnot
available
FLAIRusersnotabletoadapttonew
systemandprocesses
Agencystaffunabletosupportnew
solution
Agenciesdonotassignanadequate
numberofresourcestotheproject
FloridaDepartmentofFinancialServices
FLAIRStudy
IMPACTEXPLANATION
Positiveagencyparticipationwillgreatly
improvetheimplementation,butDFScanupdate
FLAIRandforcechangesonthestate.Potential
impactsare:
 Failedimplementation
 Benefitsnotrealized
 Failuretomeetimplementationtimeline
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Ifusersdonotadaptandusethesystem,there
willbesignificantnegativedownstreamimpacts
thatcouldresultin:
 Failedimplementation
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Ifunabletosupportthenewsystem,additional
resourceswillberequired,orkeyfunctionality
maynotfunctionproperly.Impactsinclude:
 Failedimplementation
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Agencyresources(includingDFS)arenecessary
tocompletetheproject.Someresourcescanbe
contractedifnecessary.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
LIKELIHOODEXPLANATION

ByreplacingonlyFLAIRandCMS,systems
whicharecontrolledbyasingleagency,
exposuretopushbackbyotheragenciesis
reduced.

Identifyingandhiringresourcestoimplement
/supportanyofthemajorpublic‐sectorERP
packagesshouldnotbeachallenge,thereby
minimizingexposuretothisrisk.

Therewillbeasignificantchangein
businessprocessandsystem
functionalityimpactingusers’daytoday
lives.

Identifyingandhiringresourcestosupport
anyofthemajorpublic‐sectorERPpackages
shouldnotbeachallenge,therebyminimizing
exposuretothisrisk.
Existingstaffdoesnothaveexposuretothe
solutionsavailableandwillneedtobere‐
trained,therebyincreasingrisk.
Thecompactimplementationtimelineand
limitedscopereducethelikelihoodresources
assignedbytheagencieswillbeanissuewith
thisoption.


Chapter2Appendix:Page113
RISK
DFSmaynothavetheskills,experience
orstafftodesign,develop,testand
rolloutthesolution
Businessprocessesnotchangedto
increaseefficiencies
Integrationissueswithexistingagency/
FFMISsystemsincludingmanaging
aroundcontractupdatesforbothPeople
FirstandMFMP
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
upgrades
IMPACTEXPLANATION
LIKELIHOODEXPLANATION
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Businessprocesschangeisrequiredtoachieve
anyoftheidentifiedbenefits.Impactsinclude:
 Failedimplementation
 Benefitsnotrealized

Identifyingandhiringresourcestoimplement
anyofthemajorpublic‐sectorERPpackages
shouldnotbeachallenge,therebyminimizing
exposuretothisrisk.

InterfacesarerequiredforFLAIRtofunctionand
willbeanimportantpartofthenewsystem
architecture.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
 Increasedcustomizations
 Highersupportcosts
Ongoingmaintenanceisnecessarytoenablethe
systemtosupportbusinessoperations.Impacts
include:
 Increasedsupportcosts
 Shortenedsolutionlifespan

Becauseofthelimitedscopeof
implementationwiththisoption,itispossible
theorganizationwillnotlooktomodify
existingbusinessprocesseswhichintegrateit
totakeadvantageofnewcapabilities.
Integrationwithothersystemsshould
improvewiththedevelopmentofanew
system.
SinceFLAIRandCMSarecontrolledbya
singleagencyitreducestheriskofintegration
issues.


Researchanddevelopmentofupgradesare
handledbyERPsoftwarevendors,thereby
reducingthenumberofstateemployees
requiredtosupportthistaskandlimitingrisk.
Exhibit2‐48:Option3RiskExplanation
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page114
Option4:ReplaceFLAIR,CMS,MFMPandPeopleFirst
RISK
IMPACTEXPLANATION
Lossofpolitical/executivesponsorship
Lossofexecutivesponsorshipcouldimpact
supportforfunding,staffing,anddecisionmaking
withimpactsincluding:
 Failedimplementation
 Benefitsnotrealized
Ineffectivedecisionmakingduringthe
implementationprocesscouldhaveimpactstoall
facetsoftheprojectincluding:
 Increasedcustomizations
 Highersupportcosts
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Positiveagencyparticipationwillgreatlyimprove
theimplementation,butDFScanupdateFLAIR
andforcechangesonthestate.Potentialimpacts
are:
 Failedimplementation
 Benefitsnotrealized
 Failuretomeetimplementationtimeline
Iffundingisnotmadeavailable,itmaybe
impossibletocompletekeyaspectsoftheproject.
BecausealloftheelementsofanERPare
interrelated,missingonepieceoffunctionality
hasadominoeffectontherestofthesystem.
 Failedimplementation
 Benefitsnotrealized
Ineffectivegovernanceprocesses
preventdecisionmaking
Lackofagencybuy‐inandsupport
Fundingnotavailable
FloridaDepartmentofFinancialServices
FLAIRStudy
LIKELIHOODEXPLANATION

Extendedprojecttimelineandtheall‐
encompassingprojectscopeincreasethe
likelihoodoflossofpolitical/executive
sponsorship.

Thisoptionwillreplacemultiplesystems
controlledbydifferentdepartments–
thereforegovernanceissuesmayarise
whenaddressingthecompeting
demandsofeachagency.

Sincethisoptionrequiresthe
replacementofkeysystemscontrolled
bymultipledepartments,thereisarisk
oneoftheagencieswillnotsupportthe
newsystemiftheirparticulardemands
arenotmet.

Highcostandextendedimplementation
timeframeincreaseexposuretofunding
issues.
Chapter2Appendix:Page115
RISK
IMPACTEXPLANATION
Thirdpartysoftwaredevelopersand/or
ERPimplementationexpertsnot
available
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Ifusersdonotadaptandusethesystem,there
willbesignificantnegativedownstreamimpacts
thatcouldresultin:
 Failedimplementation
 Benefitsnotrealized
 Budgetoverruns
 Failuretomeetimplementationtimeline
Agencyresources(includingDFS)arenecessary
tocompletetheproject.Someresourcescanbe
contractedifnecessary.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Therightskilledresourcesarecriticalto
successfulcompletionoftheprojectwithimpacts
including:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
Businessprocesschangeisrequiredtoachieve
anyoftheidentifiedbenefits.Impactsinclude:
 Failedimplementation
 Benefitsnotrealized
FLAIRusersnotabletoadapttonew
systemandprocesses
Agenciesdonotassignanadequate
numberofresourcestotheproject
DFSmaynothavetheskills,experience
orstafftodesign,develop,testand
rolloutthesolution
Businessprocessesnotchangedto
increaseefficiencies
FloridaDepartmentofFinancialServices
FLAIRStudy
LIKELIHOODEXPLANATION

Identifyingandhiringresourcesto
implement/supportanyofthemajor
public‐sectorERPpackagesshouldnot
beachallenge,therebyminimizing
exposuretothisrisk.

Therewillbeasignificantchangein
businessprocessandsystem
functionalityimpactingusers’daytoday
lives.

Theextendedimplementationtimeline
andall‐encompassingprojectscope
increasethelikelihoodresources
assignedbytheagencieswillnotbe
sustainedandwillbecomeanissuewith
thisoption.
Identifyingandhiringresourcesto
implementanyofthemajorpublic‐
sectorERPpackagesshouldnotbea
challenge,therebyminimizingexposure
tothisrisk.


Becausethisoptionreplacesallkey
FFMISsystems,itisunlikelybusiness
processchangeswillberemain
unaddressed.
Chapter2Appendix:Page116
RISK
IMPACTEXPLANATION
Integrationissueswithexistingagency/
FFMISsystemsincludingmanaging
aroundcontractupdatesforbothPeople
FirstandMFMP
InterfacesarerequiredforFLAIRtofunctionand
willbeanimportantpartofthenewsystem
architecture.Impactsinclude:
 Failedimplementation
 Budgetoverruns
 Failuretomeetimplementationtimeline
 Increasedcustomizations
 Highersupportcosts
Ongoingmaintenanceisnecessarytoenablethe
systemtosupportbusinessoperations.Impacts
include:
 Increasedsupportcosts
 Shortenedsolutionlifespan
Sufficientresourcesarenotassignedto
performongoingsystemsupportand
upgrades
LIKELIHOODEXPLANATION



Integrationwithothersystemsshould
improvewiththedevelopmentofanew
system.
Someintegrationissuesmayarise
integratingsystemscontrolledby
multipleagencies.
Researchand developmentofupgrades
arehandledbyERPsoftwarevendors,
therebyreducingthenumberofstate
employeesrequiredtosupportthistask
andlimitingrisk.
Exhibit2‐49:Option4RiskExplanation
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page117
2.5.6 LISTOFSOURCES
2.5.6.1 MARKETRESEARCH
GeneralMarket
Gartneranalystreferencecall,December9,2013.
PeopleSoft
OraclePeopleSoftApplicationsOverview.
http://www.oracle.com/us/products/applications/peoplesoft‐
enterprise/overview/index.html.
MeetingwithPeopleSoftRepresentatives,December17,2013.
SAP
SAPforPublicSectorOverview.http://www.sap.com/solution/industry/public‐sector.html.
MeetingwithSAPRepresentatives,December11,2013.
CGIAdvantage
CGIAdvantageERPOverview.http://www.cgi.com/en/solutions/cgi‐advantage.
CGIManagedAdvantageOverview.http://www.cgi.com/sites/default/files/brochures/cgi‐
managed‐advantage‐erp.pdf.
MeetingwithCGIRepresentatives,December17,2013.
2.5.6.2 STATERESEARCH
General
NationalAssociationofStateBudgetOfficer’sExpenditureReport:ExaminingFiscal2011‐
2013StateSpending.
(http://www.nasbo.org/sites/default/files/State%20Expenditure%20Report.pdf)
PNNarayan,MartinBenison,andNaomiWyatt,“TheStateofERPintheStates,”TheNational
AssociationofStateChiefInformationOfficers2008AnnualConference(Milwaukee,WI),
September2008.
(http://www.nascio.org/events/2008Annual/presentations/StateOfERP.pdf)
MassimilianoClapsandIvyI.Anderson,“TrendsinStatewideERPImplementations,”Gartner,
October5,2009.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page118
(http://starproject.wi.gov/Documents/Trends_StatewideERP_Implementations_GartnerIndu
str_ResearchReport2009.pdf)
NewYork
NewYorkInterview,December10,2013.
NewYorkStatewideFinancialSystemProjectSite.http://www.sfs.ny.gov/.
Texas
TexasInterview,January15,2014.
TexasProjectONESite.http://www.txprojectone.org/.
Pennsylvania
PennsylvaniaInterview,December6,2013.
WilliamWagnerPh.D.andYvonneLedererAntonucciPh.D.,AnAnalysisoftheImaginePA
PublicSectorERPProject(Proceedingsonthe37thHawaiiInternationalConferenceon
SystemSciences,2004)1‐8.
(http://pdf.aminer.org/000/248/644/an_analysis_of_the_imagine_pa_public_sector_erp_proj
ect.pdf)
“TheCommonwealthofPennsylvaniatoImproveStateGovernmentThroughPartnership
withSAPPublicSectorandEducation,”SAP,pressrelease.June14,2000.
(http://global.sap.com/press.epx?pressID=167)
Ohio
OhioInterview,December23,2013.
“AccenturetoDesign,Implement,andSupportOhio’sNewStatewideERPSystem,”Accenture,
pressrelease.May4,2005.
(http://newsroom.accenture.com/article_display.cfm?article_id=4213)
HiltonCollinsandMattWilliams,“OhioSharedServicesUsesEnterpriseSystemto
ConsolidateStateFinancials,”August31,2010.(http://www.govtech.com/featured/Ohio‐
Shared‐Services‐Uses‐Enterprise‐System.html)
OhioAdministrativeKnowledgeSystem,“OutsourcingProgramOverview,”November9,
2011.
(http://www.devoutsourceing.com/app/assets/files/pdf/Rob%20%20Nov_110911_OI_Deck
_v102111.pdf)
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page119
Virginia
VirginiaInterview,December4,2013.
VirginiaCardinalProjectSite.http://www.cardinalproject.virginia.gov/.
VirginiaEnterpriseApplicationsDivisionSite.
http://www.vita.virginia.gov/EAD/default.aspx?id=9976.
Georgia
GeorgiaInterview,December9,2013.
“DespiteOdds,GeorgiaHitsItBigWithERPSystem”Computerworld,October9,2000.
“StateofGeorgiaImplementsOracle’sPeopleSoftApplicationstoStreamlineFinancial
ManagementandHumanResourcesProcesses,”OracleCorporation,pressrelease.June20,
2007.(http://www.oracle.com/us/corporate/press/015542_EN)
“GeorgiaStatePurchasingDivisionImprovesStatewideStrategicSourcingwithOracle’s
PeopleSoftEnterpriseApplications,”OracleCorporation,pressrelease.August8,2011.
(http://www.oracle.com/us/corporate/press/453595)
Alabama
AlabamaInterview,December20,2013.
GetSMARTStateBusinessSystemsProjectBriefing,May29,2008.
(http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=10&cad=rja&
ved=0CHsQFjAJ&url=http%3A%2F%2Fwww.sbs.alabama.gov%2Fppt%2F052908_‐
_SMART_Business_Systems_‐
_Briefing.ppt&ei=BnvdUrTpBqTisATq0IC4Dw&usg=AFQjCNEIdVj75ykZjU9s8XrgJobHkUDlfA
)
ThomasL.White,“StateofAlabama:HowanERPProjectbecameaSegmentedApproach,”
TheNationalAssociationofStateAuditors,Comptrollers,andTreasurersAnnualConference
(Seattle,WA),March22,2012.
(http://www.nasact.org/conferences_training/nasc/conferences/AnnualConferences/2012A
nnualConference/PresentationsHandouts/white.pdf)
NorthCarolina
InterviewwithformerNorthCarolinaStateComptroller,December6,2013.
NorthCarolinaProjectBEACONSite.http://www.ncosc.net/beacon/.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page120
“StateofNorthCarolina:StandardizingtheProcessofDeliveringGovernmentServices,”
August,2008.
(http://global.sap.com/japan/industries/publicsector/pdf/State_of_North_Carolina_‐
_Business_Transformation_Study_(A4)%5b1%5d.pdf)
California
CaliforniaFI$CalProjectSite.http://www.fiscal.ca.gov/.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter2Appendix:Page121
CHAPTER3
RECOMMENDATION
KeyTakeawaysFromThisChapter
Aninadequatesystemarchitectureandlackofnecessaryfunctionalitytomeetthe
missionoftheCFOnecessitatethatactionisinitiatedtoreplacetheState’saging
financialmanagementsystem.
BasedontheanalysiscompletedinChapter2OptionsAnalysis,therecommendation
istheStateofFloridashouldreplaceFLAIRandCMSwithanERPsolution(Option3).
Fouroptionswererequiredtobeanalyzedandtherecommendedoptionwas
selectedbasedoninformationcollectedfromthemarketconditionsandtrendsand
theanalysisofbothqualitativeandquantitativefactors,including:

AlignmenttoGoalsandObjectives

CostComparison

BenefitsComparison

RiskAnalysis
Option3hasanestimatedtotalimplementationcostof$224.6Millionandcanbe
fullyimplementedwithin7years.Thesolution’sestimated15‐yeartotalcostof
ownershipis$667.6Million.
3.1 SUPPORTFORTAKINGACTIONNOW
AlthoughmodificationstoCMShavebeenmadeinrecentyears,significantmodifications
havenotbeenmadetothecoreFLAIRenvironmentoverits30plusyearlife.Actionshould
beinitiatednowtoavoidtheseriousrisksofobsolescencethatfacesanysolutionofthisage.
TherearetwoprimarycategoriesofriskstheStatemustbeginnowtomitigate:

SystemArchitecture

LackofNecessaryFunctionality
3.1.1 SYSTEMARCHITECTURE
Althoughimpossibletoaccuratelymeasure,theriskofacatastrophicfailureincreases
significantlyinsystemstheageofFLAIR–thesefailurescansourcefrommultiplepoints
withinthesolution.Thesystemhasbeenextensivelypatchedoverthepast30yearsand
lacksadequatesystemdocumentationtofullyevaluatetheimpactofanyrevisions.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page1
ThecurrentFLAIRandCMSarchitectureisneitherflexiblenoradaptable.The“siloed”design
betweenFLAIRcomponentspresentschallengesinmakingmodificationsandtherecurrently
isnotarobusttestingenvironment.
3.1.2 LACKOFNECESSARYFUNCTIONALITY
Withoutaflexibleandadaptablesolution,agenciescontinuetodeveloptheirownbusiness
systemstomeettheirneeds.TheInventory(seeAttachment2)documentsandcategorizes
theover400suchsystemswhichcurrentlyexist(approximately300systemswereinplace
whenlastinventoriedin2000).Amongtheotherbusinessprocessessupported,theagency
businesssystemsincludeadditionalreporting,costallocationsupport,assetmanagement,
accountsreceivable,andmid‐yearforecastingandscenarioplanningfunctionalitycurrently
notavailablethroughFLAIR.Thetruetotalcostrequiredtomaintainagencybusiness
systemsisnotcurrentlycompiled.Thetotalcostisdistributed,andinmanycasesduplicative,
acrossagencies.Theagencysysteminventoryalsoidentifiedawiderangeofsystem
functionalitysupportingsimilarbusinessprocesses.Thelackofstandardizationforthelarge
numberofdifferentapplicationtypesresultsinfurtherinefficienciesandrisk.Multiple
disparatesystemsalsointroduceadditionalrisktotheStatesincetheyhavebeendeveloped
withoutanenterprisemasterdatamanagementplan.
BasicinformationonStatespending,includingbothhistoricalandtrenddata,isnotreadily
available.Thelackofasingleintegratedplatformalsonecessitatestheextensiveuseof
manualreconciliationprocedures(e.g.,cashbalances,payrollprocessing).Movingtoasingle
integratedplatformwouldalsoeliminatethecurrentinherentsystemlimitations(e.g.,lackof
automatedworkflowandcashreconciliationtools).
3.2 RECOMMENDATION–OPTION3:REPLACEFLAIRANDCMSWITHANERPSOLUTION
Provisolanguageincludedinthe2013GAArequiredDFStoanalyzefourpotentialfuture
optionsforFLAIRandrelatedsubsystems.Therequiredoptionsevaluatedincluded:
1.
2.
3.
4.
EnhanceFLAIR
ReplaceFLAIR
ReplaceFLAIRandCMS
ReplaceFLAIR,CMS,MFMPandPeopleFirst
BasedontheanalysisdocumentedinChapter2,therecommendationistoreplaceFLAIRand
CMSwithanERPsolution(Option3).ThecostanalysisinChapter2,Section2.4represents
thatOption3canbefullyimplementedfor$224.6Million.Theestimatedimplementation
costsforalloptionsrangefrom$219.4‐$467.4Million(todeliverthesamelevelof
functionality).
TherecommendationofOption3factorstheinformationgatheredandanalyzedinChapter2
fromtrendsinpublicsector,interviewswithotherstates,interviewswithselectstate
agencies,aninterviewwithamarketanalystspecializinginpublicsectorERPandincluded
thereviewandanalysisofanumberofreportscompletedonProjectAspireandprevious
largescaleITprojectsattemptedbytheStateoverthelastdecade.Theanalysisalsoincluded
acostcomparisonofeachoption.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page2
InChapter2,Section2.4.5,eachoptionwasrankedagainstaqualitativeandquantitative
frameworkwhichconsideredthefollowingdimensions:

AlignmenttoVisionandGoals

TotalCostofOwnership

AchievementofBenefits

Risk
Theratingutilizeda3.0scale,with3.0representingthehighestandpositivecorrelation.
OPTION4:REPLACEFLAIR,
CMS,MFMP,ANDPEOPLEFIRST
FLAIRANDCMS
OPTION3:REPLACE
OPTION2:
REPLACEFLAIR
ENHANCEFLAIR
OPTION1:
OPTIONSCONSIDERED
REVIEWCATEGORY
AlignmenttoVisionandGoals
1.6
1.8
2.8
3.0
TotalCostofOwnership
2.5
3.0
2.9
2.4
AchievementofBenefits
1.8
2.9
3.0
2.7
Risk
1.7
2.5
2.5
2.1
CombinedComparison
1.9
2.6
2.8
2.6
Exhibit3‐1SummaryOptionComparison
InadditiontotheanalysiscompletedinChapter2,thereareobservationsthatfurther
supporttherecommendationofOption3.Therewasnoevidencetosupportthatadditional
investmentinenhancingorrewritingFLAIR(Option1)wouldbeinthebestinterestofthe
State.TheimplementationcostsinChapter2forOption1werethehighestofthefour
optionsat$467.4Millionandwerelimitedtocapturingthedevelopmentofthedescribed
functionality.Theanalysisdidnotattempttomeasuretheamountofresearchand
developmentinvestmentthatcurrentERPvendorsannuallymaketomeetcustomer
demandsandasimilarinvestmentwouldbenecessaryfortheStatetopreventarecurrence
ofthecurrentFLAIRenvironment.
Option4presentsthebestalignmentwithestablishedvisionandgoals;and,thegovernance
requiredtosuccessfullymanageatruestatewide“enterprise”solutionneedstobewell
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page3
establishedacrosstheenterpriseandworkingeffectivelybeforethisshouldbeattempted.
ThecontractualcommitmentsforMFMPandPeopleFirstalsoprecludeOption4frombeing
viableatthepresenttime.
AkeydifferentiatingfactorinfavorofOption3overOption2isthereductionincomplexity,
riskoferrorsandenhancedcashmanagementresourcesresultingfromthesinglebook
balanceforstatewidecashthatOption3provides.
Theactualtimingandscopeofimplementingpayrollwilldependontheimpactofdecisions
anticipatedwhenthePeopleFirstcontractisscheduledtorenewinAugust2016.The
activitiesandestimatedresourcesassumethereplacementofthecurrentpayrollfunctions.
ThiscouldbefurthermodifiedbyDFSbasedonotherfactorsincludingotherimplementation
activitiescurrentlyscheduledforthesametimeframeasthepayrollimplementation.
Therecommendedphasedimplementationstrategyisacentralcomponentofmanagingthe
overallprojectrisk.Similarly,eachphaseintheprojectlifecyclecontributesanimportant
partinachievingtheexpectedresults.Abriefdescriptionofeachphaseisdescribedbelow
whileadditionaldetailontheimplementationapproachandtimelinecanbefoundinChapter
4ImplementationStrategy.


Pre‐Design,Development,andImplementation(Pre‐DDI)Phase:Thisphaseis
thecatalystandfoundationforthefuturesuccessoftheproject.Itincludessuch
activitiesas:
o
EstablishingthePMOandProjectGovernancestructure
o
ConductingBusinessProcessRe‐Engineering(e.g.,establishingbaselineand
targetperformancemetrics,currentandfuturestateprocessflows,updated
functionalrequirements)
o
Definingorganizationaltransitionandchangemanagementscopeandapproach
o
DevelopingtheSystemsandDataStrategy(e.g.,agencybusinesssysteminterface
strategy,masterdatamanagementplan,anddataconversionplan)
o
Developingandprocuringthe“right”ERPsolutionandimplementationservices
providertoachievethedesiredendresultoftheprogram.Additionaldetailon
theprocurementstrategycanbefoundinChapter5ProcurementandContract
Management
DDIPhase1:ImplementERPSolution:Thisphaseisfocusedonimplementingthe
procuredERPsolutionanddeployingtheInformationWarehouse(IW).Itincludes
suchactivitiesas:
o
ContinuingBPRactivitiestoalignwithprocuredsoftware
o
ExecutingOrganizationalChangeManagementstrategies(includingERPtraining)
o
Designingcorefunctionality
o
Configuringandtestingthesolution
o
Interfacing/integratingthesolutionwithexternalsystems
o
Pilotingandrollingoutthesolutiontoremainingagencies
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page4

DDIPhase2:ExpandERPFunctionality:Thefocusofthisphaseistoidentifythe
nextphaseofbeneficialfunctionalityandimplementtheenhancementsacrossthe
userbase.

Post‐DDI:OperationsandMaintenance:Thefocusofthisphaseinvolves:
o
Continuingtomonitorandadjusttargetperformancemetricsestablishedduring
thePre‐DDIphase
o
SupportingtheexistingFLAIRandCMSsolution(untilretired)
o
SupportingthenewERPsolution
o
PerformingERPupgrades
o
Re‐evaluatingthecontinuingneedforagencybusinesssystems
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page5
Thefollowing,Exhibit3‐2,providesanoverviewoftheimplementationphases,timeline,annualcostestimatesandresourcebreakdown
forOption3:
FY
14‐15
Activities
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
Pre‐DDI
ERPSolutionandSISelected
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementERPforFLAIR/CMS
DeployInformationWarehouseforERP
CentralFLAIRRetired
CMSRetired
PilotERPSolution
CMSRollout
FLAIR/IWRollout
DepartmentalFLAIRRetired
ImplementPayrollinERP
LegacyPayrollRetired
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
CostBreakdown(inthousands)
Implementation
MaintenanceCosts‐FLAIR
MaintenanceCosts‐ERP
ResourceEffortBreakdown
Implementation
Support‐FLAIR
Support‐ERP
People FirstContractExpires
$6,753
$9,846
$40,407 $31,666 $38,897 $32,362 $32,179
$16,870 $17,123 $17,380 $17,641 $14,169 $10,077
$0
$0
$4,944
$6,838
$5,157
$3,183
$5,738
$10,686
$6,349
$6,573
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,235 $22,923 $31,642 $29,783 $32,422 $30,585 $35,496 $32,388 $31,835 $32,264 $37,199
29
43
91
120
91
57
59
9
43
42
25
36
‐
‐
‐
165
165
165
165
125
83
42
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
27
52
95
135
150
165
165
165
165
165
165
165
165
MFMPContractExpires
Exhibit3‐2:ImplementationTimeline,AnnualCostEstimatesandResourceBreakdownforOption3
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page6
3.3 PROJECTCRITICALSUCCESSFACTORS
Withaprojectofthisscale,therearecriticalsuccessfactorstomonitorcloselyandadhereto
throughouttheproject.ConsiderationwasgiventothelessonslearnedfromProjectAspire
andtheinformationsummarizedinChapter2,Section2.2MarketConditionsandTrends.Six
keyfactorsareidentifiedtosupportthesuccessfulreplacementofFLAIRandCMSwithan
ERPsolution:
1.
2.
3.
4.
5.
6.
EstablishaComprehensiveMulti‐TieredGovernanceModel
ConfirmProjectFundingSource
ManageSystemCustomizations
InitiallyDeployaLimitedScopeofFunctionality
UtilizeaControlledPilottoValidatetheSolution
LeveragePhasedRollouttoAgencies
Items1,2,and3shouldbecompleted–oragreedto–beforeproceedingwiththe
procurementforthereplacementsolution.
3.3.1 ESTABLISHACOMPREHENSIVEMULTI‐TIEREDGOVERNANCEMODEL
Eachoperatingenvironmentcontainsuniquecharacteristicssuchthatthereisno“one‐size‐
fits‐all”governancesolution,andeveryeffectivegovernancemodelshouldconsiderthe
followingelements:

Establishdecisionmakingauthorityforeachlevelofgovernance

Developprojectvision,mission,andvalues

Securefundingforbothimplementationandoperations

Definecorebusinessprocessesimpacted

Developdatagovernancestandards

DefineandenforcestandardITarchitectureandenvironments

Defineissueescalationandissueresolution

Identifyandprovidefornecessaryorganizationalchangemanagement
3.3.1.1 EXISTINGGOVERNANCECHALLENGES
AsreviewedinChapter1,theexistingenterprisegovernanceisdefinedthroughtheFFMIS
ActestablishedinSection215.90‐.96,F.S.Thisexistinggovernanceframeworkprovidesfora
governingboardandcouncil;however,bothbodieshavebeeninactivesinceFebruary2005.
Asaresult,nooperationalplans,policiesandprocedure,orFFMISsubsystemmodifications
havebeenreviewedatanenterpriselevelasanticipatedinthegoverningstatute.Therehave
been,andcontinuetobe,decisionsmadeatthesubsystemfunctionalownerlevelfurther
fragmentingtheenterpriseaccountingandreportingcapabilitiesoftheState.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page7
AprojectofthesizeandmagnitudeoftheFLAIRandCMSreplacementwillrequirestrong
governanceacrossthreedimensions:

Enterprise–responsibleforestablishingandenforcingtheoverallvisionofthe
project,securingprojectfundingthroughouttheprojectlifecycle,makingoverall
policydecisionsandresolvingissuesbetweenjurisdictions.

OverallProject–afocusedprojectgovernanceteamwillmakeprojectresource,
scope,budget,andtimelinedecisionsalongwithaddressingandresolvingproject
issues.

FunctionalProjectAreas–bothduringandaftertheimplementation,manyofthe
decisionsrequiredbytheprojectarerelatedtohowspecificbusinessfunctionsare
performed.Anexampleofafunctionalareagovernanceteamwouldbeastatewide
accountspayableworkinggroupwhoproviderecommendationsandinputtothe
projectsteeringcommitteeonwhatdatashouldbeinavendorfile,orhowtorecord
andmanagevendorpaymentterms.
3.3.1.2 ENTERPRISEGOVERNANCERECOMMENDATIONS
ThefollowingmodificationstotheFFMISAct(Section215.90‐96,F.S.)shouldbeconsidered
tostrengthenandtoenhancethegovernancemodeloverFFMIS:

Developavisionandmissionforenterpriseprocessesandtheirmanagementforthe
State.

DefinetheintentoftheFFMISActtomoreclearlyalignwiththedevelopmentand
operationofanenterprisesolutionfortheState.

ProvidetheFFMISBoardwiththeauthoritytoaddandremoveprocessesand/or
systemstheydetermineserveanenterprisepurpose.

Shifttheoverallenterprisegovernancefocustooversightofbusinessprocessesvs.
underlyingFFMISsubsystemsandensureallresponsiblepartiesarerepresented(See
Exhibit3‐3,ProposedEnterpriseGovernanceModel).

PrecludeoverlappingmembersbetweentheFFMISBoardandCouncil.

RequireagenciestoobtainapprovalfromtheFFMISCouncilforrequestsforanynew
financialorrelatedsystemsormodificationstoexistingfinancialsystems.

EstablishanachievabletimelineformandatoryadoptionofthenewERPsolutionby
allagencies.

DevelopastatutoryrequirementrequiringchartersforalllevelsofFFMIS
governance.Thecharterswouldincludeproceduresforhowtheywilloperate.

IdentifyarecurringfundingsourceforstaffingandsupportingFFMISCouncil
activities.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page8
BusinessProcesses
HRAdministration&
Payroll
ProcuretoPay
Budgeting
AR/CashManagement
Finance&Accounting
PeopleFirst
MyFloridaMarketPlace
LAS/PBS
CMS
FLAIR
FFMISSubsystems
AnillustrationoftheproposedEnterpriseGovernanceModelisintheExhibitbelow:
Exhibit3‐3:ProposedEnterpriseGovernanceModel
3.3.1.3 FLAIRANDCMSREPLACEMENTOVERALLPROJECTGOVERNANCERECOMMENDATIONS
Theoverallprojectgovernancestructurecannotstandaloneandmustfitwithinthebroader
EnterpriseGovernanceframework.Thisiscriticalsincedecisionsbeingmadeattheproject
levelscouldhavenearandlong‐termimpactonhowtheotherFFMISsubsystemsoperateand
aremanaged.Toensurecoordination,theproposedOverallProjectGovernancestructure
establishedfortheFLAIRandCMSreplacementmusthaveadirectconnectiontotheFFMIS
Council.TheFFMISCouncilmustbekeptapprisedoftheproject(i.e.,progresstowardsmajor
milestonesanddeliverables,majorissuesandrisks,keydecisionsmadeorneeded,etc.).The
FFMISCouncilcan,inturn,provideprojectupdatesandraiseissues,risksanddecisionsto
theFFMISBoardforawarenessandguidance.AnillustrationoftheproposedOverallProject
GovernancestructureisintheExhibitbelow:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page9
HRAdministration&
Payroll
ProcuretoPay
Budgeting
CashManagement
Finance&Accounting
….
….
….
Exhibit3‐4:ProposedFLAIRandCMSReplacementOverallProjectGovernance
SpecificrecommendationsfortherequiredOverallProjectGovernanceinclude:


AssignanddedicateasingleexecutiveleaderfromDFStobethefulltimeProject
Director.
o
Thiscannotbeapart‐timerole.Thispersonisaccountablefortheoverallproject,
includingfunctionalprojectareas.
o
Thispersonshouldbeaseniorleaderandhaveanunderstandingof,and
experiencewith,thebusinessfunctionsbeingreplacedbytheERPsolution.
o
Thispersonshouldhavetherespectofkeyagenciesandstakeholdersandhave
demonstratedtheabilitytomanagedifficultsituations.
Includeseniorrepresentativesfromagenciesinvolvedinthecurrentwaveof
implementationsasmembersoftheSteeringCommitteeoverseeingtheFLAIRand
CMSreplacementproject.Thiswillforceengagement,facilitateawarenessaround
designdecisionsandimplementationtimelines,andenableagenciestoprovideinput
ondecisionspriortothembeingmadeorpresentedtotheFFMISCouncilorFFMIS
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page10
Board.Agencyinvolvementiscriticaltoachieving“buy‐in”andrealizingtheexpected
benefitsofundertakingthisinitiative.

Establishacommonandconsistentfoundationfortheoversightandmanagementof
theproject,workstreamsandfunctionalprojectteams.
o
Establishaconsistentframeworkandcadencesforhowprojectstatusand
progressarereportedandhowissues,risksanddecisionsareidentified,tracked
andmanaged.
o
Useacommonsetoftoolsandtemplatesforallprojectdocuments(e.g.,project
charters,financialtracking,businessrequirementsdocument,etc.)–no
exceptions.
o
Leverageasingularrepositoryforallprojectdocumentation.
 Defineaconsistenthierarchyandorganizationalstructureforworkstreams
(ProjectTracks)andprojectstoconformtoandworkunder.
 Maintainasingle,comprehensiveissues,risks,anddecisionslogtoprovide
maximumvisibility.
o
Classifyallissues,risks,anddecisionsasenterprise‐level,overallproject‐level,or
functionalprojectarealeveldependingonthenatureoftheirimpact.Thelevel
andcorrespondingstatus(e.g.,highprobability/highimpact,etc.)willdictateat
whatleveltheissue,riskordecisionisreportedandresolved.
 Determineaconsistentmethodforscoringissuesaslow,mediumandhigh
andthetimeframeeacharerequiredtoberesolved.
 Documentaconsistentdefinitionforhowprobabilityandimpactwillbe
determinedforallrisksandthetimeframeforriskmitigationplanstobe
developed.
 Documentaconsistentdefinitionofhowdecisionswillbe
evaluated/categorizedanddeterminethetimeframeinwhichdecisionshave
tobemade.

