AGENDA Purpose Why Consolidate Consolidation Approach Consolidation Status

AGENDA • Purpose (Why Consolidate) • Consolidation Approach • Consolidation Status • Consolidation Financials • Steady State Measurements • Budget and Personnel Information Requested (HB 1304) 2

Purpose (Why Consolidate) GOAL MEASURMENT • Efficiency – Dollar Savings • Alignment – Survey Results • Quality – Service Levels 3

Federated Model of The Enterprise Agency Layer Agency Services Agency Specific Services Remain in Agency Shared Application Services Enterprise Layer Infrastructure Layer Centralized Application Services Utilized by Multiple Agencies Technology Services Centralized Technology Information Technology Processes (ITIL and PMBOK)

Implemented In Process Planned Implemented Services Technology Services OSF’s Service Portfolio Proposed Services Security Operations Center Policy - Procedures Incident Response Risk Assessment Disaster Recovery Cyber Security Seminar Application Development Consulting Application Support Server/Mainframe Desktop Operations Custom Printing Network Helpdesk Courier Services Service Desktop Computing Desktop Support Awareness Training File & Print Services E-mail and Calendar Help Desk Hosting Content Management Imaging Wiki Data Center and Servers Mainframe Hosting Distributed Srvr Host Offsite Media Storage Data Center Space Voice and Data Services Wide Area Network Local Area Network Remote Access IP Telephone PBX Telephone Audio Conferencing Inside Plant Outside Plant Cabling Contact Center Web Conferencing Campus Broadband

Implemented In Process Planned Implemented Services Shared Services Transparency ARRA Transparency Openbooks Financial Mgt Systems Proposed Services Reporting / Business Intelligence Data. gov Financial Analytics Human Resource Procurement & Spend Payroll/Human Resources Other Extend / Collaborate Strategic Sourcing E-Supplier – AP Workflow Expenses (travel) E-Bill Payment e. Procurement Employee Self Svc Enterprise Learning Mgmt Manager Self Service OK. GOV Custom Apps OK. GOV Websites OK. GOV Licensing Help Desk Self Svc OK. GOV Webstats Transaction / Streamline General Ledger Accts Payable Human Resource – Base Benefits- OK. GOV Payment Services Purchasing Budget Payroll Time & Labor Licensee Account Rec Billing Higher Education Interface Asset Mgmt Project / Grants / Contracts Inventory P-Cards Grants Provisioning

Consolidation Approaches • Agency by Agency - Consolidate all services for a specific agency one agency at a time (ie Treasury, Education) • Service by Service - Consolidate a specific service for all agencies that utilize the service (ie. enterprise e-mail, mainframe hosting) • Service by Agency – Implement a specific service or a small number of services for an agency. This is OSF’s traditional approach. 7

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Service By Service Future • • Oracle Completing Study for Unix Consolidation Network Study: AT&T, One. Net, Lucent Radio Study: Kimball Mc. Afee Study Security Services 9

Agency by Agency Employee Benefits Council Leadership Common Vision Team Formation Project Scope and Plan Business Case Approve AICCM Standard Process Metrics Customer Relationship Refined Business Case Transform Detail Plan Governance Office Personnel Mgmt Treasury Performance Reviews Accountancy Board Abstractors Board Arts Council Aeronautics Tobacco Settlement Construction Ind Board Comm on Teachers Prep Ethics Commission Merit Protection Governor State Fire Marshall Disability Concerns Human Rights Comm Pardon and Parole Marginal Well Commission Education Tourism Board of Nursing LP Gas Admin Motor Vehicle Comm Long Term Care Bd Optometry Bd Police Pension Prof Engineers Lic Bd Physicians Manpower Licensed Social Workers OCAST Comm Consumer Credit Teachers Retirement Uniform Building Code Commercial Pet Breeder Interstate Oil 10

Agency by Agency Future Medium Sized Agencies • Indigent Defense System • Attorney General • Children & Youth Commission • Commerce • Department District Attorneys Council • Election Board • Auditor and Inspector • Insurance Department • Office of Juvenile Affairs • Land Office • Commissioners of the Libraries • Department Lottery Commission • Narcotics & Dangerous Drugs Control • Public Employees Retirement System • Personnel Management Office • Tourism & Recreation Department • Central Services - DCS • Secretary of State • Veterans Affair Department • Teachers' Retirement System • State Treasurer • Employees Benefits Council • Water Resources Board DCS, OSGEEIB, AND HEALTH ARE THE NEXT THREE AGENCY CONSOLIDATIONS THREE ADDITIONAL MEDIUM SIZED AGENCIES BEFORE JULY EIGHTEEN MONTH PLAN IN PROCESS 11

