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TxDOT General Services Division (GSD) Conference — Why ProjectONE?

October 21, 2010

Agenda

Current Environment

About Texas

  • 12th largest economy in the world
  • Third largest state government in the United States
  • Over 230,000 state employees and $168 billion biennial budget
  • Comparable to private sector companies such as The Home Depot and Proctor & Gamble (from a financial perspective)

So Why Are We Doing This?

The current statewide enterprise includes multiple legacy systems requiring money for expensive upgrades and addressing critical issues

  • Manual workarounds required to address current deficiencies
  • Agencies do not have real-time data to determine available cash
  • Intensive manual effort required to reconcile payments
  • Social Security Numbers (SSNs) are the primary identifier of state employees and certain payees

The greatest justification for a statewide Enterprise Resource Planning (ERP) system is the shortcomings of existing statewide administrative systems.

ProjectONE History

2007

HB3106 passed

  • Identified core business functions and gave the Comptroller of Public Accounts (CPA) responsibility for ERP
  • Established ERP Advisory Council comprised of:
    • Department of Information Resources (DIR)
    • Health and Human Services Commission (HHSC)
    • Information Technology Council for Higher Education (ITCHE)
    • CPA
    • Texas Commission on the Arts (agency with less than 100 Full Time Employees [FTEs])
    • Texas Soil and Water Conservation Board (agency with less than 100 FTEs)
2008

Business Case Study in 2008

  • Analysis performed by an independent consulting firm (Salvaggio, Teal & Associates: June 2008 - September 2008)
  • Legislative report prepared by the ERP Advisory Council
    • February 2008 – December 2008
    • Supported Alternative 3 from the business case study
    • Sent to Legislature
    • Estimated an eight year project cost of $285 million
2009
  • The 81st Legislature appropriated funds to HHSC, TxDOT, and DIR for ERP implementation projects
    • Established CPA as project manager
    • Provided funds to each agency
    • Required IACs with participating agencies
    • Required that processes be changed to accommodate the software
    • TxDOT received funding for ERP in Capital Budget
  • Software license procurement
    • Leveraged existing investment in software
    • Obtained statewide perpetual license based on 160,000 FTEs (Human Resources [HR] and Financials)
  • Implementation services, oversight services and hardware procured
2010
  • In January 2010, the ERP Project was named ProjectONE (Our New Enterprise)

How did we get here?

The timeline below shows the sequence of events leading up to where we are today with ProjectONE.

Arrow from left to right indicates the timeline of events beginning in 2007 when HB 3106 was passed. In 2008, the Business Case Study was conducted. In 2009, appropriations were granted. Also in 2009, the project launched. In 2011, the TxDOT Central Texas Turnpike System will go live. The rest of TxDOT will go live in 2012.

ProjectONE Overview

What is ProjectONE?

  • ProjectONE is the ERP project for the state of Texas.
  • TxDOT, DIR, and the five Health and Human Services (HHS) agencies are part of the initial ProjectONE implementation taking place over the next several years.
  • ProjectONE will use PeopleSoft 9.1 software and adapt it to the specific needs of Texas agencies.

Easy

  • Intuitive, Web-based interface
  • Shared data can be accessed by multiple agencies

Fast

  • Data can be shared faster
  • Reports can be processed faster

Efficient

  • Cost savings over time
  • Reduced time spent on intensive manual processes

Targeted Functionalities

Functionalities Targeted in ProjectONE

  • General Ledger
  • Accounts Payable
  • Accounts Receivable
  • Budgeting
  • Inventory
  • Asset Management
  • Billing
  • Payroll
  • Projects
  • Grants
  • Human Resources
  • Procurement
  • Fleet Management
  • Data Warehousing

Governance Structure

The statewide ERP project governance provides not only an infrastructure for addressing project issue resolution and project approvals, but also sets up important communication channels.

Governance Structure chart illustrates the hierarchy of the project organization. At the top is the ERP Project Executive Sponsor, CPA. The Oversight Agencies (GOV/LBB/SAO) and the Executive Council (Susan Combs, Chair; Executive Directors HHS/TXDOT/DIR) are under the ERP Executive Sponsor. Under the Oversight Agencies and Executive Council is the Steering Committee (HHS/TXDOT/DIR). The Steering Committee is above three groups: Financials Change Control Board (HHS/TXDOT/DIR - CFOs), HR/Payroll Change Control Board (HHS/TXDOT/DIR) and Technical Change Control Board (HHS/TXDOT/DIR - CIOs). Under each respective Change Control Board is an Enterprise Work Group (Financials Enterprise Work Groups under Financials Change Control Board, HR/Payroll Enterprise Work Group under HR/payroll Change Control Board, Technical Enterprise Work Group under Technical Change Control Board). To the right of the Steering Committee is the CPA ERP Planning Team. To the right of the Change Control Boards is the ERP Enterprise Project Management Office.

Benefits of ERP

  • Business Process Standardization
  • Better Asset Tracking
  • Tracking Federal Dollars
  • Common Language
  • Statewide Procurement System
  • Eliminate Data Conflicts
  • Real-Time Data
  • Standardized Financial Information
  • Cost Savings
  • Easy Access to Information
  • Single Source of Reliable Information
  • Eliminates Use of SSNs
  • Eliminate Fragmentation
  • Enhanced Statewide Reporting

Accomplishments

Accomplishments
  • “As-Is” or “Current-State” workshops were held in December and January
  • Requirements Gathering workshops were held from January – April
    • Financials Team:
      • 175 four-hour workshops
      • 4,081 approved requirements
    • HR/Payroll Team:
      • 97 four-hour workshops
      • 5,612 approved requirements
  • Fit/Gap workshops were held in April and May
    • Financials Team:
      • 159 four-hour workshops
      • 2,414 “Fits” and 1,335 “Gaps” were approved by the Steering Committee
    • HR/Payroll Team:
      • 148 four-hour workshops
      • 2,674 “Fits” and 2,732 “Gaps” were approved by the Steering Committee
  • Completed the most comprehensive list of statewide requirements ever compiled for the state
  • First eight project milestones completed on time
  • Completed initial Process Design

Project Scope

  • The ProjectONE Steering Committee decided HHSC should take the lead in upgrading the base HR/Payroll system
    • Further development of the HR/Payroll piece will continue with a separate timeline
  • Department of Motor Vehicles (DMV) opted to postpone implementation due to the many demands associated with launching a new agency

DMV submitted an LAR for the upcoming legislative session to be included in the next phase of ProjectONE.

Timeline

Financials

Release 1 — September 2011

  • DIR and TxDOT Central Texas Turnpike System

Release 2 — September 2012

  • TxDOT

TxDOT Systems

Which TxDOT Systems Will Be Replaced?

New ERP System

Fully Replace

  • FIMS (GL, CA, PC, AP, AR, BI)
    • Includes Segment 41 — Miscellaneous Contracts
  • APS (PO)
  • PJS (PO)
  • MES (AM)
  • MSMS (IN)
  • VPS (PS reports)
  • PINS (TINS)
  • UVD (PS vendor file?)
  • Central TX Turnpike
  • Federal Billing (BI)
  • ETSA** (Time & Labor)
  • SLD** (Time & Labor)

Partially Replace

  • EOS (AM)
  • TxDOT’s MDC System will no longer be needed

**Subject to change due to HCM implementation

Q&A