Clearlydefineanddocumenttheroles,responsibilities,andexpectationsofeachlevel
oftheenterprise/projectgovernancestructure(i.e.,involvement,decisionmaking
authority,etc.).
o
Identifyasingleleader(businessortechnical)foreachfunctionalprojectareato
promoteaccountability.Projectleadersmustspeaktoanysignificantopen
projectorfunctionalarea‐levelissue,riskordecision.
OverallProjectGovernancemustbeestablishedfromtheoutsettoprovidestructureand
disciplineandensureastrongstarttotheproject.TheProjectGovernanceFrameworkwill
bedevelopedandexecutedaspartoftheProjectManagementOfficeactivityunderthePre‐
DDIphase(Chapter4ImplementationStrategy).
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page11
ThefollowingExhibit3‐5isanexampleofthedifferentOverallProjectGovernancelevels,theirresponsibilities,andrecommended
members:
GOVERNANCELEVEL
ExecutiveSteering
Committee
DESCRIPTION
Providesoverall
leadershipanddirection
fortheproject
RESPONSIBILITIES










FloridaDepartmentofFinancialServices
FLAIRStudy
Establishesprojectdirection
Responsiblefordevelopingandsupporting
necessarybudgetrequests
Ensuresadequateresourcesareprovided
throughoutallprojectphases
Guidesoverallscopeandensuresproject
remainsontracktomeetobjectives
Servesasanescalationpointforoveralland
functionalareaprojectsissues,risksand
decisions(includingdesigndecisions,resource
needs,etc.)
HoldstheProjectDirector,PMO,and
functionalprojectteamsaccountablefor
projectprogress
Promotesinformationsharing
Actsasfinalapproveronallmajorproject
deliverables(e.g.,selectedsoftware,go/no‐go,
etc.)
ProvidesprojectupdatestoFFMISCounciland
FFMISBoard,asneeded
Approveschangerequests,asneeded
RECOMMENDEDMEMBERS







CFO orDesignee (Executive
Sponsor)
ProjectDirector
DFSLeadership(A&A,DIS,
Treasury,HR,etc.)
5‐6SeniorLeadersfrom
Agenciescurrently
scheduledfor
implementation
OtherKeyStakeholders
(e.g.,AuditorGeneral,OPB,
AgencyforEnterpriseIT)
IV&VRepresentative
(Advisoryrole)
SoftwareVendor(Advisory
role)
Chapter3:Page12
GOVERNANCELEVEL
OverallProject
ManagementOffice
DESCRIPTION
Developsthestructure,
processes,andtoolsto
completetheproject
RESPONSIBILITIES










FloridaDepartmentofFinancialServices
FLAIRStudy
Establishestheinfrastructureandcommonset
oftools,templatesandprocessestocomplete
theproject
Facilitatesfunctionalareainformationsharing
Monitorsandreportsonfunctionalarea
projectprogress(e.g.,scope,schedule,budget,
andquality)
Producesprojectrelatedreports(status,
budgettracking,issuelog,etc.)
Ensurescontracteddeliverablesare
appropriatelymet
Managesissue,riskanddecisionmaking
processesandsupportsfunctionalareateams
inresolvingissues,risksandopendecisions
DevelopsmaterialstosupportSteering
Committee,FFMISCouncilandFFMISBoard
meetings
Supportsallprojectexecutionrelated
communications
Servesasanescalationpointforprojectissues,
risksanddecisions(includingdesign
decisions,resourceneeds,etc.)
Manageschangerequestprocess
RECOMMENDEDMEMBERS








DFSProjectDirector
DFSContractManager
DFSProjectManager
DFSTeamLeads
Keyagencyrepresentatives
OrganizationalChange
ManagementLead
CommunicationsLead
SoftwareVendor/Systems
Integrator(AdvisoryRole)
Chapter3:Page13
GOVERNANCELEVEL
DESCRIPTION
RESPONSIBILITIES
VariousFunctional
ProjectAreaTeams
Note:Afunctional
projectareacanbe
oneormoresimilar
workeffortswhich
arebestmanaged
together
Managesandcoordinates
overallfunctionalarea
activitiesanddelivers
projectwithintheproject
constraints(e.g.,scope,
schedule,budget,and
quality)















Providesoversightanddirectiontothe
functionalarea
Monitorsprogressoffunctionalareaprojects,
includingtimelinessofresolvingissues,risks
andopendecisions
Coordinatesprojectactivitieswithinfunctional
area
Ensuresappropriateagencyandstakeholder
representationonfunctionalareaprojectsand
activities
Communicatesfunctionalareainformationto
theoverallPMO
Ensuresfunctionalareaprojectsareexecuted
usingprescribedtools,templatesand
processes
Submitsfunctionalareaupdatestoleadership
Developsrequiredprojectdeliverablesand
artifacts
Presentandapprovechangerequests,as
needed
Develops,executesandmanagesprojectwork
plantoachieveprojectscopeandquality
Managesandtracksprojectbudget
Engageskeystakeholdersindeveloping
projectdeliverablesandworkproducts
Managesandcoordinatesprojectactivitiesand
tasks
Identifiesdependenciesonotherfunctional
areas
Communicateprojectstatusandsubmit
accurateweeklystatusreports‐highlighting
progress,issues,risks,opendecisions,etc.
RECOMMENDEDMEMBERS



FunctionalProjectArea
TeamLead
SystemIntegratorLead(for
therespectivefunctional
area)
FunctionalProjectArea
Staff(asneeded)
Exhibit3‐5:VariousLevelsofProjectGovernance
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page14
3.3.2 CONFIRMPROJECTFUNDINGSOURCE
Itisnecessarytosecurethecommitmentofafundingsource(s)whichadequatelyaddress
boththeimplementationandongoingoperationsandmaintenance.
ImplementationCosts‐Implementationcostsforthisprojectincludeandarenotlimitedto:

Contractualservices

Statepersonnelsupportingtheproject

Hardware

Software

Training
OperationsandMaintenance‐O&Mcostsconsidertheongoingoperationsoncethesystem
hasbeenimplementedandcaninclude:

Staffing

Hardwarehostingandmaintenance

Softwarelicensing

Contractualservices
KeyfundinggoalsforbothimplementationandO&Minclude:

Fundingsourcesmustbesecuredfortheentireproject

Fundingshouldbestructuredsothatunspentfundscanbepreservedandcarried
forwardtosupportfutureupgradesandenhancements
3.3.2.1 FUNDINGOPTIONSANDMODELS
Somestateshaveoptedtoutilizefinancingvehiclestopayfortheimplementationcostsfor
projectsofthismagnitude.Althoughprovidedforinstatute,thereiscurrentlynosupportto
considerfinancingtheFLAIRandCMSreplacement.
Eliminatingafinancingstrategyfromconsideration,theremainingfundingoptionsinclude
securingfundsfromGeneralRevenueresourcesorthroughtheuseofTrustFunds.
FundingOptions
GeneralRevenueFund–Unlessspecificallyexempted,agenciesarecurrentlyassessedan
8%servicechargeoncertainincomeandtrustfundspursuanttoSection215.20,Florida
Statutes.Thesefunds–referredtoasthegeneralrevenueservicecharge(GRSC)–are
designedtosharethecostsofgeneralgovernmentactivitiesandaredepositedintothe
GeneralRevenueFund.Althoughcurrentlynotadequatetocovertheanticipated
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page15
implementationcosts,GRSCcouldbeincreasedandusedtosupportO&M.Anyannual
amountnotsatisfiedthroughtheGRSCwouldbedirectlyappropriated.
TrustFunds–Anupfrontassessmentforanticipatedimplementationcostscouldbesecured
bysweepingeligibleagencytrustfunds.Utilizingthismethodandidentifyingandincreasing
anexistingtrustfundmechanism(e.g.,TreasuryAdministrativeandInvestmentTrustFund
and/or1%MFMPTransactionFee)couldcontributetothenecessaryimplementationand
O&Mfunding.
FundingandAllocationModels
Thetwofundingandallocationmodelsoutlinedbelowcompareapproachesforallocatingthe
costsforbothimplementationandO&MforthereplacementofFLAIRandCMS.
InternalServiceFund‐InternalServiceFundsareestablishedtoaccumulatecosts,invoice,
andcollectforservicesprovidedtoothergovernmentalunits.Thebasisforchargesvaries
andcanrangefromastraightcostrecoverymethodtoactualcostsplusafactorforhistorical
expendituresandfutureupgradesandenhancements.
DirectAppropriation‐DirectappropriationreferstoanappropriationmadedirectlytoDFS
tocoverthecostsofimplementingandoperatingtheFLAIRandCMSreplacement.
FUNDINGMODEL
InternalService
Fund(Charge
BackorCost
Recovery
Method)
ADVANTAGES



Canbestructuredtobetter
respondtoagencyneeds
Establishedproperly,this
methodbestalignsthecost
withtheserviceprovided
Morerepresentativeof
privatesectormodels
DISADVANTAGES



Direct
Appropriation


Noresultingtransitionissues
whencomparedtothe
existingmodel
Fasterimplementationtime
(whencomparedtothe
InternalServiceFundOption)

Couldtakemultipleyearstodevelopand
implementtheallocationmethodology
(e.g.,mayrequirestatutoryconsideration
andspecificappropriationforthetransfer
offunds)
Establishingapredictablemodelfor
assessingusagecanmakeagency
budgetingachallenge
Requiresanimpactanalysisonthe
StatewideCostAllocationPlan
Agenciesarenotrequiredtoshareinthe
costofimplementingandoperatingthe
statefinancialaccountingsystem
Exhibit3‐6:FundingModelComparison
FundingRecommendation
Duetothetimerequiredtodevelopandobtainapprovalforacostallocationmethodology,it
isrecommendedthePre‐DDIactivities(approximatelyfirsttwoyears)arefundedthrougha
directappropriationtoDFSfromGeneralRevenue.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page16
Thisapproachwillallowfortheadditionalanalysisrequiredtoevaluatethefeasibilityof
administeringacostrecoverymethodforeither(orboth)theprojectimplementationand
operationsandmaintenancecost.
3.3.3 MANAGESYSTEMCUSTOMIZATIONS
Managingsystemcustomizationsisoneofthemostchallengingareaswhenimplementingan
ERPsolution.Today’sERPsolutionscontainhighlyintegratedprocessesmeetingalarge
portionofthecoretransactionsoftheStatewithoutmodification.Thestatesinterviewedfor
thisprojectwhichestablishedanapproachtominimizecustomizationsreportedthatmore
than80%oftheirneedscouldbemetoutoftheboxwiththeprovidedfunctionality.The
statesthatdidnotestablishthisgoal–andallowedforsignificantsolutioncustomization–
arenowgoingthroughthedifficultprocessofremovingthecustomizationssotheycan
returntoregularandlowerrisksoftwareupgrades.Customizationsalsotendtobebothtime
consumingandexpensive,andtheyintroducecostandcomplexitytonecessaryupgrades
overthelifeofthesoftware.
TolimitcustomizationsthisrecommendationincludesBusinessProcessRe‐engineering
effortswouldbeinitiatedearlyinthePre‐DDIphase–seethedetailedimplementationplan
inChapter4ImplementationStrategy.Customizationsshouldbelimitedtothoserequired
by:

Statestatute

Federalregulation

Uniquebusinessprocessnotcontemplatedbythesoftware
Therisksassociatedwithsystemcustomizationscanbebestmitigatedby:

Alignboththeenterpriseandoverallprojectgovernancetosupportstandardization
ofbusinessprocesses

Modifystatestatuteswhereverpossibletosupportstandardizedbusinessprocesses

Requireagenciestojustifyreasonsfornotconformingtostandardprocesses
3.3.4 INITIALLYDEPLOYALIMITEDSCOPEOFCOREFUNCTIONALITY
TherequiredminimumsetoffunctionalityidentifiedearlierinChapter2wasspecifically
limitedinscopetohelpreducetheoverallriskandcontributetoasuccessfulimplementation.
Itisrecommendedthatadditionalfunctionalitybeintroducedonlyafterthelimitedscopeof
corefunctionalityhasbeensuccessfullyproven.
3.3.5 UTILIZEACONTROLLEDPILOTTOVALIDATETHESOLUTION
Inadditiontoinitiallylimitingthescopeoffunctionality,acontrolledpilotisrecommendedto
assistinfurtherprovingthesolutionviability.TheimplementationplaninChapter4
identifiesthepilottoencompassanentirefiscalyearandyearendcloseoutcycle.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page17
3.3.6 LEVERAGEPHASEDROLLOUTTOAGENCIES
Itisrecommendedtherollouttoadditionalagenciesonlybeinitiateduponthecompletionof
asuccessfulpilot.TofurtherreducetheoverallrisktotheState,thereareuptofourphases
ofagencymigrationsidentifiedintheimplementationplantobettermanagetheoverall
impactwithinagenciesandontheStateasawhole.
3.4 CHANGESINSTATUTEANDFINANCIALBUSINESSPRACTICES
Section3.3.1.2EnterpriseGovernanceRecommendationsoutlinesspecificmodificationsto
theFFMISAct(Section215.90‐96,F.S.)whichshouldbeconsideredtoprovidethenecessary
governanceovertheState’senterprisefinancialsystemsandprocesses.Therecommended
strengtheningofboththeenterpriseandoverallprojectgovernancestructureprovidesthe
foundationtosupportthenecessarystandardizationofstatewidebusinessprocesses.A
primarygoalofbusinessprocessstandardizationisthereductionintherequired
customizationoftheselectedERPsolution–andacorrespondingreductionofoverallproject
costandrisk.Theextentofmodificationstotheexistingfinancialbusinesspracticeswillnot
beknownuntilboththebusinessprocessre‐engineeringandthesolutiondesigntasksare
complete.
3.5 OUTSOURCINGCONSIDERATION
Atthepresenttime,therearenoservicesoractivitieswhichhavebeenidentifiedfor
outsourcing.Oncethebasefunctionalityhasbeensuccessfullydeployed,future
considerationshouldbegiventooutsourcingthepayrollprocessingfunction.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter3:Page18
CHAPTER4
IMPLEMENTATIONSTRATEGY
KeyTakeawaysFromThisChapter
ThereplacementofFLAIRandCMSwithanERPsolutionisalarge,multi‐year,
complexproject(TheFLAIRReplacement“Project”).Acomprehensive
implementationstrategyandapproachmustbedevelopedpriortoexecutingany
implementationactivities.ThisChapterpresentsatimelineandtheimplementation
phasesnecessarytoimplementthenewsolutionsuccessfully.
TheFLAIRReplacementProjectisaverylarge,vastlycomplexinitiative.Itinvolves
changestolongstandingbusinesspractices,affectsemployeeduties,jobfunctionsand
rolesandinvolvesmultipleorganizations.Effectiveorganizationalchange
management(OCM)requiresacarefullyplannedimplementationwhichis
collaborativeandhighlyleveragedwithstateresourcesineachagency.TheOCM
StrategypresentedinthisChapterisonemodeltousetoensureagencyparticipation
andeffectivemanagementoftheemployees’journeythroughoutthelifeoftheproject.
TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFlorida
Statutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter4Implementation
Strategy.
FLORIDASTATUTE
287.0571(4)(n)
Astateagency’stransitionplanforaddressingchangesinthenumberof
agencypersonnel,affectedbusinessprocesses,employeetransition
issues,andcommunicationwithaffectedstakeholders,suchasagency
clientsandthepublic.Thetransitionplanmustcontainareemployment
andretrainingassistanceplanforemployeeswhoarenotretainedbythe
stateagencyoremployedbythecontractor.
Exhibit4‐1:FloridaStatuteDescription
ThegeneralassumptionforthisimplementationstrategyisDFSandagencyresourcesare
retrainedandredeployedduringtheoveralltransitionfromtheexistinglegacyFLAIRand
CMSenvironmenttothenewERPFLAIRandCMSenvironment.
TheimplementationapproachpresentedwithinthisChapterisfoundedonaddressingfour
criticaldimensions:process,people(organization),technology,andprojectmanagement
(governance).Eachdimensionmustbeaddressedtorealizethenewsolution’sbusiness
objectivesandexpectedoutcomes.Strongprojectmanagementcreatesthecommon
foundationfortheentireproject.Thefollowinggraphic,Exhibit4‐2,depictsthefour
dimensionsalongwithexamplesoftheassociatedactivities.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page1
Exhibit4‐2:ImplementationFrameworkDimensions
Theoverallimplementationframeworkacrossthedifferentdimensionsincludesthe
followingfiveimplementationstages:

PlanandAssess

Design

Develop

Implement

Post–Implement(OperationsandMaintenance)
Eachimplementationstagehasactivitiesacrosseachoftheimplementationdimensionsas
outlinedinthegraphic,Exhibit4‐3below:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page2
Exhibit4‐3:ImplementationStagesandDimensions
Keyactivitiesacrossthefourimplementationdimensionsforeachimplementationstageare
illustratedinExhibit4‐4below:
STAGE
Plan&Assess
DIMENSION
Process
KEYACTIVITIES


People
Technology











FloridaDepartmentofFinancialServices
FLAIRStudy
Analyzecurrentstateprocesses(review1100
existingfunctionalrequirements)
Reviewindustrystandards(agenciesandother
states)
Identifyopportunitiesforimprovement
Prioritizetargetedbusinessprocesses
Identifyfutureperformancemetricsandlevels
Analyzecurrentstateorganizations(DFSOnly)
Analyzecurrentstaffinglevelsandworkallocation
(DFSOnly)
Identifykeystakeholders
Establishorganizationalchangemanagementplan
Identifycurrentstatetechnologyandarchitecture
Identifyexternalinterfacesin‐scopeforreplacing
thelegacytechnologysolution
Performqualityassessmentofthelegacydatatobe
converted
Procurenewtechnologysolutionandsystem
integrator
Chapter4Page3
STAGE
DIMENSION
Project
Management
KEYACTIVITIES


Design
Process
People
Technology
Project
Management




























Develop
Process








FloridaDepartmentofFinancialServices
FLAIRStudy
Defineandconfirminitialprojectgovernance
structureandframework
Clarifyandmodifystatutestoenforceprocess
standardization
EstablishProjectManagementOffice(PMO)
Determineon‐boardingrequirements
Createandreviewprojectcharter
Performstagegate“Go/NoGo”decision
Defineprocessre‐engineeringguidelines
Designfuturestateprocesses
Identifyintegrationpoints
Identifygaps(currentandfuture)
Definefuturestatefunctionalrequirements
Definefutureorganizationguidelines(DFSOnly)
Definefutureorganizationstructure(DFSOnly)
Identifyimpactonexistingorganization
Identifygaps(currentandfuture)(DFSOnly)
PerformOCMactivities
Defineresourceplan
Designabusinessplanforreadiness
Designfuturestatearchitecture
Definefuturestatetechnologyrequirements
Identifygaps(currentandfuture)
Designinitialtechnologysolutionandprocesses
Designdatamodelandinterfacerequirements
Designanalyticsandreportingstrategy
Designteststrategy
Buildprojectperformancedashboards
Updateprojectgovernanceframeworkand
processes
ReviewandprovideQualityAssurance(QA)project
deliverablesandartifacts
Monitorandreportprojectperformanceand
progress
Reviewandconfirmriskmitigationstrategyand
escalationprocedures
Performstagegate“Go/NoGo”decision
Definedetailedprocesses(includinganalyticsand
reporting)
Buildandrunsimulationcasesandmodels
Defineandupdateprocedures
Pilotprocesses
Confirmmetricsandreportingprocesses
Defineandconfirmtransitionplan(usersupport
plans)
Definebusinessreadinessplan
Chapter4Page4
STAGE
DIMENSION
People
Technology
KEYACTIVITIES












Project
Management
Implement
Process
People
Technology
Project
Management































FloridaDepartmentofFinancialServices
FLAIRStudy
Confirmorganizationmodel(DFSOnly)
Definenewjobdescription(DFSOnly)
Identifyimpactonexistingorganization
Updateresourceplan(DFSOnly)
PerformOCMactivities
Buildtrainingstrategy
Createorganizationtransitionplan
Developbusinessreadinessplan
Buildtechnicalprocesses
Builddatamodel
Buildtechnologysolution(infrastructureand
applications)
Testtechnologysolution(unit,system,performance,
etc.)
Testdataconversionandinterfaces
Createcutoverplan
Monitorandreportprojectperformance
ContinuePMOandgovernanceprocessesand
escalationevents
Reviewandupdateriskmitigationstrategy
ReviewandQAprojectdeliverables
Performstagegate“Go/NoGo”decision
Confirmperformanceindicatorsandmetrics
Deploybusinessprocesses
Establishusersupport(helpdesk)
Conductuseracceptancetesting(UAT)
Completetransitionandcutover
Trackandreportprocessmetrics
Implementbusinessreadinessplan
PerformOCMactivities
Executeorganizationtransitionplan
Executetrainingplan
SupportERPdeployment
Identifyadditionaltrainingneeds
Implementusersupport(helpdesk)
Executefinaltesting
Completetransitiontonewtechnologysolution
Completecutovertonewtechnologysolution
Monitorandreportperformance
Provide“Go/NoGo”decisiononimplementation
Updatebusinesscaseifneeded
Transitiontoproduction
Implement“GoLive”governanceprocesses
Completereviewofallprojectdeliverablesand
artifacts
Conductlessonslearned
Performstagegate“Go/NoGo”decision
Chapter4Page5
STAGE
Post–
Implement
(Operations
and
Maintenance)
DIMENSION
Process
KEYACTIVITIES

People(DFSOnly)
Technology











Project
Management





Generateperformanceanalyticsandreportsonkey
processindicatorsandmetrics
Identifyprocessimprovementopportunities
Designanddevelopprocessimprovements
Implementprocessimprovements
Collectfeedbackfromemployees(lessonslearned)
Updateorganizationdevelopmentandrequired
skills
Developsuccessionplanforkeyroles
Conductfollow‐uptrainingtocloseskillgaps
Generateperformanceanalyticsandreportson
technologysolutionindicatorsandmetrics
Identifyopportunitiesfortechnologysolution
improvements
Implementtechnologysolutionimprovements
Performvendorupgradestotechnologysolutionas
needed
Generatefinalprojectreportsandupdateproject
repository
Updatebusinesscaseifneeded
Continuetransitiontoproduction
Continuetoimplement“GoLive”governance
structureandprocesses
Reviewnextphase(Phase‐2)ofproject
Exhibit4‐4:KeyActivitiesbyImplementationStagesandDimensions
4.1 IMPLEMENTATIONTIMELINE
Thefollowingpreliminary,high‐levelprojecttimeline,Exhibit4‐5wasdevelopedandis
basedontherecommendedtechnologysolutionOption3:ReplaceFLAIRandCMSwithan
ERPSolution.
ThetechnologysolutionisdefinedastheERPsystemandanyothertechnologytools(i.e.,
InformationWarehouse)andproductswhichareneededtorenderacompletetechnology
solutionplatform.
Activities
Pre‐DDI
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementandRolloutERPSoluiton
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21 21‐22 22‐23 23‐24 24‐25 25‐26 26‐27 27‐28 28‐29
FloridaDepartmentofFinancialServices
FLAIRStudy
ERPSolutionandSISelected
Chapter4Page6
Exhibit4‐5:ImplementationSummaryTimeline
TheimplementationtimelineisstructuredaroundthesequencingofProjectPhasesto
supporttheoverallDesign,DevelopandImplementation(DDI)oftherecommended
technologysolution.EachProjectPhaseiscomprisedofanumberofProjectTrackswhich
definethekeyactivitiesandrolesneededtocompletethePhase.Thenumberofresources
foreachProjectTrackisdefinedbythelaborassumptionsincludedinAttachment1andis
basedonthenumberspresentedinChapter2Section2.3.3.3“Option3:ReplaceFLAIRand
CMS”.Exhibit4‐6belowdescribesthefourkeyimplementationphases.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page7
PHASES
Pre‐DDI
DESCRIPTION
ThePre‐DDIPhaseincludesactivitieswhichsupporttheinitiationofthe
programaswellasactivitiesprovidingon‐goingcontrol,monitoringand
supportfortheoverallproject.TheProjectTracksincludedinthisPhaseare:
 BusinessProcessRe‐Engineering(BPR)–Developfuturebusiness
processmodelsfromanalyzingcurrentbusinessprocessesandidentify
processgaps(inefficiencies)whichneedtobeaddressed.Createan
initialsetoffunctionalrequirementswhichsupportsthefuture
businessprocessmodels.
 Procurement–Executeprocurementandcontractmanagement
strategyandactivitiestoidentify,evaluateandselectboththe
technologysolutionandSystemIntegrator(SI)toimplementthe
technologysolution.
 OrganizationalChangeManagement–Developanoverallchange
managementstrategyfortheentirelife‐cycleoftheproject.Executethe
requisitechangemanagementactivitiesacrosstheappropriateproject
phasesandtrackscoveringorganizationalimpact.
 ProjectManagementOffice–Establishtheoverallprojectgovernance
framework,structureandactivitiesacrossallprojectphasesandtasks.
Performon‐goingmonitoring,controlling,andissueresolutionand
escalationactivitiesfortheproject.
 WorkforceTransition–Mapcurrentworkforce(Functionaland
Technical)intothefuturebusinessoperatingmodelwhichincludesthe
futurebusinessprocessesandtechnologysolutions.Thisincludesthe
mappingofrolesandtherequiredskillsetneeded.Developstrategyfor
handlingandaddressingexistingsysteminterfacesanddataquality
issues.
 Systems&DataStrategy–Assesssysteminterfaceswhichneedtobe
addressedwiththereplacementofFLAIR/CMSwithERPsolutionand
developoverallstrategyandplantoaddress.Performassessmentof
legacyFLAIR/CMSDataanddevelopMasterDataManagement(MDM)
plantoaddressmajordataissues.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page8
PHASES
DDIPhase‐1
DESCRIPTION
DDIPhase‐1coversthechangestothetheexistingin‐scopebusinessfunctions
basedonthereplacementofthelegacyFLAIR/CMSplatformwiththenew
technologysolution.Thenewtechnologysolutionsmayincludeadditional
functionssuchasworkflowanddocumentmanagementbasedontheBPR
outcomesandthecorrespondingsetoffunctionalrequirements.Thisphasealso
addressesthedeploymentofthenewtechnologysolutionacrosstheexisting
FLAIR,CMSandIWcommunities.TheProjectTracksincludedinthisPhaseare:
 ImplementERPforFLAIR(CentralandDepartmental)/CMS–
Design,DevelopandImplementERPtoreplacelegacyFLAIRandCMS
platformstoenablefuturebusinessprocessesandfunctions.
 ImplementInformationWarehouse(IW)‐Design,Developand
ImplementnewDataWarehousetooltoreplacelegacyIWplatformto
enablefutureanalyticandreportingprocessesandfunctions.
 DFSPilot–PilotthenewERPFLAIR,CMS,andIWsolutionwithDFS
andselectagencies.
 Migrate(Rollout)AgenciestoERP/IW‐Supportthemigrationof
agenciestothenewERP/IWtechnologysolutionandfuturebusiness
processesandfunctions.
 Migrate(Rollout)AgenciestoCMSinERP‐Migrationofagenciesto
thenewcashmanagementsystembusinessprocessandfunctionsbuilt
withintheERP.
 ImplementPayrollinERP–Implementpayrollbusinessprocesses
andfunctionswithinthenewERP.
 PeopleFirst(PF)Integration‐DevelopinterfacestrategybetweenPF
andERPfortheeventualdisconnectofPFfromlegacyFLAIR
 MFMPIntegration–DevelopinterfacesbetweenMFMPandERPfor
theeventualdisconnectofMFMPfromthecurrentFLAIR.
 LAS/PBSIntegration‐DevelopinterfacebetweenLAS/PBSandERP
forbudget,appropriation,andencumbrancetracking.
 OCM‐Teamresponsibleforensuringorganizationalacceptanceof
businessprocessandtechnologysystemchanges.
 WorkforceTransition(WFT)‐Conductend‐userFLAIR/CMStraining
andmeasureoutcomes.Deployorganizationanduserrolesalignments.
 PMO‐Projectmanagementteamwhowillmanageotherresourcesare
apartofthisphaseoftheproject.
 IndependentVerification&Validation(IV&V)‐Independentteam
ofcontractorsassignedtoevaluatetheworkproductoftheSystem
Integratortominimizerisk.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page9
PHASES
DDIPhase‐2
Operationsand
Maintenance
DESCRIPTION
DDIPhase‐2addressesthefutureassessmentofadditionalERPmodulesor
functionswhichcanbeleveragedbytheStatetofurtherimproveoperations.
ThisphasefollowsthesamefiveimplementationstagesasDDIPhase‐1:
 Plan&Assess–Analyzestandardizationopportunities,prioritizing
processesforinclusionandidentifyprocessoptionswithperformance
metrics.Analyzeexistingorganizations,workallocationandstaffing.
Analyzecurrenttechnology,identifyingopportunitiesandchallenges
alignedtonewprocesses.
 Design–Designprocessesbasedonnewprocessmodelanddefine
reportingandassociatedmetrics.Designnewfunctionalorganization
andassessimpactonexistingorganization,createchangemanagement
planandorganizationaltransitionplan.Designupdatedtechnical
architecture.
 Develop–Buildandpilotprocessesandsystembasedonnewprocess
modelandbuildreportingprocessesandassociatedmetrics.Buildnew
functionalorganizationandassessimpactonexistingorganization,
createchangemanagementplanandorganizationaltransitionplan.
Buildupdatedtechnicalarchitecture.
 Implement‐Deployprocessesandtransition.Trackandreport
metrics,identifyingandimplementingprocessimprovements.Execute
changeplan,transitionorganizationandsupportdeployment.Conduct
trainingandidentifyadditionaltrainingneeds.Completecutoverand
deploynewtechnology.Identifyopportunitiesforperformance
improvement.
TheOperationsandMaintenancePhasecoverstheon‐goingoperationsand
supportofboththelegacyFLAIR/CMSplatformandthenewERPFLAIR/CMS
platform:
 OperationsandMaintenanceLegacyFLAIR/CMS‐Supportlegacy
FLAIR/CMS&IWinfrastructure(hardwareandsoftware)until
retirement.
 OperationsandMaintenanceNewERP/IWSolution‐SupportERP
FLAIR/CMSinfrastructure(hardwareandsoftware)andsupportnew
IWInfrastructure.PerformERP/IWupgradesasneeded.
Exhibit4‐6:ImplementationPhaseDescription
EachoftheProjectTrackswithinthePhasesnotedabovehasitsowntimelinewithkey
activitiesandresourcerolesfromthelaborassumptionsinAttachment‐1.Additional
examplesofProjectTrackactivitiesarereflectedinthisChapter’sAppendix.ThePre‐DDI
activitiesareincludedinthisSectionwhiletheremainingDDIworkstreamsareaddressedin
Section4.2SystemsDevelopmentandImplementation.
4.1.1 PRE‐DDIPHASE&PROJECTTRACKS
ThekeyPre‐DDIProjectTracksandassociatedtimelinearedescribedbelowinExhibit4‐7:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page10
FY
14‐15
Activities
Pre‐DDI
BusinessProcessReengeneering
FY
15‐16
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
FunctionalRequirements
Standardize Processes
Procurement
IntenttoAward
OrganizationalChangeManagement(OCM)
StakeholderAnalysis
OrganizationImpactAssesment
ProjectManagementOffice(PMO)
Project GovernaceFramework
ProjectCharter
WorkforceTransition(WFT)
System&DataStrategy
TechnologyRequirements
DDIPhase1:ImplementERPSolution
ImplementandRolloutERPSoluiton
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
Exhibit4‐7:Pre‐DDIProjectTrackTimelines
ThePre‐DDIProjectTracksandassociatedresourcerolesarenotedbelowinExhibit4‐8.The
estimatednumberofresourcesforeachrolecanbefoundinAttachment–1Section1.3.4.1.
TRACK
BusinessProcessRe‐
Engineering
ResourceRole:Business
ProcessRe‐Engineering
KEYTASKS










EstablishworkingDFSand
AgencyAdvisoryGroupfor
businessimpactandfeedback
Updatecurrentstate(CS)
processmaps
Establishbaselineprocess
metrics
Reviewindustrystandardsfor
targetedprocesses
Definefuturestate(FS)
processesandmetrics
Performgapanalysisbetween
CSandFSprocesses
Developinitialsetofusecases
Assessreportingandanalytic
requirementsforInformation
Warehouse
PrioritizeProcess
Improvements(PIs)
Updateandconfirm
functionalrequirements
FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES





UpdatedCSprocess
mapsandmetrics
FSprocessmapsand
metrics
ListofPIs
Usecases
Updatedfunctional
requirements
Chapter4Page11
TRACK
Procurement
ResourceRole:
Procurement
OrganizationalChange
Management
ResourceRole:
OrganizationalChange
Management
KEYTASKS

ReferenceChapter5


ITN
Vendorselection

Assesschangemanagement
needsandefforts
Developandconduct
stakeholderanalysis
Developandimplement
projectvisionandgoals
Developandimplement
communicationstrategyand
plan
Developandimplement
organizationimpactanalysis
andmanagementplan
Developandimplement
trainingplan
Developandimplement
changereadinessplanand
managementplan
Establishinitialgovernance
frameworkincludingprocess
andStructure
Provideprojectoversightas
needed
Facilitateissueresolution
Developandmonitordetail
projectplanandschedule
Performinitialprojectrisk
assessmentwithrisk
mitigation
PerformQAonproject
deliverables
Establishprogramplanning
framework
Supportprojectstart‐up
activities
Set‐upprojectlogistics
(facilities,systemaccess,
administrativesupport,etc.)
Developon‐boardingprocess
forstakeholders,team
members,contractors
Establishinitialproject
governanceandPMO
structure
Developprojectcharter
Maintainprojectartifacts

Changeprogram
charter
Projectvision
Changemanagement
assessment
Stakeholderanalysis
Changemanagement
strategyplan
Communicationplan
Changereadinessplan
Organizationimpact
analysis
Trainingstrategyplan






ProjectManagement
Office
ResourceRole:
ProjectManagement
Office













FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES


















Governancestructure
Governanceprocesses
andescalation
Detailprojectplan
Riskassessment
Governancereporting
Projectplanning
workbook
Defineprojectsupport
On‐boardingprocess
InitialPMOplanand
processes
Projectcharter
Chapter4Page12
TRACK
WorkforceTransition
ResourcesRole:
WorkforceTransition
KEYTASKS







SystemandData
Strategy
ResourceRoles:System
&DataStrategy




AssessInformation
Technology(IT)readinessfor
migrationtonewERP
platformandinfrastructure
IdentifynewITskillsand
knowledgerequirements
EstablishITaskeybusiness
advisorandpartnerin
collaborationwithFLAIR
stakeholdersinleveragingthe
newERPplatform
Assessfinancialmanagement
readinessformigrationto
newERPplatformand
infrastructure
Identifynewfinancial
managementskillsand
knowledgerequirements
Establishfinancial
managementaskeybusiness
advisorandpartnerinthe
pursuitofoperational
improvementsacrossall
stakeholdersusingFLAIR
Leveragethetransitionto
newERPFLAIR/CMSto
attract,develop,andretain
keyITresources
ConfirminventoryofState
agencyfinancially‐related
systemsandinterfacesto
FLAIR
Performinitialdataquality
assessmentofexistingdatain
legacyFLAIR
DeterminechangesinFLAIR
systemarchitecture,
infrastructure,datastructures
andanydataconversion
requirements
Developdataconversionplan
tomigraterequiredlegacy
FLAIR/CMSdata
KEYOUTCOMES








ITtransitionstrategy
ITskillandknowledge
profilematrix
Talentdevelopment
program
Financialmanagement
transitionstrategy
Financialmanagement
skillandknowledge
profilematrix
Agencysystemand
interfacestrategy
Masterdata
managementplan
Dataconversionplan
Exhibit4‐8:Pre‐DDIProjectTrackswithKeyTasksandOutcomes
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page13
4.1.2 PRE‐DDIINTEGRATIONWITHDDIPHASE
ThreeofthesixProjectTrackswithinthePre‐DDIPhasecontinuethroughthelifecycleofthe
project.ThefourProjectTrackswhichcontinuethroughPhase‐1DDIERPFLAIR/CMSCore
FunctionalityandpotentiallycontinueonthroughPhase‐2ExpandERPFunctionalityare:

OrganizationalChangeManagement

ProjectManagementOffice

WorkforceTransition

BusinessProcessReengineering
TheremainingProjectTrackshaveinputstotheDesignstageforcertainPhase‐1DDIProject
Tracks.Thesehand‐offs(outputswithcorrespondinginputsbetweenphases)betweenthe
Pre‐DDIProjectTrackstothePhase‐1DDIProjectTracksarenotedinthefollowingExhibit
4‐9:
Exhibit4‐9:IntegrationofPre‐DDIProjectTrackswithPhase‐1DDI
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page14
4.2 SYSTEMDEVELOPMENTANDIMPLEMENTATION
4.2.1 DESIGN,DEVELOPANDIMPLEMENT‐PHASES
Phase‐1DDIfocusesonFLAIR’scoreprocessesandselectCMSfunctionswithatransitionof
thoseprocessesandfunctionsfromthelegacyFLAIRenvironmenttothenewERPandIW
technologyplatform.TheFLAIRcoreprocessesandCMSfunctionswhicharein‐scopefor
Phase‐1DDI(asreferencedinChapter2Section2.3.1)are:


ImplementCentralFLAIRFunctionsinERP
o
InterfacewithexistingDepartmentalFLAIRandbringalltransactionstonew
ERPplatform
o
CashLedger
o
ElectronicFundTransfer(EFT)
o
Warrants
o
InterfaceswithLAS/PBS,MFMPandPF
o
InterfacewithnewInformationWarehouseplatform
ImplementDepartmentalFLAIRFunctionsinERP
o
GeneralLedger(GL)
 DepartmentswillcontinuetouseexistingDepartmentalFLAIRuntil
transitionedovertotheERP
 SincetransactionsareallsenttothenewERPitwilleffectivelybethe
GLforthestateevenbeforealldepartmentsaretransitionedtothe
newERP

o
AccountsReceivables(AR)
o
AccountsPayables(AP)
o
ProjectAccounting
o
AssetAccounting
o
GrantsAccounting
BuildCMSFunctionsinERP
o
Verifies
o
Receipts
o
Chargebacks
o
TrustFundAccounting
o
Disinvestments
o
BankAccounts
o
StateAccounts
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page15

o
ConsolidatedRevolvingAccount
o
AgencyRepository(documentandreportingmanagement)
o
WarrantProcessing
o
InvestmentAccounting
o
InterfaceswithInvestmentsTradingandSpecialPurposeInvestment
Accounts
BuildPayrollFunctionsinERP
Phase‐2DDIfocusesonexpandingERPfunctionalitytousemoreofthecapabilitiesofthe
ERPsystemandimprovebusinessoperations.Potentialprocessesin‐scopeforPhase‐2DDI
(asreferencedinChapter2Section2.3.3)are:

TransitionfromGrantAccountingtofullGrantManagementfunctionality

TransitionfromProjectAccountingtofullProjectManagementfunctionality

TransitionfromAssetAccountingtofullAssetManagementfunctionality

ImplementContractManagementfunctionality

OtherFunctionalitybasedonbusinessprocessreengineering
TheoveralltimelinefortheDDIPhasetoaddressFLAIR’scoreprocessesandCMSfunctions,
inadditiontoexpandedERPfunctionality,arenotedbelowinExhibit4‐10.Sections4.2.1.1–
4.2.1.15highlightthekeyactivitiesassociatedwitheachProjectTrackinExhibit4‐10.
Activities
Pre‐DDI
Planning,Re‐engineering,andProcurement
DDIPhase1:ImplementERPSolution
ImplementERPforFLAIR/CMS
FY
14‐15
FY
15‐16
DeployInformationWarehouseforERP
FY
16‐17
FY
17‐18
FY
18‐19
FY
19‐20
FY
20‐21
FY
21‐22
FY
22‐23
FY
23‐24
FY
24‐25
FY
25‐26
FY
26‐27
FY
27‐28
FY
28‐29
ERPSolutionandSISelected
Go/No GoDecision
Go/No Go Decision
CentralFLAIRRetired
CMSRetired
PilotERPSolution
CMSRollout
FLAIR/IWRollout
DepartmentalFLAIRRetired
ImplementPayrollinERP
LegacyPayrollRetired
MFMPIntegration(AsNeeded)
PeopleFirstIntegration(AsNeeded)
LAS/PBSIntegration(AsNeeded)
PMO(ContinuedFromPre‐DDIPhase)
OCM(ContinuedFromPre‐DDIPhase)
WFT(ContinuedFromPre‐DDIPhase)
DDIPhase2:ExpandERPFunctionality
AddExpandedFunctionalityinAllAgencies
OperationsandMaintenance
SupportExistingFLAIR
SupportERPFLAIR
UpgradeERP
People FirstContractExpires
MFMPContractExpires
Exhibit4‐10:DDIProjectTrackTimelines
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page16
4.2.1.1 IMPLEMENTFLAIR/CMSERPPROJECTTRACK
ThekeyImplementFLAIR/CMSERPProjectTrackactivitiesandassociatedtimelineare
describedbelowinExhibit4‐11:
Exhibit4‐11:ImplementFLAIRERPTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforImplementFLAIR/CMSERP
ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

ImplementFLAIRinERP(Central&Departmental)‐Functional

ImplementFLAIRinERP(Central&Departmental)‐Technical

ImplementCMSinERP

FFMISSystemIntegration

Testingandqualityassurance
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.1)
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page17
4.2.1.2 IMPLEMENTINFORMATIONWAREHOUSE(IW)PROJECTTRACK
ThekeyImplementIWProjectTrackactivitiesandassociatedtimelinearedescribedbelow
inExhibit4‐12:
Exhibit4‐12:ImplementIWTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforImplementInformation
Warehouse(IW)ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2and
consistof:

ImplementInformationWarehouse(IW)
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.2)
4.2.1.3 PILOT‐FLAIR/CMSREPLACEMENTPROJECTTRACK
ThekeyPilot–FLAIR/CMSReplacementProjectTrackactivitiesandassociatedtimelineare
describedbelowinExhibit4‐13:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page18
Exhibit4‐13:Pilot(FLAIR/CMSReplacement)TimelineandActivities
Theexpectedresourceroles,withassociatedtimeframes,forPilot(FLAIR/CMSReplacement)
ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

ImplementFLAIRinERP(Central&Departmental)‐Functional

ImplementFLAIRinERP(Central&Departmental)‐Technical

ImplementCMSinERP

ImplementInformationWarehouse(IW)

TestingandQualityAssurance
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.3)
4.2.1.4 CMSROLLOUTPROJECTTRACK
ThekeyCMSRolloutProjectTrackactivitiesandassociatedtimelinearedescribedbelowin
Exhibit4‐14:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page19
Exhibit4‐14:CMSRolloutTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesCMSRolloutProjectTrack,are
mappeddirectlytoAttachment1Section1.2.4.2andconsistof:

RolloutCMSERPtoAgencies
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.4)
4.2.1.5 FLAIR/IWROLLOUTPROJECTTRACK
TheFLAIR/IWRolloutProjectTrackwillconsistoffourwavestostaggertherolloutofFLAIR
ERPandthenewIWplatformtothedepartmentandagencies.Theassignmentofaparticular
agencytooneofthefourwavesisdeterminedduringthePre‐DDIPhase.
ThekeyFLAIR/IWRolloutProjectTrackactivitiesandassociatedtimelinearedescribed
belowinExhibit4‐15below:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page20
FY/
Qtr
FY:19‐ 20
Qtr1
FY:19‐ 20
Qtr2
FY:19‐ 20
Qtr3
FY:19‐ 20
Qtr4
FY:20‐ 21
Qtr1
FY:20‐ 21
Qtr2
FY:20‐ 21
Qtr3
FY:20‐ 21
Qtr4
POSTIMPLEMENT(FLAIR/IWRollout)
Wave1‐ Agencies
Wave2‐ Agencies
Wave3‐ Agencies
MonitorFLAIR/IWPilot
andReportFLAIR
BaselinePerformance
Metrics
MonitorWave1Rollout
andReportFLAIR
BaselinePerformance
Metrics
MonitorWave2Rollout
andReportFLAIRBaseline
PerformanceMetrics
ConductFLAIRERP&IW
End‐UserTrainingfor
Agencies
ConductFLAIRERP&IW
End‐UserTrainingfor
Agencies
UpdateOCMandWork
ForceTransformation
Tasks
UpdateOCMandWork
ForceTransformation
Tasks
UpdateERP/IWForAny
ChangesandInterfaces
UpdateERP/IWForAny
ChangesandInterfaces
ConductFinalSystem
andAgencyVerification
Test
ConductFinalSystem
andAgencyVerification
Test
Conduct“Go/NoGo”
DecisiononRollout
Conduct“Go/NoGo”
DecisiononRollout
ConductFLAIRERP&IW
End‐UserTrainingfor
Agencies
UpdateOCMandWork
ForceTransformation
Tasks
UpdateERP/IWForAny
ChangesandInterfaces
ConductFinalSystem
andAgencyVerification
Test
MonitorWave3Rollout
andReportFLAIRBaseline
PerformanceMetrics
Exhibit4‐15:FLAIR/IWRolloutTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforFLAIR/IWRolloutProjectTrack,
aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

RolloutFLAIRERP/IWtoAgencies
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.5)
4.2.1.6 IMPLEMENTPAYROLLERPPROJECTTRACK
ThekeyImplementPayrollERPProjectTrackactivitiesandassociatedtimelinearedescribed
belowinExhibit4‐16:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page21
Exhibit4‐16:ImplementPayrollERPTimelineandActivities
ThetimingoftheImplementPayrollTrackwilldependondecisionsmadeforthePeopleFirst
contractrenewalinAugust2016.Theactivitiesandestimatedresourcesassumethe
replacementofthecurrentpayrollfunctions.IfPeopleFirsttakeonanyadditionalpayroll
functionstheseactivitiesandresourceswillneedtobereviewedandupdated.Theexpected
resourceroles,withassociatedtimeframesforPayrollImplementationProjectTrack,are
mappeddirectlytoAttachment1Section1.2.4.2andconsistof:

