Business Transformation Deliverable 8 Core Applications Assessment Final

Business Transformation Deliverable 8 – Core Applications Assessment Final Draft – for discussion purposes only

Draft – for discussion purposes only Executive Summary Washington State Department of Labor & Industries 2

Draft – for discussion purposes only Executive Summary • L&I has decided to undergo a full Business Transformation in order to better support it’s mission of keeping Washington Safe and Working. What is the context? • An analysis of the entire Application Portfolio was performed to identify potential Technology opportunities. • Additional work is underway with the divisions and lines of business in order to define the Agency’s Strategy. • There are multiple areas of functional redundancy, with duplicative applications performing very similar functions. This redundancy makes it difficult for L&I to reconcile similar data across different applications, drives up support costs, and requires management of multiple processes. What are the challenges facing L&I? • Many key components of the current technology portfolio are considered to be not responsive to the changing needs of the business, constraining the business’ ability to adjust and respond to customer needs or promptly respond to changing legislative requirements. • The majority of applications are custom-built, including many which have been maintained over decades. This results in overly complex legacy coding in languages where skills are currently hard to find. • An aging workforce, including individuals with hard-to-find legacy technical skills who are nearing retirement, will make it very difficult to support the current technology environment in the future. Washington State Department of Labor & Industries 3

Draft – for discussion purposes only Executive Summary • L&I should consider consolidating redundant applications in the areas of Receivables, Payables, Licensing and Permitting into fewer enterpriseclass platforms. Some examples of the redundancies are listed here. • Current count and spend on Receivable Applications* - (7 Apps) $1. 8 M • Current count and spend on Licensing and Permitting Applications* (5 Apps) $500 K What are the preliminary opportunities? The Technology Roadmap will investigate the business case for consolidation across the various redundancies to determine cost reduction opportunities. • When possible L&I should expand the use of vendor-procured applications which leverage best-in-class business processes to support the capabilities L&I requires. • There are legacy applications which both the users and the technical teams believe function effectively. The use of these applications could be expanded to functionally redundant areas, serving a larger user base with a lower investment costs than full replacement. *Based on capability mapping and TCO calculations ; values are annual Washington State Department of Labor & Industries 4

Draft – for discussion purposes only Executive Summary • L&I is undergoing a series of Line of Business Design Labs which will both validate the functional redundancy mappings shown in this document and also identify key capabilities which will require addressing through the upcoming phases of the Business Transformation. What are the next steps? • In addition to supporting the Design Labs, the Technology Strategy work stream will continue to develop the Future State Application Blueprint which will include a listing of vendor-procured applications which have been used at other organizations to support key capabilities similar to what L&I requires. • Guidelines for deciding when to leverage vendor procured applications will be developed through the Transformation project, including descriptions of potential impacts and results of each decision. Washington State Department of Labor & Industries 5

Draft – for discussion purposes only Executive Summary: Approach This Current State Application Assessment looked at key aspects of the portfolio Total Cost of Ownership Estimate the total cost of ownership for each application which includes Software Costs, Hardware Costs and Labor Costs Application Health Assess applications by interviewing key functional and technical SME”s to determine if the Application is acceptable to these SME’s Assessment Application Architecture Map the applications to the current business capabilities they support to identify functional redundancy Infrastructure Risk Review the infrastructure supporting each application to determine if there is risk of technologies become unsupported Washington State Department of Labor & Industries 6

Draft – for discussion purposes only Total Cost of Ownership by Application Washington State Department of Labor & Industries 7

Total Cost of Ownership: Approach Draft – for discussion purposes only Data was compiled from four separate sources to develop the overall Total of Ownership IS Application Support Managers IS Intel Support Team IS Mainframe Support Team Intel Server Cost Data Mainframe Usage and Cost Data Labor Support Data IS Financial Analysis Team Software Cost Data Analysis The data analysis was then validated with key individuals in each IS group identified above to confirm if the allocations were correct. All financial totals are meant to represent an annual amount. Washington State Department of Labor & Industries 8

