South Carolina Enterprise Information System SCEIS

1. South Carolina Enterprise Information SystemSCEIS

2. SCEIS Mission Standardize and streamline business processes Integrate government services and information systems of SC Adopt proven, best business practices in public sector Achieve a more cost effective and efficient delivery of service for stakeholders Finance, Procurement, Budgeting, Human Resources Access to timely, accurate and complete information Revolutionize the way SC government works for its citizens

3. WHAT?

4. SAP Includes Back Office Functionality Financials Budget Execution � Funds Management Project and Grant Management General Ledger Accounts Payable/Receivables Cash Management and Treasury Asset Management Travel Management Purchasing Inventory Management Budget Preparation �What If� Analysis Budget Modeling and Planning Human Resources/Payroll Organization and Position Management Personnel Administration Personnel Development and Training Recruitment and Applicant Tracking Compensation Management Benefits Administration Time Management Grievance Tracking EMPLOYEE SELF SERVICE (ESS) Payroll: Payroll Processing Work Flow Data Warehouse for SAP

5. New SAP Product Suite � mySAP ERP 2004 NetWeaver SAP Enterprise Portal SAP Business Intelligence SAP Exchange Infrastructure runtime SAP Mobile Infrastructure SAP Auto-ID Infrastructure SAP Web Application Server SAP Solution Manager SAP Composite Application SAP NetWeaver Developer Studio SAP Treasury and Risk Mgmt. Transaction manager (asset mgmt) SAP Grants Management Manage programs from pre-award to post-award and reporting Strategic Sourcing Sourcing Capabilities (RFX and auctions) Strategic Capabilities (spend analysis, supplier evaluation and contract mgmt.) Supplier Relationship Management Contract negotiation and management Supplier management Catalogue content mgmt Self-service procurement Plan driven procurement Relationship monitoring SRM Vendor Employee Confirms goods delivered, services performed and enters invoices Supplier Enablement Order collaboration Supplier registration Supplier managed content CRM* (Customer Relationship Management) *although outside the scope of this project, CRM will provide additional functionality for the State as they move forward with other projects. What is RFX What is CRMWhat is RFX What is CRM