Plan,Design,andImplementPayrollinERP

TestingandQualityAssurance
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.7)
4.2.1.7 MFMPINTEGRATIONPROJECTTRACK
ThekeyMFMPIntegrationProjectTrackactivitiesandassociatedtimelinearedescribed
belowinExhibit4‐17:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page22
Exhibit4‐17:MFMPIntegrationPhaseTimeline
Theexpectedresourceroles,withassociatedtimeframesforMFMPIntegrationProjectTrack,
aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

MFMPLiaison
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.6)
4.2.1.8 PEOPLEFIRST(PF)INTEGRATIONPROJECTTRACK
ThekeyPFIntegrationProjectTrackactivitiesandassociatedtimelinearedescribedbelowin
theExhibit4‐18:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page23
Exhibit4‐18:PFIntegrationTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforPayrollImplementationProject
Track,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

PeopleFirstLiaison
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.7)
4.2.1.9 LAS/PBSINTEGRATIONPROJECTTRACK
ThekeyLAS/PBSIntegrationProjectTrackactivitiesandassociatedtimelinearedescribed
belowinExhibit4‐19:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page24
Exhibit4‐19:LAS/PBSIntegrationTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforLAS/PBSIntegrationProject
Track,aremappeddirectlytoAttachment1Section1.2.4.2andconsistof:

LAS/PBSLiaison
4.2.1.10 INDEPENDENTVALIDATIONANDVERIFICATIONPROJECTTRACK
ThekeyIV&VProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit
4‐20:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page25
Exhibit4‐20:IV&VTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforIV&VProjectTrack,aremapped
directlytoAttachment1Section1.2.4.2andconsistof:

IndependentValidation&Verification
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.8)
4.2.1.11 PROJECTMANAGEMENTOFFICEPROJECTTRACK
ThekeyPMOProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit
4‐21:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page26
Exhibit4‐21:PMOTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforPMOProjectTrack,aremapped
directlytoAttachment1Section1.2.4.2andconsistof:

ProjectManagementOffice
4.2.1.12 ORGANIZATIONALCHANGEMANAGEMENTPROJECTTRACK
ThekeyOCMProjectTrackactivitiesandassociatedtimelinearedescribedbelowinExhibit
4‐22:
FloridaDepartmentofFinancialServices
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Exhibit4‐22:OCMTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforOCMProjectTrack,aremapped
directlytoAttachment1Section1.2.4.2andconsistof:

OrganizationalChangeManagement
4.2.1.13 WORKFORCETRANSITIONPROJECTTRACK
ThekeyWFTProjectTrackactivitiesandassociatedtimelinearedescribedbelowarein
Exhibit4‐23:
FloridaDepartmentofFinancialServices
FLAIRStudy
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FY/
Qtr
FY:16‐ 17
Qtr1‐ 2
FY:16‐ 17
Qtr3‐ 4
FY:17‐ 18
Qtr1‐ 2
FY:17‐ 18
Qtr3‐ 4
FY:18‐ 19
Qtr1‐ 2
FY:18‐ 19
Qtr3‐ 4
FY:19‐ 20
Qtr1‐ 2
FY:19‐ 20
Qtr3‐ 4
FY:20‐ 21
Qtr1‐ 2
FY:20‐ 21
Qtr3‐ 4
WorkforceTransition(WFT)
ImplementERP/IW*
Pilot&CMSRollout*
KeyActivities
KeyActivities
DesignandConduct
Organization(Org.)
ImpactAnalysis
DevelopTraining
Strategy
DefineEnd‐UserNeeds
Assessment
DefineEnd‐UserSupport
Strategy
DefineEnd‐UserRoles
andRequiredSkills
DefineOrg.Alignment
Plan
FLAIRRollout*
KeyActivities
Payroll/KeyInterfaces*
KeyActivities
ConductEnd‐User
FLAIR/CMSTrainingand
MeasureOutcomes
ConductEnd‐User
FLAIR/CMSTrainingand
MeasureOutcomes
DesignandConductOrg.
ImpactAnalysis
DeployOrganization/
UserRolesAlignments
DeployOrganization/
UserRolesAlignments
DevelopTraining
Strategy
AssessBusiness
TransitionandIdentify
Gaps
AssessBusiness
TransitionandIdentify
Gaps
DefineEnd‐UserNeeds
Assessment
DeployEnd‐UserSupport
(HelpDesk)
DeployEnd‐UserSupport
(HelpDesk)
DefineEnd‐UserSupport
Strategy
IdentifyGapsinUser
Adoption/Training
Roles
IdentifyGapsinUser
Adoption/Training
Roles
DefineEnd‐UserRoles
andRequiredSkills
SustainandImprove
WorkforcePerformance
SustainandImprove
WorkforcePerformance
DefineOrg.Alignment
Plan
*MajorMilestones(KeyInterfacesareMFMP,PF&LAS/PBS)
Exhibit4‐23:WFTTimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforWFTProjectTrack,aremapped
directlytoAttachment1Section1.2.4.2andconsistof:

WorkforceTransition

End‐UserTraining
4.2.1.14 PHASE‐2EXPANDEDERPFUNCTIONALITYPROJECTTRACK
ThekeyPhase‐2DDIactivitiesandassociatedtimelinearedescribedbelowinExhibit4‐24:
FloridaDepartmentofFinancialServices
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Exhibit4‐24:Phase‐2DDITimelineandActivities
Theexpectedresourceroles,withassociatedtimeframesforPhase‐2ExpandedERP
FunctionalityProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.3andconsist
of:

Plan&AssessExpandedERPFunctionality

Design,Develop&Implement–ExpandedERPFunctionality

RolloutExpandedERPFunctionalitytoAgencies

EndUserTraining
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.9)
4.2.1.15 OPERATION&MAINTENANCEPROJECTTRACK
ThekeyOperations&MaintenanceProjectTrackactivitiesandassociatedtimelineare
describedbelowinExhibit4‐25:
FloridaDepartmentofFinancialServices
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Exhibit4‐25:Operations&MaintenancePhaseTimeline
Theexpectedresourceroles,withassociatedtimeframesforOperations&Maintenance
ProjectTrack,aremappeddirectlytoAttachment1Section1.2.4.5.
AdditionalexamplesofdetailedactivitiesforthisparticularProjectTrackcanbefoundinthe
Appendix(ReferenceSection4.4.10)
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4.3 ORGANIZATIONALCHANGEMANAGEMENTANDWORKFORCETRANSITION
Whenanychangeoccurswithinanorganization,stressandlossofproductivityisfully
expected.Thegreaterthechange,thelongerittakestoregainstabilitywithinthenew
environment.Extensiveresearchprovesastructuredandproactiveapproachtochange
managementwillminimizethereductioninproductivityandenhanceresultsfasterthanif
changemanagementisnotengaged.MigratingDFSandstateagenciestoanERPsolutionfor
FLAIR/CMSreplacementwillultimatelybenefittheStateofFlorida;thetransitionrepresents
asignificantchangetotheStateandwillcertainlybechallenging.
AcombinationofarobustOCMandWFTframeworkandstrategyisdesignedtoproactively
transitionDFSstaffandotherstateagencyemployeesthroughthesechanges.This
consolidatedstrategyprovidesacomprehensiveapproachtopreparingfor,managing,and
reinforcingtheimpactofthechangeswhichwilloccurinthetransitiontoanewERPplatform
andstandardizedprocesses.Developmentofthisstrategyintoanexecutablecommunication
plan,escalationprocessandclearlyarticulatedstakeholderanalysiswillpromotesuccessful
andtimelyimplementationandsustainmentoftheState’stransitiontoanERPsolutionfor
FLAIRcoreprocessesandselectCMSfunctions.
4.3.1 ORGANIZATIONALCHANGEMANAGEMENT
OrganizationalChangeManagementisacomprehensivesetofpracticalandproven
strategies,toolsandtacticsdesignedtomitigatethebusinessandhumanrisksassociated
withmajororganizationalchanges.Itistheprocessofaligningpeoplewithchangesin
strategy,businessprocesses,andtechnologytohelpanorganizationachievegoalsassociated
withaparticularchangeinitiative.EffectiveOCMisassociatedwithanimprovedprobability
ofprojectsuccess,increasedmanagementbuy‐in,andhigherend‐useracceptancethanif
OCMwerenotapplied.
Exhibit4‐26belowdemonstrateshowperformancedeclineswiththeimplementationofany
changeandhowwell‐managedchangedecreasesboththedepthanddurationofproductivity
loss.
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TheGoalof
“Managed
Change”
The“Value”of
Change
Management
Unmanaged
Change
Change
Implementation
Time
Exhibit4‐26:ProductivityImprovementwithManagedChange
Theconceptthatchangecanbeeffectivelymanagedisbasedontheassumptionscertain
strategiescanbeappliedtoinfluencehumanandorganizationalbehavior.Thesestrategies
includesuchthingsasongoingtwo‐waycommunication,visibleandconsistentleadership
commitment,andinvolvementfrompeopleimpactedbythechange.Activitiesoften
associatedwithOCMinclude:

Clearlystatingthevisionandarticulatingbenefitsofthechange

Identifyingandcoachingkeyleadershipandmanagementsponsorstosupportand
sanctionthechange

Identifyingstakeholdergroupsimpactedbythechange

Planningandexecutingcommunicationstosupportkeystakeholderneeds

Identifyingandproposingopportunitiesforstakeholderinvolvement

Planningforandexecutinganeducationandtrainingprogramforstakeholdersbased
onnewsystem,processes,policiesandprocedures,andresponsibilities

Assessingtheimpactofprocess,organizationandjobchangesandaligningthe
organizationthroughperformancemeasures,incentives,managementpoliciesand
internalprocesses

Assessingandmanagingresistancetochange
FloridaDepartmentofFinancialServices
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4.3.1.1 OCMFUNCTIONALMODEL
TheFLAIRReplacementProjectisaverylarge,vastlycomplexchangeinitiative.Itwill
involvechangestolongstandingbusinesspractices,willaffectemployeeduties,jobfunctions
androlesandwillinvolvemultipleorganizations,eachworkingtoachievedifferentmissions.
Effectivechangemanagementrequiresacarefullyplannedimplementationwhichis
collaborativeandhighlyleveragedwithstateresourcesineachagency.TheOrganizational
StrategypresentedbelowinExhibit4‐27isonemodeltousetoensureagencyparticipation
andeffectivemanagementoftheemployees’journeythroughoutthelifeoftheproject.
Communication
FLAIRReplacement
OrganizationalChange
ManagementTeam
Stakeholder
Awareness
AgencyDirectoror
DepartmentSecretary
Communications,
OCMMaterials,
StrategicDirection,
&Coaching
Communication,
Sponsorship
Requests&
Support
External
Stakeholders
EOG,Cabinet,
SenateandHouse,
FFMISCouncil,
Other
Department
Other
andAgency
Stakeholders
Staff
OCMActivities,
Training&
Resistance
Management,etc.
Feedback
Agency
ChangeCoordinators
Project
Communication
Executive
Communication&
Sponsorship
ChangeAgent
Network
Change
Communication
Team
Feedback
StateofFlorida
Departmentsand
Agencies
ProjectTeam
PMO,IV&V,WorkForce
Transformation,SI,
OtherVendors
Exhibit4‐27:OCMFunctionalModel
TheOCMstrategycanbeusedtodrivesuccessfulchangeandcommunicationsfortheFLAIR
ReplacementProjectandachievethefollowingobjectives:
FloridaDepartmentofFinancialServices
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
EstablishascalablestructuretosupportchangemanagementfortheFLAIR
ReplacementProjectandprovidefortheabilitytoprioritizeandmanage
communicationsandchangeacrossmultipleagencies.

Createconsistent,efficientmessagingandcommunicationforsystemendusers
regardingtheFLAIRReplacementProjectandtheroletheywillplayinthetransition.

Createawarenessandunderstandingamongsystemendusersregardingnewpolicies
andproceduresandlong‐termbenefitsofconvertingtoanERP.

CommunicatetheprojectplanfortheFLAIRReplacementProjectimplementation,
overalltimingfordeployment,andtheimpacttostaff.

Ensureallagencyleadershipandstaffareawareofprogramandpolicychanges
occurringwiththeimplementationofFLAIRReplacementProject.

Securebuy‐infromagencyleadershiptoensuretheyaresupportiveoftheprojectand
provideresourcesneededtoachieveenduseracceptanceandadoptionofthe
changes.
ChangeManagementobjectivesareaccomplishedby:

EstablishingaStrategicOCMTeamconsistingofrepresentationfromallofthe
affectedareasandstakeholders.

EstablishinganOrganizationalChangeManagementandCommunication(OCM&C)
ChangeAgentTeamacrosstheagencies.Theseagency‐basedOCM&Cteamsare
responsiblefordirectcommunicationtoagencystaffandotheragencystakeholder
groups.

EmpoweringtheOCM&CteamwiththeabilitytomanageFLAIRReplacement
Projectrelatedmessagecontent,senders,receiversandtiming.Providingconsistent
communications,toolsandresourcestoChangeAgents.

Addressingissuesandsettingprioritiesformattersarisingastheprojectprogresses.

Leveragingexistingstructuresandcommunicationchannelswhileidentifyingnew
approachestomaximizecommunications.
4.3.1.2 OCMANDWFTFRAMEWORKANDDELIVERABLES
TheOCMandWFTstrategyandassociatedframeworkshouldalignwiththeoverall
implementationstrategyandtheassociatedimplementationstagesasdescribedinthe
beginningofthisChapterunderImplementationStrategy.
ThefollowingExhibitillustratesthefivekeystageswiththeirassociatedOCMandWFT
deliverablesandtasks.
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Exhibit4‐28:ConsolidatedOCMandWFTFramework
Itisimportanttonote,toexecuteprojectsrightthefirsttime,changemanagementmustplay
acoordinatedrolewithintheprojectmanagementteam.Tohaveasuccessfultransition,
synchronizationbetweentheOCMactivitiesandotherworkstreamsisimperative.
ThepotentialdeliverablesassociatedwiththeoverallOCMeffortaredetailedinExhibit4‐29
below.TheOCMframeworkissuitedtotheFLAIR/CMSReplacementProjectandshouldbe
consideredasageneralguideandstartingpoint,supplementedwithadditionaltoolkitsand
bestpracticesasneeded.
Deliverablesmarkedwithanasterisk(*)identifyitemsrequiringahighdegreeof
coordinationandcollaborationacrosstheOCMworkstreams.Someofthesedeliverablesare
drivenbyindividualsintheotherworkstreamsandtheyareincludedtoshowhowthey
coordinatewiththeoverallOCMefforts.
DELIVERABLE
PURPOSE
PLAN&ASSESSSTAGE
ChangeProgramCharter


ProjectVision


Confirmthescopeandobjectivesofthechangemanagement
effort
Ensuretheprojectteamsharesacommonunderstandingofthe
changemanagementeffort
Laythegroundworkformovingforward
Ensureallstakeholdersknowtheorganization’schangegoals
FloridaDepartmentofFinancialServices
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DELIVERABLE
PURPOSE

ChangeManagement
Assessment
StakeholderAnalysis








ChangeManagement
StrategyPlan
CommunicationPlan*




ChangeReadinessPlan,
PeriodicChange
ReadinessAssessment




Provideabasisforconsistentcommunicationregardingthe
change
Identifybarrierstochange
Learnfromchangehistory
Determinemajorchangemanagementfocusareas
Begindevelopingbuy‐inandinvolvement
ServeasaninputtotheChangeManagementPlan
Ensureunderstandingandinclusionofallimpactedstakeholders;
stakeholdersincludeanyoneimpactedbyorwithavested
interestinthechange
Plantraining
Serveasthebasisforchangemanagement,communication,
involvement,andaninputintodevelopmentofspecificindividual
stakeholderlistsfortraining,communication,andinvolvement
purposes
Guidechangemanagementactivities,incorporatingoverall
changemanagementobjectivesandapproach
Serveasabasisforcommunicationamongchangeleaders
Serveasaguideforplanning,developing,anddelivering
communicationstostakeholders
Buildcommitmentandbuy‐inthroughkeepingstakeholders
informed
Provideamechanismtocommunicateandcelebratesuccesses
Developtheapproachforgaugingaffectedstakeholderreadiness
fortheupcomingchangeastheprojectprogresses
Ensuretheorganizationispreparedforthechange
Proactivelyidentifyareasofriskorwherereadinessdevelopment
isofftrackandadjustmentstothechangemanagementapproach
iswarranted
DESIGNSTAGE
OrganizationImpact
Analysis*



OrganizationAlignment
Recommendations
Strategy*
TrainingStrategyPlan*





InvolvementPlan&
SummaryChart*



Understandtheeffectsofthechangeontheorganizationand
communicatethoseimpacts
Actasinputtotrainingstrategy,involvementplan,and
organizationalignmentplan
Providerecommendationstoserveasthebasisfordevelopment
oftheOrganizationAlignmentStrategyandPlan
Serveasaguideforplanning,developing,anddelivering
organizationalignmentactivities
Ensureallelementsoftheorganizationsupportperformanceof
thedesiredbehaviors
Serveasaguidetotrainingdevelopmentanddeliveryactivities
Providedetailedinformationregardingtrainingneeds,audiences,
courses,deliverymethods,etc.
Serveasthebasisforplanningtraininglogistics,acquiringand
preparingtrainingandsupportresources
Providethebasisforbuildingbuy‐inandcommitmenttochange
throughinvolvementinthechangeprocess
Ensurestakeholdersareappropriatelyinvolvedinchangeand
projectactivities
Providestakeholdersavoiceinthechangeprocess
FloridaDepartmentofFinancialServices
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DELIVERABLE
PURPOSE
DEVELOPSTAGE
TrainingProgram*


DevelopChangeNetwork
andChangeAgents



OrganizationAlignment
Plan*


SponsorActionPlans



Developatrainingprogramandsupportmaterialstoenable
effectiveskillandknowledgeacquisitionrequiredforsuccessful
jobperformanceandachievementofchangegoals
Prepareinstructorsandcoachesfortheirtraininganduser
supportroles
Createaninternalnetworkofrespectedresourceswhocanassist
inimplementingandintegratingthechangeintotheirareas
Buildcredibilityandcommitmenttothechangethroughdelivery
ofchangemessagesandactivitiesbyknownandrespected
internalresources
Gainadditionalinsightsintorequirementsforchangesuccessby
thosewhoarelivingwiththechangelong‐termandare
representativesoftheimpactedstakeholdergroups
Serveasaguideinimplementingspecificorganizationalignment
activities
Serveasacommunicationtooltoresourceswhomustbe
involvedinorganizationalignmentactivities
Provideaguideforsponsorstoeffectivelyexecutetheirroles
Ensureappropriatesponsorshipisoccurringtosupportproject
andchangemanagementimplementationneedsandachievement
ofthechangegoals
Provideeachsponsorwithaspecificsetofactivitiesanddefined
timescheduletoenabletheirplanningandparticipation
IMPLEMENTSTAGE
Deliver&Measure
Training*


Communicate
ImplementationDetails*




Implement
OrganizationalChanges*

ConductImplementation
ReadinessAssessment



Preparestakeholderstoperformeffectivelyfollowing
implementation
Ensurestakeholdershavedevelopedtheskillsandknowledge
requiredtosuccessfullyperformtheirjobsfollowing
implementation
Ensureallstakeholdersknowwhatwillhappenduringthe
implementationprocess
Ensureresourcesknowtheirspecificrolesandresponsibilities
duringimplementation
Prepareforasmoothchangeimplementation
Ensuremanagersandsponsorsarepreparedfortheirrolesand
knowwhattoexpectduringandfollowingimplementation
Beginimplementationofappropriatechangesidentifiedinthe
organizationalignmentplantoenableandsustaineffective
performancefollowingimplementation
Ensuretheorganizationandresourcesarepreparedforthe
implementation
Ensureeveryoneknowstheirrolesandeventtimingduring
implementation
Ensureallpeople,process,andtechnologyelementsare
preparedforimplementation
POSTIMPLEMENTATIONSTAGE
RefresherTraining&
PerformanceSupport*

Providesupporttohelpstakeholderscontinuetodeveloptheir
skillsandknowledgewithregardtothechangedenvironment
FloridaDepartmentofFinancialServices
FLAIRStudy
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DELIVERABLE
PURPOSE

AdHoc&
Follow‐on
Communication*
On‐SiteSupport&
Coaching




Sustain&Improve
Performance


Provideorganizationalsupportforcontinuedrefinementand
continuousimprovement
Ensurestakeholdersareinformedregardingimplementation
progress,status,successes,andnextsteps
Provideongoingupdatesrelatedtothechange
Providehands‐onsupportduringandfollowingimplementation
toassistsponsorsandstakeholdersinworkingthroughissues
theyencounterwiththechange
Ensuresponsorsandmanagersareabletoeffectivelyhandle
issueswhicharise
Ensurethedesiredchangegoalsarebeingachieved
Implementadditionalrefinementstofurtherpromoteeffective
performanceandtheabilitytosustainandexceedtargetgoals
Exhibit4‐29:OrganizationalChangeManagementDeliverables
4.3.1.3 COMMUNICATIONPLANNING&IMPLEMENTATION
Frequentandopencommunicationwhichestablishesclearandcompellingreasonsfor
changeisacriticalsuccessfactorinchangemanagementinitiatives.Communicatingchange
requirestheaudiencetounderstandtheirroleinthechange,theimpactofthechange,and
whattoexpectfromthechange.Whenthisisaccomplished,userstransitiontothenew
processesandtechnologyassociatedwiththeprojectwithlessresistanceanddisruptionto
normaloperations.
Coremessagesmustdemonstratehowtheprojectisalignedwithagencystrategy,beeasyto
understand,andfitconsistentlywithDFS’valuesandculture.Messagesarebestreceived
whentheyfocusonthebenefitsforeachstakeholdergroupandrelaythebenefitsofthe
changefortheorganization.
Tomaximizetheeffectiveness,thecommunicationstrategyfocusesonthefollowing
objectives:

Promoteownershipandacceptanceoftheprocess,technology,andorganizational
changeswhichwillaccompanytheproject

Guideprojectsponsorsandleadersinthecommunicationdevelopmentanddelivery
process

Ensurestakeholdersreceiveappropriatecommunicationregardingtheproject

Promoteconsistentandregularcommunication

Reducefearandresistance

Communicatewins

Ensurepeoplereceiveandunderstandthemessagessent

Promotetwo‐waycommunicationregardingtheproject
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Thecommunicationsapproachincludesthreeoverlappingphases:PreparetoCommunicate,
DevelopthePlan,andImplementandAssessthePlan.Exhibit4‐30isarepresentationofthis
communicationapproach.Itisimportanttorealizethephasesofthecommunication
approachareinterdependentanditerative.
Exhibit4‐30:CommunicationApproach
PreparetoCommunicate
Thisphaseinvolvesidentifyingstakeholdersandanalyzingtheenvironmentaland
organizationalaspectspriortodevelopingthecommunicationplan.Itistightlyintegrated
withchangemanagement.
Understandingwhoisimpactedandthedegreeofimpactenablescommunicationstomeet
theneedsofindividualstakeholders.Startingwiththeorganizationalstructure,and
analyzingthetargetedgroups,astakeholderanalysisidentifiestheimpactedgroups,
includingthoseoutsidetheorganizationsuchasvendorsorcustomers.Inaddition,the
stakeholderanalysisidentifiestheworkstream(s)impactingthegroup,levelofimpact(high,
mediumorlow),typeofchange,anticipatedreactionandactualreactiontothechange
(positiveornegative),andanticipatedchangemanagementneeds.
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Communicationsmusttakeintoaccountthechannelsused.Thecommunicationsteamwill
analyzetheAgency’schannelsalreadyinplacetoeffectivelytakeadvantageoftheexisting
channelswherepossible.Additionaltargetedcommunicationmayalsoberequiredto
supportthecommunicationneedsoftheaffectedstakeholders.
DevelopthePlan
Acommunicationplaniscreatedtodefineandcoordinatethevariouscommunicationswhich
willtakeplacerelatingtotheinitiative.Thecommunicationplanisamatrixoutliningthe
objectives,keymessages,timingofmessages,audienceandcommunicationvehicles.This
matrixprovidesanactionplanforcommunicationevents,andsupportscoordinationofkey
messagedateswiththemajorprojectphases.Thenthisplanistrackedandmanagedsothe
variouspiecesofcommunicationaredevelopedanddeliveredtotheappropriatestakeholder
groupsinaccordancewiththedeliveryoftheproject.
Thecommunicationplanoutlinesthefollowingelements:

Objective–thegoalofthemessageand/orwhyitisbeingconveyed

KeyPoints–themajormessagepointstobecoveredinthecommunication

Audience–thespecificgrouptowhomthecommunicationeventistargeted

Schedule–approximatetimingforwhenthemessageisdelivered

Dependencies–dependencieswhichmayaffectwhenandhowamessageis
communicated

Owner–thecommunicatorwhodeliversthemessageandensureitsdelivery

Vehicle–thedeliverymethods

Status/Comments–progressofcommunications;othernotesorinformation
regardingthecommunicationevent
Thedelivererofthemessageisanimportantconsiderationofcommunications:impacted
employeesprefertoreceivepersonalmessagesofchangefromtheirimmediatesupervisor,
andtheyprefertoreceivebusinessmessagesofchangefromleadership.The“owner”is
definedasthepersonwhoensuresmessagingissuccessfullytransmittedtotheappropriate
audiences;however,theownerisnotnecessarilythecreatorofthecommunicationmessage.
Duringthisphase,thecommunicationsteamalsodevelopsfeedbackmechanisms.This
importanttoolisusedduringtheimplementationformeasuringtheeffectivenessof
communicationsandallowsfeedbacktobeincorporatedbackintotheplan.
ImplementandAssessthePlan
Thisphaseproducesanddeliversinformationtoorfromthetargetedaudiences.The
communicationplanprovidesaroadmapforcommunicatingwiththevariousaudiences.
Severalstepstakeplaceinordertocarryoutthecommunicationplan.
FloridaDepartmentofFinancialServices
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Totrackcommunicationactivitiesfortheproject,acommunicationstrackingtool
(CommunicationEventLog)isused.Athoroughrecordofcommunicationsisessentialto
managingfuturephasesofprojectimplementations.
Utilizingthefeedbackmechanismsdevelopedduringthe“DevelopthePlan”phase,the
audienceandmeansofcommunicationisreviewedperiodicallytoensuremessagesconvey
thenecessaryinformationinthemostappropriateformat.Checkpointsactasamechanism
togaugetheeffectivenessofcommunicationsanddirectimprovementactivity.Followingthe
strategy,implementingtheplan,andmonitoringthecommunicationeffectivenessoffersthe
bestopportunityforthechangeefforttosucceed.
TheDetailedPlanforsupportingtheDepartment’scommunicationduringthetransition
periodisreferencedinAppendix4.5.14.
4.3.2 WORKFORCETRANSITION
Apowerfuldifferentiatorofhighperformingorganizationsistheyleveragetheirpeople.A
detailedWorkforceTransitionPlanhelpsDFSremainfocusedonaligningitspeoplewithits
businessstrategy,managing,developing,andmotivatingitstalentandensuringanymajor
businessandtechnologychangeseffectivelyservesitsbusinessneedsandsupportsits
employeesthroughtheimplementationoftheFLAIR/CMSReplacementProjectandbeyond.
WorkforceTransitionshouldbeusedtoinformthedevelopmentofaworkplantoidentify
thestepsnecessarytoalignandupdatethefuturebusinessprocesseswiththenewfunctional
modelandorganizationchart.Theplanshoulddefinethepriority,sequenceand
dependenciesofthetransitiontothenewoperatingmodel.Inotherwords,considerthe
priorityandsequenceofthetransitiontothenewbusinessprocessesinordertominimize
theimpacttotheorganizationalunit,department,oragency.Thisallowsthecompletionof
eachorganizationalandworkforcetransitionactivitytoalignwiththelargerFLAIR/CMS
ReplacementProjectimplementationactivitieswiththegoalofachievingasmoothtransition
forimpactedstakeholders.
Examplesofcriteriaforprioritizingthetransitionoffunctionalactivitieswithinthe
organizationalunitare(1)havingalowimpactonthecurrentoperatingprocessesandjob
positions,(2)engaginginhighvolumetransactions,(3)supportingsystemssunset,(4)
requiringasubstantialdegreeofre‐engineeringduetotheimplementationofnew
technology,and(5)requiringasubstantialchangeinrolesandcompetencies.
4.3.2.1 WORKFORCETRANSITIONSTRATEGY
Thisapproachcoordinatescloselywithagenciesandassociatedhumanresourcestaffto
createorganizationaldesignsappropriateforDFStodeliveronthedesiredprocessand
functionaloutcomesoftheproject.Organizationaldesignalsoensuresalignmentwithgoals
andprocessestoensurethechangeissustainablelong‐term.Ithasbeenshownthesooner
thehumanresourcesgroupisengaged,themorelikelythenewdesignwillbeimplemented.
Theapproachalsobringsinlegalteamsandotherkeystakeholdersduringthedesignprocess
toensureanyorganizationalshiftsarebothfullyunderstoodandpermissible.Thisapproach
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page42
allowstheagenciestobringtogethertherightgroupofstakeholderstoaddresstheparticular
needsofanyorganizationaldesigneffort.
Theorganizationaldesignisaformal,guidedprocess.Atitsbest,itintegrateshowpeople
worktogethertosolveproblemswiththeavailabletechnologyandprocessdefinitionina
waywhichmaximizesdeliveryonthestrategicgoalsofthebusiness.Thislevelofintegration
requiresparticipationfromtheorganizationalmembersduringthedesignprocess–without
participation,anydesignwillmostlikelyfail.However,itisalsoahighlysensitiveprocess,as
discussionsaboutjobs,roles,andorganizationalgoalsarerequiredtodeterminetheoptimal
design.
Thesuggestedapproachincludesfivecoresteps,asoutlinedbelow:
Exhibit4‐31:WorkforceTransitionApproach
Thefirsttwosteps,theCurrentState&OrganizationalAssessmentandGoalsand
ObjectivesforChange,areoftenperformedintandemwithprocessandtechnologychange
programswhicharebeingdevelopedanddelivered.
TheConceptualDesignphaserequiresDFStodeterminetheirorganizationalpriorities,in
particularrelativetotheircustomers.Itincludesidentifyingthecustomersanddetermining
howtobestprovidethemwithservices.Ifnecessary,theconceptualdesignphasealso
includescomingtoagreementregardingwhatservicesaredeliveredbytheorganization.

ConceptualDesignChallenges:Itcanbedifficultforindividualswhoareaccustomed
tojumpingdirectlyto‘movingboxes’onorganizationalchartstoworkinconceptual
design.Theconceptualworkhasthepotentialtobefrustratingwhenindividualsdo
notunderstanditspurpose.

ConceptualDesignSuccessCriteria:Theconceptualdesignismostsuccessfulwhen
thepeoplewhoareinvolvedinthedesigneffortunderstandthetradeoffsbeingmade
andwhytheconceptualdesigndevelopedisrightfortheorganizationatthistime.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page43
UponcompletionofConceptualDesign,theDetailDesignphasebegins.DuringDetail
Design,thecurrentorganizationalstructureiscomparedtotheagreeduponconceptual
design,andgapsareidentified.WithintheDetailDesignphase,anewDFSandagency
organizationalchartisbuiltandadesigndevelopedwhichwilldetermineprioritiesfor
successfuldelivery.Additionally,thedetaildesignworkestablishesscopeandscaleforthe
organization.Thishelpsdeterminehowmanypeopleareneededtosupportorganizational
objectivesgiventheproposedalignmentandstructure.Finally,jobdescriptionsaredrafted
withenoughdetailtoensurethehumanresourceteamcanworkwiththebusinessunitto
createdocumentationwhichalignswiththeinternalstandards.

DetailDesignChallenges:WithintheDetailDesignphase,itisimportanttofocuson
thedesignaspectsoftheorganizationalstructureandresistthetemptationtodesign
jobsforcertainindividuals.Itcanbeinherentlychallengingforfacilitatorstohelp
impactedindividualsworkthroughthisprocesswithoutfocusingontheirownjobsor
thoseoftheirfriendsandcolleagues.

DetailDesignSuccessCriteria:TheDetailDesignissuccessfulwhentheoutput
includesagreedupondetailedorganizationalcharts,jobdescriptions,andsizing
estimatesfortargetedstaffing.
TheImplementationPlanningphaseisthepointatwhichtheleadershipoftheorganization
mustcommitnamestoidentifiedroles,andissuejobopeningsforpositionswherean
internalpersonisnotavailable.DuringtheImplementationPlanningphase,the
Department’sstaff,otherstakeholderrepresentativesandhumanresourcesgroupshelp
definetheapproachtomappingjobstostaffincludingidentifyingtheneededskills,planning
thetransition,anddeterminingtrainingforindividualstopreparethemfortheirnewroles.
However,theDepartment’sleadershipteamandhumanresourcesstaffhavethefinal
responsibilityforassigningstafftoroles.
Oncethedetaildesigniscompleted,rushingintoimplementationcanbetempting.However,
thereareoftenrequirementsrelativetohumanresourcespoliciesandguidelinesandeven
legalreview,dependingonthescopeofthechanges.

ImplementationPlanningchallenges:WithintheImplementationPlanningphase,
thereareafewcriticalweekswhereconfidentialityisimportantbutalsodifficultto
maintain.Duringthisperiod,thefinaldesignispopulatedwithresourcenamesand
rolelevels.Alsoduringthistime,thehumanresourcesdepartmentmaybeworking
onactivitieslikere‐levelingofstaff,compensationpackages,andotherstaff‐
impactingcomponentsofthejobdefinitions.

ImplementationPlanningSuccessCriteria:TheImplementationPlanningphase
issuccessfuliftheDepartment’steam,includingbusinessunitleadersandhuman
resourcestaff,isabletomoveforwardwithimplementingtheneworganizational
designinathoughtful,effective,andimpactfulway.
4.3.2.2 WORKFORCETRAINING
Basedonthescopeandneedsoftheindividualinitiative,theprojectwillindicatewhichroles
areabletomoveforwardwith:trainingleads,trainingdevelopers,trainersand/ortraining
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page44
coordinators.Onmanyprojectsoneindividualwillperformmorethanonetrainingrole
duringtheprojectlifecycle.
Specializedtrainingandcoachingisessentialtocloseanyperformance,knowledge,skill,
cultural,orcompetencygapswhichcouldpreventasuccessfulimplementationofanew
system,organizationalredesign,orprocesschange.Thereisaclosetiebetweentrainingand
communications.Bothworkstreamsstrivetoincreaseawarenessandunderstandingofthe
change.Thisapproachensurescollaborationamongthechangemanagementworkefforts
existsandprovidesconsistentmessagingandperformancesupport.
Thetrainingapproachstartswithdevelopingthetrainingstrategytoensurewhenthe
trainingisdelivered,itmeetstheneedsoftheproject.
Exhibit4‐32:WorkforceTrainingApproach
Thedesignanddeliverysolutionsshouldconsidercomputerbasedorwebbasedtraining,
onlinemeetings,facilitatedworkshops,instructorleadtraining,trainthetrainer,audio
recordings,jobaids,experientialexercisesandstrategygaming.
Anotherkeyelementisidentifyingtrainingmetricstodeterminetrainingeffectivenessand
creatingatrainingscorecard.Evaluationsandsurveysconductedduringandafterthe
trainingcapturethemetricsappliedagainstthisscorecard,andtrainingcanberevisedand
improvedasneeded.
SeetheAppendix4.5.13formoredetailsontrainingandperformancesupportactivitiesand
deliverables.
4.3.2.3 DETAILEDDEPARTMENTALIMPACTSANDTRANSITIONIMPLEMENTATIONPLANS
ThefollowingTransitionFrameworkandPlanoutlinesthekeycomponentstoaddressa
potentialre‐deploymentofresources.ThesecomponentsconsistofkeyInputs,Tools,
ProcessesandRelatedActivities:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page45
DESIGN PHASE
Exhibit4‐33:TransitionalImplementationPlan
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page46
ID
INPUTS/TOOLS:





1





PROCESS:
High‐level
organizationaldesign
Chartertemplate
Draftcharters
Missionfacilitation
guide
High‐level
organizationaldesign
Chartertemplate
Draftcharters
Chartertemplate
Draftcharters
Processinventory
spreadsheet

Develop
organizationalunit
mission

Identifykey
businessfunctions

Identifykey
processesand
activitiesforeach
function
RELATEDACTIVITIES:









2
ExistingFloridajob
families

Analyzechartersfor
logicaljobdesigns


Developjobfamilies
andtitlesfornew
unit



3





4

Current
organizationalcharts
High‐level
organizationaldesign
Charter
Guidingprinciples
Staffmappingprocess
andtoolset
Jobpostingand
interviewprocess
Requiredstaffing
levels


Develop
organizational
structuretothe
lowestlevels

Identifystafffor
jobsthrough
mappingorposting




FutureStateProcess
design
Mapexisting
organizationunitstoFS
processdesign
Identifygaps
Identifyandresolve
businessfunctionissues
withotherunits
Developprocess
inventory
Gatherexistingprocess
documentation
Identifyprocessimpacts
Prioritizeprocess
impactsfor
reengineering
Identifyoverlapand
reuseopportunitieswith
otherunits
Identifyanddevelopand updatejobfamiliesand
titleswithHR
Identifyreuse
opportunitiesacross
units
Developnewdetailed
organizationalcharts
TransitionCharters
(Movingexisting
positionstodifferent
functions)
IdentifyHRimpacts–
titles,paygrades
Identifyskillgapsand
theneedtohirenewstaff
Employee
communicationsand
coaching
Exhibit4‐34:TransitionalImplementationActivity
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page47
4.4 APPENDIX
4.4.1 PHASE–1DDIIMPLEMENTERPFORFLAIR/CMS(EXAMPLES)
KEYTASKS
ACTIVITY
InstallERPEnvironments
(Software/Hardware/Database)
&ConfirmSet‐upIncludingNew
DataModel







PerformInitialConfigurationof
ERPPlatform&PerformStress
Testingof
Platform/Connectivity



FloridaDepartmentofFinancialServices
FLAIRStudy
Preparesitefordelivery
ofERPrelatedhardware
andsystemconnectivity
Performset‐upof
hardwarewith
connectivity,runinitial
diagnosticsandremediate
Performinitialset‐upof
database,runinitial
diagnosticsandremediate
LoadERPpackagewith
selectedmodulesonto
serverandrunset‐up
diagnostics
Configuredatabasebased
ontheERPmodulesand
datamodeldeveloped
duringPre–DDI
Informationmanagement
Establishandtest
requiredconnectivity
points
EstablishERPinitial
instancesand
environmentsfor
development,testingand
training
Performinitialset‐up
configurationofthe
selectedERPmodules
Runinitialtestscriptsto
confirmconfigurations
Performinitial
performanceandstress
testingofERPplatform
KEYOUTCOMES




OperationalERP
infrastructure
Configured
database
ERPplatformwith
selectedmodules
SelectedERP
modulesare
configuredbased
onSystem
Integrator’s
specifications
Chapter4Page48
KEYTASKS
ACTIVITY
ReviewFSProcessMaps,
ProcessImprovementsand
FunctionalRequirements&
PerformInitialMappingTo
InitialConfigurationfor
FLAIR/CMS





ConductInternalERPTraining
ofDFS/DISresourcesassigned
tosupportERPPlatform&
AssignERPTeams(DFS/SI)for
FLAIR/CMS







DevelopBaselineTestScripts
fromBPRUseCases&Execute
InitialRegressionTest(Resolve
Exceptions)



FloridaDepartmentofFinancialServices
FLAIRStudy
Conductwalk‐throughsof
FSprocessflows,PIsand
functionalrequirements
formappingtoinitial
moduleconfigurations
Configurein‐scope
modulesbasedoninitial
mappingoutcomes
Conductsimulation
sessionsusingthe
configuredin‐scopeuse
casescriptsandcollect
feedback
Updateconfigurations
basedonsimulation
feedback
Conductfollow‐up
simulationsessionas
neededtoconfirm
changes
Developtraining
materialsbasedonin‐
scopebusinessprocesses
andsupportingERP
modules
Developtrainingusecases
foreachofthein‐scope
ERPmodules
Pilottrainingsessionsfor
generalERPand
particularprocessmodel
knowledgedelivery
Conducttrainingsessions
andconfirmrequired
knowledgeandskill
Providefeedbackon
trainingsessions
Conductanyfollowup
trainingsessionsas
needed
Developusecasescripts
forin‐scopemodules
Updateinitialtestscripts
fromsimulationsessions
Establishtestingof
inboundandoutbound
interfacestotestagencies
Automatetestscriptsto
supportregressiontesting
KEYOUTCOMES







