1. CIO Council Update on Vendor Management Initiative
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February 22, 2016
Ellen Gulachenski – Managing Director of Project and Vendor Management

2. Goals Agenda Vision for Initiative for context
Update on Contract Collection Plan and Novatus
IT Spending Update and Recommendation to improve spending data
Overall Initiative Next Steps
Appendix: Business Units Included in Scope

3. CIO Council Vendor Management Initiative
Vision for IT Procurement and Vendor Management (CIO Council)
Establish a University-wide set of practices and policies that provides useful guidance and tools for the procurement and management of IT services and products to ensure that Harvard obtains the highest value from its vendors.
Objectives
Guiding Principles
Key Performance Indicators
Establish University-wide process that defines uniform best practices and procedures for IT to engage with its customers and end users for complex IT solutions
Adopt lifecycle approach to IT procurement and vendor management
Vendor selection and contract negotiation
Centralize on single contract management system (Novatus)
Ongoing vendor management and relationship management
Establish a platform for simple, efficient commodity IT procurement (HCOM or other)
Promote transparency for end users and for IT departments
Collaborate across and within IT departments
Integrate with other key stakeholders (Strategic Procurement and OGC)
Leverage economies of scale and avoid duplication of effort
Tie collected information and defined procedures to actionable business processes
KPIs for Objective #2:
2.A.
-- Frequency of use of approved-legal clauses for all HRCI contracts.
-- Office of General Council and CISO or CIO sign off of all HRCI contracts
-- Office of General Council and CISO or CIO sign off of all contracts with data-stored in the cloud
2.B.
-- Ability to report on disposition of contracts based on key attributes
-- Ability to report on number of agreements that were renegotiated to take advantage of economies of scale.
2.C.
-- All vendors with $X or identified as strategic have a defined CIO-Council strategy
KPIs for Objectives 1 & 3 TBD.

4. Update on Contract Collection Plan & Novatus

5. Update on IT Contract Repository
86 out of 533 (estimated) contracts are in Novatus
We have a deadline for collection – 3/30/16. We will be sending out reminder s.
We only expect business units to send us their contracts and we will do the review to enter into the system.
We will be reviewing the list of contracts with CIOs after deadline to ensure we have a complete list
We will validate data quantity and quality with assistance from RMAS, Security and OGC for HRCI contracts
System will track ~20 data elements.
All units that provide contracts will get a minimum of 1 license to Novatus and we will train individuals on how to use it.

6. Next Steps – Contract Collection
Submit contracts for upload by 3/30/16
All schools to participate
Identify at least 1 person to have read only rights in Novatus
All participating units
Share list of data elements to be collected for each submitted contract and thus available for reporting.
HUIT will distribute by mid-March

7. IT Spending Update

8. Our Previous Understanding of IT Spending
Harvard’s annual IT purchases total ~$100M:
$74.3M in IT products and services
$17.4M in IT consulting services
$9.8M in Telecom products and services
Harvard purchases products and services from 300+ vendors
60% of Harvard’s IT dollars are spent with 20 vendors

9. Findings & Recommended Adjustments
Original Data Set for IT Spending:
Created 3-4 years ago.
Included only non-capital IT spending on Technology (H/W and S/W), Telecomm and IT Consulting
New Data Set for IT Spending:
Is based on FY15 data and includes IT spending for Audiovisual equipment (e.g. HP, AdTech)
New Data Set Includes but may not be complete:
Known External Data Centers (e.g. The Markley Group)
Known vendors in emerging technology fields (e.g. Amazon Cloud Services)
Known HUIT IT Staff Augmentation vendors (e.g. if augmentation is for IT and admin, may be tagged as admin)
New Data Set Excludes due to lack of quality data:
IT spending on Capital projects (e.g. Construction projects or classroom remodeling)
Building control technology

10. Revised Annual IT Spending
In FY15, Harvard’s annual non-capital IT purchases totaled $186M
Spend analysis for FY15 across 5 major IT categories:
Harvard purchased products and services from 533 vendors in FY15
51% of Harvard’s IT dollars are spent with 20 vendors
Source: GL data for FY15 non-capital IT expenditures

11. Revised Top 20 IT Vendors (FY15) and Their Contract Status
Rank
Vendor Name
Spending Category
FY2015 Spending ($)
Contract Collection Status 1
EMC CORPORATION
Technology
11,213,536
In Novatus 2
CISCO
8,672,428 3
SIERRA-CEDAR INC
IT Consultants/Staffing
7,736,051 4
APPLE
7,626,724
No Contract 5
ORACLE
6,795,835
Pending 6
DELL
6,336,841 7
VERIZON
Telecom
6,199,951 8
HB COMMUNICATIONS INC
Audio Visual
5,180,103 9
MINDTREE LIMITED
4,544,559 10
ADTECH
3,929,548 11
GOVCONNECTION INC
3,874,763
In Progress 12
ROUNDARCH ISOBAR INC
2,929,987 13
CORPORATE TECHNOLOGIES INC
2,854,024 14
BELVOIR MEDIA GROUP LLC
2,678,672 15
MARKLEY BOSTON LLC
Data Center
2,675,388 16
JOHN GALT STAFFING INC
2,516,088
127
EXTENSION ENGINE LLC
2,304,279 18
VERIZON WIRELESS
2,252,444 19
B AND H PHOTO VIDEO
2,060,745 20
AMAZON WEB SERVICES
1,967,721
 Grand Total
$94,349,686
New Vendor (not on previous Top 20 list)
Vendors who dropped off the list: Cambridge Com. Svs Inc., IBM, Bank of America Leasing and Capital LLC, SHI (Microsoft reseller), Zensar Tec IM Inc, LCN Division of Ed G Sawyer, Douglas Stewart, Computer Packages, Advance Info Tech, and Navisite.

12. Recommendations Challenge Recommendation
Inconsistent definition of what is IT spending across the units
Include SaaS and Cloud services for an accurate representation of IT spending. Building management systems and non-administrative IT systems will be included at unit’s discretion (object code assigned).
Categorization of IT spending is often determined by which unit pays for service instead of type of service.
Discuss with Ad Deans having a CIO review any HW, SW, or Cloud purchase for administrative needs to ensure correct contract protections and classification.
New IT capabilities, like cloud, do not have a categorization in GL and some units use different codes for the same category.
Prepare and propagates via HUIT VMO common definitions of object codes and recommends use of these codes across all Harvard schools and entities starting in FY17. VMO will periodically review and update. Schools can indicate alternate code.
Difficult to know which schools are using which vendors right now.
Share entire data set of GL spending for IT with schools to promote transparency and collaboration. In time, as contract collection progresses. visibility will be achieved via Novatus with more detail.

13. Overall Next Steps
Initiative has been focused on Objective 2B for contract collection
Expect objectives and KPIs will be achieved this summer
Ability to report on disposition of contracts based on key attributes
Ability to report on number of agreements that were renegotiated to take advantage of economies of scale.
Leveraging the IT spending data this initiative will be turning to the next phase – Vendor and Relationship Management (2C) - at the end of the fiscal year.
Identify a set of target vendors for FY17 to negotiate common agreements

14. Appendix: Business Units Included in Contract Collection Scope

15. Appendix: Business Units Contacted