Approaches to Successfully
Implementing Statewide ERP
August 24, 2015
NASACT
Clark Partridge, State of Arizona
Michael J. Smarik, State of Arizona
Daniel Keene, CGI
James Colbert, CGI
Agenda
Statewide ERP challenges
ERP solutions
Arizona BREAZ project
and case study
Keys to success
Questions
2
Statewide ERP challenges
Government ERP challenges
Rising
costs and
risk of
maintaining
aging systems
Staffing
challenges
Stagnant or
declining
budgets
4
ERP failing to
keep up with
demands
of government
Past ERP challenges
“The implementation of a mission
critical business system is not the
time to figure out project
management for the first time.”
“Key implementation deliverables and
milestones are needed to measure
progress, identify stalls and ensure a
smooth conclusion. A lack of
checkpoints with periodic deliverables
is a sign of future trouble.”
“Scope creep and shifting
requirements will affect the project's
timeframe, cost and risk.”
“Delivering a project with standard
system functionality, and on time / on
budget requires strong leadership from
both the customer and the integrator.”
5
Statewide ERP solutions
What can a new ERP system offer a state?
The public sector is looking for:
1. Vendor supported modern technology with integrated business
applications
2. Specific government functionality
3. Predictable annual costs
4. Proven results and positive impacts
5. Operational efficiency
6. Decreased cycle time
7. Greater collaboration
8. Increased transparency and insight
9. Elimination of redundant systems
10. Minimized customizations
7
Keys to a successful implementation
Have a clear
vision of
your State’s
needs and
demands
Create and
manage
project
goals
Select the right
implementation
team
8
Ensure
transparency
to the state
stakeholders
Envision your State’s needs and demands
Define State’s scope early
• Conduct an operational review
Resources
• How will your staff be utilized?
• Managed services
• On site hosting
• SaaS/cloud computing
• Involve key stakeholders
• Identify gaps in service and
opportunities for improvement
• What is going to allow your
State to be more efficient?
Create a blueprint
• Roadmap of the future
• Automating processes?
• Training?
• Providing more citizen-centric
self-service?
Define and plan for a
project budget
9
Create and manage ERP project goals
Create a blueprint/prototype for ERP project
• Timeline for implementation
• List out key stakeholders duties and expectations during implementation
• Having the blueprint pre-planned eliminates the “guess” work of the project
Your ERP contract should mirror the blueprint timeline for implementation
• Ensure ERP contract includes upgrades and maintenance
• Keep your ERP system modernized
• Managed services and hosting options
Training
• Involve the software users during implementation
• Provide training guides or courses for user staff
10
Select the right implementation team
Internally
• Maintain champions throughout the
ERP project implementation
• Create and maintain internal
buy-in
• Survey and gather data for right
implementation timeline
• Training
• Organize staff according to skill
set and ability to meet the
implementation staffing needs
• Educate system users before
Go-Live dates
• Coordinate communications efforts
regularly
Externally
Find a provider that knows
the market
• Understands State Governmental
needs and demands
• Government has different
regulations, accounting treatments,
and requirements
• Showcases proven results
• Implemented ERP systems with
success
• Provides experienced
employees for Project
• Offer reliable testimonials
11
Ensure transparency to the state stakeholders
Simple ways to maintain transparency
throughout implementation
• Create and maintain a web page
• Display project description
• List key stakeholders and other points of contact
• List the project timeline, target dates, and goals
• Changes the public could expect from the new
“Transparency
promotes
accountability and
provides
system
information for
• Project benefits to meet agencies demands
citizens about
what their
Create announcements such as press releases to
Government is
showcase progress and other milestones within
doing.”
the project
12
The State of Arizona BREAZ
project case study
BREAZ 101
Business Re-Engineering AriZona project
Business
Statewide initiative to
transform Arizona’s
business processes and
replace the current accounting
system and a number of
agency financial systems.