Simulation
(conferenceroom
pilot)scriptsand
results
1stiterationof
configuredin‐
scopemodules
Document
trainingmaterials
On‐linetraining
scriptsforERP
platformandin‐
scopemodules
Supporton‐
demandERP
trainingforin‐
scopemodulesin
traininginstance
UpdatedERPtest
scripts
Initialinbound
andoutbound
interfaces
Chapter4Page49
KEYTASKS
ACTIVITY
ConductEnduserERPTraining
forTargeted
Processes/Functionswithin
FLAIR/CMSforPilot






PerformInitialIterationofEnd
UserERPTestingofTargeted
Processes/FunctionsWithin
FLAIR/CMS





Basedon1stIterationTest
ResultsUpdate
Configurations/Environment,
ConfirmRemediation&Update
TestScripts





FloridaDepartmentofFinancialServices
FLAIRStudy
Developendusertraining
materialsforin‐scopeERP
modulesandbusiness
processes
Developonlineenduser
trainingscriptsforin‐
scopeERPmodules
Updatetraininginstance
withtrainingdata
Conductendusertraining
forin‐scopeERPmodules
andbusinessprocesses
andassessresults
Collectfeedbackonend
usertrainingsessionsand
remediateasneeded
Conductanyfollow‐up
endusertrainingsessions
asneeded
UpdateERPtestscripts
Updatedataintest
instance
Updateconfigurationof
interfacetestingfor
inboundandoutbound
interfaces
Conduct1stiterationof
endusertestingand
collectresults
Collectneeded
configuration,dataor
businessprocesschanges
Updateconfigurationsand
businessprocessesbased
onresultsfrom1st
iterationofenduser
testing
Updatetestscripts
Updateinterfacescripts
Establishproduction
instance
Migratetesttoproduction
instance
KEYOUTCOMES

Endusertraining
onin‐scopeERP
modulesand
business
processes

1stiterationofend
usertestingforin‐
scopebusiness
process,ERP
modulesand
interfaces

2nditerationof
ERPandinterface
configurationsfor
pilot
Chapter4Page50
KEYTASKS
ACTIVITY
ConductUserAcceptance
TestingofERPforTargeted
Processes/FunctionsWithin
FLAIR/CMS&Determine
“Go/NoGo”DecisiononPilot




UpdateProjectArtifacts
(Process,Training,Testing,
Technology)FromUATResults

Confirmproduction
instance(dataand
configurations)
FinalupdatetoUAT
scripts
ConductUATandcollect
resultsonperformance
andexceptions
PerformreviewofUAT
resultsfor“Go/NoGo”
decisiononpilot
Updateallproject
documentation
KEYOUTCOMES

UATforpilot

Updatedproject
documentation

Assesspilot
readiness
AssessOrganizational,
CommunicationandChange
ManagementImpactsFromUAT
Results&PilotDecision



AssessimpactofUATon
pendingpilot
organizations
Performcommunication
check‐point
UpdateOCMplanand
activities
Exhibit4‐35:ImplementERPforFLAIR/CMSReplacementTrackExamples
4.4.2 IMPLEMENTINFORMATIONWAREHOUSE(IW)PROJECTTRACKS(EXAMPLES)
KEYTASKS
ACTIVITY
InstallIWEnvironments
(Software/Hardware/Database)
&ConfirmSet‐up


EstablishMetadataLevelfor
NewReporting&Analytics
RequirementsfromBPRand
DevelopETLRules




FloridaDepartmentofFinancialServices
FLAIRStudy
Confirmtechnical
(hardwareandsoftware)
requirementsforselected
IWtool
InstallselectedITtoolinto
DFS’senvironment
Confirmset‐upofIWtool
BasedonFLAIR/CMS
reportandanalytic
requirementsandBPR
outcomesdevelop
metadatalayerfornew
IWtool
DevelopinitialExtract,
TransformandLoad
(ETL)RulesfornewIW
TestETLRulesandModel
KEYOUTCOMES

InstallnewIW
tool

ConfigureNewIW
tool
Chapter4Page51
KEYTASKS
ACTIVITY
ReviewFLAIR/CMSReporting
andAnalyticsrequirements&
performpreliminarymapping
ofrequireddatasourcing



Performdataassessmentand
QAkeydataelementsin–scope
forFLAIR/CMS


Remediatedataqualityissues
fromdataassessmentandQA
results
Develop1stIterationofIW
ReportsandAnalyticViews
basedonFLAIR/CMS
requirements





ConductSimulationSessions
using1stIterationIWReports
andAnalyticViewsforPilot
ParticipantsdonfeedbViews
Basedonfeedbackfrom
SimulationSessionperform2nd
IterationofIWReports&
AnalyticsViewsperform2n
IterationofIWReports&
AnalyticsViews
ConductIWToolTraining








FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES
Mapdatasourcesto
metadatamodel
Confirmmetadata
attributes(frequency)
Developanysource
interfacesneededto
completedatasourcing
Performdataassessment
oftherequireddata
elementsandattributes
forin‐scopeIWdata
Highlightdataquality
issueswithkeydata
elementstobeused
withinthenewIWtool
Correctkeydataquality
issuesatsourceorwithin
thenewETLprocess
Develop1st iteration
reportingandanalytic
viewsbasedon
requirements
EstablishtestdataforIW
tool
DevelopIWtestscripts
Conductinitialtestofthe
IWview
Conductsimulation
sessionsofIWprototype
CollectfeedbackandIW
changes

Initialsourcedata
mappingtoIW
tool

IWdata
assessment

CleanIWdata

1stiterationIW
prototype
(reportsand
analytics)

IWsimulation
sessionusingIW
prototype
Using1st iteration
feedbacktomakechanges
toIWtool(metadata,ETL
rules,reports)
ReviewIWchangesand
test2nditerationofIW
tool
DevelopIWtooltraining
materials
DevelopIWtooltraining
scripts
ConductIWtooltraining
forpilotparticipants
CollectfeedbackonIW
trainingandremediateas
needed

2nditerationIW
tool

IWtooltraining
forpilot
participants
Chapter4Page52
KEYTASKS
ACTIVITY
ConductUATonIWToolbased
onFLAIR/CMSReporting&
AnalyticsRequirements

MigrateIWTooltoProduction
&DeploytoPilotUsers





UpdateIWtest
environment
UpdateIWtestscripts
ConductIWUAT
Assessresultsanddecide
onpilot
MigrateIWenvironment
toproductioninstance
Provideenduseraccessto
pilotparticipants
KEYOUTCOMES

IWUATforpilot

IWproductionfor
pilot
Exhibit4‐36:Pilot–FLAIR/CMSReplacementProjectTrackActivities‐Examples
4.4.3 PILOT–FLAIR/CMSREPLACEMENTPROJECTTRACK(EXAMPLES)
ACTIVITY
ConductPilotParticipantTraining
forERPFLAIR/CMS
KEYTASKS




ConductPilotParticipantTraining
forIW‐Tools




ConfirmEndUserAccess&Roles
forERP&IW


ConductChangeReadiness

FloridaDepartmentofFinancialServices
FLAIRStudy
UpdateERPtraining
environmentand
documentation
Identifypilotparticipantsfor
training
Conducttraining
Assessresultsandremediateas
needed
UpdateIWtraining
environmentand
documentation
Identifypilotparticipantsfor
training
Conducttraining
Assessresultsandremediateas
needed
Confirmalluserrolesand
accessrulesforpilot
participantsusingERP/IW
Assessorganizationalunit
readinessforFLAIR/CMS
Replacementdeploymentand
reporttheresultstotheOCM&
CTeam
ReportprojectOCMand
deploymentreadiness;
includingthestatus,progress
andresultsofalllocalchange
managementactivities
KEYOUTCOMES

Trainedpilotparticipant
onERPandbusiness
process

Trainedpilotparticipant
onIWreportingand
analytics

Confirmeduserroles
andaccessforERP/IW

Changereadiness
assessment
Chapter4Page53
ACTIVITY
KEYTASKS
StartPilotmonitor1stQuarter
ERP/IWPerformance&
RemediateAsNeeded



Monitor2ndQuarterERP/IW
Performance&RemediateAs
Needed



Monitor3rdQuarterERP/IW
Performance&RemediateAs
Needed



Monitor4thQuarterERP/IW
Performance&RemediateAs
Needed



ReviewLessonsLearnedFrom
Pilotfor1stAgencyGroup

KEYOUTCOMES
ConfirmERP/IWSupportteams
Conductkickoffofpilotand
reviewhowperformanceand
resultsaretobemonitored
Scheduleweeklyfeedback
sessions
UpdateERP/IWsupportteams
Continuepilotandreviewhow
performanceandresultsareto
bemonitored
Scheduleweeklyfeedback
sessions
UpdateERP/IWSupportteams
Continuepilotandreviewhow
performanceandresultsareto
bemonitored
Scheduleweeklyfeedback
sessions
UpdateERP/IWsupportteams
Continuepilotandreviewhow
performanceandresultsareto
bemonitored
Scheduleweeklyfeedback
sessions
Documentkeylessons
regardingprocess,organization
ortechnologyfrompilot

1stQuartermonitoring
resultswithkey
exceptions

2ndQuartermonitoring
resultswithkey
exceptions

3rdQuartermonitoring
resultswithkey
exceptions

4thQuartermonitoring
resultswithkey
exceptions

Keylessonslearned
FromPilot
Exhibit4‐37:PilotPhaseActivityDescription
4.4.4 CMSROLLOUTPROJECTTRACK(ACTIVITYEXAMPLES)
ACTIVITY
ConfirmCMSFunctionality
TestedinERP
KEYTASKS


ConfirmCMSInterfaces
Testedfor
Inbound/OutboundTraffic

AssessPerformanceResults
ofCMSFunctionalityinPilot
for“Go/NoGo”Decisionon
CMSRollout



ReviewUATresultsfor
implementERPandpilot
Re‐confirmCMSfunctionality
viaasampleofCMSusers
ReviewUATresultsforCMS
interfaceandpilot
Re‐confirmCMSinterfacesvia
asampleofCMSusers
AssessperformanceofCMS
functionalityandinterfaces
duringthePilotandnoteany
potentialrisks
Basedondemonstrated
performanceandrisk
assessmentmakefinal
decisiononCMSrollout
FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES

ConfirmedCMSERP
functionality

ConfirmedCMSinterfaces

Assessmentpilotperformance
ofCMSfunctionalityand
interfaces
CMSrolloutdecision

Chapter4Page54
ACTIVITY
KEYTASKS
ConductERPCMSTraining
forAllCMSEndUsers



ConductCMSUATAcrossAll
In‐scopeCMSusers




CutoverFromLegacyCMSto
ERPCMS



MonitorCMSPerformance
UpdateCMSERPtraining
materialsandscriptsfrom
pilot
UpdateERPtraining
environment
IdentifyallCMSusersacross
allCMSusers
UpdateCMSUATscriptsfrom
pilot
UpdateERPandinterfacetest
environment
ConductCMSUATforallnon‐
pilotCMSusers
AssessCMSUATresultsfor
“Go/NoGo”decisiononCMS
rollout
Transitionallcurrentand
requiredhistoricalCMS
recordsandtransactions
CutoverfromlegacyCMSto
ERPCMS
MonitorCMSperformancefor
6monthsaftercutover
KEYOUTCOMES

TrainedCMSusersacrossall
CMSusers

CompletedUATforCMS
rollout

CMSfunctionalityonERPCMS

CMSperformancereport
Exhibit4‐38:CMSRolloutPhaseActivityDescription
4.4.5 FLAIR/IWROLLOUTPROJECTTRACK(ACTIVITYEXAMPLES)
ACTIVITY
MonitorFLAIRPilot
KEYTASKS


DetermineFLAIRperformance
duringthepilot
AssessanyimpactstoFLAIR
rolloutschedules
KEYOUTCOMES

FinalizeFLAIRrollout
schedule


BPRupdates
Processimprovements
Performthefollowingforall3ERPFLAIRrollouts
PerformBPRUpdates



Determineanychangestoin‐
scopebusinessprocessesfora
particularAgencyneed
Updateanychangeinrolesand
positionsforin‐scopebusiness
processes
Noteanyfutureprocess
improvementsforcurrentor
futurerollouts
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page55
ACTIVITY
KEYTASKS
UpdateERP
Configurations/Interfaces


ApplyChange
ManagementProcess




EndUserTrainingwith
UAT(ifneeded)







DeployFLAIR






KEYOUTCOMES
DetermineanyERPmodule
configurationchangesbasedon
BPRupdates
Determineanyinterfacechanges
basedonBPRupdates
Systemtestanychanges
Assesseachagencyand
determineoverallreadinessfor
movingtoERPplatform
Confirmcoverageforallrequired
usersrolestooperateERP
platform
Establishinitialperformance
goalsforuseradoptiontoERP
platform
UpdateFLAIRtrainingmaterials
andscripts
RefreshFLAIRtraining
environment
Identifyallenduserparticipants
byagency
ScheduleandconductERPend
usertraining
Collecttrainingfeedbackand
conductremediationasneeded
UpdateFLAIRUATscripts
RefreshUATERPandinterface
testenvironments
PerformUATbyagencyifneeded
Confirmuserrolesandaccessto
ERPFLAIRbyagency
Confirmmigrationoflegacy
FLAIRdataasneeded
Determinecutoverschedulefor
ERPFLAIR
CutovertoERPFLAIR
CloseoutaccesstolegacyFLAIR

UpdatedERPconfigurations
andinterfaces

Changemanagementplanby
agency


TrainedERPendusers
ERPvalidationifneeded

CutovertoERPFLAIR
Exhibit4‐39:FLAIRRolloutPhaseActivityDescription
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page56
4.4.6 MFMPINTEGRATIONPROJECTTRACK(ACTIVITYEXAMPLES)
ACTIVITY
KEYTASKS
DetermineMFMP
upgrade/future
directionand
potentialimpactwith
ERPFLAIR



AnalyzeMFMPfuture
requirementneedsfor
ERPFLAIRInterface DesignMFMP
InterfacetoFLAIR
DevelopMFMP
InterfacetoFLAIR
TestMFMPInterface
toFLAIR






PreparetoDeploy
MFMPInterfaceto
FLAIRasneeded

KEYOUTCOMES
ReviewwithMFMPprojectteam
toconfirmfuturedirectionof
MFMP
Determinetheinterfacehigh‐
levelrequirementsbetween
MFMPandERPFLAIRbasedon
futuredirection
Identifyschedulingandtiming
requirementsforthenew
MFMP/ERPFLAIRinterfacetobe
operational
Analyzedetailrequirements
requiredfortheMFMPinterface

Determinebusiness
needsforMFMP/ERP
FLAIRinterface

MFMPinterface
requirements
DesignnewMFMPinterface
basedonthedetailrequirements
Confirmkeydataelements
DevelopMFMP interfacebased
ondesign

MFMPinterfacedesign

DevelopedMFMP
interface
Performsystemandintegration
testingoninterface
ReviewwithMFMPProjectTeam
andobtainsign‐offontest
results
CoordinatewithMFMPproject
teamtodetermine
implementationdateforMFMP
interface

TestedMFMPinterface

DeployMFMPinterface
Exhibit4‐40:MFMPIntegrationPhaseActivityDescription
4.4.7 PFINTEGRATION/IMPLEMENTPAYROLLINERPPROJECTTRACK(ACTIVITYEXAMPLES)
ACTIVITY
DeterminePF
upgrade/futuredirection
andpotentialimpactwith
ERPFLAIR
KEYTASKS



ReviewwithPFprojectteamto
confirmfuturedirectionofPF
DeterminepotentialPayroll
impactsandfuture
requirementsbasedonfuture
direction
Identifyschedulingandtiming
requirementsforthenew
Payrollprocessandanyother
enhancements
FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES

Determinefuturebusiness
needsforPFandPayroll
process
Chapter4Page57
ACTIVITY
AnalyzePFfuture
requirementneedsand
anyBPRforPayroll
Process
DesignERPFLAIRfornew
PayrollProcess
ConfigureERPFLAIR&
ModifyInterfacesto
supportnewPayroll
Process
ConfigureERPFLAIR&
ModifyInterfacesto
supportnewPayroll
Process
TestnewPayrollProcess
inERPFLAIRand
Interfaces
KEYTASKS
KEYOUTCOMES

Analyzedetailrequirementsfor
thePFandPayrollprocess

PF/Payrollprocess
requirements

DesignnewPFenhancements
andPayrollprocessbasedon
thedetailrequirements
Confirmkeydataelements
ConfigureERPFLAIRforanyPF
enhancementsandPayroll
process
Developinterfacesasrequired
ConfigureERPFLAIRforanyPF
enhancementsandPayroll
process
Developinterfacesasrequired
Performsystemandintegration
testingonPFenhancements
andPayrollprocess
ConductUATforPF
enhancementsandPayroll
process
CoordinatewithPFproject
teamtodetermine
implementationdateforPF
enhancementsandPayroll
process

PF/Payrollprocessdesign

DevelopedPF
enhancements/Payroll
process

DevelopedPF
enhancements/Payroll
process

TestedPFenhancements
andPayrollprocess

DeployPFEnhancements
andPayrollprocess








DeploynewPayroll
ProcessandInterfacesper
PFProjectPlan
Exhibit4‐41:PF/PayrollImplementationPhaseActivityDescription
4.4.8 PHASE–1DDIINDEPENDENTVERIFICATIONANDVALIDATION
KEYTASKS
ACTIVITY
DevelopIV&VProjectWork
PlanandSchedule



Establishkeyprojectmetrics


FloridaDepartmentofFinancialServices
FLAIRStudy
Workwithprojectsponsors
andPMOtoplanand
conductIV&Vprojectkick‐
offmeeting
Facilitateameetingwith
PMOtodefineproject
managementplanforIV&V
project
UpdateIV&Vproject
schedule
Conductameetingwith
projectsponsorsandPMOto
establishkeyprojectmetrics
Documentkeyproject
metrics
KEYOUTCOMES


IV&Vprojectplan
IV&Vproject
schedule

Keyprojectmetrics
Chapter4Page58
KEYTASKS
ACTIVITY
ReviewProjectManagement
PlanandComponents
ReviewProjectSchedule
ReviewPMOproject
managementplan
ProvidecommentstoPMO
ReviewPMOproject
schedule
ProvidecommentstoPMO
Reviewprojectdeliverables
Requirementsdocuments
TestPlans
DesignDocuments
TrainingPlans
ImplementationandCut
OverPlan
Reviewusecaseand
simulationmodelresults

Revisedproject
managementplan

Revisedproject
schedule

Revisedproject
deliverables

Inputformonthly
dashboardreport

Monitorprojectprogress
againstprojectschedule

Inputformonthly
dashboardreport


ReviewPMOstatusreports
Identifyadditional
recommendationand
findings


Trackdataonkeyproject
metrics
DocumentmonthlyIV&V
activities
Producemonthlyproject
dashboardreport
ReviewUATtestreports

Provideadditional
recommendation
andfindingsto
projectsponsors
andPMO
Monthlydashboard
report

Inputformonthly
dashboardreport
ReviewFLAIRRollout
progressreports

Inputformonthly
dashboardreport





o
o
o
o
o
ReviewProjectDeliverables
Reviewusecaseand
simulationmodelresults
Trackprogressagainst
projectschedule
Reviewperiodicstatus
reports

Developmonthlydashboard
reports



ReviewUATtestresults
MonitorFLAIRRollout
progressandFLAIRBaseline
PerformanceMetrics
KEYOUTCOMES

Exhibit4‐42:IndependentVerificationandValidationExamples
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page59
4.4.9 PHASE–2:EXPANDEDERPFUNCTIONALITY(FLAIR/CMS)PROJECTTRACK
ACTIVITY
PerformBPA/BPR
AssessmentofState’s
FinancialBusiness
Processes&Develop
Functional
Requirements
MapBPRResultsto
PotentialERPFunctions
ConductSimulation
SessionwithTargeted
ERPFunctions
ConfirmFutureState
(FS)BusinessProcess
Design
KEYTASKS







ConfigureERPModules
&DevelopInterfacesAs
RequiredToSupportFS
BusinessProcessDesign


ConductPhase‐2ERP
Modules/BPRTraining




ConductPhase‐2Testing




ConductOCMSupport

ReviewwithDFS
managementtoconfirm
futuredirectionofState’s
financialprocesses
DeterminepotentialERP
modulesandfunctionsbased
onfuturedirection
AnalyzeBPA/BPRresultsto
performpreliminary
mappingtoadditionalERP
functions
DesignnewFLAIR
enhancementsandprocesses
basedonFSrequirements
Confirmkeydataelements
Configure ERPFLAIRforany
Phase‐2FSfinancial
processesandenhancements
Developinterfacesas
required
Performsystemand
integrationtestingforPhase‐
2ERPFLAIRenhancements
andfinancialprocesses
ConductUATforPhase‐2ERP
FLAIRenhancementsandFS
financialprocesses
Developtrainingmaterialand
Scripts
RefreshPhase‐2ERPFLAIR
trainingenvironments
ConductPhase‐2ERPFLAIR
training
AssessPhase‐2ERPFLAIR
trainingresults
Developtestingmaterialand
scripts
RefreshPhase‐2ERPFLAIR
testingenvironments
ConductPhase‐2ERPFLAIR
systemandintegration
testing
AssessPhase‐2ERPFLAIR
testingresults
ProvideongoingOCM
supportforPhase‐2ERP
FLAIRenhancementandFS
financialprocesses
FloridaDepartmentofFinancialServices
FLAIRStudy
KEYOUTCOMES

Determinefuturebusiness
needsforERPFLAIRand
State’sfinancialbusiness
processes

PreliminarymappingofFS
financialprocessesand
functionalrequirement

Phase‐2FSfinancialprocess
design

DevelopedPhase‐2ERP–
FLAIRenhancementsandFS
financialprocesses

TestedPhase‐2ERPFLAIR
enhancementsandFS
financialprocesses

CompletePhase‐2ERPFLAIR
training

CompletePhase‐2ERPFLAIR
testing
CompleteUAT


OCMsupportplanforPhase‐
2ERPFLAIR
Chapter4Page60
ACTIVITY
KEYTASKS
DeployPhase‐2ERP
FLAIR

DeployPhase‐2ERPFLAIRas
needed
KEYOUTCOMES
DeployPhase‐2ERPFLAIR

Exhibit4‐43:Phase‐2DDIPhaseActivityDescription
4.4.10 OPERATIONSANDMAINTENANCEPROJECTTRACK(EXAMPLES)
ACTIVITY
KEYTASKS
SupportingLegacy
FLAIR

SupportERP
FLAIR/CMS&NewIW
Tools


ERPUpgrades

SupportlegacyFLAIR/CMS
andIWinfrastructure
(hardwareandsoftware)
SupportERPFLAIR/CMS
infrastructure(hardwareand
software)
SupportnewIW
Infrastructure
PerformERPupgrades
KEYOUTCOMES

Supportedlegacy
FLAIR/CMS/IW


SupportedERPFLAIR/CMS
SupportednewIWtool

UpgradedERPplatform
Exhibit4‐44:Operations&MaintenanceActivityExamples
4.4.11 OCMMODEL
OCMactivitiesareallstructuredtoreachindividuals.Thisisbecausechangehappensone
personatatime.TheADKAR©97modelisjustoneframeworkformanagingindividual
changemanagement.Itoutlinesthefivebuildingblocksofsuccessfulchange,whetherthe
changeoccursinbehaviorsathome,inthecommunityoratwork.Thename"ADKAR"isan
acronymbasedonthefivebuildingblocksillustratedbelow.
A‐Awarenessoftheneedforchange
D‐Desiretoparticipateandsupportthechange(theWILL)
K‐Knowledgeonhowtochange
A‐Abilitytoimplementrequiredskillsandbehaviors(theSKILL)
R‐Reinforcementtosustainthechange
Thefivebuildingblocksaresequential.Successfulchangebeginswithawareness.After
awarenesscomesthepersonaldecisiontoparticipate(desire).Afterdesirecomesthe
97:http://www.prosci.com/adkar‐model/overview‐3/
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page61
knowledgeandabilitytomakethechange.Andfinally,forthechangetostayinplace,
reinforcementisneeded.
WhentheADKARelementsareachieved,employeesbecomeengagedandmotivated.The
changeisadoptedfaster.Employeescontributeideasandseekoutnewwaystosupportthe
change.Employeeshavetheknowledgeandabilitytoimplementthechangesothebusiness
goalsarerealizedorexceeded.
Well‐structuredOCMprogramsemploymanytoolsandtechniquestoguidepeoplealong
theirjourneyfromthecurrentstate,throughthetransitionstateandintothefuturestate.
Mostoftenmanagersrelyonfivebasicplanstomanageandinfluencechange.Theseplans
includetheCommunicationsPlan,SponsorRoadmap,TrainingPlan,ResistanceManagement
PlanandaCoachingPlan.ThesefivetoolssupportdifferentelementsoftheADKARmodelas
notedinExhibit4‐45below.
ChangeManagementTools
BuildingBlocksofChange
Communications
Awareness
SponsorRoadmap
Desire
Training
Knowledge
ResistanceMgmt
Ability
Coaching
Reinforcement
Exhibit4‐45:ChangeManagementToolsUsedtoManageChange
4.4.12 OCMFUNCTIONALMODELROLES&RESPONSIBILITIES
Inadditiontothespecificrolesandresponsibilitiesoutlinedbelow,eachmemberbrings
subjectmatterexpertisetothechangeprocess.Pendinginput,discussionanddecision
makingamongtheteammembers,thechangemanagementstrategymaybecustomizedor
modifiedtofittheneedsoftheDepartment.
TheOCMFunctionalrolesandresponsibilitiesareusuallydevelopedbasedonthefollowing
assumptions:

OCMactivitiesoccurthroughouttheProject’slifecycle

ResourcesareallocatedtoconducttheseactivitiesduringtheentireProject
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page62

Duetothehighdegreeofinterdependency,delaysand/orchangestoproject
activitiesandschedulesimpactOCMactivitiesandschedules

ProjectteamandotherkeystakeholderresourcesareavailableforinputtotheOCM
TeaminatimelymannertoallowexecutionoftheOCMactivities

CriticalProjectsponsorsandstakeholdersareidentifiedtosupporttheOCMPlan
ThefollowingExhibitoutlinespotentialDFSOCMrolesandresponsibilities.
FLAIRREPLACEMENTDFSOCMRESPONSIBILITIES
OCM&CROLE
DFSProjectDirector
RESPONSIBILITIES





AgencySponsors





OCMDeputyProjectDirector







FloridaDepartmentofFinancialServices
FLAIRStudy
ActivelyandvisiblysponsorstheFLAIRReplacementProject
DeliversseniorexecutivelevelstatementsabouttheProject
objectivesandoutcome
ChairstheOCM&CTeamandadvisestheworkstreamforthe
developmentofContentandKnowledgeTransfer.Provides
directionwhennecessary
Activelyparticipatesintheidentification,crafting,and
approvalofprojectOCMmessagesandworkproducts
whereverappropriate
UpdatestheExecutiveSponsoronOCM&Cactivities;
communicatesdirectlywithseniorexecutivestakeholders,
whenappropriateandnecessary,regardingprojectOCM&C
matters
ActivelyandvisiblysupportsagenciesOCMstrategiesand
practices
RepresentstheinterestsoftheagenciesattheOCM&Cteam
meetings
Activelyparticipatesintheidentification,craftingandapproval
ofprojectOCM&Cmessagesandworkproducts,wherever
appropriate
ReviewsOCM&Cmessages,tutorialsandtechniques,delivers
feedbacktotheProjectOCM&CTeamandrequestsadditional
materialsonothertopics
Contributesandadvisestotheworkstreamresponsiblefor
distributionofOCM&Cmaterialsandmessages
EnsurescoordinationofOCM&Cmessagingwithfunctional
andtechnicaldirectors
Activelyparticipatesintheidentification,craftingandapproval
ofprojectOCM&Cmessagesandworkproducts,wherever
appropriate
ProvidesleadershipandsupporttotheProjectOCM&C
StrategicTeam
Activelyparticipatesintheidentification,crafting,and
approvalofprojectOCMmessagesandworkproducts
whereverappropriate
AssistswithprojectOCM&Cstakeholderanalysisand
communicationsplanning
ActivelysupportsdepartmentsandagencyOCMstrategiesand
practices
Representstheinterestoftheexternalstakeholders
Chapter4Page63
FLAIRREPLACEMENTDFSOCMRESPONSIBILITIES
OCM&CROLE
DFSFunctionalDeputyProject
Director
RESPONSIBILITIES



DFSTechnicalDeputyProject
Director



DFS/AgencyChangeAgents














ProjectOCM&CSME


FloridaDepartmentofFinancialServices
FLAIRStudy
EnsurescoordinationofOCM&CmessagingwithDFSprogram
policy,proceduresandtraining
Activelyparticipatesintheidentification,craftingandapproval
ofprojectOCM&Cmessagesandworkproducts,wherever
appropriate
Assignsprojectstaffasneededtodevelopmessagecontent
consistentwithpolicyandprocedures
ActivelysupportsDFS&agencyOCMstrategiesandpractices
EnsurescoordinationwithandawarenessofotherDFS
projects
Activelyparticipatesintheidentification,craftingandapproval
ofProjectOCM&Cmessagesandworkproducts,wherever
appropriate
ActivelysupportsChangeManagementstrategiesandpractices
ProvidesinputregardingtechnicalaspectsoftheProject
Takesaleadroleinexploringandmanagingchangeresistance
issuesamongcoworkers
Referswidespreadandparticularlychallengingresistance
issuestotheProjectOCM&CTeamtobeformallyaddressed
onabroaderscalebyDFSandAgencyexecutives
Sponsorsandfullysupportsanorganizationalchange
managementeffortattheirorganization
EnsuresDFSandAgencystaffarefullypreparedtotransition
tothenewTechnologySolutionwhendeployed
Holdsin‐scopestaffaccountableforpreparingforProject
transition,includingworkingthroughchangeresistanceissues
andcompletingallavailableusertraining
Astheprojectprogresses,assemblesateamofchangeagents
ofsufficientsizetoreacheveryin‐scopestaffmember
ReviewsandappliesOCM&Cmessages,toolsandtechniques,
providesfeedbacktotheOCM&CTeamandrequests
additionalmaterialsonothertopics,ifneeded
AssessesorganizationalunitreadinessforFLAIR/CMS
ReplacementdeploymentandreportstheresultstotheOCM&
CTeam
ServesasaprimaryliaisonbetweentheirDepartmentor
AgencyandtheProjectteam
ServesasastrongandvisibleProjectChampionandprimary
changeagentwithintheirdepartmentandlocation
Coordinatesupporttodepartmentmanagementonmatters
concerningProjectOCManddeploymentreadiness;including
thestatus,progressandresultsofalllocalchangemanagement
activities
Receives,reviewsandmakesuseofallrelevantProjectOCM&
Cmessages,tutorialsandtechniquesprovidedbytheProject
OCM&CTeam;providestimelyandcandidfeedbackonthe
qualityandusefulnessofeach
CoordinatesandparticipatesintheactivitiesoftheOCM&C
Team
CoordinatesthecreationanddeliveryofProjectOCM&C
Chapter4Page64
FLAIRREPLACEMENTDFSOCMRESPONSIBILITIES
OCM&CROLE
RESPONSIBILITIES





SystemIntegratorImplementation
Manager
ProjectCommunicationsLead




o
o








messagesandcontent
ProvidesOCMstrategiesandtoolstotheDFS/Agency
Champions;leadsChangeManagementactivities
Hostsandfacilitatesconferencecalls,webinarsonFLAIR/CMS
ReplacementProjectOCM&Cmatters
RespondstoinquiriesandProjectOCMsupportrequestsby
DFS/AgencyChampions
CollaborateswithDFSandAgencystaffandProjectSMEsto
ensureProjectOCMinformationiscorrectandcurrent
Collaborateswiththesystemsintegratortoensureeffortson
theProjectaremutuallysupportiveandthereisasteadyflow
ofaccurateandcurrentinformationbetweenparties
RepresentstheSIattheOCM&C Teammeetings
ProvidesanupdateonSIOCMandtrainingactivities
FacilitatescoordinationbetweenSIandtheOCM&CTeam
Overseestheplanning,developmentandexecutionoftheSI
OCMandtrainingtasks,including:
SystemChangeReadiness
SystemChangeImpactAnalysis
SystemUserTraining
Activelyparticipatesinthecraftinganddeliveryofproject
OCM&Cmessagesandworkproducts
ParticipatesinandcontributestoProjectOCM&CTeam
meetings
Solicitsstakeholderfeedbackandaddressesstakeholder
questions
EstablishesandmaintainsFAQstoprovidestandardplanned
responsestocommonquestions
EnsuresprojectOCM&Cmessagesandmaterialsarehigh
quality,consistent,alignedwithothermessagesfromthe
organization,properlybranded,anddepartmentpolicies
CoordinatescommunicationwithStateagencypartners
ActsastheOCM&Cteamliaisonbetweenprojectandother
teamsandparties
Exhibit4‐46:FLAIRReplacementDFSOCMResponsibilities
ThefollowingExhibitoutlinespotentialAgencyOCMrolesandresponsibilities.
FLAIRREPLACEMENTAGENCYOCMRESPONSIBILITIES
OCM&CROLE
AgencyProjectDirector
RESPONSIBILITIES




FloridaDepartmentofFinancialServices
FLAIRStudy
ActivelyandvisiblysponsorstheProject
ParticipatesinandcontributestoProjectOCM&CStrategic
Teammeetings
Providessubjectmatterexpertiseandknowledgetransfer
Activelyparticipatesinidentifyingmessagecontent,audiences
andvehiclesforcommunication;providessupport,guidance,
andreviewofProjectOCM&Cmessagesandworkproducts,
Chapter4Page65
FLAIRREPLACEMENTAGENCYOCMRESPONSIBILITIES
OCM&CROLE
RESPONSIBILITIES

AgencyOCMLead

AgencyOCM/DFSSME


DFS/AgencyChangeAgents













AgencyPartner



AgencyProfessionalDevelopment
SME
FloridaDepartmentofFinancialServices
FLAIRStudy

whereverappropriate
AssignsProjectstafftoassistwiththedevelopmentofOCM&C
Teammessagecontent,asneeded
ParticipatesinandcontributestoProjectOCM&CStrategic
Teammeetings
Advisesonagencyoperationsissues
HelpsensureOCM&Ccontentandmessagingisconsistent
withdepartmentpolicies
ProvidesknowledgetransfertotheProjectstaffasneeded
Takesaleadroleinexploringandmanagingchangeresistance
issuesamongcoworkers
Referswidespreadandparticularlychallengingresistance
issuestotheProjectOCM&CTeamtobeformallyaddressed
onabroaderscalebyDFSandAgencyexecutives
Sponsorsandfullysupportsanorganizationalchange
managementeffortattheirorganization
EnsuresDFSandAgencystaffarefullypreparedtotransition
tothenewTechnologySolutionwhendeployed
Holdsin‐scopestaffaccountableforpreparingforProject
transition,includingworkingthroughchangeresistanceissues
andcompletingallavailableusertraining
Astheprojectprogresses,assemblesateamofchangeagents
ofsufficientsizetoreacheveryin‐scopestaffmember
ReviewsandappliesOCM&Cmessages,toolsandtechniques,
providesfeedbacktotheOCM&CTeamandrequests
additionalmaterialsonothertopics,ifneeded
AssessesorganizationalunitreadinessforFLAIR/CMS
ReplacementdeploymentandreportstheresultstotheOCM&
CTeam
ServesasaprimaryliaisonbetweentheirDepartmentor
AgencyandtheProjectteam
ServesasastrongandvisibleProjectChampionandprimary
changeagentwithintheirdepartmentandlocation
Coordinatesupporttodepartmentmanagementonmatters
concerningProjectOCManddeploymentreadiness;including
thestatus,progressandresultsofalllocalchangemanagement
activities
Receives,reviewsandmakesuseofallrelevantProjectOCM&
Cmessages,tutorialsandtechniquesprovidedbytheProject
OCM&CTeam;providestimelyandcandidfeedbackonthe
qualityandusefulnessofeach
AttendsOCM&CTeammeetingsasneededtofacilitate
communicationandcoordinationwithDFSregarding
FLAIR/CMSReplacementimplementation
ReceivesmaterialsandcontentcreatedbytheOCM&CTeam
forusebytheAgencyPartner,asneeded
ProvidesAgencyPartnerperspectivestotheOCM&CTeamas
needed
ProvidesstatusontheProjectandrelatedpolicyand
proceduraltrainingactivities
Chapter4Page66
FLAIRREPLACEMENTAGENCYOCMRESPONSIBILITIES
OCM&CROLE
RESPONSIBILITIES

AgencyLiaisonsforProject



RepresentsprofessionaldevelopmentandtrainingattheOCM
&CTeammeetingsasneeded
CommunicatesProjectprogressandstatus
HelpsensureOCM&Ccontentandmessagingisconsistent
withtheProjectgoalsandobjectives
TransfersKnowledgetotheProjectstaffasneeded
Exhibit4‐47:FLAIRReplacementAgencyOCMResponsibilities
4.4.13 TRAININGANDPERFORMANCESUPPORTACTIVITIES
ThetrainingandperformancesupportactivitiesanddeliverablesareoutlinedintheExhibit
below:
STEPS
1.Develop
Training
Strategyand
Plan
TRAININGANDPERFORMANCESUPPORT





2.Develop
Training
Curriculum



3.Develop
Training
Materials








Definethetrainingobjectivesthrough
discussionswithprojectsponsor,change
managementlead,keystakeholders,and
impactedbusinessend‐users
Identifythetrainingaudience
Assessthetrainingneedsfortherolesthrough
reviewofimpacts,existingdocumentation,and
interviews
Documenttrainingneedsassessment
Assessdesignanddeliveryoptions(e.g.,
instructorlead,web‐basedtraining)
Identifysuccesscriteria
Developcurriculumrecommendationsfor
trainingintheareasofbrand,business,culture
andanyjobspecifictraining
Determinethemosteffectivedelivery
methodologies
Developlearningobjectivesforeachrole
Documentthetrainingcontent,specific
deliverymethod,timingandschedule,
supportingmaterialsandend‐userevaluation
methods
Compareinventoryofexistingmaterialswith
thecurriculumforjob‐specific,brand,culture,
businesstrainingandidentifygaps
Design,develop,anddrafttrainingcontentand
incorporatemeasurementplan
Conductpilottrainingcourse
UpdatetrainingbasedonpilotandSME
feedback
Reviewandrevisethecurriculum
recommendations
Reviewandrevisetrainingcontent
FloridaDepartmentofFinancialServices
FLAIRStudy
DELIVERABLES




TrainingStrategy
TrainingScorecard
TrainingPlan
Trainingestimates
fordevelopment
effortandbudget
Curriculumoutline
includingcourse
descriptionsand
deliverymethods
 CourseObjectives
 CourseAudience
TrainingMaterialsinclude,
butarenotlimitedto
(dependingondelivery
method):
 Studentguide
 Facilitatorguide
 Traininglesson
plan
 Trainingmodules
 Evaluationsurvey
 Trainingscorecard
template
 Training
presentation
 CBTcontent

Chapter4Page67
STEPS
TRAININGANDPERFORMANCESUPPORT
DELIVERABLES


4.Deliver
Training





TrainingSchedule
Train‐the‐trainersession
Conductclasses
Conducttrainingevaluation
Reviewandrevisethetrainingcontentbased
onstudentfeedback






Presenterscript(if
recorded)
Train‐the‐trainer
guide
JobAids
Classschedule
Evaluations
TrainingScorecard
Actionplanbased
onfeedback
Revisedtraining
materials
Exhibit4‐48:WorkforceTrainingandPerformanceSupportActivities
4.4.14 COMMUNICATIONPLAN
TheDepartmentalongwiththeSystemIntegratorwillimplementaCommunicationPlan
whichidentifiesandaddressestheconcernsofallkeystakeholdersduringtheTransition
periodandthelifeofthecontract.TheCommunicationPlanoutlinesthefollowing:

Communicationpurposeandobjective

Keypointsofthecommunication

Stakeholderaudience

Deliveredby

Communicationvehicle
ThepurposeoftheCommunicationPlanistodocumentidentifiedcommunicationneedsand
thestructuredprocesstoaddressthoseneeds.Theoverallgoalofthecommunicationeffortis
toprovideallstakeholders,internalandexternaltotheproject,withtheinformationthey
needinatimely,effectivemanner.Thecommunicationobjectivesareto:

