Administrative Computing Strategy Project Update to Stakeholders June 27, 2005.

Administrative Computing Strategy Project

Update to Stakeholders June 27, 2005

2

Agenda

Purpose of Project, Goals & Objectives

Outcomes & Deliverables

Project Process & Status

Enterprise Systems

Strategies

Project Portfolio Management

Recommendations

Risks

Next steps

Appendices

3

Purpose and Goals

Purpose of the Project:Purpose of the Project: Focus on key business systems and technology to develop a 3 – 5 year

strategic plan for the Administrative Computing group of IS&T

Goals and ObjectivesGoals and Objectives

Inventory and assess the existing enterprise systems portfolio within the area of the Executive Vice President

Review existing administrative legacy systems and their long-term viability

Evaluate the existing systems against MIT's business and SAP's long-term strategies

Assure that existing and future administrative applications are compatible with MIT's systems architecture

Identify business needs and new opportunities for Administrative Computing at MIT in collaboration with business process owners

Organize and structure a comprehensive plan to best sequence the work

Identify and measure risks (resources, process, and technology) associated with this plan

4

Outcomes & Deliverables

Primary Deliverable:Primary Deliverable: Strategic Plan Document for Administrative Computing

Components of the Strategic Plan Document:Components of the Strategic Plan Document: Customer themes and findings Enterprise Systems (Inventory / Health Assessment) Administrative Computing Strategies

Strategic planning process Individual business and technical strategies (e.g., Web Portal)

Defined process for project portfolio management Project Initiation Process (precursor to project methodology) Tools and templates for project identification and prioritization

Risk Management for Strategic Plan Critical success factors Risk to implementing portfolio management

Transition and implementation plan

5

Update and Project Status

Mar 16

Apr 27

Jun 27

Preparation

Business & Technical Data Collection

Phase 1Check-in with Sponsors

Data Analysis &Refinement with Customers

Draft Strategy

Phase 2 Check-in with Sponsors

StrategyReport

Check-in with Sponsors

Jan 05 Start

Co

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ine

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in

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in p

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ctStrategic Plan Development Since

Last Meeting

Customer findings and themes have been validated and communicated to EVP areas

Findings are included in:

Ongoing strategic planning process

Individual business and technical strategies

Enterprise systems inventory, health, and analysis

Process for portfolio management has been drafted (includes related tool-set)

IS&T project initiation process has been developed in conjunction with the strategic plan (includes related tool-set)

Initiatives identified via the strategic plan have been incorporated into Administrative Computing current project inventory list

Strategic Plan Development Since Last Meeting

Customer findings and themes have been validated and communicated to EVP areas

Findings are included in:

Ongoing strategic planning process

Individual business and technical strategies

Enterprise systems inventory, health, and analysis

Process for portfolio management has been drafted (includes related tool-set)

IS&T project initiation process has been developed in conjunction with the strategic plan (includes related tool-set)

Initiatives identified via the strategic plan have been incorporated into Administrative Computing current project inventory list

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Enterprise Systems Overview

Administrative Computing will:Administrative Computing will:

Continue to expand SAP as primary ERP system over next 3-5 years

Where appropriate, develop non-SAP applications (e.g., Events Calendar)

Provide an integrated environment for managing complex: Business Transactions

Web Services

Data integration and integrity

Recommend a major system upgrade in the next 18 months

Dedicate a percentage of Admin Comp resources to customer support and maintenance

OtherOther

SAP has been deployed at MIT over the last 9 years with over 20k current users

MIT’s implementation of SAP has evolved from desktop-based delivery to web/ESS

There are 10 major integration points with over 80 inbound/outbound interfaces to SAP (See Appendix)

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Enterprise System Health Analysis