Draft – for discussion purposes only Total Cost of Ownership: Assumptions (1 of 3) Infrastructure Assumptions § Intel server annual costs are estimated by multiplying the November 2015 costs by 12 months § Applications residing on the same Intel server are assumed equal in consumption there by annual cost of servers are divided equality amongst mapped applications § The managed services cost of the Intel servers are divided equally amongst all applications (other than ORION and ECS) mapped to a Intel server § The monthly cost of Mainframe usage is $315, 000; usage is allocated to estimate application cost – The overall Mainframe usage percentages was calculated by splitting the monthly Mainframe MIPS into three groups: ADABAS, CICS and MQ** – Based on the percentages provided for application usage of the CICS Processing Power (e. g. 43% of CICS Processing Power in Jan ‘ 15 – LINIIS) we estimated the monthly usage of CICS and ADABAS for the LINIIS and MIPS applications – In summary the monthly cost of $315, 0001 is broken into LINIIS, MIPS, and MQ spend – Individual modules of LINIIS and MIPS applications are assumed to have equal consumption of processing power § L&I internal computer room (servers) cost of ~ $300, 0002 are distributed equally amongst Intel-based applications regardless of actual utilization due to fact the computer room is used for application development purposes, File Shares & Share. Point systems (included in computer room annual cost). These costs have been allocated across the portfolio. 1 – Provided by De France Clark 2 – Provided by John Coate ** The MQ application itself is not hosted on the mainframe, but it utilizes some of the Mainframe processing power to perform data integration activities. Washington State Department of Labor & Industries 9

Draft – for discussion purposes only Total Cost of Ownership: Assumptions (2 of 3) Additional Infrastructure Assumptions § Disaster Recovery Costs ($80, 915)1 and Print Costs ($883, 850) 1 were allocated evenly to the Mainframe Applications § Storage Costs ($4, 640, 429) 1 were divided in half, 50% of cost was allocated to Mainframe applications and the other 50% to the document management applications (i. e. ORION and IDM) – this allocation is still being validated § State Data Center Costs ($875, 192) 1 and Remaining Hardware Costs ($1, 396, 931) 1 were evenly allocated across entire application portfolio § Leased Servers Costs ($684, 345) 1 were evenly allocated to applications with Intel Servers Labor Assumptions § Full Time Equivalent Employees work ~1800 hours a year at an hourly rate of $52. 161 § Full Time Equivalent Contractors work ~1900 hours a year at an hourly rate of $145. 501 1 – Source: CTS November 2015 Billing Act and Estimate. xls Washington State Department of Labor & Industries 10

Draft – for discussion purposes only Total Cost of Ownership: Assumptions (3 of 3) Software Cost Assumptions § A listing of all software contracts is included in the appendix § When all software costs could be assigned to an individual application, they were assigned. This included the following applications – EMC Outbound e-Correspondence, SAP Business Objects (Crystal), Front Range (HEAT), Consilience, Vistar, e. Gain, and Image Source § If costs could not be assigned to an individual application, they were allocated according to the following criteria: – IBM Software – used in SOA environment, included input from Margaret Lackey and Melinda Darmody. IBM Software is about 2/3 rd of the software costs for L&I – Microfocus Silk Performer – Testing Software, allocation by Melinda Darmody – ESRI GIS – GIS Software – Allocation by Melinda Darmody – IBM File. Net – Document Workflow – Allocation by Melinda Darmody § All other software costs were allocated equally across the entire portfolio. These primarily included tools. The full listing of shared software costs can be found in the appendix. 1 – Source: CTS November 2015 Billing Act and Estimate. xls Washington State Department of Labor & Industries 11

Total Cost of Ownership: Summary Draft – for discussion purposes only Information Services spends nearly 72% of their IT budget ($48. 4 M) on application support, hardware and software. This is statistically high compared to other local and state government agencies (~52% of IT Spend**) Non Application Support Costs*** $ 13. 7 M Application Labor Cost $ 17. 7 M Application Hardware Cost $ 13. 9 M Application Software Cost $ 3. 1 M Total Application Cost vs. Non Application Cost ***Non-Application Support Costs Detail WA Tech Network $ 3, 200, 000 Project Cost $ 2, 800, 000 Help Desk Support $ 1, 500, 000 Administrative Cost $ 1, 500, 000 WA Tech Other $ 1, 400, 000 Enterprise Security $ 973, 000 Enterprise Architecture $ 951, 000 PMO $ 678, 000 Business Analyst Office $ 557, 000 Application Support Cost All financial figures are in annual costs • Additional data to be provided ** Industry IT Spend Percentage Assumption Gartner’s IT functional categories that correlate to LNI application TCO are: Data Center, Application Development, Application Support Source: IT Key Metrics Data 2016: Key Industry Measures: Government – State and Local Analysis – See source for further information Washington State Department of Labor & Industries 12

Draft – for discussion purposes only Total Cost of Ownership: Application spend by Division The divisions with the highest allocation of IT spend are the Enterprise and Insurance Services functions totaling at ~$25 M of the ~ $35 M total (73%). • The Insurance Services Division has the largest number of employees and performs the largest number of transactions within the Agency, with the majority of the spend in this Division being Mainframe applications • Enterprise includes HRCAFE and ARC • DOSH’s spend is primarily on the WIN application All financial figures are in annual costs Washington State Department of Labor & Industries 13