Identifykeystakeholderaudiences

Communicateinwaysandonaschedulewhichmeetseachaudience‘suniqueneeds

Providefeedbackmechanisms,withmeasureswherepossible,todeterminethe
effectivenessofthecommunicationsdeliveredtoeachaudience

Adjustthecommunicationplanandstrategiestobettermeetstakeholderneeds,
basedonfeedback
TheExhibitbelowisapotentialCommunicationPlanwhichmaybeimplemented.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter4Page68
COMMUNICATIONEVENT
ThroughoutPre‐DDI
PURPOSE/OBJECTIVE



ProjectKick‐off



Determinethedegreeof
projectchangereadiness
Determinethedegreeof
resistancelikely
Provideinputto
classifyingandprioritizing
businessunitsforrollout
Kickofftherevisedproject
Createawarenessofthe
project,itspurpose,goals,
approach,andtimelines
Gainbuy‐into
implementationschedule
(andorderofagenciesto
berolledout)
KEYPOINTS







ProcessImpact
WorkingSessions




EnsuretheProject
deliverablesarebeing
completed
Assistwithdeliverable
completion
Removeroadblocksto
projectsuccess
Demonstratecontinued
managementsupportand
commitmenttoproject
success
FloridaDepartmentofFinancialServices
FLAIRStudy

AUDIENCE
DELIVEREDBY
VEHICLE
Determinelevelof
awarenessoftheproject
Determinegeneral
employeereceptivityto
change
ProjectTeam
DFS
Management
Conversationsand
SteeringCommittee
Presentations
Shareprogramscope,goals,
andobjectives
Createandsharea
compellingcaseforchange
Shareapictureofthe
solution(ERPBaseline)
Setexpectationsforproject
participationandsupport
Reviewprojectapproach,
rolloutorder,andhigh‐
leveltimelines
CreateProjectnameand
identityhelpingpeople
identifyandrememberthe
project;
SteeringCommittee,
AdvisoryGroup,
ProjectTeam,
Agencies
Steering
Committee
(Executive
Sponsor)
DFS/Agency
employees
Project&OCM
Team
Face‐to‐FaceMeeting
(Support
Project/AgencyKickoff
Meetings)
Followupwith
periodicnewsletters
(e‐mail)reinforcingthe
messageand
expectationsfor
support
Face‐to‐FaceMeetings
(ProcessImpact
WorkingSessions)
RequiresCover,linkforAttach2CoverandQAPage69
COMMUNICATIONEVENT
Project/PhaseKick‐off
PURPOSE/OBJECTIVE





Createawarenessofthe
project,itspurpose,goals,
approach,andtimelines
withineachSupport
Center
Shareexpectationsfor
projectparticipation
Generateprojectinterest
Identifycandidatesfor
newroles
Prepareemployeesforthe
changeprocess
KEYPOINTS








Project/PhaseKick‐off


Provideoverviewof
ProcessImpactSessions
(BPR)
Identifyparticipantsfor
ProcessImpactSessions




FloridaDepartmentofFinancialServices
FLAIRStudy
AUDIENCE
DELIVEREDBY
VEHICLE
Shareprogramscope,goals, DFS/Agencies
andobjectives
Sharethecompellingcase
forchangeandpictureof
thesolution
Setexpectationsforproject
participationinthe
implementation
Acknowledgeissues
involvedwithmajorchange
andwhatisrequiredfor
success
Reviewprojectapproach
andhigh‐leveltimelines
Identifyissuesor
roadblocks
Reviewprojectrolesand
responsibilities
Askemployeestoconsider
takingontheseroles
ShareProcessWorkshop
BPRWorkshop
schedule
Participants
Identifycriteriafor
participants
ShareWorkshopgoalsand
agenda
Provideinitiallogistics
information
BPRTeam/OCM
Face‐to‐FaceMeeting
(Support
Project/AgencyKickoff
Meetings
BPRTeam/OCM
Face‐to‐FaceMeeting
(Support
Project/AgencyKickoff
Meetings)
Followupwith
periodicnewsletters
(e‐mail)reinforcingthe
messageand
expectationsfor
support
RequiresCover,linkforAttach2CoverandQAPage70
COMMUNICATIONEVENT
ProcessImpact
WorkingSessions
ProjectPhased
Rollout
PURPOSE/OBJECTIVE



ThroughoutProject


ThroughoutProject

Communicatetraining
information,schedules
andparticipation
expectations
ProvidesupportastheIW
Toolandassociated
processisimplemented
Buildcomfortwiththe
toolandprocess

FLAIRProject‐specific
messages
Communicateadhoc
messages

Gainandmaintain
support,buy‐in,and
participationfromall
levelsofFinancial
Management

FloridaDepartmentofFinancialServices
FLAIRStudy
KEYPOINTS






AUDIENCE
Provideadditionallogistics
information
Communication
preparationrequired
Showmanagementinterest
andsupportinprojectand
workshopsuccess
Shareexpectationsfor
workshopparticipationand
outcomes
Provideeducationon
Projectbackgroundand
goals
Emphasizecriticalityof
ownershipand
participationindeliverable
development
Highlightaccomplishments,
celebratesuccesses
Shareprogressthroughthe
implementationplan
Outlinenextsteps
DELIVEREDBY
VEHICLE
BPR/OCM/Pilot
Participants
ProjectTeam
Face‐to‐FaceMeetings
(ProcessImpact
WorkingSessions)
BPR/OCM/Pilot
Participants
Project
Team/PMO
E‐mail,withpotential
follow‐upphonecalls
DFS/Agency
employees
DFS/Agency
Management
E‐mailwithfollow‐up
phonecalls
DFS/Agency(through
TeamLeadlevel)
OCMChampion
andProject
Team
Face‐to‐Face
discussionswith
workshopparticipants
fromtheirDepartment
RequiresCover,linkforAttach2CoverandQAPage71
COMMUNICATIONEVENT
ProjectPhased
Rollout
PURPOSE/OBJECTIVE



Provideenduserswiththe
opportunitytoseethe
system
Provideenduserswiththe
opportunitytocontribute
toandprovidefeedback
ontheprocessandtool
Buildendusercomfort
withthenewprocesses
andtool
KEYPOINTS






AUDIENCE
Reinforceimportanceof
KnowledgeManagement
initiative
Reinforcethebenefitstobe
achieved
Emphasizetheimportance
ofmanagement
participationandsupport
Share,clarify,andreinforce
managementrolesand
responsibilitiesthroughout
theproject
Reinforceneedforculture
changeandtheirrolein
achievingit
Emphasizeaccountability
forsuccess
AllIn‐Scope
Participants
DELIVEREDBY
OCMChampion,
PMO,Project
Team
VEHICLE
Face‐to‐facethrough
Knowledge
Workshops;possibly
one‐on‐onewithvery
smallcenters
Exhibit4‐49:CommunicationPlan
4.4.14.1 STAKEHOLDERS
KeystakeholdersincludetheDepartmentofFinancialServices,agencies,theLegislature,theGovernor’sOffice,andtheSystem
Integratorteammembers.
4.4.14.2 COMMUNICATIONEVENT
AcommunicationeventisatopictheDepartmentandSystemIntegratoraddressinordertoinformthestakeholders.A
communicationeventcanbeaone‐timeoccurrenceoraregularlyscheduledevent.Thefrequencyofthecommunicationisdependent
uponthetopic,audiencebeingaddressed,andthevehicleofcommunication.
FloridaDepartmentofFinancialServices
FLAIRStudy
RequiresCover,linkforAttach2CoverandQAPage72
4.4.14.3 VEHICLESOFCOMMUNICATION
Acommunicationvehicleisthemethodusedtodeliverthecommunication.Severalcommunicationvehiclesshouldbeused:formal
presentations,meetings,brownbaglunches,andemail.Dependentuponthecommunicationevent,theappropriatecommunication
vehicleshouldbedeterminedandimplemented.Thisincludesnewslettersandwebsites.
4.4.14.4 MANAGEMENTOFCOMMUNICATIONS
Toensureeffectivecommunication,theDepartmentandserviceprovideridentifiescommunicationleads.Thecommunicationleads
areresponsibleforcreatingcommunicationtemplatesandreviewingandapprovingallcommunicationspriortodistribution.The
communicationsshouldbedeliveredfrequentlyatalllevelsintheorganization.
FloridaDepartmentofFinancialServices
FLAIRStudy
RequiresCover,linkforAttach2CoverandQAPage73
CHAPTER5
PROCUREMENTANDCONTRACTMANAGEMENT
KeyTakeawaysFromThisChapter
Basedonlessonslearned,guidingprinciples,goals,andrisks,theFLAIRStudyTeam
recommendsaprocurementstrategyallowingfortheindependentselectionof
softwarebeforemakingafinalselectiononthesystemintegrator.DFSwilldetermine
themethodofprocurementonceplanningbeginsfortheFLAIRreplacementproject.
DFShasthefollowinggoals:

OneITNandonecontract

AprocurementprocessgivingDFStheabilitytochoosethesoftwarefirst

Theabilitytoworkdirectlywiththesoftwarevendor

Fixedpricecontract
DFShasaprocurementandcontractmanagementprocessdocumentedinitsContract
ManagementLifecycleandProcurementGuide.Thisguideisfollowedwhen
developingsolicitations.
Intheeventthecontractordoesnotmeettheperformancestandardsthroughoutthe
projectlifecycle,contractlanguagehasbeendevelopedallowingDFStheabilityto
collectcostsneededtoeitherre‐procuretheprojectorallowDFStotakeoverthe
project.
TheFLAIRStudyadoptedthebusinesscaserequirementsofChapter287oftheFlorida
Statutes.TheexhibitbelowprovidesthosestatuteswhichapplytoChapter5Procurement
andContractManagement.
FLORIDASTATUTE
287.0571(4)(j)
287.0571(4)(k)
287.0571(4)(l)
287.0571(4)(m)
287.0571(4)(o)
Adescriptionofthespecificperformancestandardsthatmust,ata
minimum,bemettoensureadequateperformance.
Theprojectedtimeframeforkeyeventsfromthebeginningofthe
procurementprocessthroughtheexpirationofacontract.
Aplantoensurecompliancewiththepublicrecordslaw.
Aspecificandfeasiblecontingencyplanaddressingcontractor
nonperformanceandadescriptionofthetasksinvolvedinandcosts
requiredforitsimplementation.
Aplanforensuringaccessbypersonswithdisabilitiesincompliance
withapplicablestateandfederallaw.
Exhibit4‐50:Chapter5FloridaStatutes
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page1
5.1 SUMMARYOFTHEFLAIR/CMSREPLACEMENTPROJECT
BasedontheanalysiscompletedinChapter2,therecommendationinChapter3,andthe
implementationstrategypresentedinChapter4,Chapter5discussespotentialprocurement
approaches,performancestandardsandmeasures,andcontractinglanguageaswellasa
responsetotherequirementsoftheFloridaStatutesinExhibit5‐1above.
Whendealingwithaprojectofthismagnitude,therearevariousactivitiesneededforsuccess
inthereplacementofFLAIRandCMS.ManyoftheseactivitiesarespecifictothePre‐DDI,
DDI,andPost‐DDIphaseswhicharediscussedinChapter4.Exhibit5‐2illustratesthosetop
levelphaseswiththespecifictracksofworkrequiredfortheFLAIRandCMSreplacement
project.
Exhibit5‐51:ERPImplementationTrackswithProcurementsandContracts
Inthesectionstofollow,theFLAIRStudyTeamdiscussescurrentprocurementprocessesand
looksattheprocurementapproach,keyevents,performancestandards,andcontractual
languageneededtosupportthePre‐DDI,DDI,andPost‐DDIphases.
5.2 GENERALTIMELINEWITHPROCUREMENTSINDICATED
Exhibit5‐3belowprovidesthetimelineofthephasesandtheprocurementtracksassociated
witheachphase.Thisgraphicprovidesthetimeframethetracksbeginoverthecourseofthe
FLAIR/CMSreplacementproject.SomeofthePre‐DDItracksextendintotheDDIphaseas
discussedinmoredetailinChapter4.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page2
Exhibit5‐50:ProcurementApproach
5.3 GENERALPROCUREMENTDISCUSSION
DFSmaintainsaprocurementandcontractmanagementprocessdocumentedintheContract
ManagementLifecycleandProcurementGuide(DFSGuide),lastmodifiedNovember2013.
ThisguidedescribesadisciplinedprocessfortheDepartmentwhenprocuringforservices
andmanagingcontracts.
TheDFSGuideoutlinesaclearprocesswhenplanningtheprocurementwiththegoalof
selectingasolutiontohelpDFSachieveitsgoalsandobjectives.Thisstudyfocuseson
additionalrecommendationstosupporttheprocessesdescribedwithintheDFSGuide.
Oncethegoalsandobjectivesofthepotentialprojectaredetermined,theDepartment
conductsariskassessmentandincludesthefollowingcontractspecificplanningelements:

Reviewpriorcontracts

Identifyfundingsource

Determineprovidertype

Preparebusinessneedsanalysis

Conducttechnologyassessment

Conductbuildorbuyanalysis

Determinecontracttype
Basedonthebusinessneedsanalysis,listedintheplanningelementsabove,DFSperformsa
purchasingassessmentonthefollowingprocurementapproachesillustratedinExhibit5‐4to
determinetheprocurementapproachtouseforapotentialproject.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page3
PROCUREMENTAPPROACH
DEFINITION
InformalQuote

(InformalSolicitation)
o
o
RequestforQuote(RFQ)

InvitationtoBid(ITB)
(FormalSolicitation)




RequestForProposal(RFP)
(FormalSolicitation)



InvitationtoNegotiate(ITN)
(FormalSolicitation)



SingleSource



Whenapurchaseisunder$35,000, thepriceis
consideredplusthevendor’sabilitytodeliver:
Upto$2,499‐minimumof2writtenquotes
(discretionary)
$2,500‐34,999–minimumof3writtenquotes(informal
quote)
ArequestforpricingfromaStateTermContractvendor
foragoodorservice(contractswithvendorswhohave
beenapprovedbytheDepartmentofManagement
Services)
Used whenitisknown what iswantedandthereisthe
willingnesstoselectavendorbasedonprice,the
responsivenesstoITBspecifications,andabilityto
deliver
Usedwhenspecificationsarewell‐definedandfirm
Theleastflexibleoftheformalsolicitationprocesses
Used whenthereisnota definedscopeandthereare
generalspecificationsofwhatisneeded
Usedwhenaskingvendorstoproposeorrecommenda
commodityorservicetomeetstatedneeds
Contractmustnotmateriallydifferfromthe
specificationsinordertomaintainfairnessandequity
throughoutprocurement
MoreflexiblethanITBbecauseconsiderationcanbe
madebasedonvendorprice,responsivenesstoRFP
specificationsandthevendorsabilitytodeliver
Usewhenthereisa desiredoutcome anditisnotknown
howtoexplaintheneed
Usedwhenitmaybenecessarytonegotiatetoreceivethe
bestvalue
AllowsforgreaternegotiationflexibilitythantheITBor
RFP
CanbeusedONLYwhenproductorserviceisnecessary
orunique.Forexample,wherethedeliverableis
copyrighted,patentedorproprietary(e.g.,technology)
(Seesection838.22,F.S.)
Postingisrequiredifthetotalcostisover$35,000
Requirestheattestationofnoconflictofinterestbe
signedbyallDFSprogramareaparticipantsinthevendor
evaluation/selectionprocessforallnon‐competitive
purchases$35,000orgreater(seesection287.057(19))
Exhibit5‐51:ProcurementTypes
TheFLAIRStudyTeamtooktheaboveprocurementapproachesintoconsiderationwhen
selectingtheprocurementapproachforallprojectsneededtocompletethereplacementof
FLAIRandCMS.TwoprocurementapproacheswereidentifiedtouseduringtheFLAIR/CMS
replacementproject.Theprocurementapproachfortheprojectsprocuredwilluseeitheran
ITNorRFQastheseapproachesbestmeettheneedsoftheDepartment.Sections5.5.1,5.5.2,
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page4
and5.5.3discusstheidentificationoftheprocurementapproachforthePre‐DDI,DDI,and
Post‐DDIphases.
5.3.1 PROCUREMENTRISKS
Whenconsideringtheprocurementapproach,theFLAIRStudyTeamidentifiedthebelowas
potentialriskstothereplacementofFLAIRandCMS:

Inadequatestaffingtosupporttheprocurementprocessduetopoorplanningwould
causeprojectdelays

Aggressivetimeframeforprocurementincreasingtheriskofpoordecisionsand
cuttingcornersleadingtoanunsuccessfulprocurementandimplementation

Deficientprocurementprocessesleadingtoexposuretopotentialprotestsand
delayingtheprocessorjeopardizingtheentireprocurementevent

Receiptofpoorresponsesandtheprocurementofabadproductduetoinsufficient
procurementprocess

Weakcontractwithinsufficientcontrolsandproceduresleadingtopoorpartnerships
betweenthesoftwarevendor,systemintegratorandDFS
Thefollowingaremitigationstrategiesfortheriskslistedabove:

BegintheestablishmentofaPMOearlyduringthePre‐DDIphase

Establishcleartimelinesandqualityguidelinesforeachstepintheprocurement
process

Obtainthesupportofprocurementsubjectmatterexperts,suchasaconsultancyfirm,
throughouttheprocurementprocess

Begingovernanceattheonsetoftheproject
5.4 GENERALCONTRACTINGINFORMATION
TocomplywiththeFloridaStatutesinSections287.0571(4)(j),287.0571(4)(l),
287.0571(4)(m)and287.0571(4)(o)generalcontractinglanguageisusedwithinthecontract
andissupportedbytheDFSGuide.Thesectionsbelowoutlinethelanguagewhichsupports
eachofthesestatutes.
5.4.1 PERFORMANCESTANDARDS
PerformancestandardsforthePre‐DDI,DDIandPost‐DDIphasesarediscussedinSections
5.5.1.1,5.5.2.5and5.5.3.1.Allcontractswillcontainfinancialconsequencesappropriatefor
specifictrackswithineachphasealongwithgeneralacceptancecriteriaforeachdeliverable.
ThecontractwillrequirebothDFSandthecontractortodevelopawell‐defineddeliverable
expectationdocumentforeachdeliverablecontainingalistofminimumacceptancecriteria.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page5
5.4.2 PUBLICRECORDSPOLICY
TheDFSITNandRFQtemplatesincludethelanguagerequiredforthecontract.Thecontract
willclearlystateanyandallrecordsproducedaresubjecttoChapter119oftheFlorida
Statutesorthe“PublicRecordsLaw”.Thislawrequiresanyrecordsmadeorreceivedbyany
publicagencyinthecourseofitsofficialbusinessareavailableforinspection,unless
specificallyexemptedbytheFloridaLegislature.Theserviceprovidershallallowthe
Departmentaccesstoalldocuments,papers,letters,orothermaterialsubjecttoChapter119,
F.S.forwhichpublicrecordrequestsaremadeorreceivedbytheDepartment.
5.4.3 PERSONSWITHDISABILITIESCOMPLIANCE
ThereisspecificlanguagewithintheDepartment’scurrentITN(October2013)andRFQ(July
2013)templateacknowledgingaccommodationsforthosewithdisabilities.Thelanguagecan
befoundinSection1.5ofeachtemplateandstatesthefollowing:

Anypersonrequiringaspecialaccommodationduetoadisabilityshouldcontactthe
Department’s(languagecompletedatcontract).Requestsforaccommodationfor
meetingsmustbemadeatleastfiveworkdayspriortothemeeting.

ThisisstandardpracticeusedbyDFSandDFSunderstandsandcomplieswithSection
287.0571(4)(o),F.S.inallprocurements.

TheAmericanswithDisabilitiesAct(ADA)prohibitsdiscriminationonthebasisof
disabilityinemployment,Stateandlocalgovernment,publicaccommodations,
commercialfacilities,transportation,andtelecommunications.Toensurecompliance
withStateandFederalADAlaws,thecontractwillrequesttheserviceprovider
outlineadetailedplantoidentifyandaddressanyADAconcerns.
5.4.4 CONTRACTORNON‐PERFORMANCECONTINGENCYPLAN
Aplanisoutlinedforallcontracts,subjecttothenegotiationprocess,toaddresscontractor
non‐performance.AppropriatecontractlanguageisdraftedinconsultationwithDFSlegal
counselandDFSprocurementandcontractmanagementstaff.Acontingencyplanis
developedtoallowtheDepartmenttheabilitytoeffectivelycontinueoperationsdueto
nonperformance.
5.4.4.1 NON‐PERFORMANCECOSTS
Specificlanguageshouldbeincludedwithinthecontractforcontractornon‐performance.
ThelanguagewillstatethecontractorwillreimburseDFSforanycostsincurredduetonon‐
performancebythecontractor.DFSwillincorporatelanguageallowingDFStostepinand
takecontrolofallworkanddeliverablesuntilthecontractorisabletoshowtheyareableto
correcttheirperformancedeficiencies.Duringthistime,thecontractorwillreimburseDFS
foranycostsincurredtocoversuchdeficienciesandperformtheworkofthecontractor.
Ifitisdeterminedthecontractorisunabletomeettheperformancestandardswithinthe
contract,DFSwilleithercompletetheworkinternallyorre‐procuretheworktoanother
contractor.Ineithercase,thecontractlanguagewillholdthecontractoraccountableforany
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page6
costsincurredasaresultofthecontractornon‐performance.Thecontractorissolely
responsibletocoveranytransitionalcoststoDFSaswellasanycostsassociatedwithre‐
procurementoftheproject.
5.4.4.2 NON‐PERFORMANCE,TERMINATIONANDFINANCIALCONSEQUENCES
Thecontractshouldcontainprovisionstoaddresstheterminationforcauseintheeventof
non‐performancebythecontractor.Inadditiontoremediesinthecontract,adefaultremedy
fornon‐performancebyacontractorisalsoavailableinRule60A‐1.006,F.A.C.
Provisionsinthecontractforfinancialconsequencesintheeventthecontractordoesnot
meetmeasuredexpectationsareprovidedbelow.Theprovisionsshouldprovideincentives
foracontractortocureanyproblemswithperformancebeforeaneventofdefaultoccurs.


SuggestedRemediesforDefaultandObligationsuponTerminationfortheStateof
Florida:
o
Terminatethecontractbyprovidingthecontractorwithanappropriate
writtennoticeoftheeffectivedateoftermination
o
SeekEquitableReliefand/orinstitutelegalproceedingsagainstthecontractor
tocollectpaymentofanymoneyowedincluding,butnotlimitedtore‐
procurementcosts,systemreplacementcosts,andfinancialconsequences.
TheDepartmentshouldalsoinitiateproceedingstohavethecontractor
placedontheSuspendedVendorlist
o
OnceplacedontheSuspendedVendorlist,Stateagenciesareadvisednotto
dobusinesswiththecontractorwithoutwrittenapprovalfromState
PurchasinguntiltheStatereceivesreimbursementforallre‐procurement
costs
o
Uponpriornoticetothecontractor,aftertheexpirationofanycureperiods,
performanyterm,condition,orcovenantwhichhavebeenbreachedbythe
contractoratthereasonableexpenseofthecontractor
TerminationrightsforSoftwareVendorandSystemIntegrator:
o
Allright,titleandinterestintheFLAIRandCMSreplacementaretransferred
totheState
o
Transferalllicensesobtainedfromsubcontractorsandsuppliersforall
intellectualproperty,technology,andsoftwaredeveloped,acquired,or
utilizedforthesystemtotheState
o
ThecontractorwilllicensetotheStatethenon‐exclusiveperpetualuseofall
intellectualproperty,technology,andsoftwaredeveloped,acquired,or
utilized
o
Thecontractorwilltransferallright,title,andinterestinthehardware,
equipmentleases,andrealpropertyleasesusedforFLAIRandCMS
replacementandarenecessaryfortheStatetocontinuetooperateand
maintainthesystem
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page7


o
Allrights,titles,interestsandlicensestransferredtotheStatemustbeused
fortheexclusivebenefitoftheStateofFlorida
o
Providetheabilitytoterminateindividualserviceareastoallowthe
Departmenttoinsourcecomponentswhentheyareabletoperformthose
duties
o
Thecontractormustprovideterminationassistanceservices,detailedbelow
Languageisincludedstatingthecontractorisresponsibleuptoacertaintime,as
determinedwithinthecontract,toprovidetheterminationassistanceservices
followingtheterminationofthecontract.Belowaretherecommendedtermination
assistanceservicesfortheSoftwareVendorandSystemIntegrator:
o
ContractormustcooperatefullywiththeStateofFloridaandanycontractor
toperformtheservices
o
Allprocessesandproceduresperformedbythecontractortooperatethe
systemmustbedocumented
o
Providealistofequipment,proprietarysoftware,andsoftwarelicensesused
tooperatethesystemandprovideservices,ifapplicable
o
ReturnallState‐ownedmaterialsbeingusedbythecontractor
o
TransferallpropertyreferredtointheGeneralTerminationRightsandthe
documentationtousetheequipment
o
Answerquestionsrelatedtothemigrationandtransitionofservicesandthe
system
o
TerminationAssistanceServicesrenderedpriortotheterminationdateofthe
contractareatnoadditionalcosttotheState.Servicesrenderedafter
terminationofthecontractareatareasonablerateandestablishedinwriting.
FinancialConsequencesSuggestionfortheSoftwareVendorandSystemIntegrator:
o
Financialconsequencelanguageincludingdamageamountsshouldbe
includedintheITNandawardedcontract.Thislanguageshouldbedeveloped
inconsultationwiththeDFSlegalcounselandDFSPurchasingandContract
Managementstaff.
o
Shouldthecontractorfailtoachieveinitialoperationalacceptancebythe
transitiontimeframeprescribedinthecontract,asaresultoffactorsdirectly
withinthecontractor’scontrol,thenthecontractorshallpayanappropriate
amountforeachcalendardayaftersuchdateuntilinitialoperational
acceptanceisachieved
o
Shouldthecontractorfailtoachievetheperformancemetricsprescribedin
thecontract,asaresultoffactorsdirectlywithincontractor’scontrol,thenthe
contractorshallpayDFSfinancialconsequencesforeachperformancemetric
notmet
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page8
5.4.4.3 PHASEGATEREVIEWS
Aphasegatereviewprocesswillbeconductedwhenspecificmilestonesoccurthroughout
theentireimplementationofthenewERPsystem,includingtherolloutandmigrationto
participatingagencies.
Duringcontractdevelopment,acceptancecriteriaisdevelopedforeachofthecontractor’s
deliverablestodetermineifthedeliverablesmeettheexpectationsofDFSandiftheproject
shouldmoveontothenextphase.Itisimperativetoestablishmultiplego/no‐godecision
pointstiedtodevelopmentandtestingphasesoftheprojectinsteadofrelyingonafinal
decisionshortlybeforetheplannedgo‐livedate.Anexampleofaphasegatereviewcanbe
foundinSection5.5.2.8.Thisphasegatereviewisspecifictotheimplementationofthenew
ERPforFLAIR(CentralandDepartmental)andCMSfunctions.
5.5 FLAIR/CMSREPLACEMENTPROJECTANDPROCUREMENTAPPROACHES
Thesectionsfollowingdescribethoseactivitiesoccurringwithineachphaselistedabovein
Exhibit5‐2.Eachtrackwithineachphaseisdiscussedandtheprocurementapproachalong
withsomepotentialperformancestandardsandperformancemeasuresislisted.Someofthe
trackswithinthePre‐DDIphasewillcrossoverintotheDDIProcurementandPost‐DDI
phases.ForthepurposesofthisChapter,theactivitiesareonlydiscussedwheretheyfirst
begin,whetheritbeinthePre‐DDIphase,theDDIProcurementPhaseorPost‐DDI.
DescriptionsonthosetrackswhichcrossoverintootherphasesarediscussedinChapter4.
5.5.1 PRE‐DDIPROCUREMENT
TheFLAIRStudyTeamheldsessionstodiscusslessonslearnedandprocurementgoalsbased
onpreviousattemptstoreplaceFLAIR.Theteamidentifiedthoseactivitiesneededto
supportthenextphase,DDI.SomeoftheactivitiesareneededtosupporttheITNdocument
andpreparetheDepartmentfortheprocurementofaSoftwareandSystemIntegrator.Also,
someoftheactivitieswillcontinueintotheDDIphaseasdiscussedinChapter4.Thissection
containsthosePre‐DDIactivitieswhichsupporttheFLAIR/CMSreplacementproject.
Pre‐DDIincludestheactivitiestocompletepriortotheprocurementfortheERPsoftware
andservicesandthoseactivitieswhichbeginandcontinueintotheDDIProcurementphase.
PlanningactivitiesareconductedbytheProjectManagementOfficeoncetheprojectis
approvedandcontinuethroughthePre‐DDIPhase.ThePMOactivitieswillthenmoveinto
theDDIphaseuntilcompletionoftheproject.
ProcurementSupportactivitiesbeginandendinPre‐DDI.Theprocurementsupportis
neededthroughtheevaluationandnegotiationphaseswhichoccurduringPre‐DDI.
TheBusinessProcessRe‐engineeringportionofPre‐DDIprovidesthefunctionaland
technicalrequirementswhichbecomepartoftheprocurementdocumentation.The
developmentoftheprocurementdocumentationfortheselectionofthesoftwareand
systemsintegratorispartofthePre‐DDIactivities.Amarketanalysisandmarketscan
showingthesoftware(s)abilitytomeettheneedsofDFSandascanshowingthose
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page9
integratorsqualifiedtoimplementthenewERPsystemispartoftheprocurementplanning.
ThisinformationhelpsDFSdeterminetheprocurementoptionfortheFLAIRandCMS
replacement.BPRwillthenbehandedofftothesystemintegrator,intheDDIphase,wherea
validationoftherequirementswilloccurbytheintegrator.
BasedontheneedtomovetowardsanewERPsystem,currentstaffandtheirfuture
capabilitiesareevaluated.Tocompletethechangeseffectively,OrganizationalChange
ManagementandWorkforceTransitionisconductedearlyintheprocess,throughoutthe
projectandintoPost‐DDI.Andfinally,animportantPre‐DDIactivitytooccurearlyinthe
projectisthecompletionofanassessmentoftheexistingdatainFLAIRandCMS(theSystems
andDataStrategy).
Exhibit5‐5belowlistsallthesuggestedPre‐DDIactivitiesneededtosupportthereplacement
ofFLAIRandCMS.Theactivitiesarebrokendownbystaffsourcingneeds,theprocurement
approachandabriefscopedescriptionofeachactivity.
PRE‐DDI
ID#
1
ACTIVITY
STAFFING
SOURCE
Business
Internal
Process
and/or
Reengineering Contracted
Services
PROCUREMENT
APPROACH

RFQ
SCOPEDESCRIPTION











2
3
Procurement
Support
Internal
and/or
Contracted
Services

Organizational Internal
Change
and/or
Management Contracted
Services

RFQ


RFQ


FloridaDepartmentofFinancialServices
FLAIRStudy
Updatecurrentstateprocessmaps
Establishbaselineprocessmetrics
Reviewindustrystandardsfor
targetedprocesses
Definefuturestateprocessesand
metrics
Performgapanalysisbetween
currentstateandfuturestate
processes
Developinitialsetofusecases
Assessreportingandanalytic
requirementsforInformation
Warehouse
Collectfunctionalrequirementsfrom
pastassessment/projects
Updatefunctionalrequirements
fromBPR
Prioritizefunctionalrequirements
Coordinate/leadmeetingsand
documentfunctionandtechnical
requirements
Providesupportinthedevelopment
oftheITN
Provideprocurementsupport
throughtheevaluationand
negotiationphases
Provideastructuredmethodology,
process,andsetoftoolsforleading
thepeoplesideofchangeduring
implementation
Conductcommunicationactivities
Chapter5:Page10
PRE‐DDI
ID#
4
ACTIVITY
Project
Management
Office
STAFFING
SOURCE
Internal
and/or
Contracted
Services
PROCUREMENT
APPROACH

RFQ
SCOPEDESCRIPTION














FloridaDepartmentofFinancialServices
FLAIRStudy
Establish projectplanningand
managementframework
Provideoverallindependentproject
managementservices
Conductoverallprojectmanagement
monitoringandreporting
Developprojectcharter,detailed
projectmanagementplanand
projectschedule
Documentrisks,issues,actionitems
anddecisions
Performinitialprojectrisk
assessmentwithriskmitigation
Maintainprojectartifacts
Set‐upprojectlogistics(facilities,
systemaccess,administrative
support,etc.)
Developon‐boardingprocessfor
stakeholders,teammembers,
contractors
Establishinitialgovernance
frameworkwithprocessand
structure
Facilitategovernanceprocesses&
escalationincludingreporting
Coordinate,lead,analyzeand
documentthedefinitionof
implementationstrategiesand
approaches
Coordinateanddocumentthe
developmentofrequired
RFQ’s/ITN’sincludingpreparationof
draftversionsofpertinent
documents
Supporttheevaluationand
negotiationphasesoftheITN
Chapter5:Page11
PRE‐DDI
ID#
5
ACTIVITY
Workforce
Transition
STAFFING
SOURCE
Internal
and/or
Contracted
Services
PROCUREMENT
APPROACH

RFQ
SCOPEDESCRIPTION








6
Systemsand
DataStrategy
Internal
and/or
Contracted
Services

RFQ



AssessDFSreadinessformigration
tonewERPplatform&
infrastructure
Identifynewskills/knowledge
requirements
AssistDFSindevelopingand
aligningstrategicinitiativeswiththe
Department’svision
Facilitatecollaborationsessionswith
DFSstafftodefinefunctional
alignmentandclarify
accountabilitiesandresponsibilities
AssistDFSindefiningoperating
processes,interfacesand
governanceamongstaff
Defineorganizationalstructure
Developcompetencymodels,career
paths,learninganddevelopment
opportunitiesforstaff
AssistasaliaisonbetweenDIS,
Finance,CMSandDFSHuman
Resources
Confirminventoryofstateagency
financiallyrelatedsystemsand
interfacestoFLAIR
AssessdatahealthinlegacyFLAIR
DeterminechangesinFLAIRsystem
architecture,infrastructureanddata
structures
Exhibit5‐52:Pre‐DDIProcurementActivities
5.5.1.1 PRE‐DDIPERFORMANCESTANDARDS
Exhibit5‐6containsadescriptionofthosestandarddeliverablesforconsiderationforthe
Pre‐DDItracks(showninbulletsbelow),alongwithperformancemeasures,Exhibit5‐7,for
eachofthetracks.