Scale Impact

1.0 - 3.5 Needs attention in the next 1 to 3 years  Health Status

3.5 - 4.49 Needs attention in the next 3.5 to 5 years 

4.5 – 5.0 + Needs attention after 5 years

SystemCustomer

Needs Scaleable SustainabilitySupport Model

Health Status

LDS: Labor Distribution 1 1 1 2 1.3

Database for Payroll & Admissions 3 2 2 1 2.0

ECAT / SAPweb Classic 4 1 1 2 2.0

Roles Database 3 3 3 1 2.5

Property (SUMPROP) 4 3 1 2 2.5

SAP R/3 (4.6C) 3 2 2 4 2.8

Drop Box 3 3 2 3 2.8

NIMBUS 4 2 3 3 3.0

OPM 3 4 3 3 3.3

Financials 3 3 3 5 3.5

SAPWeb ITS 3 3 3 5 3.5

EHSweb 4 4 4 4 4.0

Procurement 4 4 4 5 4.3

Plant Maintenance 4 5 4 4 4.3

Training Events Management 4 5 4 4 4.3

Parking & T Pass application 5 4 4 4 4.3

Human Resources 4 5 4 5 4.5

EHS 5 5 4 4 4.5

MIT Events Calendar 5 4 5 4 4.5

InforMIT 4 5 5 4 4.5

Employee & Pension Payrolls 5 5 5 5 5.0 Average 3.7 3.5 3.2 3.5 3.5

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Enterprise System Detail Example

SAP Appl.

Short Description & Primary Function

BPO Implem Date (s)

Project Life Cycle Status

Functional Assessment, Current & Last Major Revision

Health Check

Sc a l e

Support Model

Financial Financial and Managerial Accounting:

General Ledger, Costing,

Accounts Receivable, Sponsor Billing, Travel,

Planning,

Asset Accounting

CAO Sept 96 Operations Current Status: Financials went live with SAP in the Central Offices in Sept. -1996. There have been continuous enhancements and developments since then. e.g., custom reporting to DLCs in 1998; COEUS billing feed April 2000; replaced obsolete SAP billing transaction VA90 with a custom program in Spring 2003; Web JVs; new company codes, etc. to extend/improve SAP usage

Assessment: Stable existing functionality. Original implementation included custom travel and cashier’s solutions, non-standard use of Funds Management (FM) module, and customized transactions and reporting that limit future extendibility and scalability. To reduce customization and utilize standard SAP Public Sector (higher ed) solutions would require use of Business Warehouse and re-implementing FM.

Customer Needs

Scalability

Sustainability

Support Model

3

3

3

5

Admin Comp – Financial

Health Check Status - Example

Customer Needs

-    Current functionality meets customer client needs-    Supports mission and objectives of the organization-    Satisfies regulatory requirements-    End-user satisfaction with process/technology

Health Check Scale (1-5) - Example

1 Least Healthy and/or work to be done

3 Medium health and/or work to be done

5 Most healthy and/or least effort to complete work

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Strategic Planning

Strategic Planning Process Includes:Strategic Planning Process Includes: Prioritization & Decision Making Process Integration with Business Initiatives Strategic & Transition Planning Customer Input Iterative Refinement

…is to guide Administrative Computing and Senior Management in the development and management of Administrative Systems that are initiated in Central Administration and used across the enterprise. The plan covers a three to five-year horizon and includes an ongoing process for maintaining the strategic plan, which incorporates periodic planned reviews and assessment.

Purpose of the Strategic Plan:Purpose of the Strategic Plan:

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Individual Strategies

StrategiesStrategies: Technology Strategy Integration Strategy Application Deployment to Users Reporting Strategy Portal Strategy Document Management eCommerce Strategy Project Delivery Strategy

Enabling the strategy will involve the participation of DLC community members

Each strategy includes:

• Strategic Statement

• Scope and Definition

• Peer or industry Analysis

• Prerequisites and Dependencies

Each strategy includes:

• Strategic Statement

• Scope and Definition

• Peer or industry Analysis

• Prerequisites and Dependencies

Key Strategic ComponentsKey Strategic Components

Key Strategic Components are business and technical dimensions of core Enterprise Business systems that extend into and enhance business functionality

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Integration Strategy Statement

The overarching goals are to make enterprise level data/information commonly understood and readily accessible to authorized users as needed. Additionally, data must be captured/maintained in a single system of record and stored in a common data store. Finally, enterprise level data/information is an Institute-wide asset and must be both leveraged and secured. There are three primary areas of focus to achieve the integration goals, data/information integration requirements, projects/processes and integration tool(s).