Draft – for discussion purposes only Total Cost of Ownership: Mainframe Cost Mainframe consists of ~52% of all the hardware cost and ~28% of all labor cost **Misc. Hardware Costs Detail State Data Center $ 875, 000 Storage (ORION, IDM) $ 2, 320, 000 Remaining HW Cost $ 1, 400, 000 Mainframe information provided by De France Clarke – based on files “Nov Servers Cost” , “MF Processing Prod. And. Non. Prod-2015” , “Master CTS Server List 5 -1” Misc. Hardware Cost information provided by Natalie Krisko – See Assumptions for additional information Washington State Department of Labor & Industries All financial figures are in annual costs 14

Draft – for discussion purposes only Total Cost of Ownership: Top Applications by Cost LINIIS costs nearly twice as much as the next application within the portfolio and within LINIIS 20% of modules costs of more than half of LINIIS’s total cost. This reveals L&I’s core investment areas within the Mainframe and Application Portfolio Application Total Cost LINIIS (All Modules)* $10, 183, 254 Employer Services $707, 287 SIEDRS $662, 737 Employer Services Intranet $589, 927 SIAPTS-Self Insurance Audit $554, 337 & Penalty Tracking System Claims Management $481, 529 Rates Actuaries $63, 636 Application MIPS (All Modules) WIN (All Modules) Integrated Document Management(IDM) Early Claim Solutions - ECS ARC EMS- Entity Management Service OHMS Claims Management OHMS STEPS- Occupational Health Services ESCH Documents Software Cost Hardwar e Cost Labor Cost $107, 750 $4, 310 $5, 873, 734 $443, 272 $445, 665 $443, 272 $421, 765 $4, 201, 770 $259, 706 $212, 762 $142, 346 $128, 262 $4, 310 $167, 819 $170, 569 S 259, 706 $306, 650 $491, 161 Total Cost Software Cost Hardwar e Cost Labor Cost $1, 585, 812 $1, 412, 565 $1, 313, 914 $38, 790 $51, 720 $113, 225 $1, 293, 524 $427, 179 $1, 200, 689 $253, 498 $933, 666 $- $1, 025, 289 $606, 782 $605, 543 $581, 723 $481, 529 $480, 080 $188, 076 $5, 102 $4, 310 $246, 546 $4, 310 $90, 303 $185, 211 $38, 352 $37, 905 $53, 513 $170, 569 $14, 225 $652, 002 $563, 328 $281, 664 $306, 650 $375, 552 $439, 953 $299, 552 $46, 513 $93, 888 The top applications account for ~55% of the entire application portfolio Mainframe cost based on assumption(see assumptions slide) that applications on the mainframe utilize different portions of the Mainframe CPU * Not all LINIIS modules are listed in this section – just the modules with the most processing power consumption Washington State Department of Labor & Industries All financial figures are in annual costs 15

Total Cost of Ownership Draft – for discussion purposes only The current spend profile shows the Top 20 applications are primarily legacy technologies which impact the majority of the Application Support budget Observations Implications • Many of the applications with the largest spend have a Mainframe component • Those with mainframe technologies are typically running on legacy code which is a hard-to-find skill • The skills to support these legacy mainframe applications is increasingly difficult to find • L&I frequently rehires and is heavily reliant on the same high-cost contractors over the course of years in order to support their applications • The vast majority of the identified spend is taking place in both the Insurance and in the Enterprise space (HR, Finance, and similar functions) primarily supporting the legacy mainframe environment and related applications • There. is opportunity to reduce operating costs in these divisions, including the modernization and/or replacement of mainframe of applications • The Mainframe contract with Wa. Tech (State’s central technology division) limits the benefit possibilities for initiatives involving application migrations off the Mainframe • L&I is one of the three largest State Agencies utilizing the mainframe, a reduction in utilization would increase the cost of remaining Mainframe applications • The migration of LINIIS onto a new windows based system may produce some benefit with both modernizing and documenting the legacy code-base, but L&I infrastructure staff Is still confirming the potential savings through mainframe modernization Washington State Department of Labor & Industries 16

Draft – for discussion purposes only Application Architecture Functional Redundancy Heat Map Washington State Department of Labor & Industries 17