BusinessProcessRe‐Engineering

ProcurementSupport

OrganizationalChangeManagement

ProjectManagementOffice

WorkforceTransition

SystemsandDataStrategy
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page12
Asalloftheabovetracksaredeliverablebased,theperformancemeasuresconsiderquality
andtimelinessofthedeliverables.Theperformancemeasuresforeachofthedeliverables
listedandanyotherdeliverablesdevelopedatalaterdatearelistedwithinthetable.The
remainingdeliverablesforeachtrackaredevelopedastheprocurementdocumentationis
completed.
REF#
1
2
3
DELIVERABLE
DESCRIPTION
StatusReports
Project
ManagementPlan
(PMP)
ProjectSchedule
PERFORMANCESTANDARD
Comprehensive
StatusReportson
projectprogress

ManagementPlanfor
theproject
describinghowthe
vendorplansto
managetheproject
Thescheduleliststhe
projectmilestones,
activitiesand
deliverableswithan
intendedstartand
finishdate






Submittedweeklyforall
procurementtypes
Containsoverallprojecthealth;
risks,actionitems,issues,
decisions,changelog,
accomplishmentstodate,
accomplishmentsfornext
period,percentcompleteon
projectmilestones
PMPisdeliveredtimelyand
earlybasedonagreedupon
timewithincontract
PMPcontainsallmaterial
requestedwithincontract
CreatedinMicrosoftProject
Includesalltasks,durations,
resources(isresourceloaded)
anddependencies
Scheduleisdeliveredtimely
basedonagreedupontime
withincontract
Exhibit5‐53:GeneralPerformanceStandards
PERFORMANCEMEASUREFORDELIVERABLES
MEASUREDESCRIPTION



80%oftheProject’sdeliverable
documentationshallbeapproved
basedonthequalityofthecontent
withinthefirstiterationofastandard
reviewcycle
Theremaining20%oftheProject’s
deliverabledocumentationshallbe
approvedbasedonthequalityofthe
contentwithintheseconditeration
100%oftheProject’sdeliverable
documentationshallbeapproved
basedonthetimelinessofthe
deliverable
MEASUREMETRIC

Calculatedas“[(Numberof
deliverablesapprovedwithinthefirst
iterationofstandardreview
cycle)/(Totalnumberofdeliverables
submitted)]*100%”

Calculatedashavingmetthe
predeterminedtimestandardsfor
submissionofthedeliverable
Exhibit5‐54:PerformanceMeasures
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page13
Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractsforeach
Pre‐DDItrackisprovidedintheChapter5Appendixbelow.
5.5.2 DDIPROCUREMENT
Beforedeterminingthepotentialprocurementapproaches,theFLAIRStudyTeamheld
sessionstodiscusslessonslearnedandprocurementgoalsbasedonpreviousattemptsto
replaceFLAIR.Thissectioncontainsrecommendedprocurementneedsandformulatesthe
approachandstrategyfortheFLAIR/CMSreplacementproject.
5.5.2.1 PREVIOUSPROCUREMENTLESSONSLEARNED
Whendevelopingtheprocurementprocess,theFLAIRStudyTeamconsideredthelessons
learnedfrompreviousprojects.Lessonslearnedhelppreventrepeatablemistakesandcall
outthoseactivitiesworthrepeatingandthoseactivitiesandoutcomestoavoid.Inthiscase,
thefollowingarethoseactivitieswhereDFScanavoidpitfallsandrealizebenefitswhen
movingforwardwiththereplacementofFLAIR:

Developaclearandpreciseprocurementprocessanddonotveerorgo“offscript”

Donotuselanguageallowingforanunbundledapproachbetweenthesoftware
vendorandsystemintegratorduringtheprocurementprocess

Developarequirementscomplianceandtraceabilitytool

RefertopreviousAspireprocessesonhowthevendoridentifieshowtheirsoftware
fitswithfunctionalandtechnicalrequirements(e.g.,outofthebox,customizations,
configurations,inabilitytomeetrequirements)

PlanandschedulesitevisitstootherstateswhoimplementedERPfinancialsolutions
5.5.2.2 PROCUREMENTGOALS
TheFLAIRStudyTeamdevelopedprocurementgoalsbasedonlessonslearnedfromthe
previousFLAIRreplacementprojectandtheyareasfollows:

DevelopaprocurementprocesswhichfollowsFlorida’sprocurementlaws

Developandconductaclearlywrittendocumentandtransparentprocurement
processtominimizetheriskofprotest

DevelopasoundprocurementprocessgivingDFStheabilitytochoosetheright
softwareandsystemintegratorwhoformtherightpartnershipresultinginthe
implementationofasuccessfulFLAIRandCMSreplacement

CompletetheprocurementprocessinareasonabletimeframetoallowDFStheability
toselectthesoftwarevendorwhomeetstheneedsofDFSaswellasasystem
integratorwhowillsuccessfullyimplementthesoftware

Developaprocurementprocesscontainingthepropertoolstofacilitatethe
Department’sabilitytomanageahighvolumeofresponsesfromthevendor
community
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page14

Negotiatestrongperformancemeasureswhichcanindicatewhentheprojectisona
pathtosuccessortofailure

Considerthefunctionalityofthesoftwareandhowthesoftwaremeetsthe
Department’srequirementsduringtheevaluationphaseoftheprocurement

Secureonecontractwithboththesoftwarevendorandthesystemintegratorwhile
retainingtheabilitytohavedirectcontactwiththesoftwarevendortoinclude:
o
Obtainingdirectinputfromthesoftwarevendorwhenthereisadiscrepancy
betweenwhatthesoftwareintegratorrepresentsthesoftwarecandoand
whatDFSunderstandsthesoftwarecando
o
Creatingseparatecontractrequirementsforthesoftwarevendortoconfirm
requiredcustomizations
o
Accessingthesoftwarevendor’strainingtoolkits
o
Leveragingeconomiesofscalethesystemintegratorcanbringforsoftware
licensing
o
Requiringthesoftwarevendortoconfirmtheirproductsmeetthe
Department’srequirements

Requirethesystemintegratortoconductthedemonstrationandorpresentationof
thesoftwareproposedandshowtheirabilitytomodifythesoftware

Developafixedpricecontractwithcheckpointstoevaluatethevendorsprogressand
optimalprotectiontotheState
5.5.2.3 SOFTWAREANDSYSTEMINTEGRATORPROCUREMENTAPPROACH
DDIProcurementisthephasewheretheselectedvendorbeginsimplementationactivities
withtheselectedERPsoftware.ThesolicitationofanIndependentVerificationandValidation
(IV&V)vendorwhoprovidesqualitychecksofthesystemduringthedevelopmentlifecycle
occursduringthisphase.ThedecisiononwhentodevelopandprocuretheIV&Vserviceswill
bedeterminedbytheDepartmentoncetheprojectmovesintothePre‐DDIphase.Ifthe
DepartmentchoosestosolicitservicesfortheInformationWarehouse,theseservicesarealso
beingprocuredduringtheDDIprocurementphase.
Exhibit5‐8belowliststhesuggestedDDIprocurementactivitiesneededtosupportthe
replacementofFLAIRandCMS.Theactivitiesincludestaffsourcingneeds,theprocurement
approach,andabriefscopedescriptionofeachactivity.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page15
DDI
ID#
1
2
ACTIVITY
STAFFING
SOURCE
Procurement
(Softwareand
SI)
Contracted
Services
Independent
Verificationand
Validation
Contracted
Services
PROCUREMENT
APPROACH

ITN
SCOPEDESCRIPTION



RFQ




3
Information
Warehouse
Contracted
Services

ITN


Implemententerprisesoftware
selectedduringprocurement
SupporttheStateinthedesign,
configuration,and
implementationoftheselected
software
Validateprojectisadheringto
goodprojectmanagement
processes
Verifythenewsystemiswell
engineered
Validatethesoftwaremeetsuser
needs
Providequalitychecksduringthe
softwarelifecycle
Providetechnicaltoolsetand
infrastructuretosupporttheIW
Supportdesign,development,and
rolloutsupportforthenewIW
includingITandendusertraining
Exhibit5‐55:DDIProcurementActivities
TheFLAIRStudyTeamrecommendstheformalsolicitationofanITNwhenselectingthe
softwareandsystemintegratorservicesforthenewERPsystem.Thisrecommendationis
duetothecomplexityandcostsassociatedwiththeprocurementaswellastheneedtohave
flexibilityduringnegotiationswiththegoalofnegotiatingbestvaluewhenselectingavendor.
TheTeamalsorecommendsDFSfollowtheDFSGuidewhendevelopingthesolicitation
processforboththeIV&VandInformationWarehouseprocurements.Forthepurposesof
thissection,amorein‐depthdiscussionisprovidedastotheapproachwhenprocuringthe
softwareandsystemintegrator.
WhenpreparingfortheprocurementofservicesforthenewERPsystemaswellasthe
resultingcontractviaanITN,amulti‐stage,disciplinedprocurementprocessshouldbe
followed.Thischaptertouchesonsomeoftheproposedprocurementphasesshownin
Exhibit5‐9belowasthischapterdoesnotdescribetheprocurementprocesseswhichare
containedwithintheDFSGuide.
TheExhibitbelowsummarizesthephasedprocurementandcontractprocessesusedduring
theITNprocess.TheseprocessescomplementandsupporttheDFSGuide.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page16
Exhibit5‐56:Procurement/ContractPhases
ThedevelopmentoftheimplementationstrategyisdiscussedwithinChapter4.Thissection
focusesontheFLAIRStudyTeam’srecommendedprocurementapproachfortheselectionof
thesoftwareandsystemintegratorservicesforthenewERPsystem.
Severaloptionswereconsideredwhenlookingathowthesolicitationforboththesoftware
andthesystemsintegratorwouldbeprocured.Basedonmarketscansandlessonslearned
withotherstates,Gartneranalysis,analysisofotheragencyprocurements,andprocurements
withinDFS,informeddiscussionswereheldandtheFLAIRStudyTeamdeterminedto
considertwoprocurementapproaches:(1)Separateprocurementforsoftwareand
implementationservices(2)Singleprocurementforsoftwareandimplementationservices.
Option1–Unbundled
Theunbundledoption,shownintheprocessflowsinExhibit5‐11and5‐13below,involves
thesolicitationoftwoseparateITN’sincludingonefortheselectionofthesoftwareandone
fortheselectionofasystemintegratorforimplementationservices.TheITNprocessshown
intheExhibitsbelowfollowwhatisconsideredthenormwhencompletingtheevaluation
andnegotiationphaseswithinanITNandisdescribedindetailwithintheDFSGuide.Both
thesoftwareITNandthesystemintegratorITNwillcontainmandatoryrequirementswhich
mustbemettomoveintotheevaluationphase.
TheunbundledoptionprovidesDFStheabilitytofirstselectthesoftwarewhichmeetsthe
desiredtechnicalandfunctionalneedsofthenewERPsystem.Oncethesoftwarehasbeen
selected,anITNwouldfollowwiththeinclusionoftheselectedsoftware.TheITNwould
specifylanguagestatingtheintegratorwouldprovideaproposalforimplementationservices
tosupporttheselectedsoftware.Belowaresomeprosandconswiththeunbundled
approach:
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page17


Pros:
o
Allowsapureselectionofthesoftware(thismeetstheDepartment’sgoalof
selectingthesoftwarefirst)
o
EnsuresDFShastheabilitytoworkdirectlywiththesoftwarevendor
throughoutthesolicitationprocess
o
Providescosttransparencybetweensoftwareandservices
Cons:
o
Therearetwocontractstomanage
o
Multipleprocurementsincreasetimelineforselection
o
Significantincreaseinresourcebandwidthrequirements
o
Removestheabilitytoleveragethesystemintegratorsnegotiatingposition
withsoftwarecompany
o
Thereisnocontractualconnectionbetweensoftwarecapabilitiesandthe
systemintegratorsolution
Option1‐A:SoftwareSelection
Exhibit5‐10describestheactivitiesintheselectionofanunbundledsoftwareprocurement
strategy.EachactivitydescribedbelowintheExhibitcorrespondstoaprocessstepin
Exhibit5‐11.
#
ACTIVITY
1
ITN

2
InitialPost
3
EvaluationPhase




4
Q&A
5
6
7
8
Vendor(s)Submit
Response(s)
Evaluate
Response(s)





ShortList


NegotiationPhase


FloridaDepartmentofFinancialServices
FLAIRStudy
DESCRIPTION
ITNdevelopedcontainingclearevaluationand
negotiationlanguage
TheITN is postedontheState’spublicwebsite
72hourprotestperiod(Chapter120)
Theevaluationofsoftwareonly
Representsthescoringphaseofthe
procurement
Representsthevendorconferenceand
QuestionandAnswer(Q&A)period
72hourprotestperiod(Chapter120)
Responsesarereceivedfromthevendor(s)
Responsesareevaluated
DFSevaluatesthesoftwarecapabilities
againstfunctionalandtechnicalrequirements
byconductingFit‐GapAnalysis
Potentialdemoswiththesoftware
Thosevendor(s)existinginthecompetitive
rangeareselectedtomovetothenegotiations
phase
72hourprotestperiod
Negotiationsareheldwithvendor(s)
Chapter5:Page18
#
ACTIVITY
9

Softwarevendor(s)willpresenttheirsoftware
capabilities
11
Software
Vendor(s)
Presentations
Negotiation
Sessions
BAFO




Iterativenegotiationsessionscouldbeheld
InterimRevisedResponsesmayberequested
BestandFinalOfferisrequested
BestandFinalOfferisreceivedfromvendor
12
IntenttoAward

ContractAward


Theintenttoawardwithselectedvendoris
posted
72hourprotestperiod
Contractsignedwithselectedsoftwarevendor
10
13
DESCRIPTION
Exhibit5‐57:ProcurementOption1‐ADescription
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page19
Exhibit5‐58:ProcurementOption1‐A–SoftwareSelection
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page20
Option1‐B:SystemIntegratorSelection
BelowisadescriptionofthoseactivitiesoccurringinProcurementOption1‐B.Eachactivity
describedbelowisdepictedinExhibit5‐13.OncethesoftwareisselectedinOption1‐A,the
systemintegratorswillpresenttheirproposalsbasedontheirabilitytoimplementthe
softwarechosenbyDFS.Theprocurementprocessendswiththeselectionofthesystem
integrator.
#
ACTIVITY
DESCRIPTION
1
ITN

2
InitialPost
3
EvaluationPhase




4
Q&A
5
Vendor(s)Submit
Response(s)
Evaluate
Response(s)
6





7
ShortList


8
NegotiationPhase


9
Software
Vendor(s)
Presentations


11
Negotiation
Sessions
BAFO





12
IntenttoAward

13
ContractAward


10
ITNdevelopedcontainingclearevaluationand
negotiationprocesslanguageandincludes
requirementtouseselectedsoftwarefrom
Option1‐A
TheITN is postedontheState’spublicwebsite
72hourprotestperiod(Chapter120)
Theevaluationofthesystemintegratorwiththe
DFSselectedsoftware
Representsthescoringphaseofthe
procurement
RepresentsthevendorconferenceandQuestion
andAnswer(Q&A)period
72hourprotestperiod(Chapter120)
Responsesarereceivedfromthevendor(s)
Responsesareevaluated
DFSevaluatesthesystemintegrator(s)
capabilitiestoimplementthesoftware
PotentialDemoswithvendor
Thosevendor(s)existinginthecompetitive
rangeareselectedtomovetothenegotiations
phase
72hourprotestperiod
Negotiationsareheldwithvendor(s)
KeystaffwhorepresenttheteamDay1are
present
Systemintegrator(s)conductpresentationswith
selectedsoftware
Softwarevendorispresent
Iterativenegotiationsessionscouldbeheld
InterimRevisedResponsesmayberequested
BestandFinalOfferisrequested
BestandFinalOfferisreceivedfromvendor
Theintenttoawardwithselectedvendoris
posted
72hourprotestperiod
Contractsignedwithselectedsystemintegrator
Exhibit5‐59:ProcurementOption1‐BDescription
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page21
Exhibit5‐60:ProcurementOption1‐B–SystemIntegratorSelection
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page22
Option2–Bundled
Thebundledoptionconsidersasingleprocurementtoselectthesoftwareandthesystem
integrator.Withinthisscenario,thesystemintegratorhastheabilitytoproposemorethan
onesoftware,bysubmittingmultipleproposals.Thebundledoptionhastwopartswithinthe
evaluationphase.Partoneconsidersonlythetechnicalresponse(alongwiththetechnical
costresponse).ThismeetstheDepartment’sgoaltochoosethesoftwarefirst.Parttwoof
theevaluationphaseconsidersthemanagementresponseandtheremainingcostresponse.
ThesoftwareandsystemintegratorITNwillcontainmandatoryrequirementswhichmustbe
metinordertomoveintotheevaluationphase.
Prosandconsconsideredwiththebundledapproachinclude:


Pros:
o
ProvidesDFSwithasinglecontractwithonlyonevendortomanageand
thereforeonlyonevendortoapplyfinancialconsequencesto
o
AllowsDFStochoosethedesiredsoftwaremeetingbothfunctionaland
technicalrequirements
o
Providestheabilityforthesystemintegratortopresentthesoftware
o
Thereisacontractualconnectionbetweensoftwarecapabilitiesandthe
systemintegratorsolution
Cons:
o
Mayrestrictnumberofresponsesassoftwarecompaniesmayelecttochoose
topartnerwithasinglesystemintegrator
o
Mayrestrictnumberofresponsesasintegratormayelecttorespondwith
onlyonesoftware
o
DFScouldpotentiallypreferonesoftwareandnotpreferthesystem
integratorproposingthesoftware
#
ACTIVITY
1
ITN
2
InitialPost
3
EvaluationPhase
4
Q&A
DESCRIPTION
ITNdevelopedcontainingclearevaluationand
negotiationlanguage
 TheITN is postedontheState’spublicwebsite
 72hourprotestperiod(Chapter120)
Evaluationphasewillhavetwoparts:
 EvaluationofTechnicalResponse;leadstoselection
ofsoftware
o Costofsoftwarearepartoftechnicalresponsescore
 EvaluationofManagementResponseandthe
remainingcosts
 RepresentsthevendorconferenceandQuestionand
Answer(Q&A)period
 72hourprotestperiod(Chapter120)
FloridaDepartmentofFinancialServices
FLAIRStudy

Chapter5:Page23
#
ACTIVITY
DESCRIPTION
5
BundledResponse


6
Analyze
Requirements(Fit
Gap)
7
Software
Presentations
8
Technical
ResponseScored
9
Software
Selection

o
o
o
o


o







10
Team
Presentations
11
Evaluators
CompleteScoring
Responsesreceived fromsoftwareintegratorsand
softwarevendors(bundledresponse)
Morethanoneresponsecanbereceivedfromsystem
integratorproposingmorethanonesoftware
ResponsecontainsaresponsetoDFSrequirements
(FitGap)basedondegreeoffitasfollows:
Cannotsupportrequirement
Customizationrequired
Configurationrequired
Includedinbaseproduct
Analysisofrequirementsareconductedpriorto
softwarepresentations
Softwarepresentationsheldandscored
BasedonscriptspreparedbyDFSinclude
presentationsofminimumfunctionalandfuture
functionalrequirements
Systemsintegratorconductspresentation
Technicalresponse(softwareandtechnicalcosts)is
scored
Thesoftware(s)meetingthescoringcriteriamoves
forward
Thosesystemintegrator(s)whoproposedthe
software(s)areaskedtopresenttheirproposalbased
onthemanagementsectionoftheproposaland
remainingcostsectionoftheproposal
72hourprotestperiod
KeystaffwhorepresenttheteamDay1arepresent
Softwarevendor(s)present
12
ShortList

13
NegotiationPhase


Finalscoreiscompletedbyevaluatorsbasedon
technicalscore,managementscoreandcostscore
Totalscoreisbasedonanestablishedcriterionwithin
theITN
Thosevendor(s)existinginthecompetitiverangeare
selectedtomovetothenegotiationsphase
72hourprotestperiod
Negotiationsareheldwithvendor(s)
14
15
Negotiation
Sessions
BAFO




Iterativenegotiationsessionscouldbeheld
InterimRevisedResponsesmayberequested
BestandFinalOfferisrequested
BestandFinalOfferisreceivedfromvendor
16
IntenttoAward
17
ContractAward



Theintenttoawardwithselectedvendorisposted
72hourprotestperiod
Contractsignedwithselectedvendor


Exhibit5‐61:Option2Description
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page24
Exhibit5‐62:ProcurementOption2
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page25
ProcurementApproachRecommendation
TheFLAIRStudyTeamdevelopedaprocurementtimelinebasedontheassumptionofthe
selectionofOption2–BundledasthisapproachbestmeetstheneedsoftheDepartment.
However,theDepartmentreservestherighttomodifyorchangetheprocurementapproach
oncetheprojectbeginsandmayopttochooseadifferentprocurementapproachmoving
forward.
5.5.2.4 PROCUREMENTTIMELINE
TheFLAIRStudyteamestimatedtheDepartmentwillneed21monthstodraftthe
procurementdocument(ITN)throughtheexecutionofthecontract.Thisisbasedonthe
assumptionoftheselectionofprocurementOption2–Bundledandwillincludethefollowing
activities:



ITNDevelopment
o
ITNpre‐releasepreparation
o
ITNSolicitationDocumentDevelopment
EvaluationandNegotiation
o
ITNReleaseandQ&Aactivities
o
ITNRepliesReceived
o
Evaluation/Demonstrations/Negotiations
o
VendorSelection/FurtherNegotiations
ContractDevelopment
o
FinalContractApproval
Exhibit5‐16showskeyactivitiesoccurringduringtheprocurementoftheFLAIRandCMS
replacement.ThisassumestheselectionofOption2.Thefinalselectionoftheprocurement
approachwilloccurduringthedevelopmentoftheprocurementdocument.
Exhibit5‐63:ProcurementTimeline
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page26
5.5.2.5 DDIPERFORMANCEDELIVERABLESANDPERFORMANCESTANDARDS
Thebelow,Exhibit5‐17,aregeneraldeliverablestobeconsideredforDDIProcurementalong
withperformancestandardsforthosedeliverables.TheremainingdeliverablesforDDI
procurementcontractsaredevelopedastheprocurementdocumentationiscompleted.The
sampleperformancemeasuresforDDIprocurement(SoftwareVendorandSI,IV&Vand
InformationWarehouse)arelistedinSection5.5.2.6below.
REF#
1
2
3
DELIVERABLE
StatusReports
Project
ManagementPlan
(PMP)
ProjectSchedule
DESCRIPTION
PERFORMANCESTANDARD
Comprehensive
StatusReportson
projectprogress

ManagementPlanfor
theproject
describinghowthe
vendorplansto
managetheproject
Thescheduleliststhe
projectmilestones,
activitiesand
deliverableswithan
intendedstartand
finishdate






Submittedweeklyforall
procurementtypes
Containsoverallprojecthealth;
risks,actionitems,issues,
decisions,changelog,
accomplishmentstodate,
accomplishmentsfornext
period,percentcompleteon
projectmilestones
PMPisdeliveredtimelyand
earlybasedonagreedupon
timewithincontract
PMPcontainsallmaterial
requestedwithincontract
CreatedinMicrosoftProject
Includesalltasks,durations,
resources(isresourceloaded)
anddependencies
Scheduleisdeliveredtimely
basedonagreedupontime
withincontract
Exhibit5‐64:GeneralPerformanceStandards
5.5.2.6 DDIPERFORMANCEMEASURES
PerformancestandardsusedduringtheDDIphasearedescribedinthesectionswhichfollow.
SoftwareVendorandSIPerformanceMeasures
Basedonthemarketscanperformedwithvariousstatesandresearchonperformance
measuresusedinsimilarsolicitationswithinFlorida,thefollowingaredetailedexamplesof
performancemeasuresconsideredduringthedevelopmentoftheITN.Theseperformance
measuresarespecifictotheperformanceoftheSI.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page27
REF#
MEASUREDESCRIPTION
MEASUREMETRIC(S)
FREQUENCYOF
MEASUREMENT
IMPLEMENTATION
1
2
80%oftheProject’sdeliverable
documentationshallbeapproved
basedonthequalityofthecontent
withinthefirstiterationofa
standardreviewcycle
Theremaining20%oftheProject’s
deliverabledocumentationshallbe
approvedbasedonthequalityofthe
contentwithintheseconditeration
100%ofthefunctionalandnon‐
functionalrequirementsshallbe
traceablethroughoutthesoftware
developmentlifecycle(i.e.
RequirementsValidation,Functional
Design,TechnicalDesign,Coding,
UnitTesting,SystemIntegration
Testing,UserAcceptanceTesting,
Implementation)
Calculatedas“[(Numberof
deliverablesapprovedwithin
thefirstiterationofstandard
reviewcycle)/(Totalnumber
ofdeliverables
submitted)]*100%”
Quarterly
Calculatedas“[(Numberof
requirementsincludedinthe
lifecyclephase)/(Numberof
requirementsscheduledfor
thelifecyclephase)]*100%”
Attheendof
eachphase
withinthe
system
development
lifecycle(SDLC)
SYSTEMCUTOVER
3
4
100%ofanydataneededfromthe
legacysystemsdatabasesshallbe
convertedandloadedaccuratelyinto
thenewsystem.
Dataconvertedshallbemutually
agreedupon.
99.5%oftheconverteddatafrom
thelegacysystemshallbeavailable
totheuserswithinthenewsystem
onthedayofgo‐live.
Remaining0.5%oftheconverted
datafromthelegacysystemshallbe
availabletotheuserswithinthenew
systemwithin10businessdaysof
go‐live.
Dataconvertedshallbemutually
agreedupon.
FloridaDepartmentofFinancialServices
FLAIRStudy
Calculatedas“[(Numberof
recordsconvertedfromthe
legacysystemsandloaded
intothenewsystem)/(Total
numberofrecordsconverted
withinthelegacy
systems)*100%]”
Calculatedas“[(Numberof
convertedrecordsavailable
inthenewsystem)/(Total
numberofconvertedrecords)
*100%]”.
Priorto
implementation
duringfinalmock
conversionand
atfinalloadprior
to
implementation
Priortogo‐live
duringfinalmock
conversion
Remainingdata–
aftergo‐live
Chapter5:Page28
REF#
MEASUREDESCRIPTION
5
TheSolutionshallhave0(Zero)
“Fatal”defectsforentering“go‐live”.
Theassignmentofdefecttypeshall
bemutuallyagreedupon.
Note:For“Severe”and“Trivial”
defects,thedecisionforentering
“go‐live”shallbemutuallyagreed
upon.
MEASUREMETRIC(S)
Calculatedas“Totalnumber
ofdefectsclassifiedasFatal”
FREQUENCYOF
MEASUREMENT
Priortogo‐live
ONGOINGSYSTEMSUPPORT
6
7
8
100%ofSolutionSupportrequests
classifiedas“High”shallberesolved
oranagreeduponplanofactionisin
place(i.e.fixed,closed,readyfor
implementation)within4business
hours.
Forissuesnotresolvedwithin4
hoursofsuchoutage,statusupdates
shallbeprovidedevery2business
hoursuntilresolvedandaRoot
CauseAnalysisshallbeprovided
withintwo(2)businessdays.
100%ofSolutionSupportrequests
classifiedas“Medium”shallbe
resolvedorhaveanagreedupon
planofactioninplacewithin1(one)
businessday.
Forissuesnotresolvedwithin1
(one)businessdayofsuchoutage,
statusupdatesshallbeprovided
every4hoursuntilresolvedanda
RootCauseAnalysisshallbe
providedwithinthree(3)business
days.
100%ofSolutionSupportrequests
classifiedas“Low”shallberesolved
orhaveanagreeduponplanof
actioninplacewithinfive(5)
businessdays.
FloridaDepartmentofFinancialServices
FLAIRStudy
Calculatedas[(Numberof
“High”issuesresolvedwithin
thestipulatedtime)/(Total
numberof“High”
issues)]*100%
Monthly
Calculatedas[(Numberof
“Medium”issuesresolved
withinthestipulated
time)/(Totalnumberof
“Medium”issues)]*100%
Monthly
Calculatedas[(Numberof
“Low”issuesresolvedwithin
thestipulatedtime)/(Total
numberof“Low”
issues)]*100%
Monthly
Chapter5:Page29
REF#
MEASUREDESCRIPTION
9
95%ofSolutionSupportrequests
classifiedas“Trivial”shallbe
resolvedwithineight(8)business
daysoronanagreeduponplanof
action.
Remaining5%ofSolutionSupport
requestsclassifiedas“Trivial”shall
beresolvedwithintwo(2)
additionalbusinessdays(afterthe8
businessdaysaboveoragreedupon
planofaction)
FREQUENCYOF
MEASUREMENT
MEASUREMETRIC(S)
Calculatedas[(Numberof
“Trivial”issuesresolved
withinthestipulated
time)/(Totalnumberof
“Trivial”issues)]*100%
Monthly
Exhibit5‐65:Software/SIITNPerformanceMeasures
Thefollowingarestipulationsincludedinthecontractandfinancialconsequenceswillbe
appliediftheyarenotadheredtobythecontractor:

Thesoftwarevendorandsystemintegratorwillconfirmandvalidatethe
customizationsandtheirabilitytodevelopsaidcustomizations

Thesoftwarevendorwillvalidatethesoftwarebasedontherequirements“fitgap”
conductedduringprocurement

Thekeyteamispresentatthepresentationsandtheexpectationistheproposedkey
teambeginsworkonDay1.Ifthecontractorswitchesanyoftheproposedkeyteam
members,financialconsequencesareapplied

DFShastherighttorecommendandapproveinwritingtheinitialassignmentor
proposedreassignmentorreplacementofkeystaff

Thecontractorshallnotremoveanykeystafffromtheirassignedrolesortheproject
withoutthepriorwrittenconsentofDFS
IV&VPerformanceMeasures
Exhibit5‐19belowcontainsadescriptionofperformancemeasurestobeconsideredforthe
procurementofanIV&Vvendor.
AsstatedabovewiththePre‐DDItracks,theIV&Vsolicitationisdeliverablebasedandthe
performancemeasureslistedbelowconsiderqualityandtimelinessofthedeliverables.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page30
PERFORMANCEMEASUREFORDELIVERABLES
MEASUREDESCRIPTION



80%oftheProject’sdeliverable
documentationshallbeapproved
basedonthequalityofthecontent
withinthefirstiterationofastandard
reviewcycle
Theremaining20%oftheProject’s
deliverabledocumentationshallbe
approvedbasedonthequalityofthe
contentwithintheseconditeration
100%oftheProject’sdeliverable
documentationshallbeapproved
basedonthetimelinessofthe
deliverable
MEASUREMETRIC

Calculatedas“[(Numberof
deliverablesapprovedwithinthefirst
iterationofstandardreview
cycle)/(Totalnumberofdeliverables
submitted)]*100%”

Calculatedashavingmetthe
predeterminedtimestandardsfor
submissionofthedeliverable
Exhibit5‐66:PerformanceMeasures
Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractforIV&V
isprovidedintheChapter5Appendixbelow.
InformationWarehousePerformanceMeasures
Exhibit5‐20belowcontainsadescriptionofperformancemeasurestobeconsideredforthe
procurementofanInformationWarehousevendor.
AsstatedabovewiththePre‐DDItracks,theInformationWarehousesolicitationis
deliverablebasedandtheperformancemeasureslistedbelowconsiderqualityand
timelinessofthedeliverables.
PERFORMANCEMEASUREFORDELIVERABLES
MEASUREDESCRIPTION



80%oftheProject’sdeliverable
documentationshallbeapproved
basedonthequalityofthecontent
withinthefirstiterationofastandard
reviewcycle
Theremaining20%oftheProject’s
deliverabledocumentationshallbe
approvedbasedonthequalityofthe
contentwithintheseconditeration
100%oftheProject’sdeliverable
documentationshallbeapproved
basedonthetimelinessofthe
deliverable
MEASUREMETRIC

Calculatedas“[(Numberof
deliverablesapprovedwithinthefirst
iterationofstandardreview
cycle)/(Totalnumberofdeliverables
submitted)]*100%”

Calculatedashavingmetthe
predeterminedtimestandardsfor
submissionofthedeliverable
Exhibit5‐67:PerformanceMeasures
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page31
Additionalknowledge,skillsandabilitiestoconsiderwhendevelopingthecontractforthe
InformationWarehouseisprovidedintheChapter5Appendixbelow.
5.5.2.7 DDIPHASEGATEREVIEW
AsmentionedinSection5.4.4.3,phasegatereviewsaredevelopedtodeterminethereadiness
ofthecontractorthroughouttheimplementationofthenewERPsystem.Exhibit5‐21shows
aphasegatereviewprocessforthenewERPforFLAIR(CentralandDepartmental)andCMS
functionsphase.Thesamephasegateprocesswouldbefollowedforallimplementation
tracks.Itisnoted;thesoftwaresolutionforthenewERPsystemmayormaynotincludethe
IWandreporting/analyticssoftware.
ThefirstphasegatereviewbeginswithDFSconductingago/no‐godecisionbasedonthe
releaseoftheprocurementdocumentation.Priortoreleasingtheprocurement,DFSwill
determineifthePre‐DDIactivitiesneededtomoveforwardhavebeensuccessful.This
includestheestablishmentofgovernance,thereceiptofproperprojectfundingandthe
functionalrequirementsneededtosupporttheprocurementdocumentation.
Exhibit5‐68:PhaseGateReviewProcess
Attheconclusionofeachphase,aformalreviewiscompletedwiththecontractortoreview
thedeliverables,discussanyrisksandmakeago/no‐godecisionastotheabilitytomoveinto
thenextphase.PriortoGo‐Live,aspecificgo/no‐godecisionismadeduringthetestingphase
todetermineifthecontractor’sproposedGo‐Livedateisreasonablebasedontestingresults
withinthesystem.
5.5.3 POST‐DDIPROCUREMENT
Post‐DDIreflectstheoperationsandmaintenancesupportneededforthenewERPsystem.
DFSwillconducttheoperationsandmaintenanceservicesafterreceivingknowledgetransfer
fromthecontractor.Thecontractorwillcontinuetoprovideservicesasagreeduponduring
thewarrantyperiodandfurtherlanguageisdefinedastoanydesiredsupportfromthe
contractor.Forexample,thecontractorshallprovidesupportforfutureupgradestostayin
syncwithfuturereleases.ThereisalsotheoptionforDFStoprocuresomeofthissupportor
allofthesupport.
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page32
Exhibit5‐22belowshowsthePost‐DDIactivityperformedtosupportthereplacementof
FLAIRandCMS.Theactivityisbrokendownbystaffsourcingneeds,theprocurement
approach,andabriefscopedescriptionoftheactivity.ThisExhibitisbeingprovidedtoshow
theprocurementapproachforoperationsandmaintenanceshouldDFSdecidetoprocure
someoralloftheservices.
POST‐DDI
ID
#
1
ACTIVITY
Operationsand
Maintenance
STAFFING
SOURCE
Internal
and/or
Contracted
Services
PROCUREMENT
APPROACH

ITN
SCOPEDESCRIPTION

Supportongoingoperationsand
maintenance
Exhibit5‐69:Post‐DDIProcurementActivities
5.5.3.1 POST‐DDIPERFORMANCE
Exhibit5‐23isthegeneraldeliverablesandperformancestandardsforconsiderationshould
DFSprocureservicesforoperationsandmaintenance.Exhibit5‐24isthoseperformance
measuresforconsiderationformeasuringthedeliverablesinExhibit5‐23.
REF#
1
2
3
DELIVERABLE
StatusReports
Project
ManagementPlan
(PMP)
ProjectSchedule
DESCRIPTION
PERFORMANCESTANDARD
Comprehensive
StatusReportson
projectprogress

ManagementPlanfor
theproject
describinghowthe
vendorplansto
managetheproject
Thescheduleliststhe
projectmilestones,
activitiesand
deliverableswithan
intendedstartand
finishdate






Submittedweeklyforall
procurementtypes
Containsoverallprojecthealth;
risks,actionitems,issues,
decisions,changelog,
accomplishmentstodate,
accomplishmentsfornext
period,percentcompleteon
projectmilestones
PMPisdeliveredtimelyand
earlybasedonagreedupon
timewithincontract
PMPcontainsallmaterial
requestedwithincontract
CreatedinMicrosoftProject
Includesalltasks,durations,
resources(isresourceloaded)
anddependencies
Scheduleisdeliveredtimely
basedonagreedupontime
withincontract
Exhibit5‐70:GeneralPerformanceStandards
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page33
PERFORMANCEMEASUREFORDELIVERABLES
MEASUREDESCRIPTION



80%oftheProject’sdeliverable
documentationshallbeapproved
basedonthequalityofthecontent
withinthefirstiterationofastandard
reviewcycle
Theremaining20%oftheProject’s
deliverabledocumentationshallbe
approvedbasedonthequalityofthe
contentwithintheseconditeration
100%oftheProject’sdeliverable
documentationshallbeapproved
basedonthetimelinessofthe
deliverable
MEASUREMETRIC

Calculatedas“[(Numberof
deliverablesapprovedwithinthefirst
iterationofstandardreview
cycle)/(Totalnumberofdeliverables
submitted)]*100%”

Calculatedashavingmetthe
predeterminedtimestandardsfor
submissionofthedeliverable
Exhibit5‐71:PerformanceMeasures
Exhibit5‐18above,underongoingsystemsupport,providesfurtherpotentialperformance
measuresforoperationsandmaintenancesupport.Thesemeasuresareusedifthedecisionis
madetoprocureservicesforoperationsandmaintenance.
5.6 CHAPTER5APPENDIX
Thefollowingarepotentialknowledge,skillsandabilitiesfortracksinthePre‐DDIphaseand
fortheIV&VandtheInformationWarehousetrackswhicharebothdiscussedintheDDI
ProcurementPhase.Theycanbeusedforconsiderationwhendevelopingprocurement
documents.
5.6.1 BUSINESSPROCESSRE‐ENGINEERINGKNOWLEDGEAREAS

Demonstratedabilitytocorrectlyselectprocessesforconsideration

IdentifiedproperteamtoconductBPRwiththeabilitytoleadandfocustheteamand
properlyfacilitatingtheas‐isandto‐beprocesses

Facilitatedcorrectidentificationofcoreprocesses

Submitteddeliverablestimely

Submitteddocumentationisaccurateandclearlypresented,freeofspellingerrorsor
clericaldefects
5.6.2 PROCUREMENTSUPPORTKNOWLEDGEAREAS

ExperiencewithapplicableprocurementlawswithintheStateofFlorida

Experiencewithandabilitytoincludelessonslearnedfromotherstatesandagencies

Toolsandsamplecontenttocreateaclear,definitivesolicitation

Facilitatedcorrectidentificationofkeystakeholderstosupportprocurement
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page34

Developedaframeworkforprojectworkproducts

CoordinatedwiththeDepartmentanappropriateprocurementstrategy

Assistedwiththemanagementoftheproposalevaluationphase

Supportedvendorselectionandaward

Archivedprojectartifacts
5.6.3 ORGANIZATIONALCHANGEMANAGEMENTKNOWLEDGEAREAS

Providedanorganizationalchangemanagementplanwhichincludesandcontainsall
requiredcontractualrequirements

Completedwelldocumentedstakeholderanalysis

Identifiedspecificactivitiescompletedfortheimplementation,andscheduled
completiondates

Equippedthe“agentsofchange”withtimelyinformationandthetoolsneededto
preparefortheimplementation
5.6.4 PROJECTMANAGEMENTOFFICEPERFORMANCEANDKNOWLEDGEAREAS

InitiationoftheProject
o

PlanningtheProject
o

Finalizingallprojectactivities;creatinglessonslearned;applyingknowledge
transfer
IntegrationManagement
o

Abilitytooverseetheprogressandperformanceoftheproject,adaptingthe
planasneeded
ProjectClose
o

Executingtheworkdefinedintheprojectmanagementplanandtheproject
scheduletoachievetheprojectobjectives
MonitoringandControllingtheProject
o

Establishedthetotalprojectscope,settingobjectives,developingtheplanto
achievethegoals(includesre‐planning,iterative,andotherformsof
planning)
ExecutingtheProject
o

Definedtheprojectandsecuredauthorizationtostart;establishingoverall
scope
Project'sworkelementsarecoordinated–thisareaincludesprojectplanning
&executionprocesses
ScopeManagement
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page35
o

TimeManagement
o

Organizingandmanagingtheprojectteam;includestraining,aligningon
projectobjectivesandgoals,definingrolesintheprojectandassigningproject
teammemberstothoseroles
CommunicationsManagement
o

Theresultsoftheprojectmeettheneedsforwhichtheprojectwasexecuted;
includesqualityplanning,assurance,andcontrol
HumanResourceManagement
o

Planning,estimating,andcontrollingcostsareconductedsotheprojectcanbe
completedwithintheapprovedbudget;includesresourceplanningandcost
budgeting
QualityManagement
o

Processesrequiredensuringtimelycompletionoftheproject,including
activity(task)definitionandsequencingprocessesarefollowed
CostManagement
o

Processeswhichlimitandcontroltheworkincludedinaprojectarefollowed;
theworkincludedinthestatementofworkisincluded;scopecreepisnot
allowedandchangeordersarehandledproperly
Usingpropercommunicationstolinkpeople(includingteammembersand
stakeholders),ideas,andinformationthroughouttheprojectlifecycle;
includestimelygenerationandcollectionofinformationalongwithitsproper
disseminationandarchival
RiskManagement
o
Identifying,analyzing,andproperlyrespondingtoprojectrisks(opportunities
andthreats)
5.6.5 WORKFORCETRANSITIONKNOWLEDGEAREAS

ProvidetoolsnecessarytocompleteorganizationaldiagnosticsclarifyingwhatDFSis
tryingtoachieve;linkingvisionandprioritiestoahighlevelfunctionaldesign

Facilitatecollaborationsessionstodefinethe‘how’behindthefunctionalalignment

Facilitatecollaborationamongteams

DefineaccountabilitiesandresponsibilitieswithintheDFSworkforceandplanthe
workforcetransition.

Designthecompetencymodel,careerpaths,andlearninganddevelopment
curriculumtooperateinlinewithindustrygoodpractices

Serveasabridgebetweentheworkforce(businessandIT)andhumanresources
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page36
5.6.6 SYSTEMSANDDATASTRATEGYKNOWLEDGEAREAS

KnowledgeandunderstandingofFloridaAgencysystemswithrelationtoFLAIR

Providetoolstoconductinventoryvalidation

Providetoolstoconductdatahealthassessment
5.6.7 IV&VKNOWLEDGEAREAS

Correctidentificationofcriticalsystemfunctionstoenablefocusingonareaswhich
benefitthemostfromIV&V,especiallycriticalforrapidapplicationdevelopment

Staffdemonstratesdomainknowledge

Rigorousimplementationofwell‐definedanalysisprocessesandprocedures

Structuredandthoroughassessments

ClearandtimelycommunicationofIV&Vresults

Seniorstaffwithindustrycertificationsintheappropriatesubjectmatter

Contributedtothereductionofrisk,identifiedrisks,andformulatedriskmitigation
plans

Identifiedandappliedresourcesrequiredtomeetschedulerequirements

Assignedresponsibilityfortasks/actionsasexpected

Providedbestpracticesorlessonslearned

Documentationisaccurateandfreeofspellingerrorsorclericaldefects

Reportsdeliveredeitheronoraheadofschedule

Programplanning/managementadequate–assignmentofpersonnel,recognitionof
criticalproblemareas,cooperativeandeffectiveworkingrelationships,effective
resourceuse,responsetonewtasks,andnotificationofpersonnelchangeswas
adequate

IV&Vpersonnelinteractprofessionallywithstakeholders,includingStatepersonnel
5.6.8 INFORMATIONWAREHOUSE(IW)KNOWLEDGEAREAS

Developtoolsnecessaryandinfrastructureneededtosupporttheinformation
warehouse

Provideproperdesignanddevelopmentoftheinformationwarehouse

AbilitytoprovideknowledgetransfertoDFSstaff

AbilitytoprovidetrainingtoDFSstaff
FloridaDepartmentofFinancialServices
FLAIRStudy
Chapter5:Page37
ATTACHMENT1 ASSUMPTIONS
ThisAttachmentcontainsthecostassumptionsusedforcalculationofcostforthefour
optionswithintheFLAIRstudy.Italsoincludesauser’sguidetotheExcelcostmodelbuilt
usingtheassumptions.
1.1 METHODOLOGY
Buildingdetailedcost‐benefitmodelsforaprojectofthisscaleandcomplexityisaninexact
science.Therearehundredsofvariablestoconsiderwhenpricingandthelengthyproject
timelinemeansunforeseenorganizationalandindustrychangesarelikelytooccurpossibly
impactingthefinalresult.
Toaddressthesechallenges,theFLAIRStudyTeamdefinedabasicfourstepmethodologyto
guidetheconstructionofthecostbenefitmodels:
1.
2.
3.
4.
Understandcurrentstate,basecoststructures,andongoinginitiatives
Estimatecostsofthenewsolution
Identifycostsavoidedbyimplementingthenewsolution
Describequantitativeandqualitativebenefitsofthenewsolution
Theteammaderepresentativeassumptionsforeachofthesestepsbasedontheneedsofthe
StateofFloridaaswellasinformationobtainedfromindustryandotherstateswhohave
recentlyimplementedenterprisefinancialmanagementsystems.
1.2 COSTMODELASSUMPTIONS
1.2.1 GENERALSUPPORTINGASSUMPTIONSAPPLICABLETOALLOPTIONS
Thefollowinggeneralassumptionsapplytoallfouroftheoptionsanalyzed:
AnalysisTimeline
Fortheoptionsanalysis,theFLAIRStudyTeammodeledcostsovera15yearwindow
startinginJuly2014(FY14‐15).Thistimeframewasselectedforanumberofreasons,
including:

Inalloptionsanalyzed,therequiredminimumcapabilitiescanbeachievedduringa
15yearwindow.98
98Implementationoftheminimumcapabilitieswillbecompletebytheendofyear15forOption1,but
someoftheenhancedfunctionalitymaynotbecomplete.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page1

Ineachcase,a15yearwindowprovidesvisibilityintonotonlythecostsof
implementationbutalsosupportcostsforthesystemonceitreachesasteadystate.
Itisimportanttonotethattheselectionofa15yearwindowisnotinanywayindicativeof
thelifespanofthenewsystem.Inallcasesitshouldfaroutlivethetimelinesbuiltintointhe
modelsifproperlymaintainedandupgraded.
PayrollReplacementApproach
AllfouroptionsassumethatthelegacyFLAIRpayrollfunctionalitywillbereplaced.There
aremultipleoptionsforupgradingPayroll,includingcustomdevelopment(option1),
configurationofpayrollfunctionalitywithintheERPsystemusedtoreplacetherestofFLAIR
(foroptions2,3and4),orthepossibilityofimplementingpayrollfunctionalityaspartofthe
PeopleFirstupgrade,andinterfacingthefinancialdatabackintoFLAIR.Forpurposesofthe
optionanalysis,thisstudyassumesthatpayrollfunctionalitywillbeimplementedinthesame
systemastherestofFLAIR.Adecisionpointhasbeenincludedineachtimelineto
correspondwiththePeopleFirstcontractrenewal.DFSshouldworkcloselywithDMS
duringthePre‐DDIPhasetodeterminethebestapproachforimplementingthepayroll
replacement.
GeneralCostModelAssumptions

ThisstudyestimatesthecostsforDFSrelatedtoeachoption.Theremaybe
additionalcostsincurredbyagenciestomakechangestotheirsystemsaswellasthe
otherFFMISsystemstointegratewiththenewFLAIRsolution.Thesecostscannotbe
estimateduntilafteradetaileddesignhasbeencreated.