Re- Engineering
AriZona
14
Project vision
Goals and objectives:
Benefits:
• Replace a system at significant
risk of failure
• Implement a statewide ERP
system
• Facilitate standardization of
business processes
• Facilitate timely access to and
reporting from a Single-Source
of Information
• Standard business processes
•
•
•
•
15
across the organization
Modern technology platform
Operational efficiencies
Long-term viability
Staff portability
Arizona’s project scope
Financial
• Accounts Payable
• Accounts Receivable and Billing
• Asset Management
• Budgetary Control
• Cash Management
• Cost Accounting
• General Ledger
• Grants Acquisition &
Management
• Travel
Logistics
• Inventory Management
• Facilities Management
Other
• Federal Highways (FHWA)
Federal Aid Billing
• Application Security and
Workflow
16
BREAZ project schedule
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
Initiation, Planning, Project Management
Phase 1
Phase 2
Phase 3
Phase
Timeline
1-BPR and Planning
April 2013-August 2013
2-ERP Implementation
September 2013-June 2015
3-Post Go-Live
July 2015-September 2016
17
Align executive and user expectations
Completed a data driven, strategic assessment of State readiness for
change to identify the organizational barriers to change and accelerators
of change based on data gathered from the State
• One-on-One Interviews:
State leaders (July 2013)
• Focus Groups: Multiple people
from across multiple agencies
and functions (July 2013)
• CFOs, CIOs, Program Area, Shared Services,
Dept Of Transportation, Dept of Economic
Security, Functional Staff
• End User Survey: Survey sent to AFIS and
AFIS-like users (August 2013)
18
Arizona’s BPR
Business Process Re-engineering (BPR)
The BREAZ project team along with the State’s agencies worked
together to:
• Create a common vision of how to maximize the benefits of the new
accounting system through statewide business processes
• Put together a blueprints for the State’s business processes
As-Is Processes
• The current financial and logistic processes used by the State
Statewide (To-Be) Business Processes
• The new financial and logistic processes to be used by agencies
statewide after implementing the Arizona Advantage Solution
19
Organizational readiness considerations
Communications
Training
Change Management
• Address all levels of staff
• Use a Blended Approach • Include periodic change
through direct messaging
• Create FAQs based on
feedback
• Set clear expectations
through:
• Summarization of
business changes
after system design is
complete
• Early system
demonstrations
to training
• Describe the training
approach to agencies to
ensure the learning
process is understood
• Reinforce the
relationship of role
mapping
• Develop plan for training
after Go-Live
20
readiness surveys
• Focus support for large
agencies and agencies
with retiring systems
• Focus support of the
smaller agencies by
grouping together as
necessary
• Summarize feedback
from change readiness
assessment by agency
Statewide ERP implementations
keys to success
Implementation keys to success –
Acquisition & Contract
• Develop a Business Case for the project
• Create an RFP that is reflective of the total solution to be built,
•
•
•
•
•
•
•
including detailed lists of interfaces, conversion and reports
Contract with a vendor to help with the requirements analysis, RFP
preparation and evaluation, and quality assurance
Define a realistic scope and avoid scope creep
Manage the budget
Include measurable interim project milestones to assess project
progress
Decide early on any optional items included in the RFP
Establish a “Pool of Hours” in the contract for additional development
Do not underestimate the complexity of integration with other key
systems/software
22
Implementation keys to success Project Execution
• Assign quality staff to the Project
• Involvement from and communication with agencies
• Agency staff assigned to the Project
• Involvement of agencies from requirements analysis to procurement
•
•
•
•
•
•
and beyond through project governance Have agency involvement
in system design and UAT
Early involvement between technical team and agencies with retiring
systems
Complete thorough testing
Strong Change Management
Training (use of functional experts)
Focus on reporting capabilities
Place an emphasis on post go-live support
23
Questions
Presenters
Daniel Keene
CGI
Sr. Vice President
Clark Partridge
State of Arizona
State Comptroller
Michael J. Smarik
State of Arizona
Deputy Comptroller
25
James Colbert
CGI
Vice President
Thank you for joining us.
26