1. Click to add a subtitle 1 expect the best www.vita.virginia.gov Lemuel C. Stewart, Jr. Chief Information Officer of the Commonwealth House Appropriations Committee October 18, 2004 Transforming Information Technology in the Commonwealth: An Update

2. 2 expect the best www.vita.virginia.gov Today’s Topics Why Transform? Why VITA? Progress Report: Integration Savings Report & “Quick Wins” Looking Ahead: Transformation

3. 3 expect the best www.vita.virginia.gov The State of Technology: 2002 No data on IT spend or employment Numerous reports detailing problems with IT project failures, project management, and duplicative systems Inability to leverage buying power Inability to promote and adopt best practices Lack of transparency for planning and budgeting IT New demands for information security, e-government, and integration DOE DEQ DMAS ABC TAX DSS IT DGS DMV VDOT DOC Enterprise IT IT

4. 4 expect the best www.vita.virginia.gov National Technology Trends

5. 5 expect the best www.vita.virginia.gov The Future State of Technology VITA was formed by the 2003 General Assembly to provide centralized, shared services as a technology utility to: Reduce redundancy and increase efficiency Leverage buying power and infrastructure Reduce costs significantly Invest in future technology Improve technology investment & oversight Revolutionize service delivery to citizens ABC IT Governance VDOT DMV DSS DGS ABC TAX DEQ DMAS DOE DOC IT Operations IT

6. 6 expect the best www.vita.virginia.gov Phased Agency Transitions Small and medium agency transitions completed successfully Using lessons learned and industry best practices Large agencies transition in three waves –Wave 1: transitioned 6 agencies on 9/25 –Wave 2: transition 4 agencies on 10/25 –Wave 3: transition 7 agencies on 11/25 On target for successful integration by 1/1/2005 Emphasis on service continuity and customer business needs

7. 7 expect the best www.vita.virginia.gov VITA Today and Tomorrow As of July 1, 2004, VITA was responsible for supporting: –60 Organizations at 543 locations –16,936 PCs –1,074 servers –557 employees On January 1, 2005, VITA will be responsible for supporting: –90 Organizations at 1,497 locations –60,000+ PCs –3,000+ servers –1,286 employees –1,294 employees retained by agencies As of October 1, 2004, VITA is responsible for supporting: –69 Organizations at 1,119 locations –35,696 PCs –1,937 servers –837 employees

8. 8 expect the best www.vita.virginia.gov Procurement Reform Accomplishments Centralized IT procurement Solutions-based RFP approach –Limited terms and conditions as mandated Value orientation, not price orientation Faster, simpler, less expensive procurements Improved asset management through centralized eVA ordering for all IT SWAM Initiative, Web site, and business intelligence Lowered costs through leverage and enterprise solutions

9. 9 expect the best www.vita.virginia.gov Improved Technology Management IT Investment Board submitted Recommended Technology Investment Priorities Report on September 1, 2004 Projects represent all Secretariats, 20 agencies, and estimated $247 million investment 158 new major IT projects ($1.4B) subject to ongoing CIO/ITIB oversight and approval process

10. 10 expect the best www.vita.virginia.gov Project Management Development Program Promulgated standard in 2003 for the qualification and training of IT project managers Developed cost-effective Project Manager Development Program (PMDP) –800+ participants, 128 qualified project managers to date –Information Clearinghouse for best practices –Common minimum baseline of knowledge –Improved project management capability

11. 11 expect the best www.vita.virginia.gov Project Execution & Control Dashboard

12. 12 expect the best www.vita.virginia.gov Independent Verification and Validation (IV&V) VITA is implementing a comprehensive Independent Verification and Validation (IV&V) Program –Verification and validation of project fulfillment required during planning and execution for all Major IT Projects –IV&V strategy must be approved as part of Project Development approval –IV&V reports will supplement and validate Dashboard reporting –IV&V to be completed on all existing major IT projects by January 11, 2005

13. 13 expect the best www.vita.virginia.gov Integration Savings (October 1, 2004) (Updated for Baseline FY 2005 -2010) Initiative FY 04 Savings FY 05 Savings FY 06 Savings Six-Year Baseline Benefit Voice and data telecommunications contract extension (ATM T-1 Circuits)* $528,000 $3,168,000 Conversion of Unix and Oracle contractors to full-time positions $132,000 $792,000 Efficient tape technology stacking and replacement$173,000$108,000 $648,000 Telecommunications MCI contract (COVANET)*$1,542,000$3,085,000 $18,510,000 Verizon contract renegotiation$0$4,675,000$5,861,000$33,980,000 Streamline 1-800 voice services$2,000$103,000 $618,000 Streamline cellular usage*$524,000$1,333,000 $7,998,000 SAG software contract renegotiation$8,000$32,000 $192,000 Sun server procurement$484,000$0 Virginia Partners in Procurement – Hardware and Software (Wave I) $12,098,000$14,576,000 $87,456,000 Virginia Partners in Procurement – Computer Peripherals and Enterprise Storage (Wave II) $174,000$558,000 $3,348,000 Total, Gross Savings$15,665,000$25,130,000$26,316,000$156,710,000 * Savings have been withdrawn from the agencies’ budgets in HB 2001

