2. AGENDA Purpose (Why Consolidate) Consolidation Approach Consolidation Status Consolidation Financials Steady State Measurements Budget and Personnel Information Requested (HB 1304) 2

3. Purpose (Why Consolidate) GOALMEASURMENT Efficiency – Dollar Savings Alignment – Survey Results Quality – Service Levels 3

4. Federated Model of The Enterprise Agency Layer Enterprise Layer Infrastructure Layer Technology Services Agency Services Shared Application Services Centralized Technology Centralized Application Services Utilized by Multiple Agencies Agency Specific Services Remain in Agency Information Technology Processes (ITIL and PMBOK) 4

5. OSF’s Service Portfolio Cabling Inside PlantOutside Plant Voice and Data Services IP Telephone PBX Telephone Contact Center Web Conferencing Wide Area Network Local Area Network Remote Access Data Center and Servers Mainframe HostingDistributed Srvr Host Offsite Media Storage Data Center Space Desktop Computing Desktop SupportFile & Print ServicesE-mail and Calendar Content Management Imaging Operations Custom PrintingCourier Services Helpdesk Service Desk Help Desk Hosting Application Development Application Support Consulting Security Server/MainframeDesktopNetwork Technology Services ImplementedIn ProcessPlanned Campus Broadband Audio Conferencing Policy - Procedures Operations Center Cyber Security Seminar Incident ResponseRisk AssessmentDisaster RecoveryAwareness Training Wiki Implemented Services Proposed Services 5

6. Shared Services Financial Mgt SystemsPayroll/Human ResourcesOther Reporting / Business Intelligence Financial Analytics Human ResourceProcurement & Spend ImplementedIn ProcessPlanned Extend / Collaborate Transaction / Streamline General Ledger Purchasing Strategic SourcingE-Supplier – Budget Human Resource –Base Benefits- Time & LaborPayroll Employee Self Svc Enterprise Learning Mgmt Higher Education Interface Manager Self Service Account RecBilling Asset Mgmt Project / Grants / Contracts Inventory E-Bill Payment Expenses (travel) Help Desk Self Svc Grants Provisioning Licensee OK.GOV Custom Apps P-Cards AP Workflow eProcurement Transparency Accts Payable OK.GOV Licensing OK.GOV Payment Services OK.GOV Websites OK.GOV Webstats Transparency ARRA Openbooks Data.gov Implemented Services Proposed Services 6

7. Consolidation Approach Agency by Agency - Consolidate all services for a specific agency one agency at a time (ie Treasury, Education) Service by Service - Consolidate a specific service for all agencies that utilize the service (ie. enterprise e-mail, mainframe hosting) Service by Agency – Implement a specific service or a small number of services for an agency. This is OSF’s traditional approach. Consolidation Approaches 7

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9. Service By Service Future Oracle Completing Study for Unix Consolidation Network Study: AT&T, OneNet, Lucent Radio Study: Kimball McAfee Study Security Services 9

10. Agency by Agency Leadership Common Vision Team Formation Project Scope and Plan Approve Business Case Detail PlanTransform Customer Relationship Standard Process Governance Performance Reviews Metrics Refined Business Case Tourism Board of Nursing Employee Benefits Council Office Personnel Mgmt Treasury Education AICCM Accountancy Board LP Gas Admin Abstractors Board Motor Vehicle Comm Arts Council Long Term Care Bd Aeronautics Optometry Bd Tobacco Settlement Police Pension Construction Ind Board Prof Engineers Lic Bd Comm on Teachers Prep Physicians Manpower Ethics Commission Licensed Social Workers Merit Protection OCAST Governor Comm Consumer Credit State Fire Marshall Teachers Retirement Disability Concerns Uniform Building Code Human Rights Comm Commercial Pet Breeder Pardon and Parole Interstate Oil Marginal Well Commission 10

11. Agency by Agency Future DCS, OSGEEIB, AND HEALTH ARE THE NEXT THREE AGENCY CONSOLIDATIONS THREE ADDITIONAL MEDIUM SIZED AGENCIES BEFORE JULY EIGHTEEN MONTH PLAN IN PROCESS Medium Sized Agencies Indigent Defense System Attorney General Children & Youth Commission Commerce Department District Attorneys Council Election Board Auditor and Inspector Insurance Department Office of Juvenile Affairs Land Office Commissioners of the Libraries Department Lottery Commission Narcotics & Dangerous Drugs Control Public Employees Retirement System Personnel Management Office Tourism & Recreation Department Central Services - DCS Secretary of State Veterans Affair Department Teachers' Retirement System State Treasurer Employees Benefits Council Water Resources Board 11