Draft – for discussion purposes only Application Architecture: Functional Redundancy Insurance Services Application mapping based on data (e. g. description, business / customer area, application type) from Rochade. Mapping was reviewed and validated by Karen Peterson (2/9). Billing Account Decision 1 Making Quality & Performance Premium Reporting 3 R Case 13 Management ICD Coding Dispute Resolution Account Maintenance 2 Classification Services Project Management 1 Retrospective Rating 1 1 Credentialing & Compliance Provider Relationship 1 Mgt. Vocational Management 1 Customer Relationship Mgt. Legend: 0 Applications 7 1 Applications Internal training Education and Outreach Certification 2 Applications R 3 User Communications Unassisted 3+ Applications X Assisted Application Count 3 Legal Services Appeals 1 Settlements 1 Decision Management R Vocational Services Early Return to Work 16 Word Processing Return to Work Services Technical Services Payment Claims Support Services Imaging & Micrographics Program Development Pension Management 4 4 Medical Treatment Adjudication Coach / Mentoring Catastrophic Auditing Loss Control Auto Adjudication Claims Training 2 Medical Only Insurance Services Medical Services Claim Decision R 7 Making R Claim Maintenance Claims Intake Small & Medium Business Case Reserving R 3 VDRO Rule Making Health Services 3 Third Party Registration Claims Management 1 Claims Appeal Structured Settlements Employer Management Legislation Analysis Special Programs Large Business 1 WSAW and PWP Private Sector Voc Administration Self Insurance Region Washington State Department of Labor & Industries 18

Draft – for discussion purposes only Application Architecture: Functional Redundancy DOSH Services Application mapping based on data (e. g. description, business / customer area, application type) from Rochade. Mapping was reviewed and validated by Kelly Hillman (2/10). DOSH Services Administration 2 Federal 2 Regulatory Program Management Discrimination 1 Response OSHA Grant Management Lab Services 2 Legend: 0 Applications Application of WISHA Rules Compliance – Inspection and Consultation Legislation Analysis Technical Services Assessment of Hazard Rule Making Variance Assessment 1 / Issuance 1 Billing Certifications Licencing R 1 Audit R 11 User Communications Unassisted R Assisted 4 Abatement Report of Hazard Citation issuance 1 1 issuance Employer Risk 2 Management Appeals 1 Efficiency & Risk Management Education & Outreach 1 1 Applications 2 Applications 3+ Applications X Application Count R Region Washington State Department of Labor & Industries 19

Draft – for discussion purposes only Application Architecture: Functional Redundancy Field Services & Public Safety Boiler Electrical Elevator Factory Assembled Structure Legend: 0 Applications Field Services and Public Safety Application mapping based on data (e. g. description, business / customer area, application type) from Rochade. Mapping was reviewed and validated by Sherrie Young, Phyllis Cooper, and Todd Baker (2/10). Administration R User Registration Compliance Reporting and 1 Audit Customer Relationship Management Legislation Analysis Invoicing Rule Making Collections IT Support R Internal Safety & Health Services R 5 Licensing & Permitting Application Processing &1 Adjudication 3 Education & Outreach User Communications Unassisted 1 Applications 2 Applications Inspection 3 License Renewal 3 Permit Issuance 3 Permit Maintenance 1 Assisted 3+ Applications R X Application Count R Region Washington State Department of Labor & Industries 20

Draft – for discussion purposes only Application Architecture: Functional Redundancy Fraud Prevention & Labor Standards Legend: Compliance Employment Standards Compliance 1 Investigations R 1 1 Legislation Analysis 0 Applications Rule Making Prevailing Wage Management Wage Determination Compliance 1 Contractor Compliance 3 R Compliance Provider Fraud Apprenticeship Employer Administration Workers Comp. Fraud Prevention & Labor Standards Application mapping based on data (e. g. description, business / customer area, application type) from Rochade. Mapping was reviewed and validated by Doric Olson (1/22). User Registration Detection Training & Outreach Audit R Collections R Firm Appeals R 1 User Communications Unassisted 1 Applications 2 Applications 3+ Applications X 3 rd party payment processing Assisted Application Count R Region Washington State Department of Labor & Industries 21

Draft – for discussion purposes only Application Architecture: Functional Redundancy Agency Wide Operations Application mapping based on data (e. g. description, business / customer area, application type) from Rochade. Mapping was reviewed and validated by Angela Wharton (1/27) and Brian Criss (2/11). Enterprise Operations Agency Wide Operations Administration 1 Research & Data 11 Analytics Procurement Facilities Management Strategy and Planning Business Management Mail Services Legal (AAG) Communications Internal Audit Government Affairs & Policy Management Services Customer Relationship Management Human Resources Information Technology Human Resource Management 8 Application Lifecycle Management Labor Relations 2 Enterprise Architecture Personnel & Payroll 2 Computing Support Employee Development 1 Public Records 1 3 Project Management Recruitment Fund Management Internal Safety and Health Management Security 8 1 Financial Management 10 Financial Management 2 Collections 1 Actuarial Services Lean Transformation Risk Management & Internal Safety Data Management Business Analysis Investment Strategy Portfolio Management 3 User Communications Unassisted Legend: 0 Applications Assisted 1 Applications Portfolio Reporting 2 Applications 3+ Applications X Application Count R Region Washington State Department of Labor & Industries 22 R

