“Keeping your money in your pocket, where it belongs.”
FLAIR Study Proviso
Proviso language directed DFS to assess the
advantages and disadvantages of the
following options:

Enhancing FLAIR

Replacing FLAIR

Replacing FLAIR & CMS

Replacing FLAIR, CMS, People First , and
MyFlorida MarketPlace
2
FLAIR Study Proviso – cont’d
The Proviso also required:



Preparation of an inventory of all agency
business systems interfacing with FLAIR
Identification of any specific changes
needed in the Florida Statutes and the
state’s financial business practices to
facilitate the recommended option
Preparation of a final report
3
FLAIR Risks and Challenges

Replacing a system that works well and has
worked well for many years

Functionality gaps and shortcomings

Integration limitation and manual processes

Support challenges and limited talent pool

Technology anachronism
4
Chapter 1: Background
• If the State of Florida was a country, its GDP would
rank among the 20 largest in the world
• If the State was in the private sector, its $90 billion
budget would be in the “Fortune 25”
• A strategic framework was developed that acted
as a common set of criteria to evaluate each of the
required options. The framework included the
relative alignment to:
• CFO’s Mission
• Key Risks & Challenges
• Guiding Principles & Supporting Statutes
• Vision
• Solution Goals
• Status Quo – or “doing nothing” – isn’t an option
5
Chapter 1: Consequences of Limitations

Agencies continue to develop and evolve
compensating systems to support their operations



Agencies reported a total of 424 systems that either
perform a financial function or interface with FLAIR
Primary financial function gaps being addressed in
agencies’ systems include:

AR/Receipting

Cost Allocation

Grant Accounting

Management Reporting

Asset/Inventory Management
Over 75% of agency systems are over five years old
6
Chapter 2: Options Analysis

Analysis consisted of:

Interviews of Internal Staff, Other States, Selected
State Agencies, Market Analyst, and Vendors

Establishment of minimum capabilities for all options

Alignment to Vision, Goals, and Objectives

Cost analysis for each option

Risk analysis for each option

Expected benefits for option

Other Considerations

Software Licensing

Funding Model

Project Governance Model
7
Chapter 2: Interviews
What we learned from internal interviews:

Aspire strengths and weaknesses to consider

Understanding of current FLAIR functions
What we learned from state agencies (DCF, DEP, DFS, DMS,
DOR, and DOT):

The FLAIR interface is inconvenient, and agencies
minimize their interaction with it

Integration with FLAIR is technically difficult, and the
technology used causes limitations to agency
functionality

Agencies have had to develop reporting capabilities
and workaround solutions due to limitations
in FLAIR
8
Chapter 2: Minimum Capabilities
MARKET RESEARCH
STATE RESEARCH
AGENCY RESEARCH
GUIDING PRINCIPLES,
GOALS AND OBJECTIVES
SYSTEM
LIMITATIONS OF EXISTING
MINIMUM CAPABILITIES
1. Single system of record for statewide
financial transactions and cash balances
2. General Ledger (G/L)
MISSION OF THE CFO,
EXISTING STATUTE OR
OTHER POLICY
JUSTIFICATION FOR INCLUSION
3. Accounts Payable (A/P)
4. Basic Accounts Receivable (A/R)
5. Bank Reconciliation
6. Payroll Calculation, Verification and
Payment
7. Budget and Encumbrance Management
8. Real-time or near real-time transaction
processing
9. Warrants paid from multiple account
combinations
10. Electronic workflow and routing
11. Effective dating of transactions
12. Support for industry standard
communication / system integration
protocols
13. Use of modern programming languages
and database technologies
14. Multiple environments to support
testing and migration
9
Chapter 2: Minimum Capabilities – cont’d
MARKET RESEARCH
STATE RESEARCH
AGENCY RESEARCH
GUIDING PRINCIPLES,
GOALS AND OBJECTIVES
SYSTEM
LIMITATIONS OF EXISTING
MINIMUM CAPABILITIES
MISSION OF THE CFO,
EXISTING STATUTE OR
OTHER POLICY
JUSTIFICATION FOR INCLUSION
15. Minimize or eliminate use of the mainframe and take
advantage of a multi-tier application architecture
16. Flexible database architecture that supports multiple
fields
17. Ability to report on a standardized set of data
18. Storage of developed queries, views, and reports
19. Modern set of reporting tools for export and analysis of
data
20. Self-service reporting
21. Asset, Project, Contract and Grants Accounting
22. Modern, user-friendly interfaces
23. Electronic document storage and attachments
24. Direct interface with productivity tools such as Microsoft
Excel
10
Chapter 2 - Cost Comparison
FLAIR AND CMS
OPTION 4: REPLACE
FLAIR, CMS, MFMP,
AND PEOPLE FIRST
COST CATEGORIES (IN MILLIONS)
OPTION 3: REPLACE
REPLACE FLAIR
OPTION 2:
ENHANCE FLAIR
OPTION 1:
OPTIONS CONSIDERED
Implementation Cost
$467.4
$219.4
$224.6
$383.1
New FLAIR (ERP) Support Costs (including
Upgrades)
$131.5
$329.1
$344.6
$354.7
FLAIR Support Costs
Solution Total Cost of Ownership
Comparative score
$225.1
$824.0
2.5
$100.8
$649.3
3
$98.4
$667.6
2.9
$111.9
$849.7
2.4
11
Chapter 2 - Summary of the Option Analysis
OPTION 1:
ENHANCE FLAIR
OPTION 2:
REPLACE FLAIR
OPTION 3: REPLACE
FLAIR AND CMS
OPTION 4: REPLACE
FLAIR, CMS, MFMP, AND
PEOPLE FIRST
OPTIONS CONSIDERED
Alignment to Vision and Goals
1.6
1.8
2.8
3
Achievement of Benefits
1.8
2.9
3
1.9
2.6
REVIEW CATEGORY
Total Cost of Ownership
Risk
Combined Comparison
2.5
1.7
3
2.5
2.9
2.4
2.5
2.1
2.8
2.7
2.6
12
Chapter 3: Recommendation
The recommendation is to replace FLAIR and
CMS with an ERP solution (Option 3)