6. Project Team

7. SCEIS Partnership Dramatic Changes in business processes: The system is fully integrated. Entering of information one time makes that information available to other functions as appropriate, significantly reducing or eliminating multiple data entry, errors, etc. Purchase requisitions are now created online, eliminating paper documents for procurement requisitions. Transactions are now electronically routed to approving authorities rather than paper documents. Electronic �approvals� are attached to these transactions and are electronically/automatically forwarded to the next step in the process. The system automatically routes transactions to responsible parties for approvals. Mandatory approvals of areas such as Information Technology, Grants Office, and other required approvals cannot be circumvented. Transmission of documents from one stage of the process to another is virtually instantaneous. Transaction approvals are now verified electronically through security measures implemented within the SAP configuration. Manual signature verification is eliminated. When purchase requisitions are created online, the SAP system automatically verifies the correctness of much data such as item descriptions, part numbers, units of measure, budget availability, etc. Correctness of this data was previously performed on a manual basis. At the time a purchase requisition is entered into the system, budget funds are immediately encumbered. The legacy systems did not encumber funds until the purchase order was actually issued. A single purchase order document is now utilized for goods and services. The legacy systems issued various types of documents for different types of purchases. All records are electronic and readily available on-line and in real-time. Legacy systems required multiple copies of paper documents to be maintained and filed in support of the transactions. Locating purchase orders or other procurement documents is almost instant rather than searching through filing cabinets. Data is now collected online for mandatory reporting requirements and reporting documents are automatically populated with collected data. With legacy systems, it was necessary to manually collect data for various reporting requirements. Data searches are now more simplified. If changes to purchasing documents are required these can be accomplished in real time and online. All records are real time and up to the minute upon entering data. Receiving reports are entered online. Previously receiving reports were a manual process, requiring mailing of multiple documents to various areas. A 3-way comparison of 1) invoices 2) purchase orders and 3) receiving reports is now performed electronically for items acquired by purchase order. Legacy systems required these documents to be manually matched in order to pay invoices. Procurement personnel now have the ability to �audit� procurements via electronic means (PC�s and the SAP system) rather than travel to remote sites to inspect paper documentation. Bulk buying and storing power, results in lower delivery costs for fewer and larger deliveries. Items purchased, quantities, vendors, cost, and a host of other information is now readily available, enabling procurement to better manage items purchased, vendors, cost, inventory, etc. End users can now access on-line purchase requisition or purchase order status, receiving information, or payment information without having to call the Procurement or Finance Offices. Better budgetary controls � End users can only access assigned funding resulting in fewer if any errors due to erroneous coding of budgetary information. Previous systems were not designed to �catch� erroneous budget codes and allowed for unapproved spending from budgets of other areas. A standard coding system (NIGP) is used to identify commodities and services purchased by DMH allowing for easier and quicker review/management of these resources. Purchase requisitions entered by end users are automatically compared to commodities and services available on agency and State term contracts and, when appropriate, this information can be electronically copied into the requisition, saving a significant amount of time and ensuring that DMH receives the lowest possible prices. Dramatic Changes in business processes: The system is fully integrated. Entering of information one time makes that information available to other functions as appropriate, significantly reducing or eliminating multiple data entry, errors, etc. Purchase requisitions are now created online, eliminating paper documents for procurement requisitions. Transactions are now electronically routed to approving authorities rather than paper documents. Electronic �approvals� are attached to these transactions and are electronically/automatically forwarded to the next step in the process. The system automatically routes transactions to responsible parties for approvals. Mandatory approvals of areas such as Information Technology, Grants Office, and other required approvals cannot be circumvented. Transmission of documents from one stage of the process to another is virtually instantaneous. Transaction approvals are now verified electronically through security measures implemented within the SAP configuration. Manual signature verification is eliminated. When purchase requisitions are created online, the SAP system automatically verifies the correctness of much data such as item descriptions, part numbers, units of measure, budget availability, etc. Correctness of this data was previously performed on a manual basis. At the time a purchase requisition is entered into the system, budget funds are immediately encumbered. The legacy systems did not encumber funds until the purchase order was actually issued. A single purchase order document is now utilized for goods and services. The legacy systems issued various types of documents for different types of purchases. All records are electronic and readily available on-line and in real-time. Legacy systems required multiple copies of paper documents to be maintained and filed in support of the transactions. Locating purchase orders or other procurement documents is almost instant rather than searching through filing cabinets. Data is now collected online for mandatory reporting requirements and reporting documents are automatically populated with collected data. With legacy systems, it was necessary to manually collect data for various reporting requirements. Data searches are now more simplified. If changes to purchasing documents are required these can be accomplished in real time and online. All records are real time and up to the minute upon entering data. Receiving reports are entered online. Previously receiving reports were a manual process, requiring mailing of multiple documents to various areas. A 3-way comparison of 1) invoices 2) purchase orders and 3) receiving reports is now performed electronically for items acquired by purchase order. Legacy systems required these documents to be manually matched in order to pay invoices. Procurement personnel now have the ability to �audit� procurements via electronic means (PC�s and the SAP system) rather than travel to remote sites to inspect paper documentation. Bulk buying and storing power, results in lower delivery costs for fewer and larger deliveries. Items purchased, quantities, vendors, cost, and a host of other information is now readily available, enabling procurement to better manage items purchased, vendors, cost, inventory, etc. End users can now access on-line purchase requisition or purchase order status, receiving information, or payment information without having to call the Procurement or Finance Offices. Better budgetary controls � End users can only access assigned funding resulting in fewer if any errors due to erroneous coding of budgetary information. Previous systems were not designed to �catch� erroneous budget codes and allowed for unapproved spending from budgets of other areas. A standard coding system (NIGP) is used to identify commodities and services purchased by DMH allowing for easier and quicker review/management of these resources. Purchase requisitions entered by end users are automatically compared to commodities and services available on agency and State term contracts and, when appropriate, this information can be electronically copied into the requisition, saving a significant amount of time and ensuring that DMH receives the lowest possible prices.