Draft – for discussion purposes only Functional Heat Map Significant Functional Redundancy exists across many divisions of L&I Observations • There are multiple applications which support the Receivables and Collections processes across the various divisions within L&I. The way the core Collections application is used (ARC) varies depending upon the requirements of the division • While some effort has been made to consolidate in this space, there are multiple applications which support Permitting, Licensing, Credentialing and Inspections processes across multiple divisions within L&I. • There are multiple applications which support investigation, compliance and related auditing functions within L&I Implications • Functional redundancy makes it difficult for users to perform their job as they frequently must reference multiple systems prior to a customer interaction • It also can frustrate customers who may obtain inconsistent or incorrect results when they query data based on the source system they are accessing. • It can also make it difficult for L&I to reconcile or analyze inconsistent data from multiple source systems • Multiple redundant applications increase technical complexity and costs • There are multiple applications which support the disbursement of payments from L&I to individuals Washington State Department of Labor & Industries 23

Draft – for discussion purposes only Functional and Technical Health Assessment Washington State Department of Labor & Industries 24

Health Assessment: Approach Draft – for discussion purposes only A deep dive into how Core Applications are supporting critical business functions and the ability of the technical teams to respond to business requests Identify Core Applications • Applications requiring Tier 1 disaster recovery support were initially identified as core applications and were reviewed by key stakeholders to confirm and identify other critical applications not listed as Tier 1 for disaster recovery purposes Conduct Technical Interview with IT Managers or Support Staff • Interviewees were asked standard questions about the applications* • Core applications were assessed on a 1 to 5 scale against different technical categories including: Security, Scalability & Adaptability, Architecture & Interoperability and Strategic Direction Conduct Functional Interview with Business Owners or Stakeholders • Interviewees were asked standard questions about the applications* • Core applications were assessed on a 1 to 5 scale against the different functional categories, including: Application Functionality, Agility & Flexibility, Application Change, Application Quality. Produce Summary Assessment • Applications were plotted on a graph by scaling the technical versus functional health of each application, with Total Cost of Ownership layered on top to identify key areas of focus * Sample questions included in Appendix Washington State Department of Labor & Industries 25

Draft – for discussion purposes only Health Assessment: Technical vs. Functional Health While Field Services and DOSH have many applications which have acceptable health, Insurance Services is experiencing constraints TECHNICAL HEALTH vs. FUNCTIONAL HEALTH Short Term Inadequate Today 5, 0 Mid Term Field Services & Public Safety DOSH Services Enterprise Fraud Prevention & Labor Stds Insurance Services Long Term 192 190 FUNCTIONAL HEALTH 4, 0 58 119 211 130 129 14 185 210 68 197 114 213 3, 0 21 41 27 11 2, 0 82 212 ID Application 10 ARC 41 ECS 114 ORION 211 WIN 212 LINIIS 213 MIPS Applications with only one completed health assessment are auto aligned to either axis 10 88 62 ID numbers are fully referenced to full applications names in following pages 60 127 1, 0 v 2, 0 3, 0. Only completed functional health assessment 13 12 20 19 18 17 16 15 26 25 24 23 22 40 39 38 37 36 35 34 33 32 31 30 29 28 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 59 61 67 66 65 64 63 81 80 79 78 77 76 75 74 73 72 71 70 69 87 86 84 83 98 97 94 92 91 90 89 9 8 7 6 5 4 3 2 1 113 completed technical health assessment 112 111 110 109 108 107 105 103 101 118 117 116 123 122 120 128 184 183 182 181 180 179 178 177 176 175 174 173 172 171 170 169 164 163 162 161 160 159 158 157 156 155 154 153 152 140 139 138 137 136 135 134 132 189 188 187 186 191 196 195 194 193 209 208 207 206 205 204 203 202 201 200 199 198 Only 4, 0 5, 0 TECHNICAL HEALTH Washington State Department of Labor & Industries 26