Strategic Statement or Statement of DirectionStrategic Statement or Statement of Direction

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Project Portfolio Management (PPM)

DefinitionDefinition

A holistic, strategic approach to managing an entire set of projects and initiatives which can be referred to as a project portfolio

ObjectivesObjectives

Integrate PPM, IS&T Project Management Methodology, the Resource Model tool and the Institute’s budgeting process

Develop systematic process to monitor current portfolio, resources and new requests

Provide visibility of projects and prioritization process to Business Process Owners, DLC’s and Senior Management

Encourage collaboration and awareness of the entire project portfolio to a broad set of constituents

Facilitate decision making process around priorities with Stakeholders

Ability to balance and diversify the portfolio of projects

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Team Recommendations

MIT Senior Management and Administrative Computing review and work together to mitigate risks outlined in the strategic plan

Reaffirmation by Senior Management in support of Administrative Computing’s strategic direction for SAP which states “Administrative Computing will continue to leverage MIT's investment in SAP…”

Development of a formal process to collect information from Department Labs and Centers (DLC). The process should be developed over FY 2006 and implemented in the spring of 2006

Assure that IS&T project initiation, project methodology, and Administrative Computing strategic plan are in alignment

Build a critical mass of core business and technical skills for the development, support and enhancement of enterprise systems (Administrative Computing and business process owners together)

Incorporate enterprise systems inventory and health assessment process into the portfolio management and prioritization cycle

On-Going Strategic PlanningOn-Going Strategic Planning

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Team Recommendations Cont’d

Portfolio and Project Management Portfolio and Project Management

Commitment from IS&T and MIT Senior Management to using a formal project portfolio management process that is reviewed/executed on a quarterly basis

Empower ASPCC to become the governing body for Administrative Computing portfolio management and project intersections

Integrate the portfolio and project management process with the MIT budget cycle

Annual Strategic Planning ActivitiesAnnual Strategic Planning Activities

Update and renew the Administrative Computing strategic plan document

Conduct the enterprise systems inventory and health assessment process

Align DLC input process with DLC impact calendar (managed by Administrative Computing)

Review and update the Enterprise Architecture Guide (EAG) for Administrative Systems, as defined by the MIT Information Technology Architecture Group (ITAG)

Conduct formalized training sessions with Administrative Computing and business process owner staff

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Risks to Project Portfolio Management (PPM))

Project portfolio management is not embraced (PPM necessitates working within well-defined processes and structure)

Loss of an ability to view and manage a complete set of projects

Increases the likelihood of project failure

A champion is assigned to advocate and lead the implementation of PPM. The champion must work closely with business process owners and IS&T project managers to facilitate implementation of the process

ASPCC cannot assume responsibility for the project prioritization process e.g. time constraints

Opportunity to incorporate Institute level business objectives may be lost

Development and presentation of clear and consistent analysis by project managers for ASPCC. Continuous and open self-evaluation of the process

Some projects circumvent the project prioritization process

Jeopardizes the entire prioritization process and directly impacts the ability to plan projects, resources, and schedules

Develop a tight set of controls to manage project initiation process with support from Senior Management

Continued use of existing project management tools that are “homegrown”

Homegrown toolsets may not integrate into project management tool set and impact ability to measure projects at the portfolio level

Apply and enforce the consistent use of project portfolio management tools

Lack of skilled business analysts to support development of financial analysis and business cases

Leads to inaccurate and inconsistent data, thereby affecting portfolio analysis and decision-making May affect ability to staff projects

Skill development in project management becomes a priority for IS&T and process owner staff and is measured by core competencies.

Lack of strong project management Leads to failed projects I.e.. over budget, project delays etc.