ThestudyestimatesonlyDFScostsrelatedtoeachoption.Forpurposesof
comparingeachoption,thestudyassumesDepartmentofManagementServiceswill
continuetooperatePeopleFirstandMFMPandthoseoperationalsupportcostsare
notconsideredinthecostmodel.

Anaveragehourlyrateforcontractedconsultantshasbeensetat$160($6,400/
week).ThisrateisbasedonDepartmentofManagementServicesStateTerm
ContractforITConsultingServicesrates.Aspartoftheprocurementsolicitation,
actualcontractratesmaybelowerthantheseassumptions.99

Thereisgenerallya1:1relationshipbetweenthenumberofinternalemployeesand
externalemployeesrequiredtoexecuteaProjectTrack.Thisratiomaychangeforthe
actualimplementationbasedonstaffingdecisionsmadebyDFSandproject
99ThisrateisgenerallybasedonERPconfigurationconsultingsupport(foroptions2‐4).Thisrateis
alsoavalidaggregateforOption1,astherewillbearequirementforafewhighlyskilled(and
expensive)architectsrequired,buttheircostwillbeoffsetbyalowercostforgeneraldevelopers.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page2
management.TheprojectstaffingplanwillbedevelopedduringthePre‐DDIPhase
andevolveastheprojectprogresses.100

Foreveryeightexternalemployeesassignedtotheproject,anexternalproject
managerwillberequiredtoperformoversightandcoordinationatarateof$225/
hour($9,000/week).ThisrateisbasedonDepartmentofManagementServices
StateTermContractforITConsultingServicesrates.Aspartoftheprocurement
solicitation,actualcontractratesmaybelowerthantheseassumptions.

Currentinternalemployeecostshavebeenestimatedat$37.50/hour.Thiswas
calculatedassuminganaverageannualsalaryof$60,000,adding30%tocover
benefitsandoverheadresultinginacostof$1,500/week.

Laborcostsforinternalemployeessupportingthenewsystemareexpectedto
increaseto$76,000/yearbecauseoftheexpandedskill‐setrequired.Afteradding
30%tocoverbenefitsandoverhead,thisresultsinacostof$1,900/week.

Anannualinflationrateof1.5%hasbeenincludedforbothinternalandcontracted
resources.

Inthemodels,existingFLAIRoperationalsupport,FLAIRtechnicalsupportandCMS
operationalsupportresourcesrepresentacombinationofemployeesworkingfor
DFS.

Toderivelaborrelatedcosts,themodelsestimatethenumberofresourcesrequired
foreachtaskduringagivenyearaswellasthenumberofweeksperyearthose
resourceswillberequired.

Ingeneral,resourceestimatesarederivedfromacombinationofresearchinto
projectscompletedbyotherstatesandtheprofessionalexperienceoftheFLAIR
StudyTeaminevaluatingsimilarprojectsinthepublicsector.

Itisimportanttonotetheresourcerequirementsrepresentedinthemodelare‘pure’
–meaningtheyrepresenttheamountofworktoperformtheidentifiedactivity
annualizedovera52weekyear,anddonotaddressthehowpeopleareassignedto
theactivityandwherethepeoplecomefrom.

Thebudgetaryresourcerequirementsmaynotdirectlymatchstaffrequirementsdue
totimingandmixofstaffingassignments.DFSmayberequiredtohireorarrangeto
allocateadditionalpeoplefromexternalsourcestomeettheactualdemandofeffort.

Softwarepricingwasestimatedusingabottom‐upapproachwithasimplifiedversion
ofa‘peruser’pricingmodel.Themodelignoresexistingorpastpurchasesandother
factorsthatmayultimatelyimpactthefinalprice.Theresultingcoststhemodel
producedarecomparabletothoseseeninothersimilarstatesandshouldserveasa
reasonableproxytothepricetheStatepays.
100The1:1ratioisaconservativeestimateforprojectsofthissizeandcomplexity.Assuch,itis
assumedthatanyinternalprojectmanagers,executiveleadershiporotherresourcesrequiredto
executetheprojectwillbeincludedinthematchedinternalemployee.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page3
1.2.2 OPTION1:ENHANCEFLAIRCOSTASSUMPTIONS
1.2.2.1 OPTION1:LABORASSUMPTIONS–PRE‐DDI
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsfor
Option1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page4
PRE‐DDITASKS/
ROLES
DESCRIPTION
Organizational
ChangeManagement
WorkforceTransition
Systems&Data
Strategy
ProjectManagement
Office
BusinessProcessRe‐
engineering
Procurements
Teamresponsibletosupportandensure
organizationalacceptanceofbusiness
processandtechnologysystemchanges
Teamresponsibletoidentifyrequired
organizationalchangeswithintheFinance
andITdepartmentstosupportthenew
systemmappingofcurrenttechnologystaff
intofuturerolessupportingthenewsystem
Teamresponsibletoconfirminventoryof
Stateagencyfinanciallyrelatedsystemsand
interfacestoFLAIR
Responsibilitiesincludeperformingdata
qualityassessmentofexistingdatainlegacy
FLAIR,migratingrequiredlegacyFLAIR&
CMSdata(transactions/records)
IncludesdeterminingchangesinFLAIR
systemarchitecture,infrastructure,data
structures,andanydataconversion
requirements
Groupresponsibletoestablishandmaintain
appropriategovernancestructuresto
supporttheproject
Teamresponsibleforanalyzingexisting
businessprocessandrecommendingnew
futurestateprocessestomaximizebenefits
andminimizingsoftwarecustomization
withinthenewsystem
Teamresponsibletocoordinateselectionof
software,systemintegrator,PMOand
informationwarehousecontractorsrequired
tosupportfutureprojectphases
EXTERNALRESOURCES
REQUIRED
4(1)101
5
Y1Q2–Y1Q4
Y2Q1–Y2Q4
2*102
Y2Q1–Y2Q4
5*
Y1Q3–Y2Q2
3
Y1Q1–Y2Q4
6(2)
Y1Q2–Y2Q4
3
Y1Q2–Y2Q4
ExhibitA1‐1:Option1Pre‐DDILaborAssumptions
AdditionalNotesandAssumptions

Itwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterof
FY14‐15tomanagetheprocurementofPre‐DDIresources.
101TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusiness
ProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitially
plannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeled
costs.Theplannedcontingencycouldbeusedtocoverthiscostincrease.
102Anasterisk*denoteshalftimeresources
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page5

Researchintosimilarprojectslargescalepublicenterprisesoftwareprojectsinother
statesandthefederalgovernmenttheprocurementphase(scopeclarification,
technologyplatformselection,andSIselection)typicallytakesbetween12and24
monthstocomplete.

Ifthisoptionischosen,theWorkforceTransitiontrackofthePre‐DDIphasewill
requiremoreresourcesthantheotheroptionsbecauseitwillincludetheevaluation
andselectionoffuturestatetechnologyplatformsaswellasorganizationalre‐design.
1.2.2.2 OPTION1:LABORASSUMPTIONS–DDIPHASE1
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsfor
Option1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonly.Theresourcetotaldoesnotincludethe
matchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,orthe
associatedexternaloversight,bothofwhichareincludedinthecostmodel.
DDIPHASE1TASKS/
ROLES
Independent
Validation&
Verification
RewriteFLAIR
(Centraland
Departmental):
FunctionalDesign
RewriteFLAIR
(Centraland
Departmental):Tech
Design
RewriteFLAIR
(Centraland
Departmental):Tech
Build
DESCRIPTION
Independentteamofcontractorsassignedto
evaluatetheworkproductofthesystem
integratortominimizerisk
Resourcesrequiredtocreatefunctional
systemrequirementsanddesignfuturestate
businessprocesses
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Resourcesrequiredtocreatetechnicalsystem
requirements
Resourcesrequiredtodesignthetechnology
infrastructurenecessarytosupportan
enhancedversionofFLAIR
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Softwaredevelopmentteamrequiredtobuild
asystemtosupportthetechnicaland
functionalrequirementsidentifiedduring
theirrespectivedesignphases
Includesthedevelopmentofnewinterfaces
withexistingsystems
Includesthebuildoutofalltechnology
infrastructurerequiredtosupportthe
enhancedversionofFLAIR
Includesthedevelopmentofaprototype
deploymenttobeusedforfunctionaltesting
priortothepilot
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
FloridaDepartmentofFinancialServices
FLAIRStudy
EXTERNALRESOURCES
REQUIRED
2
Y3Q1–Y13Q2
12
Y3Q1–Y5Q4
12
Y3Q1–Y5Q4
24
Y5Q3–Y10Q2
Attachment1:Page6
DDIPHASE1TASKS/
ROLES
RewriteFLAIR
(Centraland
Departmental):
FunctionalBuild
AgencyOnboarding:
PilotandUpdates
AgencyOnboarding:
Rollout
EnhancePayroll:
TechDesign
DESCRIPTION
FunctionalteamrequiredtoworkwithTech
Buildteamtosupportprototypetesting
Responsibilitiesalsoincludedocumentingand
implementingchangestoexistingbusiness
processesinsupportoftheenhancedsystem,
completingunitandfunctionaltestingandthe
developmentoftestscripts
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthepilot
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponseto
issuesidentifiedduringthepilot
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthephased
rolloutoftheenhancedFLAIRsystemto
differentagencies
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Resourcesrequiredtobuildtechnicalsystem
requirementsforaddingenhanced
functionalitytoPayroll
Resourcesrequiredtodesignthetechnology
infrastructurerequiredtosupportan
enhancedPayroll
EXTERNALRESOURCES
REQUIRED
12
Y5Q3–Y10Q2
12
Y10Q1–Y11Q2
12
Y11Q1–Y13Q2
6
Y9Q1–Y9Q4
EnhancePayroll:
FunctionalDesign
Resourcesrequiredtobuildfunctionalsystem
requirementsanddesignfuturestatebusiness
processesforthenewlyenhancedPayroll
6
Y9Q1–Y9Q4
RewriteFLAIR
(Centraland
Departmental):Tech
Build
Softwaredevelopmentteamrequiredtobuild
asystemtosupportthetechnicaland
functionalrequirementsidentifiedduring
theirrespectivedesignphases
Includesthedevelopmentofnewinterfaces
withexistingsystems
Includesthebuildoutofalltechnology
infrastructurerequiredtosupportthe
enhancedversionofFLAIR
Includesthedevelopmentofaprototype
deploymenttobeusedforfunctionaltesting
priortothepilot
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
24
Y5Q3–Y10Q2
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page7
DDIPHASE1TASKS/
ROLES
RewriteFLAIR
(Centraland
Departmental):
FunctionalBuild
AgencyOnboarding:
PilotandUpdates
AgencyOnboarding:
Rollout
EnhancePayroll:
TechDesign
DESCRIPTION
FunctionalteamrequiredtoworkwithTech
Buildteamtosupportprototypetesting
Responsibilitiesalsoincludedocumentingand
implementingchangestoexistingbusiness
processesinsupportoftheenhancedsystem,
completingunitandfunctionaltestingandthe
developmentoftestscripts
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthepilot
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponseto
issuesidentifiedduringthepilot
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthephased
rolloutoftheenhancedFLAIRsystemto
differentagencies
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Resourcesrequiredtobuildtechnicalsystem
requirementsforaddingenhanced
functionalitytoPayroll
Resourcesrequiredtodesignthetechnology
infrastructurerequiredtosupportan
enhancedPayroll
EXTERNALRESOURCES
REQUIRED
12
Y5Q3–Y10Q2
12
Y10Q1–Y11Q2
12
Y11Q1–Y13Q2
6
Y9Q1–Y9Q4
Y9Q1–Y9Q4
EnhancePayroll:
FunctionalDesign
Resourcesrequiredtobuildfunctionalsystem
requirementsanddesignfuturestatebusiness
processesforthenewlyenhancedPayroll
6
EnhancePayroll:
TechBuild
Softwaredevelopmentteamrequiredtobuild
anapplicationtosupportthetechnicaland
functionalrequirementsidentifiedduringthe
designphase
Includesthebuildoutofalltechnology
infrastructurerequiredtosupportthe
enhancedPayroll
Includesthedevelopmentofaprototype
deploymenttobeusedforfunctionaltesting
priortothepilot
12
FloridaDepartmentofFinancialServices
FLAIRStudy
Y10Q1–Y11Q4
Attachment1:Page8
DDIPHASE1TASKS/
ROLES
EnhancePayroll:
FunctionalBuild
EnhancePayroll:
PilotandUpdates
EnhancePayroll:
Rollout
UpgradeInformation
Warehouseto
SupportNewFLAIR
FFMISSystem
Integration
PeopleFirstLiaison
MFMPLiaison
LAS/PBSLiaison
DESCRIPTION
FunctionalteamrequiredtoworkwithTech
Buildteamtosupportprototypetesting
Responsibilitiesalsoincludedocumentingand
implementingchangestoexistingbusiness
processesinsupportoftheenhanced
application,completingunitandfunctional
testingandthedevelopmentoftestscripts
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthepayrollpilot
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponseto
issuesidentifiedduringthePayrollpilot
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthepayroll
rollout
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponseto
standardpracticesfromthepilot
Resourcesrequiredtoupdatetheexisting
informationwarehousetosupportthe
enhancedFLAIR
Specifictasksincludedataloading,conversion
andvalidation,reportdevelopment,etc.
Note:Taskisassociatedwiththe
enhancementofCentralFLAIR,Departmental
FLAIRandPayroll
Technicalandfunctionalresourcesrequired
toensuresmoothintegrationofenhanced
FLAIRwiththeotherFFMIScomponents
Contractorresponsibleforovercomingthe
challengesinterfacingwithPeopleFirstfor
employeepayments,G/Ldata,etc.,andthe
eventualdisconnectofPFfromcurrent
CentralFLAIR
Contractorresponsibleforovercomingthe
challengesinterfacingwithMFMPforvendor
payments,G/Ldata,etc.andtheeventual
disconnectofMFMPfromthecurrentCentral
andDepartmentalFLAIR
Contractorresponsibleforovercomingthe
challengesinterfacingwithLAS/PBSfor
budget,appropriation,encumbrancetracking
andtheeventualdisconnectofPBSfromthe
currentCentralFLAIR
FloridaDepartmentofFinancialServices
FLAIRStudy
EXTERNALRESOURCES
REQUIRED
6
Y10Q1–Y11Q4
6
Y12Q1–Y12Q4
6
Y13Q1–Y13Q2
6
Y5Q3–Y9Q2
8
Y8Q1–Y10Q2
1
Y3Q1–Y13Q2
1
Y3Q1–Y13Q2
1
Y3Q1–Y13Q2
Attachment1:Page9
DDIPHASE1TASKS/
ROLES
DESCRIPTION
Combinationoftechnicalandfunctional
resourcesresponsibleforvarioustest
activatesassociatedwiththeimplementation
TestingandQuality
oftheenhancedFLAIRsystem
Assurance
Tasksmayincludeunittesting,functional
testing,testscriptdevelopmentaswellasdata
loading,conversionandvalidation
Teamresponsibletosupportandensure
Organizational
organizationalacceptanceofbusinessprocess
ChangeManagement
andtechnologysystemchanges
Groupresponsibletoestablishandmaintain
ProjectManagement
appropriategovernancestructurestosupport
Office
theproject
TeamresponsibletomonitorFLAIR/IWpilot
andreportFLAIRbaselineperformance
metrics
FunctionalresourceswhoconductFLAIR/IW
WorkforceTransition endusertrainingforagenciesandperform
OCMandworkforcetransitiontasks
Alsoresponsibletoconductfinalsystemand
useracceptancetestingandsupportthe
“Go/NoGo”decisionforrollout
EndUserTraining
Teamresponsibleforcreationoftraining
(DDIPhase‐1)
materialsandotherdocumentation
(Trainersand
Alsoresponsibleforteachinginternaltrainers
Consultants)
whowillperformend‐usertraining
EXTERNALRESOURCES
REQUIRED
8
Y5Q3–Y13Q2
5
Y3Q1–13Q2
5
Y3Q1–Y13Q2
2
Y3Q1–Y13Q2
4103
Y10Q1–Y13Q2
ExhibitA1‐2:Option1DDIPhase1LaborAssumptions
103Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page10
AdditionalNotesandAssumptions

ProjectTeamTraining
o


Forthemaximumnumberofinternalemployeesontheprojectteam(~100),
assumefourclassesperyearforY1–2andoneclassperyearthroughY15
($1,500/classwitha1.5%annualinflationfactor)
End‐UserTraining
o
Assumetwelvefull‐timetrainerswillberequiredtoteachnewsystem(Startin
Y10)
o
Assumefourconsultantswillberequiredtobuildtrainingmaterialsduringall
build/testphases
o
Assumethreeweeksoftrainingwillberequiredforeachemployeeusingthenew
system
o
Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthe
systemonceon‐boarded
ForthisOption,themodelassumes“user‐based”softwarelicenseswillnotneedtobe
purchasedtosupportthefuturetechnologyplatformsselected.
1.2.2.3 OPTION1:LABORASSUMPTIONS–DDIPHASE2
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsfor
Option1.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
DDIPHASE2TASKS/
ROLES
DESCRIPTION
EXTERNALRESOURCES
REQUIRED
EnhanceUpgraded
FLAIR:Functional
Design
Resourcesrequiredtocreatefunctional
systemrequirementsanddesignfuturestate
businessprocessesforthenewlyupgraded
FLAIR
6
Y10Q1–Y12Q4
EnhanceUpgraded
FLAIR:TechDesign
Resourcesrequiredtocreatetechnical
systemrequirementsforaddingenhanced
functionalitytothenewlyupgradedFLAIR
Resourcesrequiredtodesignthetechnology
infrastructurenecessarytosupportan
enhancedversionofFLAIR
12
Y10Q1–Y12Q4
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page11
DDIPHASE2TASKS/
ROLES
DESCRIPTION
EXTERNALRESOURCES
REQUIRED
EnhanceUpgraded
FLAIR:TechBuild
Softwaredevelopmentteamrequiredto
buildasystemtosupportthetechnicaland
functionalrequirementsidentifiedduringthe
designphase
Includesthebuildoutofalltechnology
infrastructurerequiredtosupportthe
enhancedversionofFLAIR
Includesthedevelopmentofaprototype
deploymenttobeusedforfunctionaltesting
priortothepilot
12
Y12Q1–Y15Q4
EnhanceUpgraded
FLAIR:Functional
Build
FunctionalteamrequiredtoworkwithTech
Buildteamtosupportprototypetesting
Responsibilitiesalsoincludedocumenting
andimplementingchangestoexisting
businessprocessesinsupportofthe
enhancedsystem,completingunitand
functionaltestingandthedevelopmentof
testscripts
6
Y12Q1–Y15Q4
EnhanceUpgraded
FLAIR:Pilotand
Updates
Combinationoftechnicalandfunctional
resourcesrequiredtosupportpilot
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponse
toissuesidentifiedduringthepilot
4
Y15Q1–Y15Q4
EnhanceUpgraded
FLAIR:Rollout
Combinationoftechnicalandfunctional
resourcesrequiredtosupportrolloutto
agencies
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponse
tostandardpracticesduringthepilot
0
Wouldoccur
afterY15
4
Y15Q1–Y15Q4
2
Y13Q3–Y15Q4
EnhanceUpgraded
FLAIR:EndUser
Training(DDIPhase‐
2)
ProjectManagement
Office
Teamresponsibleforcreationoftraining
materialsandotherdocumentationofnew
featuresfromtheupgrade
Alsoresponsibleforteachinginternal
trainerswhowillperformend‐usertraining
Groupresponsibletoestablishandmaintain
appropriategovernancestructuresto
supporttheproject
ExhibitA1‐3:Option1DDIPhase2LaborAssumptions
AdditionalNotesandAssumptions

Time‐frameandresourceestimatesforindividualprojectsduringthisphasehave
beenderivedbasedonacombinationofexperiencewithlargescalesoftware
developmentandresearchintosimilarprojectscompletedinthepublicsector.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page12

Formalestimationmodels,suchasCOCOMO,SLIM,SEER‐SEM,etc.werenotusedto
developtheestimatesbecausethesemodelsrequiredataelementsthatarenot
availableuntilmoredetailedrequirementsaredevelopedduringthePre‐DDIphaseof
theproject.
1.2.2.4 OPTION1:REQUIREDPURCHASEASSUMPTIONS



Approximately$2.5millioninhardwarewillberequiredtosupportthenewsystem
o
Thisincludesalltestanddevelopmentenvironments
o
Thisincludesalldisasterrecoveryenvironments
o
Thisincludes3rdpartyinstallationcosts
o
Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport)
o
Therewillbeaonetime20%hardwaresupportandmaintenancecontractcost
theyearthehardwareisrefreshed
Approximately$5.0millionofinfrastructurerelatedsoftwarewillberequiredto
supportthenewsystem
o
Examples:OperatingSystem/SQLlicenses;DirectoryServices;Security
Software;etc.
o
Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)
o
Therewillbeaonetime20%infrastructuresoftwaresupportandmaintenance
contractcosttheyearthehardwareisrefreshed
DataCenterFacilitiesandEquipment
o
TheequipmentrequiredtosupporttheenhancementofFLAIRisestimatedto
requiretendataracksofequipmentwithinanenterpriseclassdatacenter
o
Inindustry,theaveragecosttosupportonedatarack–includingpower,cooling
andfloorspace–is$1,500/month
o
Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–both
WANandInternet–fromthedatacenterhousingthenewsystembacktothe
State’snetwork.Thesecostsareestimatedat$2,000/monthfortheWAN
connectionand$1,500/monthfortheinternetconnectivity
1.2.2.5 OPTION1:ONGOINGSUPPORTASSUMPTIONS

Itwillrequirethesamenumberoftechnicalsupportemployeestomanagethe
enhancedFLAIRsystemasitdoesthecurrentFLAIRsystem

Itwillrequirethesamenumberofoperationalsupportemployeestomanagethe
enhancedFLAIRsystemasitdoesthecurrentFLAIRsystem

Itwillcostapproximatelythesameamounttoadministertheinfrastructure
supportingtheenhancedERPasitdoestoadministertheinfrastructuresupporting
thecurrentFLAIRsystem
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page13

Endusertrainingcostsafterimplementationareassumedaspartofsupport.
Employeestafftimetoparticipateintrainingat1dayperyearisexplicitlyincluded
foreverysystemuser.
1.2.3 OPTION2:REPLACEFLAIRWITHANERPSOLUTIONCOST–BENEFITMODEL
1.2.3.1 OPTION2:LABORASSUMPTIONS–PRE‐DDI
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsfor
Option2.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
PRE‐DDITASKS/
ROLES
Organizational
ChangeManagement
WorkforceTransition
Systems&Data
Strategy
ProjectManagement
Office
DESCRIPTION
Teamresponsibletosupportandensure
organizationalacceptanceofbusiness
processandtechnologysystemchanges
Teamresponsibletoidentifyorganizational
changeswithintheFinanceandIT
departmentsrequiredtosupportthenew
system
Alsomapscurrenttechnologystaffinto
futurerolessupportingthenewERPsystem
Teamresponsibletoconfirminventoryof
Stateagencyfinanciallyrelatedsystemsand
interfacestoFLAIR
Responsibilitiesincludeperformingdata
qualityassessmentofexistingdatainlegacy
FLAIR,migratingrequiredlegacyFLAIR&
CMSdata(transactions/records)
IncludesdeterminingchangesinFLAIR
systemarchitecture,infrastructure,data
structures,andanydataconversion
requirements
Establishappropriategovernancestructures
tosupporttheproject
EXTERNALRESOURCES
REQUIRED
4(1)104
5
Y1Q2–Y1Q4
Y2Q1–Y2Q4
2
Y2Q1–Y2Q4
2
Y2Q3–Y2Q2
3
Y1Q1–Y2Q4
104TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusiness
ProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitially
plannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeled
costs.Theplannedcontingencycouldbeusedtocoverthiscostincrease.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page14
PRE‐DDITASKS/
ROLES
BusinessProcessRe‐
engineering
Procurements
DESCRIPTION
Teamresponsibleforanalyzingexisting
businessprocessandrecommendingnew
futurestateprocessestomaximizebenefits
andminimizingsoftwarecustomization
withinthenewsystem
Teamresponsibletocoordinateselectionof
software,systemintegrator,PMOand
informationwarehousecontractorsrequired
tosupportfutureprojectphases
EXTERNALRESOURCES
REQUIRED
6(2)
Y1Q2–Y2Q4
3
Y1Q2–Y2Q4
ExhibitA1‐4:Option2Pre‐DDILaborAssumptions
AdditionalNotesandAssumptions

Itwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterof
FY14‐15tomanagetheprocurementofPre‐DDIresources

Researchintosimilarprojectsinotherstatesshowstheprocurementphasetypically
takesbetween12and24monthstocomplete(e.g.,NY,TX,PA)
1.2.3.2 OPTION2:LABORASSUMPTIONS–DDIPHASE1
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsfor
Option2.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
subjectmatterexpertsonly.Theresourcetotaldoesnotincludethematchinginternal
resourceexpectedtoperformthetaskortheassociatedexternalprojectmanagers.
PRE‐DDITASKS/
ROLES
Independent
Validation&
Verification
ImplementFLAIRin
ERP(Central&
Departmental)‐
Functional
ImplementFLAIRin
ERP(Central&
Departmental)‐
Technical
Implement
Information
WarehouseinERP
DESCRIPTION
Independentteamofcontractorsassignedto
evaluatetheworkproductofthesystem
integratortominimizerisk
Functionalteamresponsibleforvarioustasks
includingbusinessprocessimplementation
anddocumentation,reportgeneration,
functionaltestingandtestscript
development
Technicalimplementationteamresponsible
forinfrastructuredeployment,system
configuration,developmentofinterfaceswith
otherapplicationsandanyrequiredsoftware
customizations
Technicalteamresponsibleforthe
developmentofanewinformation
warehouse,dataconversionandloading,and
reportgeneration
FloridaDepartmentofFinancialServices
FLAIRStudy
EXTERNALRESOURCES
REQUIRED
2
Y3Q1–Y7Q4
12
8
Y3Q1–Y4Q4
Y5Q1‐Y5Q4
8
6
Y3Q1–4Q4
Y5Q1–Y5Q4
4
2
Y3Q1–Y4Q4
Y5Q1–Y5Q4
Attachment1:Page15
PRE‐DDITASKS/
ROLES
RollOutFLAIRERP/
IW(Central&
Departmental)to
Agencies
PeopleFirstLiaison
Plan,Designand
ImplementPayrollin
ERP
FFMISSystem
Integration
MMFPLiaison
LAS/PBSLiaison
TestingandQuality
Assurance
Organizational
ChangeManagement
ProjectManagement
Office
DESCRIPTION
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthemigration
ofagenciestothenewERPsystem.Specific
taskscouldincludesystemandsecurity
configuration,interfacedevelopment,
functionaltestingandtestscript
development,andsoftwarecustomization
Contractorresponsibleforovercomingthe
challengesinterfacingPeopleFirstwithERP
foremployeepayments,G/Ldata,etc.andthe
eventualdisconnectofPeopleFirstfrom
currentCentralFLAIR
Combinationoftechnicalandfunctional
resourcesfortheconfigurationofpayroll
withinthenewERP
Technicalandfunctionalresourcesrequired
toensuresmoothintegrationoftheERP
systemwiththeotherFFMIScomponents
Contractorresponsibleforovercomingthe
challengesinterfacingMFMPwithERPfor
vendorpayments,G/Ldata,etc.andthe
eventualdisconnectofMFMPfromthe
currentCentralandDepartmentalFLAIR
Contractorresponsibleforovercomingthe
challengesinterfacingwithLAS/PBSfor
budget,appropriation,encumbrancetracking
andtheeventualdisconnectofPBSfromthe
currentCentralFLAIR
Combinationoftechnicalandfunctional
resourcesresponsibleforvarioustest
activatesassociatedwiththeimplementation
ofthenewERP
Tasksmayincludeunittesting,functional
testing,testscriptdevelopmentaswellas
dataloading,conversionandvalidation
Teamresponsibletosupportandensure
organizationalacceptanceofbusiness
processandtechnologysystemchanges
Groupresponsibletoestablishandmaintain
appropriategovernancestructuresto
supporttheproject
EXTERNALRESOURCES
REQUIRED
6
Y6Q1–Y7Q4
1
Y3Q1–Y7Q4
1*105
2
3
Y3Q1–Y4Q4
Y5Q1–Y6Q4
Y7Q1–Y7Q4
10
Y4Q1–Y4Q4
1
Y3Q1–Y7Q4
1
Y3Q1–Y7Q4
4
8*
4*
Y3Q1‐Y3Q4
Y4Q1–Y5Q4
Y6Q1–Y7Q4
5
Y3Q1–Y7Q4
5
5*
Y3Q1–Y5Q4
Y6Q1–Y7Q4
105Anasterisk*denoteshalftimeresources
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page16
PRE‐DDITASKS/
ROLES
WorkforceTransition
EndUserTraining
(DDIPhase‐1)
DESCRIPTION
TeamresponsibletomonitorFLAIR/IW
pilotandreportFLAIRbaselineperformance
metrics
FunctionalresourceswhoconductFLAIR/
IWendusertrainingforagenciesand
performOCMandworkforcetransitiontasks
Alsoresponsibletoconductfinalsystemand
useracceptancetestingandsupportthe
“Go/NoGo”decisionforrollout
Teamresponsibleforcreationoftraining
materialsandotherdocumentation
Alsoresponsibleforteachinginternal
trainerswhowillperformend‐usertraining
EXTERNALRESOURCES
REQUIRED
2
2*
Y3Q1–Y5Q4
Y6Q1–Y7Q4
4106
Y5Q1–Y7Q4
ExhibitA1‐5:Option2DDIPhase1LaborAssumptions
AdditionalNotesandAssumptions

OneinternalemployeewillberequiredparttimetoplanandscopePayrollthrough
Y3–7

ProjectTeamTraining
o

Forthemaximumnumberofinternalemployeesontheprojectteam(~50),
assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500
/classwith1.5%annualinflationfactor)
End‐UserTraining
o
Assumefull‐timetrainerswillberequiredtoteachnewsystem(4inY5and12in
Y6–Y7)
o
AssumefourconsultantswillberequiredtobuildtrainingmaterialsinY5–7
o
Assumethreeweeksoftrainingwillberequiredforeachemployeeusingthenew
system
o
Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthe
systemfromY8andbeyond
1.2.3.3 OPTION2:LABORASSUMPTIONS–DDIPHASE2
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsfor
Option2.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
106Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page17
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
DDIPHASE2TASKS/
ROLES
DESCRIPTION
Resourcesdedicatedtodeterminingsystem
enhancementrequirements
PlanandAssess
Design,Develop,and
Implement
RollOutExpanded
ERPFunctionality
EndUserTraining
(DDIPhase‐2)
ProjectManagement
Office
Resourcesrequiredtodeploytheenhanced
functionalityinthenewERPsystem
Resourcesrequiredforagenciestotake
advantageoftheenhancedfunctionalitybuilt
intothesystem
Teamresponsibleforcreationoftraining
materialsandotherdocumentationofnew
functionality
Alsoresponsibleforteachinginternaltrainers
whowillperformend‐usertraining
Groupresponsibletoestablishandmaintain
appropriategovernancestructurestosupport
theproject
EXTERNALRESOURCES
REQUIRED
4
Y8Q1–Y8Q4
8
Y9Q1–Y10Q4
4
Y10Q1–Y12Q4
4
Y10Q1–Y12Q4
2107
Y8Q1–Y12Q4
ExhibitA1‐6:Option2DDIPhase2LaborAssumptions
1.2.3.4 OPTION2:REQUIREDPURCHASEASSUMPTIONS

ERPsoftwarelicensesareassumedataninflationadjustedcostof$1500peruser
withanannualmaintenancecostof20%ofthelicensecost

Approximately$2.5millioninhardwarewillberequiredtosupportthenewsystem

o
Thisincludesalltestanddevelopmentenvironments
o
Thisincludesalldisasterrecoveryenvironments
o
Thisincludes3rdpartyinstallationcosts
o
Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport)
o
Therewillbeaonetime20%hardwaresupportandmaintenancecontractcost
theyearthehardwareisrefreshed
Approximately$1.25millionofinfrastructurerelatedsoftwarewillberequiredto
supportthenewsystem
o
Examples:OperatingSystem/SQLlicenses;DirectoryServices;Security
Software;etc.
o Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)
107Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page18
o

Therewillbeaonetime20%infrastructuresoftwaresupportandmaintenance
contractcosttheyearthehardwareisrefreshed
DataCenterFacilitiesandEquipment
o
TheequipmentrequiredtosupportthereplacementofFLAIRwithanERP
solutionisestimatedtorequire8dataracksofequipmentwithinanenterprise
classdatacenter
o
Inindustry,theaveragecosttosupportaonedatarack–includingpower,cooling
andfloorspace–is$1,500/month
o
Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–both
WANandInternet–fromthedatacenterhousingthenewsystembacktothe
StateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthforthe
WANconnectionand$1,500/monthfortheinternetconnectivity
1.2.3.5 OPTION2:ONGOINGSUPPORTASSUMPTIONS

Softwaremaintenancewillcost~20%oftotalpurchasedlicensecost

Itwillrequirethesamenumberoftechnicalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~100today)

Itwillrequirethesamenumberofoperationalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~60today)

TechnicalandoperationalsupportforFLAIRwillberampeddownduringY5–7with
costsdecliningat25%,50%and75%respectively;SupportforFLAIRwillbe
discontinuedduringY8

TechnicalandoperationalsupportforthenewERPsystemwillrampupduringyears
Y3–5at25%,50%and75%oftotalcostsrespectively

Itwillcostapproximatelythesameamounttoadministertheinfrastructure
supportingERPasitdoestoadministertheinfrastructuresupportingFLAIR

Endusertrainingcostsafterimplementationareassumedaspartofsupport.
Employeestafftimetoparticipateintrainingat1dayperyearisexplicitlyincluded
foreverysystemuser.
1.2.3.6 OPTION2:UPGRADEASSUMPTIONS

AminorupgradeofthesystemwillbeperformedduringY5oftheprojectrequiringa
teamofapproximatelytenexternalcontractors(andtheirinternalcounterparts)to
execute

AmajorsystemupgradewillbeperformedinY8inconjunctionwiththeplanningfor
thePhase‐2implementationrequiringateamofapproximately12external
contractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillbeperformedduringY12oftheprojectrequiringateam
ofapproximatelytencontractors(andtheirassociatedinternalcounterparts)to
execute
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page19
1.2.4 OPTION3:REPLACEFLAIRANDCASHMANAGEMENTSYSTEMSWITHANERP
SOLUTIONCOST–BENEFITMODEL
1.2.4.1 OPTION3:LABORASSUMPTIONS–PRE‐DDI
ThetablebelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsfor
Option3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’column
correspondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivities
aredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternal
resourceexpectedtoperformthetask,estimatedata1:1ratio(unlessotherwiseindicated),
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
PRE‐DDITASKS
/ROLES
TRACK
Organizational
Change
Management
Organizational
Change
Management
Workforce
Transition
Workforce
Transition
DESCRIPTION
Teamresponsibletosupport
andensureorganizational
acceptanceofbusinessprocess
andtechnologysystem
changes
Teamresponsibletoidentify
organizationalchangeswithin
theFinanceandIT
departmentsrequiredto
supportthenewsystem
Alsomapscurrenttechnology
staffintofutureroles
supportingthenewERP
system
EXTERNALRESOURCES
REQUIRED
4(1)108
5
Y1Q2–Y1Q4
Y2Q1–Y2Q4
2
Y2Q1–Y2Q4
108TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusiness
ProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitially
plannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeled
costs.Theplannedcontingencycouldbeusedtocoverthiscostincrease.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page20
PRE‐DDITASKS
/ROLES
Systems&Data
Strategy
TRACK
Systems&Data
Strategy
Project
Management
Office
Project
Management
Office
Business
ProcessRe‐
engineering
BusinessProcess
Re‐engineering
Procurements
Procurement
DESCRIPTION
Teamresponsibletoconfirm
inventoryofStateagency
financiallyrelatedsystemsand
interfacestoFLAIR
Responsibilitiesinclude
performingdataquality
assessmentofexistingdatain
legacyFLAIR,migrating
requiredlegacyFLAIR&CMS
data(transactions/records)
Includesdeterminingchanges
inFLAIRsystemarchitecture,
infrastructure,datastructures,
andanydataconversion
requirements
Groupresponsibletoestablish
andmaintainappropriate
governancestructuresto
supporttheproject
Teamresponsiblefor
analyzingexistingbusiness
processandrecommending
newfuturestateprocessesto
maximizebenefitsand
minimizingsoftware
customizationwithinthenew
system
Teamresponsibleto
coordinateselectionof
software,systemintegrator,
PMOandinformation
warehousecontractors
requiredtosupportfuture
projectphases
EXTERNALRESOURCES
REQUIRED
2
Y1Q3–Y2Q2
3
Y1Q1–Y2Q4
6(2)
Y1Q2–Y2Q4
3
Y1Q2–Y2Q4
ExhibitA1‐7:Option3Pre‐DDILaborAssumptions
AdditionalNotesandAssumptions

Itwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterof
FY14‐15tomanagetheprocurementofPre‐DDIresources