Draft – for discussion purposes only Health Assessment: Health vs. TCO Below illustrates the health score including the TCO. An immediate observation is five fairly expensive applications have near-term inadequacies TECHNICAL HEALTH vs. FUNCTIONAL HEALTH Short Term Inadequate Today 5, 0 Mid Term Field Services & Public Safety DOSH Services Enterprise Fraud Prevention & Labor Stds Insurance Services Long Term 192 FUNCTIONAL HEALTH 4, 0 190 58 119 130 129 14 210 185 211 68 v 197 114 213 3, 0 21 41 27 11 2, 0 82 212 62 10 ARC 41 ECS 114 ORION 211 WIN 212 LINIIS 213 MIPS ID numbers are fully referenced to full applications names in following pages 60 127 1, 0 v Applications with only one completed health assessment are auto aligned to either axis 10 88 1, 0 ID 2, 0 3, 0 Only completed functional health assessment 13 12 20 19 18 17 16 15 26 25 24 23 22 40 39 38 37 36 35 34 33 32 31 30 29 28 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 59 61 67 66 65 64 63 81 80 79 78 77 76 75 74 73 72 71 70 69 87 86 84 83 98 97 94 92 91 90 89 9 8 7 6 5 4 3 2 1 113 completed technical health assessment 112 111 110 109 108 107 105 103 101 118 117 116 123 122 120 128 184 183 182 181 180 179 178 177 176 175 174 173 172 171 170 169 164 163 162 161 160 159 158 157 156 155 154 153 152 140 139 138 137 136 135 134 132 189 188 187 186 191 196 195 194 193 209 208 207 206 205 204 203 202 201 200 199 198 Only 4, 0 5, 0 The size of the bubble represents the relative cost to support the application TECHNICAL HEALTH Washington State Department of Labor & Industries 27

Draft – for discussion purposes only Health Assessment: Functional Interview Comments & Details ID ARC cannot produce a single invoice for L&I customers. It takes a high level of internal effort to reconcile bills and payments. 10 11 14 27 FACT has significant flaws due to poor development. L&I was charging customers over the legal limit for penalties due to a random number generator coded as an algorithm. The reporting functionality doesn’t produce accurate data for the auditors. Quickcards is very intuitive, takes approximately a day to learn system and changes can be turned around in 30 days. WIN has a high user acceptance score due to the addition of new technology (i. e. mobile device ready, improved UI) Has the ability to add new program / modules relatively easy. With the current efforts to become more decoupled this ability to change will become more efficient 41 58 60 62 68 82 85 88 114 119 127 129 130 185 190 197 210 211 212 213 Application Name ARC- Accounts Receivable Collection System ARTS-Apprenticeship Web Application BBIP-Basic Book Internet Project Conveyance Management System - Elevator Inspection & Tracking Early Claim Solutions - ECS EPIS - External Permit & Inspection System ESCH-Employment Standards Case Handling FACT-Fact Field Audit Computer Technology Front Counter Internet Payment Service - IPS IRL Quickcards LIMS-Laboratory Information Management System ORION- Organized Information Online PAIRS-Permit and Inspection Recording System PRRTS-Public Records Request Tracking System PWIA-Prevailing Wage I&A - Internet PWIA-Prevailing Wage I&A - Intranet BEAR IRS Verify DUE WIN (All Modules) LINIIS (All Modules) MIPS (All Modules) Washington State Department of Labor & Industries OVERALL FUNCTIONAL HEALTH SCORE $606, 782 2. 3 $137, 539 2. 3 $136, 641 4. 0 Total IT Budget $51, 217 $1, 025, 289 $143, 770 $68, 444 $136, 903 $47, 843 $230, 529 $139, 368 $112, 423 $406, 665 $145, 013 $245, 798 $42, 671 $53, 806 $39, 185 $133, 561 $52, 919 $1, 412, 565 $10, 183, 254 $1, 585, 812 2. 5 2. 6 3. 9 1. 8 3. 6 2. 9 4. 6 2. 0 3. 2 3. 9 4. 1 3. 8 4. 0 3. 2 3. 8 4. 2 2. 8 3. 2 All financial figures are in annual costs 28

Draft – for discussion purposes only Health Assessment: Technical Interview Comments & Details ID CMS lies on updated infrastructure but was developed with “hard-coded” business processes and rules (1800 stored procedures) limiting the ability to support. Very difficult to make simple changes. Quickcards is scalable but the code base and architecture is out of date. It was not designed with SOA principles so it is difficult to either find or train resources to support the application. ORION requires a high level of effort to make system enhancements. ORION has many interfaces, if the connected system or interface experiences issues or goes down ORION itself experiences poor performance. PRRTS is very reliable and responsive. Support with this application’s skill base is easily obtainable. Currently not heavily integrated but can easily handle future interoperability. 10 11 14 27 41 58 60 62 68 82 85 88 114 119 127 129 130 185 190 197 210 211 212 213 Application Name OVERALL TECHNICAL HEALTH SCORE $606, 782 3. 2 $137, 539 $136, 641 4. 0 Total IT Budget ARC- Accounts Receivable Collection System ARTS-Apprenticeship Web Application BBIP-Basic Book Internet Project Conveyance Management System - Elevator Inspection & Tracking Early Claim Solutions - ECS EPIS - External Permit & Inspection System ESCH-Employment Standards Case Handling FACT-Fact Field Audit Computer Technology Front Counter Internet Payment Service - IPS IRL Quickcards LIMS-Laboratory Information Management System ORION- Organized Information Online PAIRS-Permit and Inspection Recording System PRRTS-Public Records Request Tracking System PWIA-Prevailing Wage I&A - Internet PWIA-Prevailing Wage I&A - Intranet BEAR IRS Verify DUE WIN (All Modules) LINIIS (All Modules) MIPS (All Modules) $51, 217 $1, 025, 289 $143, 770 $68, 444 $136, 903 $47, 843 $230, 529 $139, 368 $112, 423 $406, 665 $145, 013 $245, 798 $42, 671 $53, 806 $39, 185 $133, 561 $52, 919 $1, 412, 565 $10, 183, 254 $1, 585, 812 1. 9 3. 7 3. 8 4. 1 3. 7 4. 1 2. 8 3. 8 4. 3 4. 1 4. 0 4. 2 2. 5 3. 5 All financial figures are in annual costs Washington State Department of Labor & Industries 29

