Click to add a subtitle 1 expect the best Lemuel C. Stewart, Jr. CIO of the Commonwealth June 9, 2004 Large Agency Transition Team Kickoff Meeting

2 expect the best LATT Topics What’s going on with VITA The Integration process FY05 Savings and Investment Analysis Future Plans Value of VITA

3 expect the best Imperatives The Vision for Technology in Virginia Establish Virginia as a model leader in the use and management of technology in government. The Vision for VITA Transition from decentralized, stove-piped IT service delivery to a highly effective, consolidated, and centralized model. Why We Are Doing This + Customer- and citizen-centric services + Savings + Effectiveness + Best Practices management of the IT investment = Revolutionize services to our customers (best quality/best value)

4 expect the best Governor’s Objectives Virginia Excels—Best-Managed State Initiative 1-Financial Management 6-Mail Services 2-Information Technology 7-Human Resources 3-Procurement 8-Capital Outlay Process 4-Emergency Preparedness 9-Admin. Dispute Resolution 5-Real Estate Management 10-Operational Values

5 expect the best State/Local New IT Strategies Duplicative technology investments Reliance on internal MIS Independent agency technology planning Siloed program Development Intra-agency focus Consolidation of technology resources Innovative Partnerships Governance model and Enterprise architecture Interoperability and Standardization Data sharing and Interagency cooperation New Worldvs. Source: Gartner Old World

6 expect the best VITA’s Long-Term Goals Ingrain the “build once, use many times” approach to service improvement. Be the catalyst for customer & citizen-centric state business transformations. Continually demonstrate improved service and savings benefits for citizens, customers, and taxpayers. Achieve true “transparency” as the state’s IT utility. Become the model of IT excellence in government.

7 expect the best Integration Stage: The Size of the Matter Over the course of Integration, VITA will be responsible for supporting: –90 Organizations at 1,497 locations –60,000+ end users –3,000+ servers –12,500+ telecommunications devices –1,286 employees

8 expect the best Integration: Near-Term Medium agencies & VDOT transition as of July 1 Large agencies transition beginning summer 2004 Agencies will pay direct IT costs + administrative fee (5.5% proposed to JLARC)

9 expect the best Transition: Shared Services *Listed projects are examples for illustrative purposes

10 expect the best Integration: “Quick Wins” Objective: savings (at minimum) to offset agencies’ administrative fees during FY 05 ($6.7M) Initial candidate projects identified Projects to be pursued by joint VITA/agencies teams Projects will promote move to “shared services”

11 expect the best FY05 Savings & Investment Analysis Identified FY05 cost savings opportunities Analyzed and ranked opportunities using the following criteria: –Size and timing of savings –Contribution toward the goal to integrate & transform –Ease of execution

12 expect the best Savings Summary: New FY05 Opportunities

13 expect the best VITA’s Transformation Stage Transformation is creating the “to be” environment for the Commonwealth –Consolidation of facilities, hardware, and software –Realignment and possible relocation of IT staff –Deployment of innovative technology solutions –Implementation of significant cost-savings initiatives –Creation of innovative partnerships

14 expect the best Strategic Savings Opportunities Major Re-engineering Initiatives State-of-the-art Data Center with disaster backup Enterprise Desktop Management Enterprise Messaging Enterprise Customer Care Center Electronic Government & Business Transformation Comprehensive Statewide Network Services Enterprise Systems, Process, and Application Management >estimated total $100M - $165M savings over 6 years<

15 expect the best VITA Business Plan Representative Timeline

16 expect the best Transformation: Long-Term PPEA process continues 2004/05 Posting June 1, 2004 (as per HB 29) Posted attributes frame initiatives & prospective partnerships Comprehensive communications and evaluation plans for each stage in PPEA process

17 expect the best VITA PPEA Governance Organizations VITA PPEA Review Committee Commonwealth IT Investment Board Review & Decision Authorities Membership Established in CODE ITIB Secretaries of Tech., Fin., Admin., Com. & Trade Treasury Board OAG Selected VITA, DGS, OAG, DPB, DOA, DHRM & Treasury Staff Invited Participation: ITIB & Selected Agencies

18 expect the best The Value of Partnerships Going it alone is not an option –Virginia does not have $200 - $400 million to invest in infrastructure and facilities –Virginia does not have the people, time, or resources to implement these large-scale projects Potential partners bring much to the table –Innovative ideas for solving our business problems –Access to state-of-the-art capabilities and technologies –Expertise and ability to bring major projects to completion –Ability to bring resources to bear for the benefit of citizens and customers The Commonwealth defines what is—and isn’t—acceptable in proposals

19 expect the best The Value of VITA Today: –Opportunity to comply with the law/Governor’s objectives –Quick wins for the Commonwealth Tomorrow: –Opportunity to change how state manages IT –Tremendous savings and efficiencies –Continued investment in technology and agency business needs. –Improved services to our customers/citizens.

20 expect the best VITA Savings/Cost Avoidance—as of 5/04 FY 04FY 05FY 06 Six-Year Baseline Benefit Gross Savings— Seven Initiatives $ 2.97 M$ 5.67 M $ M Cost Avoidance— Four Initiatives $ 9.79 M$13.54 M$ M$ M TOTALS$12.76 M$19.21 M$ M$ M

21 expect the best Cost Savings and Avoidance (Thousands) Savings 2,968 8,175 35,662 52,149 57,025 57,425 56,648 Avoidance 9,788 25,472 33,320 39,977 45,052 45,127 45,202 Total 12,756 33,647 68,982 92, , , ,850 Cumulative 12,756 46, , , , , ,990

22 expect the best The Value Picture “Best Quality Service & Best Value” TODAY IT Infrastructure 1.4B Agency Citizen Services 1.2B TOMORROW IT Infrastructure.9B Agency Citizen Services 1.7B 6 YR Baseline

23 expect the best For More Information on VITA Lemuel C. Stewart, Jr. CIO of the Commonwealth

24 expect the best Transition Approach Be Flexible –A lot of influences have shaped the culture and environment of VITA and your Agency, we try to be sensitive to these influences Be Collaborative –Our interest is to be consistent with legislation and position the Commonwealth for savings, we need to work together to gain mutual benefit Be Reasonable –We will make every effort to meet agency requests, but we also must consider VITA’s support responsibility and legislative mandate Create Win – Win – Win –An open communication environment will foster a win for the Customer, a win for VITA, and a win for the Commonwealth

25 expect the best Transition Stages