© CGI Group Inc. “Modernizing your ERP – Getting there and continual improvement” State panelist: Doug Cotnoir, Maine, Controller Tom White, Alabama, Comptroller Ed Ross, Kentucky, Controller Daniel Keene, CGI, Senior Vice President

Agenda 2 Objectives for modernizing ERP systems Challenges and lessons learned Continual improvement Government ERP market viewpoint Questions

1. Re-engineering and business improvement 2. Integration of systems 3. Streamlined workflow 4. Enhanced reporting 1. Streamline and improve financial management practices 2. Reduce costs by reducing manual effort, centralizing on one solution, and improving efficiencies 3. Enable faster response to regulatory changes 4. Improve data consistency, access, and transparency 1. Deployment of requisite new functionality for key business areas 2. Improve efficiency in data entry / retrieval 3. Reduce technical processing time, increase security and stability Maine AlabamaKentucky Objectives and desired outcomes

Agenda 4 Objectives for modernizing ERP systems Challenges and lessons learned Continual improvement Government ERP market viewpoint Questions

1. Minimizing customization and staying close to baseline 2. User training 3. Change management and user acceptance 4. Identifying and prioritizing interfaces 5. Conversion 1. Training and user readiness 2. Operational challenges of phased implementation 3. System interface prioritization and completion 1. Need for business process reengineering 2. Lack of State IT skills, workforce instability 3. Uncertainty securing ongoing budget to stay current MaineAlabamaKentucky Top challenges

Stay on upgrade path Stay close to baseline Archive plan to manage database size and reduce associated issues Closely manage vendor set up and maintenance Underestimated challenge of preparing the state workforce Synchronizing old and new systems during phased implementation is very difficult Needed more trained staff to build interfaces Need for organizational change management to be a major focus Easy for training to be underestimated Don’t miss an opportunity to consider managed services vs. on-premise MaineAlabamaKentucky Lessons learned

Agenda 7 Objectives for modernizing ERP systems Challenges and lessons learned Continual improvement Government ERP market viewpoint Questions

ERP modernization roadmap State of Maine 8 Modernized financial and procurement on cloud-enabled managed service Undertake modernization of HR/Payroll Replace legacy budget system Move to full mobile functionality and ubiquitous access Expand case management capabilities

ERP modernization roadmap State of Alabama 9 Financials and Procurement – (Live Top 20 Agencies) Performance Budgeting – Live Statewide October 2015 Financials and Procurement – (Live Top 20 Agencies) Performance Budgeting – Live Statewide October 2015 Financials – remaining agencies October 2016 Additional components transparency portal HR Self Service Case Management SharePoint Integration Additional components transparency portal HR Self Service Case Management SharePoint Integration Human Resource Management – Statewide – April 2017 Financials – Medicaid October 2013 Financials – Medicaid October 2013

ERP modernization roadmap Commonwealth of Kentucky 10 Enterprise Business Intelligence Punchout FMS Enterprise Business Intelligence Punchout FMS Continuous improvement tied to each system upgrade Mobility Enterprise wide content management

Agenda 11 Objectives for modernizing ERP systems Challenges and lessons learned Continual improvement Government ERP market viewpoint Questions

Market viewpoint 12 … …. … Best Practices for ERP Modernization Executive management Secure their active and engaged support to be a sponsor for change Process owners and policymaking groups Create project-specific policy governance groups for faster decisions Cross-departmental working groups Influence strategies to gain active support from midlevel managers High performance environment Select self-motivated individuals with to join project teams Satya Devata, Gartner Analyst, (2016): “How to Successfully Lead an ERP Project in the Public Sector”

Agenda 13 Objectives for modernizing ERP systems Challenges and lessons learned Continual improvement Government ERP market viewpoint Questions

14 Questions Doug Cotnoir Maine Controller Ed Ross Kentucky Controller Tom White Alabama Comptroller Daniel Keene CGI Senior Vice President

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