Health Assessment Draft – for discussion purposes only Many of the most expensive applications are operating with functional or technical constraints Observations Implications • The divisions most heavily impacted by either functional or Technical constraints are Public Safety & Field Services, Insurance, and Enterprise • The Total Cost of Ownership analysis indicates Insurance and Enterprise require the greatest investment of resources into application support, costs which may be increased because of the constraints • The IS department is having difficulty in responding to the needs of the business and for many of the applications operating under constraints, there is a backlog of support tickets (ARC, ECS, Conveyance Management System, etc. ) • The business is regularly reprioritizing enhancement and fix requests, meaning the IS department is constantly responding to short term requests and is unable to address more strategic issues • When it came to the applications with constraints, Accenture observed frequent finger-pointing between business users and IS trying to assign blame for the current state of the application in question • The communication between IS and the business is frequently not conveyed effectively, leading to some confusion and/or tension • Expectations on how the interactions between IS and the business should take place may require a reset Washington State Department of Labor & Industries 30

Draft – for discussion purposes only Infrastructure Risk Assessment Washington State Department of Labor & Industries 31

Draft – for discussion purposes only Application Infrastructure Risk Assessment: Approach Data was collected on a variety of technical layers, where appropriate and available, risk scores were determined by the level of support supplied by the infrastructure vendor Infrastructure Layer How Infrastructure Risks are scored Hardware Make and Model Procured Software Versions Software Code Versions Operating System Versions Database Software Versions Infrastructure past standard support and on Extended support scores a moderate risk Infrastructure past Extended support has a High Risk. Shared components such as network and storage cannot easily be tied to an individual application and were not assessed. As this is an Infrastructure Risk Assessment, an assessment of other risks such as availability of skills or lack of other resources was not performed. Washington State Department of Labor & Industries 32

Draft – for discussion purposes only Application Infrastructure Risk Assessment Approach If a layer of infrastructure was past the extended support period provided by a vendor, the layer was marked as high risk. Any one infrastructure layer being marked as high risk will negatively impact entire application suite. Hardware Operating System Database Application In the example to the left, the hardware layer and the application itself are fully supported and have low risk. The Operating System has some level of risk. However, the database layer is out of vendor support. Accenture would recommend the entire application stack to be marked as high risk. Washington State Department of Labor & Industries 33

Draft – for discussion purposes only Application Infrastructure Risk Assessment What is Assessed, What is Not Assessed What is Assessed For each application • Server Hardware Make and Model • Procured Software Versions • Custom Built Code Software Versions • Operating System Versions • Database Software Versions What is not Assessed • Network Connectivity from users to applications and between applications* • Storage Devices* • Quality, traceability, developer knowledge and usability of the code • Skill levels of the support teams • Database triggers or other similar functional customizations to the various software layers * The risk Assessment is performed for each application, it is difficult to map individual applications to specific storage or network devices Washington State Department of Labor & Industries 34

Draft – for discussion purposes only Application Infrastructure Risk Assessment By Infrastructure Type -- Hardware Summary – Number of Applications by Risk Category Application Platform Layer Database Platform Layer Legend: 207 Critical Risk Medium Risk Minimal / No Risk § For hardware, L&I relies on both Mainframe and Intel servers. In the Intel space, the vast majority of L&I servers are running on virtual machines. Virtual machines are designed to be reliable and enable quick (frequently near-instantaneous) recovery in case of a hardware failure. Mainframe is also considered a highly stable and reliable, low risk environment. § Given the nature of the Mainframe and Intel environments, L&I has a relatively low risk for Hardware Infrastructure. Washington State Department of Labor & Industries 35