Agency By Agency Savings IT POSTIONS HAVE DECREASED 21% IN AGENCY BY AGENCY CONSOLIDAITON SERVER COUNT HAS DECREASED 58% IN AGENCY BY AGENCY CONSOLIDATION 12

Legislative Mandate Savings (Appropriated Agencies) IT COST HAVE DECREASED 10% SINCE 2009 IT POSITIONS HAVE DECREASED 11% SINCE 2009 13

IT Consolidation Savings Completed and In Process Projects Agency Name 2010 Savings Achieved 2011 Savings Achieved State Dept of Education State Treasurer Office of Personnel Management Dept of Tourism Board of Nursing Disaster Recovery Services VOIP OCCHD AIICM First National Fiber Buildout Total Annual Savings Over 7 Years (NPV 1) Status Completed Execution Execution Completed Execution $172, 370, 020 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 $11, 384, 401 $11, 384, 401 $17, 048, 226 $17, 048, 226 $324, 027 $753, 479 $632, 479 $659, 979 $753, 479 $91, 524 $183, 048 $177, 516 $11, 384, 401 $28, 432, 627 $56, 967 $32, 402 -$9, 252 $247, 344 $711 $4, 896 $6, 573 $29, 187, 818 $121, 371 $120, 484 $114, 184 $119, 691 $119, 011 -$10, 264 -$15, 764 $419, 245 $203, 524 $65, 688 $24, 003 $51, 045 $30, 159, 933 $29, 816, 145 $29, 831, 813 $114, 184 $119, 011 -$15, 764 $203, 524 $65, 688 $24, 003 $51, 045 $29, 925, 313 Notes: 1 Current savings plus NPV of savings from FY 12 through FY 16 @4% CURRENT ESTIMATED SAVINGS OF $172 M OVER 7 YEARS 14

Concept Initiation Planning Execution Close Shared Application Services Consolidated Agencies Strategic Initiatives 2011 2012 2013 Board of Nursing State-wide Licensing Higher Ed Interface Enterprise Learning Mgmt III Absence Mgmt Electronic Action Form EPAF Correction s HCM Enterprise Learning Mgmt III Human Resources Dashboard State-wide Student Information System OPM Cash Managem ent Career Tech Interface My Data Application School Bus Certificatio n Bottommli ne. Check Print Child Nutrition – Direct Certification Treasury GL Treasury Dept of Education Licensing Treasury Work Station State-wide Org chart Time and Labor Pilot EPerforman ce OCAS K 12 Longitudinal Data System Grants CMS Provisioning (New Website) Grants, Project and Contracts GEAR UP SEAS Interface and Data Exchange Early Warning Indicator Tourism 15

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IT Budget and Personnel Status of Requested Information 1304 Budgets Recieved Agency Specific System Request 100% OF THE AGENCIES HAVE RETURNED REQUESTED INFORMATION 38% OF THE AGENCIES HAVE MADE AGENCY SPECIFIC SYSTEM REQUEST 22

Agency Specific System Request 269 OK. COMM. FOR TEACHER PREP. 645 CONSERVATION COMMISSION 270 STATE ELECTION BOARD 650 DEPARTMENT OF VETERANS AFFAIRS 292 DEPT. OF ENVIRONMENTAL QUALITY 670 J. D. MCCARTY CENTER 300 STATE AUDITOR AND INSPECTOR 695 OKLAHOMA TAX COMMISSION 308 STATE BUREAU OF INVESTIGATION 800 CAREER & TECHNOLOGY EDUCATION 309 DEPT OF CIVIL EMERGENCY MANAGEMENT 805 DEPARTMENT OF REHABILITATION SERVICES 315 FIREFIGHTERS PENS. & RET. SYST. 807 HEALTH CARE AUTHORITY 340 STATE DEPARTMENT OF HEALTH 815 EMPLOYEES BENEFITS COUNCIL 343 ST. BD. OF EXAMINERS OF PERFUSIONISTS (w/450) 830 DEPARTMENT OF HUMAN SERVICES 345 DEPARTMENT OF TRANSPORTATION 835 WATER RESOURCES BOARD 385 OKLAHOMA INSURANCE DEPARTMENT 981 OKLAHOMA MUNICIPAL POWER AUTHORITY 400 OFFICE OF JUVENILE AFFAIRS 405 DEPARTMENT OF LABOR 410 COMM. OF THE LAND OFFICE 415 COUNCIL ON LAW ENFORCEMENT ED & TRNG 435 OKLAHOMA LOTTERY COMMISSION 131 DEPARTMENT OF CORRECTIONS 448 BD OF LIC ALCOHOL & DRUG COUNS (w/450) 452 MENTAL HEALTH & SUBSTANCE ABUSE SERV. 450 BD. OF MED. LICENSURE & SUPV. 980 GRAND RIVER DAM AUTH. Reported has working on, but not received 23