Implementation of the core functionality will
occur over seven years
Full implementation, including Assets, Contracts,
Grants, and Projects will occur over twelve years
Implementation cost estimated at $224.6 Million
Risk should be closely managed by actively
executing against critical success factors
13
Chapter 3: Recommendation
Critical success factors include:






Establishing a comprehensive multi-tiered
governance model
Working to standardize business processes prior
to implementation
Managing system customizations
Initially deploying a limited scope of core
functionality
Utilizing a controlled pilot to validate the
solution
Leveraging a phased rollout to agencies
14
Chapter 4: Implementation Strategy




When approved to move forward, the
replacement of FLAIR and CMS will be a
complex, multi-year project
The implementation framework in the report
allows for flexibility to incorporate best
practices of a system integrator
Includes a plan for knowledge transfer to state
resources
Effective organizational change management
will be a focus throughout the project lifecycle
15
Timeline and Key Activities
Activities
Pre-DDI
Business Process Reengeneering
Procurement
Organizational Change Management (OCM)
Project Management Office (PMO)
Workforce Transition (WFT)
System & Data Strategy
FY
14-15
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
Functional Requirements
Standardize Processes
Intent to Award
Stakeholder Analysis
Organization Impact Assesment
ProjectGovernace Framework
ProjectCharter
Technology Requirements
DDI Phase 1: Implement ERP Solution
Implement and Rollout ERP Soluiton
DDI Phase 2: Expand ERP Functionality
Add Expanded Functionality in All Agencies
Operations and Maintenance
Support Existing FLAIR
Support ERP FLAIR
Upgrade ERP
16
Chapter 5: Procurement & Contract Mgmt

Three main categories of procurement:

Pre-DDI Support



Information Warehouse


Focus is to first create the right mix of state staff and
consultants to work on the project
Leverage industry expertise in Business Process
Reengineering (BPR), Organizational Change
Management (OCM), Workforce Transition (WFT) and
Project Management
Review business reporting for the new financial system
Procurement of the ERP software and system
integrator
17
What’s Next?

Proviso




22 FTE with $1.1M in Salaries and Benefits
$7.8M in Special Category of which $2.1M in reserve
Independent review of the FLAIR Study Recommendation
Pre-DDI planning has started!

Overview of FY 14-15 activities






Setting up Project Management Office
Planning, Business Process Analysis/Reengineering,
Governance
Develop and implement Organizational Change Management
(OCM) plan
Preparing for procurement of ERP software and systems
integrator (SI)
Exploring opportunities to modernize FLAIR to facilitate
integration with ERP
Overview of FY 15-16 activities


On-going business process analysis/reengineering and OCM
activities
Procurement of ERP software and systems integrator (SI)
18
“Keeping your money in your pocket, where it belongs.”