12. Agency By Agency Savings IT POSTIONS HAVE DECREASED 21% IN AGENCY BY AGENCY CONSOLIDAITON SERVER COUNT HAS DECREASED 58% IN AGENCY BY AGENCY CONSOLIDATION 12

13. Legislative Mandate Savings (Appropriated Agencies) IT COST HAVE DECREASED 10% SINCE 2009 IT POSITIONS HAVE DECREASED 11% SINCE 2009 13

14. IT Consolidation Savings Completed and In Process Projects CURRENT ESTIMATED SAVINGS OF $172M OVER 7 YEARS Agency Name Status FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 2010 Savings Achieved Completed $11,384,401 2011 Savings Achieved Completed $17,048,226 State Dept of Education Execution $324,027 $753,479 $632,479 $659,979 $753,479 State Treasurer Execution $91,524 $183,048 $177,516 Office of Personnel Management Execution $56,967 $121,371 $120,484 $114,184 Dept of Tourism Execution $32,402 $119,691 $119,011 Board of Nursing Execution -$9,252 -$10,264 -$15,764 Disaster Recovery Services Completed $247,344 $419,245 $203,524 VOIP OCCHD Execution $711 $65,688 AIICM Execution $4,896 $24,003 First National Fiber Buildout Execution $6,573 $51,045 Total Annual Savings $11,384,401 $28,432,627 $29,187,818 $30,159,933 $29,816,145 $29,831,813 $29,925,313 Savings Over 7 Years (NPV 1 ) $172,370,020 Notes: 1 Current savings plus NPV of savings from FY 12 through FY 16 @4% 14

15. Consolidated Agencies Strategic Initiatives ConceptInitiationExecutionPlanningClose Treasury Dept of EducationTourism Board of Nursing 201120122013 OPM Shared Application Services State-wide Licensing Bottommline Check Print Cash Management Treasury Work Station Higher Ed Interface Corrections HCM State-wide Org chart Enterprise Learning Mgmt III Human Resources Dashboard Electronic Action Form - EPAF Absence Mgmt E- Performance Enterprise Learning Mgmt III Time and Labor Pilot Treasury GL Child Nutrition – Direct Certification K12 Longitudinal Data System CMS (New Website) School Bus Certification My Data Application Career Tech Interface State-wide Student Information System GEAR UP OCAS Grants Provisioning Grants, Project and Contracts Licensing SEAS Interface and Data Exchange Early Warning Indicator 15

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22. IT Budget and Personnel Status of Requested Information 100% OF THE AGENCIES HAVE RETURNED REQUESTED INFORMATION 38% OF THE AGENCIES HAVE MADE AGENCY SPECIFIC SYSTEM REQUEST 22

23. Agency Specific System Request 269OK. COMM. FOR TEACHER PREP.645CONSERVATION COMMISSION 270STATE ELECTION BOARD650DEPARTMENT OF VETERANS AFFAIRS 292DEPT. OF ENVIRONMENTAL QUALITY670J.D. MCCARTY CENTER 300STATE AUDITOR AND INSPECTOR695OKLAHOMA TAX COMMISSION 308STATE BUREAU OF INVESTIGATION800CAREER & TECHNOLOGY EDUCATION 309DEPT OF CIVIL EMERGENCY MANAGEMENT805DEPARTMENT OF REHABILITATION SERVICES 315FIREFIGHTERS PENS. & RET. SYST.807HEALTH CARE AUTHORITY 340STATE DEPARTMENT OF HEALTH815EMPLOYEES BENEFITS COUNCIL 343ST. BD. OF EXAMINERS OF PERFUSIONISTS (w/450)830DEPARTMENT OF HUMAN SERVICES 345DEPARTMENT OF TRANSPORTATION835WATER RESOURCES BOARD 385OKLAHOMA INSURANCE DEPARTMENT981OKLAHOMA MUNICIPAL POWER AUTHORITY 400OFFICE OF JUVENILE AFFAIRS 405DEPARTMENT OF LABOR 410COMM. OF THE LAND OFFICE 415COUNCIL ON LAW ENFORCEMENT ED & TRNGReported has working on, but not received 435OKLAHOMA LOTTERY COMMISSION131DEPARTMENT OF CORRECTIONS 448BD OF LIC ALCOHOL & DRUG COUNS (w/450)452MENTAL HEALTH & SUBSTANCE ABUSE SERV. 450BD. OF MED. LICENSURE & SUPV.980GRAND RIVER DAM AUTH. 23