Researchintosimilarprojectsinotherstatesshowstheprocurementphasetypically
takesbetween12and24monthstocomplete(e.g.,NY,TX,PA)
1.2.4.2 OPTION3:LABORASSUMPTIONS–DDIPHASE1
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsfor
Option3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’column
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page21
correspondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivities
aredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternal
resourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternal
oversight,bothofwhichareincludedinthecostmodel.
DDIPHASE1
TASKS/ROLES
Independent
Validation&
Verification
Implement
FLAIRinERP
(Central&
Departmental)
‐Functional
Implement
FLAIRinERP
(Central&
Departmental)
–Technical
Implement
Information
Warehouse
RollOutFLAIR
ERP/IW
(Central&
Departmental)
toAgencies
Implement
CMSinERP
TRACK
Independent
Validation&
Verification
(IV&V)
ImplementERP
forFLAIR/CMS
PilotFLAIR/
CMS
Replacement
ImplementERP
forFLAIR/CMS
PilotFLAIR/
CMS
Replacement
Implement
Information
Warehouse(IW)
PilotFLAIR/
CMS
Replacement
FLAIR/IW
Rollout
ImplementERP
forFLAIR/CMS
PilotFLAIR/
CMS
Replacement
FloridaDepartmentofFinancialServices
FLAIRStudy
DESCRIPTION
Independentteamofcontractors
assignedtoevaluatethework
productofthesystemintegratorto
minimizerisk
EXTERNALRESOURCES
REQUIRED
2
Y3Q1–Y7Q4
Functionalteamresponsiblefor
varioustasksincludingbusiness
processimplementationand
documentation,reportgeneration,
functionaltestingandtestscript
development
12
8
Y3Q1–Y4Q4
Y5Q1–Y5Q4
Technicalimplementationteam
responsibleforinfrastructure
deployment,systemconfiguration,
developmentofinterfaceswith
otherapplicationsandanyrequired
softwarecustomizations
8
6
Y3Q1–Y4Q4
Y5Q1–Y5Q4
Technicalteamresponsibleforthe
developmentofanewinformation
warehouse,dataconversionand
loadingandreportgeneration
4
2
Y3Q1–Y4Q4
Y5Q1–Y5Q4
Combinationoftechnicaland
functionalresourcesrequiredto
supportthemigrationofagenciesto
thenewERPsystemandthenew
IW.Specifictaskscouldinclude
systemandsecurityconfiguration,
interfacedevelopment,functional
testingandtestscriptdevelopment,
reapportiongenerationand
softwarecustomization
6
Y6Q1–Y7Q4
Combinationoftechnicaland
functionalresourcesforthe
implementationofexistingcash
managementsystemfunctions
withinthenewERP.
3
1
Y3Q3–Y4Q4
Y5Q1–Y5Q4
Attachment1:Page22
DDIPHASE1
TASKS/ROLES
RollOutCMSin
ERPto
Agencies
Plan,Design
andImplement
PayrollinERP
FFMISSystem
Integration
PeopleFirst
Liaison
MFMPLiaison
LAS/PBS
Liaison
TRACK
DESCRIPTION
Combinationoftechnicaland
functionalresourcesforthe
CMSRollout migrationofagenciestothenew
cashmanagementsystembuilt
withintheERP
Combinationoftechnicaland
Implement
functionalresourcesforthe
PayrollinERP configurationofpayrollwithinthe
newERP
Technicalandfunctionalresources
requiredtoensuresmooth
ImplementERP
integrationofthenewFLAIRsystem
forFLAIR/CMS withtheotherFFMIScomponents
(MFMP,PeopleFirstLAS/PBS,etc.)
Contractorresponsiblefor
overcomingthechallenges
interfacingPeopleFirstwithERP
PeopleFirst
foremployeepayments,G/Ldata,
Integration
etc.andtheeventualdisconnectof
PeopleFirstfromcurrentCentral
FLAIR
Contractorresponsiblefor
overcomingthechallenges
interfacingMFMPwithERPfor
MFMP
vendorpayments,G/Ldata,etc.and
Integration
theeventualdisconnectofMFMP
fromthecurrentCentraland
DepartmentalFLAIR
Contractorresponsiblefor
overcomingthechallenges
interfacingwithLAS/PBSfor
LAS/PBS
budget,appropriation,
Integration
encumbrancetrackingandthe
eventualdisconnectofPBSfromthe
currentCentralFLAIR
EXTERNALRESOURCES
REQUIRED
2
Y6Q1–Y6Q4
1*109
2
3
Y3Q1–Y4Q4
Y5Q1–Y6Q4
Y7Q1–Y7Q4
8
Y4Q1–Y4Q4
1
Y3Q1–Y7Q4
1
Y3Q1–Y7Q4
1
Y3Q1–Y7Q4
109Anasterisk*denoteshalftimeresources
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page23
DDIPHASE1
TASKS/ROLES
Testingand
Quality
Assurance
Organizational
Change
Management
TRACK
DESCRIPTION
ImplementERP
forFLAIR/CMS
PilotFLAIR/
CMS
Replacement
Implement
PayrollinERP
Combinationoftechnicaland
functionalresourcesresponsiblefor
varioustestactivatesassociated
withtheimplementationofthenew
ERP
Tasksmayincludeunittesting,
functionaltesting,testscript
developmentaswellasdata
loading,conversionandvalidation
Organizational
Change
Management
Project
Management
Office
Project
Management
Office
Workforce
Transition
Workforce
Transition
EndUser
Training(DDI
Phase‐1)
Workforce
Transition
Teamresponsibletosupportand
ensureorganizationalacceptanceof
businessprocessandtechnology
systemchanges
Groupresponsibletoestablishand
maintainappropriategovernance
structurestosupporttheproject
TeamresponsibletomonitorFLAIR
/IWpilotandreportFLAIRbaseline
performancemetrics
Functionalresourceswhoconduct
FLAIR/IWendusertrainingfor
agenciesandperformOCMand
workforcetransitiontasks
Alsoresponsibletoconductfinal
systemanduseracceptancetesting
andsupportthe“Go/NoGo”
decisionforrollout
Teamresponsibleforcreationof
trainingmaterialsandother
documentation
Alsoresponsibleforteaching
internaltrainerswhowillperform
end‐usertraining
EXTERNALRESOURCES
REQUIRED
4
8
8*
4*110
Y3Q1–Y3Q4
Y4Q1–Y4Q4
Y5Q1–Y5Q4
Y6Q1–Y7Q4
6
6*
Y3Q1–Y5Q4
Y6Q1–Y7Q4
5
Y3Q1–Y7Q4
2
2*
Y3Q1–Y5Q4
Y6Q1–Y7Q4
4111
Y5Q1–Y7Q4
ExhibitA1‐8:Option3DDIPhase1LaborAssumptions
AdditionalNotesandAssumptions

OneinternalemployeewillberequiredparttimetoplanandscopePayrollY3‐Y7

ProjectTeamTraining
110ThetestingandQAtimeduringyears6and7istosupportthePayrollbuildandrollout.
111Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page24
o

Forthemaximumnumberofinternalemployeesontheprojectteam(~50),
assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500
/classwitha1.5%annualinflationfactor)
End‐UserTraining
o
Assumefourfull‐timeinternalresourcewillberequiredtoteachthenewsystem
inY5,andtwelveinY6‐Y7
o
Assumefourconsultantswillberequiredtobuildandsupporttrainingmaterials
inY5–Y7
o
Assumethreeweeksoftrainingwillberequiredforeachemployeeusingthenew
system
o
Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthe
systemfromY8andbeyond
1.2.4.3 OPTION3:LABORASSUMPTIONS–DDIPHASE2
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsfor
Option3.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.The‘Track’column
correspondstothespecificimplementationtrackoutlinedinChapter4wheretheseactivities
aredescribedingreaterdetail.Theresourcetotaldoesnotincludethematchinginternal
resourceexpectedtoperformthetask,estimatedata1:1ratio,ortheassociatedexternal
oversight,bothofwhichareincludedinthecostmodel.
DDIPHASE2
TASKS/ROLES
Project
Management
Office
Planand
Assess
Design,
Develop,and
Implement
RollOut
ExpandedERP
Functionality
TRACK
Project
Management
Office
ExpandedERP
FLAIR
Functionality
ExpandedERP
FLAIR
Functionality
ExpandedERP
FLAIR
Functionality
FloridaDepartmentofFinancialServices
FLAIRStudy
DESCRIPTION
EXTERNALRESOURCES
REQUIRED
Groupresponsibletoestablishand
maintainappropriategovernance
structurestosupporttheproject
2
Y8Q1–Y12Q4
Resourcesdedicatedtodetermining
systemenhancementrequirements
4
Y8Q1–Y8Q4
Resourcesrequiredtodeploythe
enhancedfunctionalityinthenew
ERPsystem
8
Y9Q1–Y10Q4
Resourcesrequiredtoagenciestake
advantageoftheenhanced
functionalitybuiltintothesystem
4
Y10Q1–Y12Q4
Attachment1:Page25
DDIPHASE2
TASKS/ROLES
EndUser
Training(DDI
Phase‐2)
DESCRIPTION
TRACK
Workforce
Transition
Teamresponsibleforcreationof
trainingmaterialsandother
documentationofnewfunctionality
Alsoresponsibleforteaching
internaltrainerswhowillperform
end‐usertraining
EXTERNALRESOURCES
REQUIRED
4112
Y10Q1–Y12Q4
ExhibitA1‐9:Option3DDIPhase2LaborAssumptions
1.2.4.4 OPTION3:REQUIREDPURCHASEASSUMPTIONS

ERPsoftwarelicensesareassumedataninflationadjustedcostof$1500peruser
withanannualmaintenancecostof20%ofthelicensecost

Approximately$2.5millioninhardwarewillberequiredtosupportthenewsystem


o
Thisincludesalltestanddevelopmentenvironments.
o
Thisincludesalldisasterrecoveryenvironments.
o
Includedwithinthis$2.5millionare3rdpartyinstallationcosts.
o
Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport).
o
Therewillbeaonetime20%hardwaresupportandmaintenancecontractcost
theyearthehardwareisrefreshed
$1.25millionofinfrastructurerelatedsoftwarewillberequiredtosupportthenew
system
o
Examples:OperatingSystem/SQLlicenses;DirectoryServices;Security
Software;etc.
o
Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport).
o
Therewillbeaonetime20%infrastructuresoftwaresupportandmaintenance
contractcosttheyearthehardwareisrefreshed
DataCenterFacilitiesandEquipment
o
TheequipmentrequiredtosupportreplacementofFLAIRandCMSwithanERP
solutionisestimatedtorequire10dataracksofequipmentwithinanenterprise
classdatacenter.
o
Inindustry,theaveragecosttosupportaonedatarack–includingpower,cooling
andfloorspace–is$1,500/month.
Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–both
WANandInternet–fromthedatacenterhousingthenewsystembacktothe
o
112Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page26
StateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthforthe
WANconnectionand$1,500/monthfortheinternetconnectivity.
1.2.4.5 OPTION3:ONGOINGSUPPORTASSUMPTIONS

Softwaremaintenancewillcost~20%oftotalpurchasedlicensecost

Itwillrequirethesamenumberoftechnicalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~100today)

Itwillrequirethesamenumberofoperationalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~60today)

TechnicalandoperationalsupportforFLAIRwillberampeddownduringY5–7with
costsdecliningat25%,50%and75%respectively;SupportforFLAIRwillbe
discontinuedduringY8

TechnicalandoperationalsupportforthenewERPsystemwillrampupduringyears
Y3–5at25%,50%and75%oftotalcostsrespectively

Itwillcostapproximatelythesameamounttoadministertheinfrastructure
supportingERPasitdoestoadministertheinfrastructuresupportingFLAIR

Endusertrainingcostsafterimplementationareassumedaspartofsupport.
Employeestafftimetoparticipateintrainingat1dayperyearisexplicitlyincluded
foreverysystemuser.
1.2.4.6 OPTION3:UPGRADEASSUMPTIONS

AminorupgradeofthesystemwillbeperformedduringY5oftheprojectrequiringa
teamofapproximatelytenexternalcontractors(andtheirinternalcounterparts)to
execute

AmajorsystemupgradewillbeperformedinY8inconjunctionwiththeplanningfor
thePhase‐2implementationrequiringateamofapproximately12external
contractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillberequiredduringY12oftheprojectrequiringateam
ofapproximatelytencontractors(andtheirassociatedinternalcounterparts)to
execute
1.2.5 OPTION4:REPLACEFLAIR,CMS,MFMPANDPEOPLEFIRSTWITHANERPSOLUTION
COSTMODELASSUMPTIONS
1.2.5.1 OPTION4:PRE‐DDILABORASSUMPTIONS
TheExhibitbelowcontainsthelaborassumptionsusedtogeneratethePre‐DDIcostsfor
Option4.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page27
PRE‐DDITASKS/
ROLES
DESCRIPTION
Organizational
ChangeManagement
WorkforceTransition
Systems&Data
Strategy
ProjectManagement
Office
BusinessProcessRe‐
engineering
Procurements
Teamresponsibletosupportandensure
organizationalacceptanceofbusiness
processandtechnologysystemchanges
Teamresponsibletoidentifyorganizational
changeswithintheFinanceandIT
departmentsrequiredtosupportthenew
system
Alsomapscurrenttechnologystaffinto
futurerolessupportingthenewERPsystem
Teamresponsibletoconfirminventoryof
Stateagencyfinanciallyrelatedsystemsand
interfacestoFLAIR
Responsibilitiesincludeperformingdata
qualityassessmentofexistingdatainlegacy
FLAIR,migratingrequiredlegacyFLAIR&
CMSdata(transactions/records)
IncludesdeterminingchangesinFLAIR
systemarchitecture,infrastructure,data
structures,andanydataconversion
requirements
Establishappropriategovernancestructures
tosupporttheproject
Teamresponsibleforanalyzingexisting
businessprocessandrecommendingnew
futurestateprocessestomaximizebenefits
andminimizingsoftwarecustomization
withinthenewsystem
Teamresponsibletocoordinateselectionof
software,systemintegrator,PMOand
informationwarehousecontractorsrequired
tosupportfutureprojectphases
EXTERNALRESOURCES
REQUIRED
4(1)113
5
Y1Q2–Y1Q4
Y2Q1–Y2Q4
2
Y2Q1–Y2Q4
2
Y1Q2–Y2Q2
3
Y1Q1–Y2Q4
8
Y1Q2–Y2Q4
3
Y1Q2–Y2Q4
ExhibitA1‐10:Option4Pre‐DDILaborAssumptions
AdditionalNotesandAssumptions

Itwillrequiretwointernalresourcesatotalofsixweeksoverthefirstquarterof
FY14‐15tomanagetheprocurementofpre‐DDIresources

Researchintosimilarprojectsinotherstatesshowstheprocurementphasetypically
takesbetween12and24monthstocomplete(e.g.,NY,TX,PA)
113TheresourcespresentedinparenthesisfortheOrganizationalChangeManagementandBusiness
ProcessRe‐engineeringcouldpotentiallybeneededandpulledintotheproject,butarenotinitially
plannedfor.AddingtheseresourcestothesetrackswouldincreaseFY14‐15andFY15‐16modeled
costs.Theplannedcontingencycouldbeusedtocoverthiscostincrease.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page28
1.2.5.2 OPTION4:LABORASSUMPTIONS–DDIPHASE1
ThetablebelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase1costsfor
Option4.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
DDIPHASE1TASKS
DESCRIPTION
Independent
Validation&
Verification
ImplementERPfor
FLAIRand
Procurement(Central
&Departmental)‐
Functional
ImplementERPfor
FLAIRand
Procurement(Central
&Departmental)‐
Technical
Independentteamofcontractors assignedto
evaluatetheworkproductofthesystem
integratortominimizerisk.
Functionalteamresponsibleforvarioustasks
includingbusinessprocessimplementation
anddocumentation,reportgeneration,
functionaltestingandtestscript
development.
Technicalimplementationteamresponsible
forinfrastructuredeployment,system
configuration,developmentofinterfaceswith
otherapplicationsandanyrequiredsoftware
customizations.
Technicalteamresponsibleforthe
developmentofanewinformation
warehouse,dataconversionandloadingand
reportgeneration.
Combinationoftechnicalandfunctional
resourcesrequiredtosupportthemigration
ofagenciestothenewERPsystem.Specific
taskscouldincludesystemandsecurity
configuration,interfacedevelopment,
functionaltestingandtestscript
development,reapportiongenerationand
softwarecustomization.
Combinationoftechnicalandfunctional
resourcesfortheimplementationofexisting
cashmanagementsystemfunctionswithin
thenewERP.
Combinationoftechnicalandfunctional
resourcesforthemigrationofagenciestothe
newcashmanagementsystembuiltwithin
theERP.
Resourcesrequiredtobuildtechnicalsystem
requirementsforaddingtheHRandPayroll
functionstothenewERPsystem.
Resourcesrequiredtodesignthetechnology
infrastructurerequiredtosupportthis
functioninthenewERPsystem.
Implement
Information
WarehouseinERP
RollOutFLAIRERP,
Procurement,andIW
(Central&
Departmental)to
Agencies
ImplementCMSin
ERP
RollOutCMSinERP
toAgencies
DesignHRand
PayrollinERP
FloridaDepartmentofFinancialServices
FLAIRStudy
EXTERNALRESOURCES
REQUIRED
2
Y3Q1–Y12Q2
16
10
Y3Q1–Y5Q4
Y6Q1–Y6Q4
12
8
Y3Q1–Y5Q4
Y6Q1–Y6Q4
4
2
Y3Q1–Y4Q4
Y5Q1–Y5Q4
8
Y7Q1–Y9Q2
3
1
Y3Q3–Y4Q4
Y5Q1–Y5Q4
2
Y5Q1–Y6Q4
8
Y8Q3–Y10Q2
Attachment1:Page29
DDIPHASE1TASKS
AddHRandPayroll
DatatoInformation
Warehouse
PilotHRandPayroll
inERP
RollOutHRand
PayrolltoAgencies
FFMISSystem
Integration
PeopleFirstLiaison
MFMPLiaison
LAS/PBSLiaison
TestingandQuality
Assurance
Organizational
ChangeManagement
ProjectManagement
Office
DESCRIPTION
Technicalteamresponsiblefortransferring
necessaryHRandPayrolldatatothe
informationwarehouse.
Combinationoftechnicalandfunctional
resourcesrequiredtosupport
implementationoftheHRandPayroll
functionalityinthenewERPsystemforpilot
agencies.
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponse
toissuesidentifiedduringthepilot.
Combinationoftechnicalandfunctional
resourcesrequiredtosupportrolloutto
agencies.
Responsibilitiesincludemakingcodeor
businessprocessmodificationsinresponse
tostandardpracticesduringthepilot.
Resourcerequiredtoensuresmooth
integrationofthenewFLAIRsystemwiththe
otherFFMIScomponentsleftoutsidetheERP
system.
Contractorresponsibleforovercomingthe
challengesinterfacingPeopleFirstwithERP
foremployeepayments,G/Ldata,etc.and
theeventualdisconnectofPeopleFirstfrom
currentCentralFLAIR.
Contractorresponsibleforovercomingthe
challengesinterfacingMFMPwithERPfor
vendorpayments,G/Ldata,etc.andthe
eventualdisconnectofMFMPfromthe
currentCentralandDepartmentalFLAIR.
Contractorresponsibleforovercomingthe
challengesinterfacingwithLAS/PBSfor
budget,appropriation,encumbrancetracking
andtheeventualdisconnectofPBSfromthe
currentCentralFLAIR.
Combinationoftechnicalandfunctional
resourcesresponsibleforvarioustest
activitiesassociatedwiththeimplementation
ofthenewERP.
Tasksmayincludeunittesting,functional
testing,testscriptdevelopmentaswellas
dataloading,conversionandvalidation.
Teamresponsibletosupportandensure
organizationalacceptanceofbusiness
processandtechnologysystemchanges.
Groupresponsibletoestablishandmaintain
appropriategovernancestructuresto
supporttheproject.
FloridaDepartmentofFinancialServices
FLAIRStudy
EXTERNALRESOURCES
REQUIRED
8
Y8Q3–Y10Q2
4
Y10Q3–Y11Q2
4
Y11Q3–Y12Q2
1
Y5Q1–Y5Q4
1
Y3Q1–Y7Q4
1
Y3Q1–Y7Q4
1
Y3Q1–Y7Q4
6
10
6
Y3Q1–Y3Q4
Y4Q1–Y5Q4
Y6Q1–Y12Q2
8
Y3Q1–Y12Q2
5
2
Y3Q1–Y9Q2
Y9Q3–Y12Q2
Attachment1:Page30
DDIPHASE1TASKS
DESCRIPTION
TeamresponsibletomonitorFLAIR/IW
pilotandreportFLAIRbaselineperformance
metrics.
FunctionalresourceswhoconductFLAIR/
WorkforceTransition IWendusertrainingforagenciesand
performOCMandworkforcetransitiontasks.
Alsoresponsibletoconductfinalsystemand
useracceptancetestingandsupportthe
“Go/NoGo”decisionforrollout.
EndUserTraining
(DDIPhase‐1)
Teamresponsibleforcreationoftraining
materialsandotherdocumentation.
Alsoresponsibleforteachinginternal
trainerswhowillperformend‐usertraining.
EXTERNALRESOURCES
REQUIRED
2
Y3Q1–Y12Q2
4
4
4
4114
Y5Q1–Y8Q4
Y9Q1–Y10Q4
Y11Q1–Y11Q4
Y12Q1–Y12Q4
ExhibitA1‐11:Option4DDIPhase1LaborAssumptions
AdditionalNotesandAssumptions

ProjectTeamTraining
o

Forthemaximumnumberofinternalemployeesontheprojectteam(~60),
assumefourclassesperyearforY3–4andoneclassperyearthroughY7($1,500
/classwith1.5%annualinflationfactor)
End‐UserTraining
o
Assumefourfull‐timetrainerswillberequiredtoteachthenewsysteminY5,and
twelveinY6‐Y12
o
AssumefourconsultantswillberequiredtobuildtrainingmaterialsinY5–Y12
o
Assumethreeweeksoftrainingwillberequiredforeachemployeeusingthenew
system
o
Assumeone‐dayofannualtrainingwillberequiredforeachemployeeusingthe
systemfromY8andbeyond
1.2.5.3 OPTION4:LABORASSUMPTIONS–DDIPHASE2
ThetablebelowcontainsthelaborassumptionsusedtogeneratetheDDIPhase2costsfor
Option4.Pleasenotetheestimatednumberofresourcesinthetablebelowrepresents
expectedexternalsubjectmatterexpertsonlyforeaseofreview.Theresourcetotaldoesnot
includethematchinginternalresourceexpectedtoperformthetask,estimatedata1:1ratio,
ortheassociatedexternaloversight,bothofwhichareincludedinthecostmodel.
114Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page31
DDIPHASE2TASKS
DESCRIPTION
Resourcesdedicatedtodeterminingsystem
enhancementrequirements
PlanandAssess
Design,Develop,and
Implement
RollOutExpanded
ERPFunctionality
EndUserTraining
(DDIPhase‐2)
ProjectManagement
Office
Resourcesrequiredtodeploytheenhanced
functionalityinthenewERPsystem
Resourcesrequiredfor agencies to take
advantageoftheenhancedfunctionalitybuilt
intothesystem
Teamresponsibleforcreationoftraining
materialsandotherdocumentationofnew
functionality
Alsoresponsibleforteachinginternal
trainerswhowillperformend‐usertraining
Groupresponsibletoestablishandmaintain
appropriategovernancestructurestosupport
theproject.
EXTERNALRESOURCES
REQUIRED
4
Y9Q1–Y10Q4
8
Y10Q1–Y11Q4
4
Y11Q1‐Y12Q4
4115
Y9Q3–Y12Q4
2
Y10Q1–Y12Q4
ExhibitA1‐12:Option4DDIPhase2LaborAssumptions
1.2.5.4 OPTION4:REQUIREDPURCHASEASSUMPTIONS

ERPsoftwarelicensesareassumedataninflationadjustedcostof$1500peruser
withanannualmaintenancecostof20%ofthelicensecost

Approximately$2.5millioninhardwarewillberequiredtosupportthenewsystem

o
Thisincludesalltestanddevelopmentenvironments
o
Thisincludesalldisasterrecoveryenvironments
o
Thisincludes3rdpartyinstallationcosts
o
Thishardwarewillberefreshedevery5thyear(appliedtoongoingsupport)
o
Therewillbeaonetime20%hardwaresupportandmaintenancecontractcost
theyearthehardwareisrefreshed
Approximately$1.25millionofinfrastructurerelatedsoftwarewillberequiredto
supportthenewsystem
o
Examples:OperatingSystem/SQLlicenses;DirectoryServices;Security
Software;etc.
o
Thissoftwarewillberefreshedevery5thyear(appliedtoongoingsupport)
o
Therewillbeaone‐time20%infrastructuresoftwaresupportandmaintenance
contractcosttheyearthehardwareisrefreshed
115Theendusertrainingteamisplannedfor4consultantsand12internaltrainingresourcesduring
therolloutphase.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page32

DataCenterFacilitiesandEquipment
o
TheequipmentrequiredtosupportthereplacementofFLAIR,CMS,MFMP,and
PeopleFirstwithanERPsolutionisestimatedtorequire14dataracksof
equipmentwithinanenterpriseclassdatacenter.
o
Inindustry,theaveragecosttosupportaonedatarack–includingpower,cooling
andfloorspace–is$1,500/month.
o
Inadditiontorackspace,costswillbeincurredfornetworkconnectivity–both
WANandInternet–fromthedatacenterhousingthenewsystembacktothe
StateofFlorida’snetwork.Thesecostsareestimatedat$2,000/monthforthe
WANconnectionand$1,500/monthfortheinternetconnectivity.
1.2.5.5 OPTION4:ONGOINGSUPPORTASSUMPTIONS

Softwaremaintenancewillcost~20%oftotalpurchasedlicensecost

Itwillrequirethesamenumberoftechnicalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~100today)

Itwillrequirethesamenumberofoperationalsupportemployeestomanagethenew
ERPsystemasitdoesthecurrentFLAIRsystem(~60)

TechnicalandoperationalsupportforFLAIRwillberampeddownduringY5–7with
costsdecliningat25%,50%and75%respectively;SupportforFLAIRwillbe
discontinuedduringY8

TechnicalandoperationalsupportforthenewERPsystemwillrampupduringyears
Y3–5at25%,50%and75%oftotalcostsrespectively

Itwillcostapproximatelythesameamounttoadministertheinfrastructure
supportingERPasitdoestoadministertheinfrastructuresupportingFLAIR

Endusertrainingcostsafterimplementationareassumedaspartofsupport.
Employeestafftimetoparticipateintrainingat1dayperyearisexplicitlyincluded
foreverysystemuser.
1.2.5.6 OPTION4:UPGRADEASSUMPTIONS

AminorupgradeofthesystemwillbeperformedduringY9oftheprojectrequiringa
teamofapproximately12externalcontractors(andtheirinternalcounterparts)to
execute

AmajorsystemupgraderequiredinY9oftheprojectrequiringateamof
approximately14externalcontractors(andtheirinternalcounterparts)toexecute

AsecondminorupgradewillberequiredduringY12oftheprojectrequiringateam
ofapproximately12contractors(andtheirassociatedinternalcounterparts)to
execute
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page33
1.3 USERGUIDE:BUSINESSCASEMODELS
ThisguideprovidesanoverviewoftheExcelmodelusedtocreatethecostmodelsforeachof
theoptions.Itismeanttoprovidereaderswithanunderstandingofthemodel’sdesignand
anexplanationoftheinputsforgeneratingthemodel’sresults.Changesshouldbemadewith
cautionduetotheextensivelinkageofdatainthespreadsheet.Thevaluesinvariablefields
feedthecostmodelforthevariousprojectphases(Pre‐DDI,DDIPhase‐1,DDIPhase‐2,and
upgrades)aswellasthe15–Yr.CostSummarygraphic.

Note1:Foranoverviewofthemodel’sconstruction,pleaserefertoExhibitA1‐14

Note2:CellreferencesrefertoOption3.Somesmalldiscrepanciesincelllocation
mayexistbetweendifferentoptions
1.3.1 MISCELLANEOUSVARIABLEDEFINITIONS
ThefollowingExhibitprovidesthedefinitionsforvariablesusedthroughoutthebusiness
case.Thereissomevariationintherowsincludedbyoption,sotherowreferencemay
change,butthecellnamesremainconstant.
CELL#116
CELLNAME
DEFINITIONS
LABORRATES
D7
InternalRate(Weekly)–
FLAIR
D8
InternalRate(Weekly)–
ERP
D9
ConsultantRate
(Weekly)
D10
ProjectManagement
Rate(Weekly)
HourlycostforStateofFloridaemployeesinvolved
withsupportingtheexistingsolutionmultipliedbya
40hourworkweek
HourlycostforStateofFloridaemployeesinvolved
withsupportingthenewsolutionmultipliedbya40
hourworkweek
Averagehourlyrateforconsultantsworkingonthe
newsolutionmultipliedbya40hourworkweek
Averagehourlyrateforexternalprojectmanagers
workingonthenewsolutionmultipliedbya40hour
workweek
FACILITIESRATES
D11
D12
Averagetotalcostperresourceforthefirstyearthe
FacilitiesSpace:YearOne resourceisrolledontotheproject.Takesintoaccount
CostPerResource
purchasesofnewfurniture,supplies,movingcosts,
etc.
FacilitiesSpace:
Calculatedfield.Thestartup(non‐recurring)costfor
AdditionalCostPer
aresourcewhichcoverspurchaseofnewfurniture,
Resource(Yr.One)
movingcosts,etc.
116PleasenotethatthecellreferencesidentifiedinthissectioncorrespondtotheOption3model.The
cellnamesareconsistentbetweenthemodels,butthecolumnorrowreferencemayvaryslightly
betweenthefourmodels.
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page34
CELL#116
D13
D14
CELLNAME
FacilitiesSpace:CostPer
Resource
FacilitiesSpace:Internal
ResourcesCost
DEFINITIONS
Averagefacilitycostperresource
AverageadditionaloverheadcostforinternalState
resources
SYSTEMUSERS
D15
ERPSystem
Administrators
D16
ERPAdminDelta
D17
D18
D19
ERPSystemUsers
ERPSystemUsers(NEW)
ERPCMSUsers
D20
ERPCMSUsersDelta
Estimatednumberofsystemsadministratorsforthe
newsystem
Calculatedfield.NumberofNEWsystem
administratorsaddedeachyear
EstimatednumberofusersoftheERPsystem
Calculatedfield.Numberofnewuserseachyear
EstimatednumberofERPCMSusers
Calculatedfield.NumberofNEWERPCMSusers
addedeachyear
SYSTEMSUPPORT
D21
D22
D23
D24
D25
D26
D27
D28
FLAIROperational
Support
Estimatednumberofoperationalresourcesrequired
tosupporttheexistingsystem
Estimatednumberoftechnicalresourcesrequiredto
FLAIRTechnicalSupport
supporttheexistingsystem
Estimatednumberofresourcesrequiredtosupport
CMSOperationalSupport
theexistingCMSsystem
Calculatedfield.Sumofestimatednumberof
TotalSupportResources resourcesrequiredforFLAIROperationalSupport,
–ExistingSystems
FLAIRTechnicalSupport,andCMSOperational
Support
Estimatednumberofoperationalresourcesrequired
ERPOperationalSupport
tosupportthenewsystem
Estimatednumberofresourcesrequiredtosupport
ERPTechnicalSupport
thenewsystem
ERPCMSOperational
Estimatednumberofresourcesrequiredtosupport
Support
theERPCMSfunctionsinthenewsystem
Calculatedfield.Sumofestimatednumberof
TotalSupportResources
resourcesrequiredforERPOperationalSupport,ERP
–ERP
TechnicalSupport,andERPCMSOperationalSupport
PROJECTTEAM
D29
D30
D31
D32
InternalProjectTeam
(PersonYears)
ExternalProjectTeam
(PersonYears)
ExternalProject
Managers(PersonYears)
TotalImplementation
Effort(PersonYears)
FloridaDepartmentofFinancialServices
FLAIRStudy
Totalinternalresourcesrequiredforoverlapping
projectworkstreamsduringthedifferentproject
phasesareinlinewiththoseinputsfromthe
Variables:ResourcesSection.(i.e.ifaresourceisonly
neededfor½year,thisrowwouldshow0.5)
Calculatedfield.Estimatednumberofrequired
consultantprojectteammembers
Calculatedfield.Estimatednumberofoversight
resourcesrequiredforfunctionalconsultants
Calculatedfield.SumofInternalProjectTeam
members,ExternalProjectTeammembersand
ProjectManagers
Attachment1:Page35
CELL#116
CELLNAME
DEFINITIONS
STAFFPLANNING
D33
TotalInternalResources
(Roles)
D34
ProjectTeamMembers
BorrowedFromExisting
Staff
D35
TotalOPSResources
D36
D37
AdditionalPersonYears
Required
BaselineSupportTeam
Effort(PersonYears)
D38
TotalSupportTeam
Effort(PersonYears)
D39
SupportDelta
D40
SupportDelta(New
Resources)
D41
Internal(NotBorrowed)
D42
Internal(NotBorrowed)
‐New
D43
ExternalTotal
D44
ExternalTotal‐New
Thetotalnumberofindividualstaffrolesidentified.
(i.e.ifaresourceisonlyneededfor½year,thisrow
wouldshowafullinternalresourceregardlessofthe
fractionofuse)
Blankfield.Canbeupdated withnumberofinternal
projectteammemberstobepulledfromexisting
positions
Blankfield.Canbeupdated withnumberofOPSstaff
tobeusedfortheprojectteam
Calculatedfield.Sumsthetotalresourcesrequired
lessthenumberofOPSResources
Thebaselineeffortintechnicalandoperational
resourcesrequiredtosupporttheFLAIRsystem
Thetotaleffortintechnicalandoperationresources
requiredtosupportFLAIRandthenewsystemas
bothareinuse
Resourceeffortrequiredforsupportofbothsystems
overBaselineSupportTeamEffort
Annualincrementalnewresourceeffortrequiredto
supportbothsystemsovertheBaselineSupportTeam
Size
Calculatedfield.InternalProjectTeamlessProject
TeamMembersBorrowedFromExistingStaff
IncrementalInternal(NotBorrowed)ProjectTeam
effortrequiredfromthepreviousyear
Calculatedfield.SumofExternalProjectTeamand
ExternalProjectManagers
IncrementalExternalProjectTeamresourcerequired
fromthepreviousyear
TRAINING
D45
D46
D47
D48
TechnicalTrainingClass
Cost
TechnicalClassesPer
ProjectTeamMember
PerYear
WeeksofTrainingPer
Non‐TechnicalUserPer
Year
WeeksofTrainingPer
Non‐TechnicalUserPer
Year(NEW)
CostofonedayoftechnicalERPsoftware
Numberofclassesrequiredbyeachtechnicalteam
membereachyear
Numberofweeksoftrainingrequiredeachyearfor
usersofthenewsystem
Numberofweeksoftrainingrequiredeachyearfor
usersofthenewsystemwhoarenewresources
SOFTWARELICENSES
D49
D50
AverageUserLicense:
ERP
AverageCMSLicense:
ERP
FloridaDepartmentofFinancialServices
FLAIRStudy
AveragecostperlicenseforcoreERPfunctionality
AveragecostperlicensefortheCMSfunctionalityin
ERP
Attachment1:Page36
CELL#116
D51
CELLNAME
TotalSoftwareLicense
Fees
DEFINITIONS
Calculatedfield.Sumofthelicensecostabove
ExhibitA1‐13:MiscellaneousVariableDefinitions
1.3.2 VARIABLES:RESOURCES(ROWS52–150)
Thissectionofassumptionsprescribesthenumberofresourcesrequiredforeachwork
streamatdifferentphasesoftheproject.Thesenumbersarelinkedtocostcalculations
throughoutthemodel.Makingalterationstothesenumberswillchangethetotalcostofthe
optionandimpactthedifferentcostbreakdownsthathavebeenprovidedinthemodel.
1.3.3 VARIABLES:WEEKS(ROWS151–250)
Thissectionofassumptionsdisplaysthenumberofweeksduringthespecifiedyearduring
whichallprojectresourceswillbeengaged.Internalandexternalprojectresourceswillbe
appliedacrossthevariousworkstreamsofthedifferentprojectphases.Thesenumbersare
linkedtoresourcecostcalculationsthroughoutthemodel.Makingalterationstothese
numberswillchangethetotalcostoftheoptionandimpactthecostbreakdownsprovidedin
themodel.
1.3.4 REQUIREDPURCHASES(ROWS251–258)
Thissectionoutlinestherequiredpurchasesinagivenyearfortheoperationofthenew
system.Thecomponentsofthiscostare:

SoftwareLicenses:FLAIRinERP–CalculatedbymultiplyingtheERPUsersDeltadata
ofaspecificyear,whichisthenumberofnewlicensepurchasesrequiredforthat
year,bytheAverageUserLicense:ERPdataforthesameyear.

SoftwareLicenses:CMSinERP–CalculatedbymultiplyingtheERPCMSUsersDelta
dataofaspecificyear,whichisthenumberofnewlicensepurchasesrequiredforthat
year,bytheAverageCMSLicense:ERPdataforthesameyear.

ComputerHardware–Calculatedbasedonassumptions.

SupportingInfrastructureApplications–Calculatedbasedonassumptions.

DataCenterFacilitiesandEquipment–Calculatedbasedonassumptions.
1.3.5 COSTTAGGING(COLUMNE)
HiddeninColumnE,therearemanyrowstaggedwithanidentifiertoindicatewhichcost
buckettoaccumulatecostsrelatedtoaparticularactivity.Thecostbucketsare:

Implement–Other

Implement–External
FloridaDepartmentofFinancialServices
FLAIRStudy
Attachment1:Page37

Implement–Internal

Maintain–FLAIR

Maintain–ERP

Upgrades
Thesecostbucketsarethentotaledforeachyeartocalculatethetotalannualcost.The
annualcostsofeachcostbucketitemandthetotalannualcostareplottedonthe15–Yr.Cost
Summarygraph.Thepointsonthesegraphsarelinkedwiththedatainthemodel.Making
changestodatainthemodelwillresultinchangestothe15–Yr.Costsummarygraph.
1.3.6 INFLATIONRATES
InRow3,theinflationratesforbothinternalandexternalresourcecostsareidentified.The
modelcurrentlyassumesa1.5%inflationrateforinternalresourcesanda1.5%inflationrate
forexternalresourcesandotherrecurringcosts.Toaltercoststoreflectdifferentinflation
rates,simplymakethechangestocellI3fortheinternalrateand/orJ3fortheexternalrate.
HiddeninColumnF,thereisamultiplierforthedifferinginflationratesappliedtointernal
andexternalresourcecosts.ItislinkedtoCellsI3andJ3,andisusedfortheinflation
calculationofapplicablecosts.
1.3.7 OPTIONDESCRIPTION
TheExcelbasedmodelsusedtocreatecostestimatesforeachoftheoptionsisdepicted
below,Exhibit14,withallrowsunhidden.Explanationsforeachcomponentofthemodelare
giventoaidauserinmakingadjustmentstothemodelasassumptionschange.

HiddensectionsofthemodelarecoloredinGREY
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InflationRate
Variablethatsetstherateatwhichwagesincreaseannually
1
2
3
4
5
6
7
8
9
10
Assumptionsinclude:
Internalandexternalemployeecosts
FacilitiesCosts
Numberofnewsystemusers
NumberofresourcesrequiredforFLAIRandnewERPtechnicalandoperationalsupport
Projectteamsize(Internal,External,OPS)
Trainingcosts
Numberofrequiredsoftwarelicensesandassociatedcosts
11
12
13
14
15
Assumptionsinclude:
NumberofinternalandexternalresourcesrequiredforthedifferentcomponentsofthePre‐DDI,DDI,DDI,andUpgradephasesbyyear
Assumptionsinclude:
Numberofweeksperyearthatallinternalandexternalresourceswillbeengaged
Detailsthecostsperyearforsoftwarelicenses,hardware,supportinginfrastructureapplications,anddatacenterfacilitiesandequipment
DetailsthecostsperyearforallcomponentsofthePre‐DDIphase
DetailsthecostsperyearforallcomponentsofDDIPhase1
DetailsthecostsperyearforallcomponentsofDDIPhase2
Detailsthecostsperyearforrequiredsystemupgrades
Detailsthecostsperyearforongoingsystemsupport
TOTAL
CumulativeCosts
Detailscostsperyearwiththefollowingbreakdown:
Implement– Other
Implement– External
UsingtheSUMIFcommand,costswiththeappropriatetagsaretotaled
Implement– Internal
hereandusedtocreatethegraphbelow
Implement– Total
Maintain– FLAIR
Maintain– COTS
Upgrades
Detailscostsperyearfor:
MaintainingFLAIRw/inflation
AdditionalRequiredExpendituresforProject
ExhibitA1‐14:ModelOverview
1.3.8 SCHEDULEIV‐BCROSSWALK
ForOption3,hiddeninColumnF,theassociatedScheduleIV‐Bterminologyislabeledforthe
applicablecostcomponentstoalignwiththeScheduleIV‐Brequirements.
CostcomponentsofthemodelaremappedtooneofthefollowingtheScheduleIV‐Bcost
components:

A‐1.a.StateFTEs(Salaries&Benefits)
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
A‐1.b.StateFTEs(#FTEs)

A‐2.a.OPSFTEs(Salaries)

A‐2.b.OPSFTEs(#FTEs)

A‐3.a.StaffAugmentation(ContractCost)

A‐3.b.StaffAugmentation(#ofContractFTEs)

B.DataProcessing–Costs

B‐1.Hardware

B‐2.Software

B‐3.Other

C.ExternalServiceProvider–Costs

C‐1.ConsultantServices

C‐2.Maintenance&SupportServices

C‐3.Network/HostingServices

C‐4.DataCommunicationsServices

C‐5.Other:Non‐SIConsulting

D.Plant&Facility–Costs(includingPDCservices)

E.Others–Costs

E‐1.Training

E‐2.Travel

E‐3.Other
1.3.9 EXISTING/NEW
ForOption3,hiddeninColumnG,thecross‐walkedcostcomponentsarelabeledasexisting
ornewcoststoalignwiththeScheduleIV‐Brequirements.
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FLORIDADEPARTMENTOFFINANCIALSERVICES
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ATTACHMENT2:AGENCYBUSINESSSYSTEMINVENTORY
Date:
Version:
4/09/2014
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