1. District Wide Applications November 12, 2002

2. 2 District Wide Applications Process Recommendations Board Decision

3. November 12, 2002 3 Agenda How did we get here? Why do some of these projects fail? What have we done to mitigate risks? When will we get it? How do we build it? What does it Cost? How do we pay for it? Decisions

4. November 12, 2002 4 How did we get here? Old System Business like 1940’s Struggle with data Struggle with processes Limited Budgets New System Modern Business Systems Make data driven decisions Effective/Efficient Systems More $ to Educating Children

5. November 12, 2002 5 How did we get here? External Third Party Analysis Replace core business systems SIS, HR, FI Replace/Update core infrastructure WAN, email, calendar, helpdesk, support Internal Analysis Tiger Teams Subject Matter Experts

6. November 12, 2002 6 How did we get here? (cont) RFP for District Wide Applications Software (ERP) Reported to BoE on Recommendation of PeopleSoft (HR, FI) and Zangle (SIS) RFP for Implementation Partner 6 Respondents 3 Short List (KPMG, PWC, Empower) Written responses, Interviews, References Cost, K-12 experience, Best-Fit

7. November 12, 2002 7 How did we get here? (cont) Empower: HR, FI Recommended Implementation Partner K-12 Experience Never had a failed Implementation 100% On Time, On/Under Budget Experience with PeopleSoft 8.x Payroll, HR, FI, Warehouse, Portal Technical Expertise, BPR, Training Change Management

8. November 12, 2002 8 Why do some ERP projects Fail? Lack of Executive Support Lack of Expertise in Project Management Quality Assurance/Testing Change Management Poor Requirements Definition Project Scope Creep

9. November 12, 2002 9 Why do some ERP projects Fail? Lack of Business Process Review AS-IS, TO-BE Untrained Users Unclear Expectations/Deliverables Implementation partner not understanding the customer’s business Communication Failure to decrease staffing after implementation*

10. November 12, 2002 10 What have we done to mitigate risks? Commitment of Executive Leadership Superintendent, Executive Leadership Team, Executive Committee, Executive Sponsors Tiger Teams HR, FI, SIS Recruited and Partnered with Technical Advisors Project Architect Quality Assurance, Testing, Business Process Review PeopleSoft Technical Project Manager, Infrastructure

11. November 12, 2002 11 What have we done to mitigate risks? Clear Requirements Clear Deliverables Clear Expectations Change Control Practice Contain any changes in Scope Commitment to Changing our Business Practices to be more Effective/Efficient Commitment to decrease staff after implementation*

12. November 12, 2002 12 What have we done to mitigate risks? Phased Approach to Implementation Communications Plan Just-In-Time Training for Staff Software Partner Implementation Partner District Subject Matter Experts (SME’s) District Professional Development Unit Resource Teachers (proposed) to support School Site Staff

13. November 12, 2002 13 When Will We Get It? Phases and Timelines – Parallel Processes Phase I: November ‘02 - September ‘03 SIS: Pilot Cluster (TBD) Master Schedule,Student Data, Attendance, Discipline HR: Payroll, Human Resources, Time and Labor, HR Portal FI: General Ledger, Receivables, Payables, Budget, Billing, Purchasing, Inventory, eProcurement, Finance Portal Data Warehouse and Reporting

14. November 12, 2002 14 When Will We Get It? Phases and Timelines Phase II: November ‘03 - June ‘04 SIS: Rollout to Schools, Parent Connect, Student Connect, Modifications for SDCS HR: ePay, Benefits, eRecruitment, eProfile FI: Asset Management, Cash Management, Projects, Grants Phase III: August ‘04 - March ‘05 Upgrades, Outstanding Issues, Enhanced Functionality, Parking Lot Items

15. November 12, 2002 15 How do we Build It?

16. November 12, 2002 16 What does it Cost? Applications $25.8M PeopleSoft, Zangle, Document Imaging, Reporting Tools, Implementation Infrastructure $1.9M WAN, email, calendar, Help Desk, Support, Desktops, Servers, Data Center People and Partnerships $1.6M Project Management, QA & Testing, Change Management, Training, Technical Assistance Maintenance - On Going Costs $5M/year Licenses, support, hardware,

17. November 12, 2002 17 What Does it Cost (cont) 14.2 15.6 9.0 5.2 5.0 Total Maintenance $19.6M Total HW, SW, Imp $29.3M

18. November 12, 2002 18 How do we Pay for it? FY 02-03 $14.2M $12.25M COPs, $.45M eRate, $1.5 Redevelopment Agency FY 03-04 $15.6M $14.65 COPs, $.45M eRate, $0.5 Redevelopment Agency FY 04-05 $9.0M ROI $6.0M, $0.1 COPs, $2.4M Redirect, $0.5 Redevelopment Agency FY 05-06 $5.2M ROI $6.0M ($0.8M Positive) FY 06-07 $5.0M ROI $6.0M ($1.0M Positive)

19. November 12, 2002 19 How do we Pay for It? (cont) Exploring Grant Funding Return On Investment (ROI) Starting Year 3 Medical Billing $2.1M Attendance $1.5M Paper Costs $0.5M Mandated Costs $.85M CSIS Rebate $0.7M Reduction in HR, Payroll, Financial Staff $2.8M Decreased Litigation Business Process Review

20. November 12, 2002 20 Return On Investment (cont)

21. November 12, 2002 21 Personnel Plan Attrition Placement in other District Positions Retraining Incentives/Buy Outs Layoff

22. November 12, 2002 22 Decisions Approve the Contracts for: Hardware,Software, Implementation 23-21, 23-77, 23-79, 23-81, 23-82, 23-84 Training, Support, Partners 23-71, 23-72, 23-73 Maintenance 23-78, 23-80, 23-83

23. November 12, 2002 23 Decisions Contracts still to bring to the Board: (Costs are included in the budget) Renting Data Center Reporting Tools Document Imaging Wide Area Network Upgrade