8. SCEIS Executive Oversight Committee �The SCEIS Oversight Committee will guide and coordinate SCEIS from a statewide strategic perspective. It will provide direct executive support for the project, including working with the executive and legislative leadership of the State to promote the project.� Nat Kaminski, Comptroller General�s Office, (Chairman) Steve Osborne, Budget and Control Board, (Vice Chairman) Marshall Evans, Governor's Office Frank Rainwater, State Treasurer�s Office Brenda Hart, Senate Finance Committee Ben Homeyer, House Ways and Means Committee Chuck Fallaw, Chief Information Office Marcia Adams, Department of Motor Vehicles John Bourne, Department of Mental Health Sheila Breitweiser, SC School for the Deaf and Blind Harry Cooper, Department of Revenue Wendell Price, Department of Social Services

9. Central Project Team

10. Implementation Support Provided By Central Staff

11. Timeline

12. SCEIS Rollout Template A template that outlines a conservative approach to minimize risk has been adopted. It involves producing an Enterprise Blueprint, Pilot Implementation, Central Government Implementation and finally bringing groups of agencies online in waves.

13. SCEIS Financials/Materials Management and Budgeting - Proposed Rollout Plan Three high level enterprise projects: Financials/Materials Management, Budgeting, and Human Resources/Payroll will be implemented at a central level and rolled out to the agencies in waves. In general, agencies will implement financials/materials management, and budgeting, followed by human resources and payroll. The timeline for the first two modules is as follows:

14. SCEIS Human Resources & PayrollProposed Rollout Plan The HR/PR plan calls for a pilot implementation of the central HR/PR systems and a representative agency. Followed by agency implementations 3-6 months waves coordinated with their Financial implementation.

15. SCEIS Master Plan and Timeline

16. Costs

17. Statewide Implementation - Non-Recurring Costs

18. Statewide Implementation - Non-Recurring Costs

19. Proposed Cost Allocation Methodology Total estimate one-time costs to implement SCEIS statewide is $62.8 million  The costs will be allocated with 25% paid centrally and 75% funded by the agencies $15.7 million of these costs will be funded centrally $47.1 million will be funded by state agencies Agency Portion due at �Go Live� date

20. Statewide Implementation - Recurring Costs

21. Proposed Model for Allocation of Recurring Costs

22. Legislative Update

23. Legislative Actions FY 2005 � 2006 Budget Approved � New Funding 5,500,000 � Non Recurring Funds 1,826,000 � Additional Recurring Funds SCEIS Related Provisos/Resolution SCEIS Proviso (72.83) SCEIS Agency Funds Proviso (72.103) SCEIS Agency Funds Joint Resolution (H3799)

24. SCEIS Proviso 72.83 States the General Assembly�s mandate to implement SCEIS for all agencies with the exception of lump-sum agencies Recognizes and empowers the SCEIS Oversight Committee Requires agencies to implement SCEIS within the framework provided for in the Business Case Study Allows for scope and implementation schedule issues to be handled by the SCEIS Oversight Committee Provides for reporting to both the Executive and Legislative leadership

25. SCEIS Agency Fund Proviso 72.103and Joint Resolution H3799 Each agency can establish a Special Account for the sole purpose of funding non-recurring SCEIS implementation costs Agency can transfer funds into this Special Account at the discretion of the agency head Total funds transferred into this Account are specifically designated for SCEIS implementation and cannot exceed agency�s projected implementation costs Account would be exempt from the calculation of any mid-year budget reduction Unexpended balance in the Account would be carried forward from year-to-year until agency�s SCEIS implementation is completed Account is monitored by the Comptroller General�s Office JOINT RESOLUTION H3799 pending to allow 2004-2005 Funds to be allocated

26. Next Steps - Agency Agency will be provided updated implementation cost information before end of current FY Determine any FY05 funds available for savings toward implementation costs pending Joint Resolution H3799 approval Identify internal team to organize and manage Agency�s SAP implementation including a primary contact point for the Enterprise Support Group � HR/PR Blueprint to begin Jan 2006. Identify Agency requirements and develop any questions concerning the scope of SAP Project (i.e., functionality, reports, interfaces with other systems, etc.)

27. Contact SCEIS WEBSITE: www.sceis.sc.gov Email: sceis@sceis.sc.gov Pat O�Cain, Project Director - CG pocain@cg.state.sc.us Chuck Fallaw, Project Director � CIO fallaw@cio.sc.gov Jim Sexton, Program Manager jsexton@sceis.sc.gov

28. Questions & Answers