1. Click to add a subtitle 1 expect the best www.vita.virginia.gov Business/Technology Level Set & Horizon Scan Information Technology Investment Board June 1, 2004

2. 2 expect the best www.vita.virginia.gov Today’s Topics Commonwealth Business Planning The Vision That Drives Us VITA’s Long-Term Goals Scanning the Road Ahead –Plan for remainder of transition period –Financial goals Short-term—”Quick Wins” Long-term--Transformation ITIB Strategic Discussions “We’ll cover that at the planning session”

3. 3 expect the best www.vita.virginia.gov Commonwealth Business Planning Historically focused at agency level Council on Virginia’s Future –Established by 2003 General Assembly –Chaired by Governor; members from legislature, private sector, cabinet Charges: –Develop Roadmap for Virginia’s Future –Establish scorecards to track progress

4. 4 expect the best www.vita.virginia.gov Council on Virginia’s Future--Vision Be the best managed state –Outstanding financial management –Open and accountable government –Long-range planning/performance management –High quality workforce –Effective information systems management

5. 5 expect the best www.vita.virginia.gov Governor’s 2004-05 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

6. 6 expect the best www.vita.virginia.gov The Vision That Drives Us Create value Improve the Commonwealth's competitive position Create accountability for how public funds are spent on technology Grow our employees Serve as the model for customer- & citizen- centric government

7. 7 expect the best www.vita.virginia.gov State/Local New IT Strategies

8. 8 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.

9. 9 expect the best www.vita.virginia.gov Measuring VITA’s Success—Prospective Metrics 90% state services available electronically 75% citizen response--technology delivers services effectively Top 10 ranking in Digital State Survey 100% replacement of legacy administrative/finance systems --From the Council on Virginia’s Future Best Managed State Vision Team Draft Report

10. 10 expect the best www.vita.virginia.gov The Road Ahead--Transition Short-term –July 1—Medium agencies/VDOT –“Quick Wins” process underway, organizing teams to pursue –Large agencies by January 1 Long-term –PPEA process continues through 2004 –Published attributes frame initiatives & prospective partnerships –Posting June 1, 2004

11. 11 expect the best www.vita.virginia.gov The Road Ahead--Financial Short-Term—Quick Wins –Process –Targets –Potential Value Long-Term—Transformation –Process –Targets –Potential Value

12. 12 expect the best www.vita.virginia.gov FY05 Savings & Investment Analysis Identified FY05 cost savings opportunities and candidate investment opportunities with long-term savings potential. Analyzed opportunities using the following criteria: –Size and timing of savings –Contribution towards VITA’s goal to transform & integrate –Ease of execution Selected and ranked opportunities

13. 13 expect the best www.vita.virginia.gov FY05 Savings & Investment Highlights Cost savings are projected savings using currently available information. Cost savings opportunity portfolio is dynamic and is managed on an ongoing basis. Creation of VITA enabled 13 of 15 FY05 cost savings opportunities. 75% of the cost savings projects are not hard to implement. FY05 investment projects can provide significant long- term savings. FY06 estimated savings can significantly exceed FY05 estimated savings.

14. 14 expect the best www.vita.virginia.gov Comparison of Selected Opportunities Contractor Conversions Low Hard Easy Level of Difficulty High Local Phone Service Consolidation Small Server Consolidation Migrate Customers to CoVaNet Board of Elections Lines Consolidation Standard Core Desktop Bulk Licensing Relocate/ Consolidate Mainframe Print Site Operations Automation – Production Control Restructure Operations Shifts & Coverage Oracle Financials Application Consoli- dation Relocate 411 to Richmond Plaza Mainframe Upgrades Achieves Consolidation & Future Positioning ImagePort Broadcast Fax Offsite Storage Contracts Consolidation VITA Host Web Based Business Licensing Applications

15. 15 expect the best www.vita.virginia.gov Savings Summary: FY05 Opportunities

16. 16 expect the best www.vita.virginia.gov Investments for Future Savings

17. 17 expect the best www.vita.virginia.gov Project Sequencing FY05FY06FY07FY08 FY04

18. 18 expect the best www.vita.virginia.gov 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<

19. 19 expect the best www.vita.virginia.gov Total Savings By Category & Year (Thousands) 6-Yr Baseline Benefit (Thousands)

20. 20 expect the best www.vita.virginia.gov Note total includes both savings and cost avoidance. Cumulative Savings By Year (Thousands)

21. 21 expect the best www.vita.virginia.gov ITIB Strategic Discussions What is the Board’s thinking on strategic vs. operational roles? What is the relationship of Board initiatives to Virginia’s Roadmap for the Future? How can the Board be more proactive in setting the strategic direction for “enterprise systems”?

22. 22 expect the best www.vita.virginia.gov Strategic Issues for the ITIB (cont’d) How can agencies’ business leadership (not just IT) be collaboratively engaged? What solutions can be pursued for under- funded oversight responsibilities in project management and security?

23. 23 expect the best www.vita.virginia.gov “We’ll cover that at the planning session.” Role/positioning of VITA internal auditor No layoffs policy/implications Facilitating funding for agency-specific IT projects (PPEAs, bonds, loans, etc.) Board operations best practices Frequency of Board meetings

24. 24 expect the best www.vita.virginia.gov Revised slides follow….. Following are slides modified 6/8 per Lem’s request

25. 25 expect the best www.vita.virginia.gov Savings and Avoidance by Year (Thousands)

26. 26 expect the best www.vita.virginia.gov Total Savings By Category & Year (Thousands) 6-Yr Baseline Benefit (Thousands)

27. 27 expect the best www.vita.virginia.gov 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 92,126 102,077 102,552 101,850 Cumulative 12,756 46,403 115,385 207,511 309,588 412,140 513,990