Assess the current skill level in project management and must be willing to develop skill levels or look to external resources for qualified project managers

RiskRisk ImpactImpact MitigationMitigation

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Next Steps

Complete development of project analysis tools Develop transition and implementation plans Secure “Buy-in” on strategy document with process owners

and MIT groups Integrate strategic plan with Administrative Computing

operations Complete and distribute final draft

Questions, Comments or Suggestions?

Contact: [email protected] or x8-8229

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Appendices

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Project Initiation Process

CompleteRequest forEvaluation

Form

KitimatTool

Analysis

BusinessCase

Development

Evaluation

Analysis

Prioritize

TriggerEvent

StakeholderReview

StakeholderReview

DirectorReview

IS&T LT

Review

• Someone (e.g., Business process owner) identifies and defines a project idea for the appropriate IS&T Director to review.

• All projects complete Evaluation Request Form for review

• Director either:• Approves project for further analysis• Approves as internal project• Declines / defers project / suggests

alternatives• Risk / Value analysis prepared• IS&T Leadership reviews to determine if

project requires formal prioritization• Stakeholder review of project to

determine if formal business case is warranted

• MIT customized business case• Project presented and reviewed for

slotting in project portfolio• Business Case review will occur quarterly

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Project Request for Evaluation

Simple form for requesting new / changes to business or technical functionality

A standard approach for identifying all new development requests

A document to help understand the request

A communication tool to engage the customer in the initiation process

IS&T Request for Evaluation Requestors: The IS&T Request for Evaluation form should be completed for projects that either request IS&T resources or impact central IT services. The form documents the business or technical need, assumptions, risks and issues, and financial implications – without commenting on how to address them. Please submit the completed form to an IS&T director or to [email protected]. An IS&T director will provide a response within xx weeks. Project Information Project Name: Date of Request: Project Requestor Primary Contact Name: Phone: Department: Email: Title: Potential sponsor: Purpose of Project, Service, or Activity – Provide a brief description

Drivers – Describe the customer needs (internal or external) that would be met

Benefits – Share expectations of the perceived benefits, added functionality, or reduced difficulty. If more than one solution is being proposed, please provide the benefits for each.

Impact of not doing the project – Describe the tangible or intangible impact if this need is not addressed.

Stakeholders – Identify those affected by this request and their respective roles in the proposed project (e.g., key process owners, service providers, customers, support)

CompleteRequest forEvaluation

Form

Evaluation

TriggerEvent

DirectorReview

Partial Copy

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Project Prioritization Tool

Enable management to make decisions based on established criteria

Evaluate requests based on value to business vs. risk of implementation

Graphic approach to quickly view the entire portfolio

Serves as a filtering mechanism for which projects should have a business case developed

Used as a communication tool to provide portfolio visibility to a broad set of constituents

KitimatTool

Analysis

Analysis

StakeholderReview

IS&T

LT

Review

Note: Business case for ‘Prioritize’ phase is under development and not included in this presentation

Kitimat Analysis Tool

1

2

3

4

51 2 3 4 5

Average Value to Business

Av

era

ge

Ris

k

E1 - PropertyS1 - Admin PortalP1 - SAPWEBE2 - Broad (OPM)T1 - TBD1T2 - TBD2T3 - TBD3T4 - TBD4T5 - TBD5T6 - TBD6T7 - TBD7T8 - TBD8T9 - TBD9T10 - TBD10T11 - TBD11Analyze

(high value, high risk)

As time permits(low value, low risk)

Prioritize (high value, low risk)

Deferred (low value, high risk)

Project Prioritization

Risk to ProjectRisk to Project Risk (1–5) Risk (1–5)

5 = Highest 5 = Highest RiskRisk

Risk Value Risk Value AnalysisAnalysis

DescriptionDescription

Compatibility w/ Enterprise Systems

(3) The project integrates with existing enterprise systems, but the interfaces have not been written before

3 SAP has a robust asset management module that needs to be researched to determine if it would meet MIT needs for property management e.g. tracking government property

Risk Criteria - Example

21

MIT SAP Applications and Major Integration Points