14. 14 expect the best www.vita.virginia.gov Integration Cost Avoidances (October 1, 2004) (Updated for Baseline FY 2005 – 2010) Software Licenses$495,000$615,000 $3,690,000 Server Acquisitions$380,000 $0$380,000 Subtotal, Cost Avoidance$875,000$995,000$615,000$4,070,000 Total, Gross Savings & Cost Avoidance $16,540,000$26,125,000$26,931,000$160,780,000 Initiative FY 04 Savings FY 05 Savings FY 06 Savings Six-Year Baseline Benefit

15. 15 expect the best www.vita.virginia.gov Quick Win Initiatives* (in $1,000) Project NameFY05FY06 6-Year Baseline Benefit Status Comments Verizon contract renegotiation4,6755,86133,980Green Standard core desktop bulk licensingXX Yellow Small server consolidationXX Green Contractor conversionsXX Yellow VITA host Web based bus. Licensing appsXX Yellow Relocate/consolidate mainframe print site2481,23510,995Green Restructure operations shifts & coverage1932321,353Yellow Mainframe upgradesXX Green Oracle Financials app. Consolidation1825163,234Green Migrate customers to COVANET1704322,825Green Operations automation – prod control1225003,474Green ImagePort broadcast fax (VDH)XX Yellow Relocate 411 E. Franklin St. offices to Richmond Plaza Building 60147795RedNew Richmond Plaza Building lease is not complete. 411 will not close until final resolution of lease Board of Elections lines consolidation2244242Green Offsite storage contracts consolidationXX Yellow Total Savings/Avoidance7,49211,02566,083 Cost Avoidance7851,3067,331 Cost Savings6,7079,71958,752 * Savings from Quick Wins committed to agencies to offset 5.52% administrative fee

16. 16 expect the best www.vita.virginia.gov Examples of Enterprise Opportunities VITA and ITIB initiating enterprise opportunities with agencies –Learning Management System –Statewide Alert Network –Enterprise Geographic Information Systems –Govt. to Govt. Enterprise Systems Interface –E-Mail Consolidation –Enterprise Licensing

17. 17 expect the best www.vita.virginia.gov VITA Issues and Actions APA Special Report—December 15, 2003 –26 item VITA action plan –23 items complete and all on schedule with plan –Actions also consistent with JLARC reports and recommendations DHRM Classification Study –Requested by VITA –First phase report completed on 372 positions –DHRM recommended changes for 58 positions –100% compliant—December 2004 General Assembly studies and actions –JLARC Review of IT Systems Development—January 2003 –APA E-Commerce Report—November 2000

18. 18 expect the best www.vita.virginia.gov Transformation & PPEA Public/Private partnerships are essential to breakthrough success Major Re-engineering Initiatives –State-of-the-art Data Center and 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 Technology Innovation and business process redesign

19. 19 expect the best www.vita.virginia.gov 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

20. 20 expect the best www.vita.virginia.gov VITA PPEA Review Committee - Membership Chair – Lem Stewart – CIO Secretary of Technology – Eugene Huang Deputy Secretary of Finance – Pam Currey Deputy Secretary of Administration – Sheryl Bailey Treasurer of the Commonwealth – Jody Wagner ITIB Representation – Jim McGuirk & Jimmy Hazel VITA Staff – CFO, Strategic Management Services, Business Systems Services, Customer Services, Computer Services, Supply Chain Management Agency Representatives - DOA, DPB, DHRM, DOC, DSS, DOE, DMV, VDOT, VEC, Treasury, Higher Ed., OAG Gordon & Glickson, LLC (Independent Review)

21. 21 expect the best www.vita.virginia.gov PPEA Progress VITA received 5 PPEA proposals—4 posted June 1, per HB 29 Completed Conceptual Review Phase –PPEA Review Committee recommendation under review by ITIB and Secretaries of Technology, Administration, and Finance Detailed Review Phase (pending approval)— November start Comprehensive Agreement (pending approval) PPEA progress report, per HB 29—November 15

22. 22 expect the best www.vita.virginia.gov 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.

23. 23 expect the best www.vita.virginia.gov VITA Transformation - 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

24. 24 expect the best www.vita.virginia.gov For More Information on VITA www.vita.virginia.gov Lemuel C. Stewart, Jr. CIO of the Commonwealth 804.343.9002 lem.stewart@vita.virginia.gov ContactUs@vita.virginia.gov