State of Washington Roadmap for Financial and Administrative Policies, Processes and Systems IPMA Forum 2005 Roadmap Program May 24 th, 2005

2 Agenda Enterprise Architecture 15 min Roadmap background 15 min Applying EA to the Roadmap 25 min Roadmap next steps 15 min Q & A 15 min

3 What is Enterprise Architecture? Analogous to Building Architecture Ensures the building matches the needs of the occupants - “One size doesn’t fit all” Provides multiple interrelated views to maintain context - e.g. plumbing, electrical, structural Uses engineering principles to improve the likelihood of successful completion

4 ISB Enterprise Architecture Committee Dennis Jones, OFM (co-chair) Thomas Bynum, ESD Sue Fleener, WSP Cathy Munson, LSC Christy Ridout, DSHS (co-chair) Julian Soh, DOR Tom Miller, DOP Laura Parma DIS Greg Brant, DIS (non-voting)

5 State of Washington Commonality Tiers

6 WA Tier One Enterprise Architecture Framework Overarching Architecture Principles Information Policies & Standards Business Policies & Standards Technology Policies & Standards Information (Data) Business Technology Information Models Business Process Models Technology Directions Inf. Subject AreasBusiness DomainsTechnology Domains Maps and Linkages Common Datasets Environmental Trends & Business Drivers Solution Architecture – Services, Patterns, Applications Technology Vision & Strategies Business Vision & Strategies Information Vision & Strategies

7 The State’s Enterprise Architecture (EA) Program A framework for decision-making Principles driven Focused at Tier One Roadmap identified as EA early adopter

8 Roadmap Background

9 Current factors influencing Washington State government Significant budget shortfall Priorities of Government Personnel System Reform Act of 2002 –Collective bargaining –Civil service reform –Competitive contracting Government Management, Accountability and Performance

10 The time is right

11 About the Roadmap The Roadmap project draws together agencies and central service providers to create a comprehensive plan for the transformation of Washington State financial and administrative policies, processes and information systems to solve today’s common business problems with enterprise tools and best practices.

12 Roadmap Business Goals  Better information for better results  Improved management systems  Streamlined business processes

13 Scope Decision Support Risk Management Projects Management

14 Roadmap challenge Fragmented governance & responsibility Value Proposition: Integrate core end-to-end business cycles

15 Roadmap challenge Inefficient business processes Typical financial benchmarks measure payments per A/P staffer Data from 10 state agencies suggest that productivity lags benchmarks Core payables processing was found to be the most labor intensive activity 2004 Financial Baseline Assessment

16 Common business problems & opportunities Procure-to-pay cycle A1: Optimize purchasing power (strategic sourcing) A2: Put cash in bank, not on shelf (consumable inventory) A3: Streamline procure-to-pay Reporting/General ledger B1: Organize data to support all perspectives (chart of accounts) B2: Improve access to information (reporting tools) Cost accounting cycle C1: Enable data driven decisions (cost accounting) C2: Protect federal & local funding Invoice-to-cash cycle D1: Make it easy for customers to pay D2: Increase investment revenues D3: Streamline invoice-to-cash Budgeting cycle E1: Streamline and integrate the budget cycle E2: Empower managers with tools to aid decision-making (measuring performance results) E3: Provide flexibility for innovative budgeting Capital asset management cycle F1: Maximize return on capital assets F2: Improve accountability for assets

17 Agency Prioritization Survey Results Forced ranking - All agencies

18 Over 50 central systems 220 known agency “shadow” systems Nearly 20,000 known desktop tools (spreadsheets, databases, etc.) Agency Prioritization survey results

19 Business Case – Value Themes Better information, better results More economical government Better customer and business relationships Optimized return on investment

20 Applying Enterprise Architecture to the Roadmap

21 Enterprise Architecture Approach A framework for decision making using: Principles Models Policies Standards

22 Architecture Principles Applied ISB adopted architecture principles : –Commonality - Should be common where there is a clear business case; once designated as common, justification is required to deviate –Business alignment - Should align projects and investments based on Priorities of Government (POG) –Natural boundaries - Should be designed around natural boundaries Other important principles –Do no harm to HRMS

23 Models - Functional Decomposition

24 Lessons Learned Additional principles are derived from lessons learned in other states and HRMS Ensure strong sponsorship and governance Focus on business outcomes – not systems Agree on common policies, processes, and data before picking system solutions Transform incrementally Agree on strategy for integrating new systems into the existing environment

25 Developed the Roadmap Defined initial Roadmap business initiatives, projects and timeline based on: Value & priority Principles Scope models

26

27 Roadmap Next Steps

28 Next Steps Confirm executive sponsorship Establish Roadmap governance Begin the Foundation Initiatives: –Business modeling –Integration architecture model –Enterprise service delivery model –Feasibility study –Acquisition –Budget request / decision package

29 Next Steps Business Process Modeling ISB Enterprise Architecture Committee’s principles: Key Decisions:  Designate Roadmap Business Processes as Tier One – Common Statewide?  How do we align our business processes?  What best business practices do we want to adopt? Commonality Business Ownership Natural boundaries Business Continuity

30 Next Steps Business Process Modeling Identify enterprise data standards Key Decision:  How do we maintain agency flexibility while leveraging statewide data to improve operations? Evaluate functionality of solution alternatives against core business processes using models Key Decision:  What software products best implement our desired best practices?

31 Next Steps Integration Strategy Defining an Integration Architecture Connect the legacy systems to the new environment as we transition Assist agencies to connect their core system with new systems Data standards, exchange formats, services and components, multiple models Key Decisions:  What are the critical success factors in creating a durable enterprise wide integration architecture?  How do we insulate systems from changes in interface requirements as we transition?

32 Q & A

33 Sadie Rodriguez-Hawkins, , Dennis Jones, , Kathy Rosmond, , Allen Schmidt, , Visit the Roadmap website at: Roadmap contacts