Draft – for discussion purposes only Application Infrastructure Risk Assessment By Infrastructure Type – Operating System Summary – Number of Applications by Risk Category 22 62 Application Platform Layer Database Platform Layer 11 Web Platform Layer 196 207 Legend: 123 Critical Risk Medium Risk Minimal / No Risk § On the operating system there is some risk as L&I continues to run older versions of the Windows Operating System. If the version of the OS was not identified, the Risk is marked as “Manageable” (in yellow above). § There are many applications which OS version is still to be identified and the risk scores above may change as a result. Washington State Department of Labor & Industries 36

Draft – for discussion purposes only Application Infrastructure Risk Assessment By Infrastructure Type – Software Summary – Number of Applications by Risk Category 6 11 Application Platform Layer 80 Database Platform Layer Web Platform Layer 201 196 121 Legend: Critical Risk Medium Risk Minimal / No Risk § Across the software stack, many applications are running on older, unsupported versions of application code such as. NET. There is a risk to using unsupported code, but L&I has a plan to upgrade this code and will be working on this upgrade throughout 2016. This makes the risk manageable. § There are 22 identified instances of Microsoft Access being used to support a business function. This is also risky and should be addressed. § The critical risks are identified with the applications which still run Assembler language, which is a very difficult skill to find Washington State Department of Labor & Industries 37

Draft – for discussion purposes only Application Infrastructure Risk Assessment The infrastructure the applications are hosted on tends to have low risk, with the exception of the software used to build many of the windows applications Observations Implications • L&I recently completed a project to migrate the majority of their Intel environment to Virtual Machines • L&I heavily relies on Mainframe Applications to support key business processes • Heavy Reliance on Mainframe and Virtual Machines results in low Hardware Risk • The hardware environment is relatively risk free • The Mainframe OS was upgraded to a recent version • Many Intel applications still do not have the precise version of Windows identified • The SQL database software is mostly migrated to SQL 2012 • There is minor risk associated with Windows installations, including some legacy Windows 2008 & 2003 instances identified • Some instances of SQL 2008 remain in production • Significant use of legacy. NET code to move, present and reformat data outside of the mainframe environment • Most versions of. NET were taken out of the support cycle in Jan 2016 • Maintaining the code to the most recent supported version is a significant effort • While there is some risk associated with running nonsupported. NET code, many organizations continue to do so • L&I should try to address this risk as time and funding permits to reduce any security implications Washington State Department of Labor & Industries 38

Draft – for discussion purposes only Appendix Washington State Department of Labor & Industries 39

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Total Cost LINIIS (All Modules) MIPS (All Modules) WIN (All Modules) Integrated Document Management(IDM) Early Claim Solutions - ECS Employer Services SIEDRS ARC- Accounts Receivable Collection System EMS- Entity Management Service Employer Services Intranet OHMS - Occupational Health Management System SIAPTS-Self Insurance Audit & Penalty Tracking System Claims Management OHMS STEPS- Occupational Health Services ESCH Documents ECORR - Electronic Correspondence Structured Settlements Rates Actuaries Third Party Crime Victims CAC-Claim and Account Center ORION- Organized Information Online DOSH-Data Exchange Claims Mail BPS-Benefit Payment System Claims Overpayment Pensions SILAS-Self Insurance Laptop Audit System Third Party RAP-Rates Adjustments Self Insurance -Claims $ $ $ $ $ $ $ $ 10, 183, 254 1, 585, 812 1, 412, 565 1, 313, 914 1, 025, 289 707, 287 662, 737 606, 782 605, 543 589, 927 581, 723 554, 337 481, 529 480, 080 439, 953 435, 701 432, 950 431, 835 411, 540 407, 892 406, 665 391, 337 387, 018 384, 891 361, 415 341, 329 337, 947 Software Cost $ $ $ $ $ $ $ $ 107, 750 38, 790 51, 720 113, 225 188, 076 4, 310 5, 102 4, 310 246, 546 4, 310 90, 303 299, 552 19, 375 300, 524 4, 310 87, 755 4, 310 4, 310 299, 552 4, 310 Hardware Cost $ $ $ $ $ $ $ $ Washington State Department of Labor & Industries 5, 873, 734 1, 293, 524 427, 179 1, 200, 689 185, 211 443, 272 445, 665 38, 352 37, 905 443, 272 53, 513 421, 765 170, 569 14, 225 46, 513 40, 774 38, 538 167, 819 194, 469 309, 694 318, 910 11, 475 288, 820 167, 819 38, 391 124, 257 167, 819 Labor Cost $ $ $ $ $ $ $ $ 4, 201, 770 253, 498 933, 666 652, 002 259, 706 212, 762 563, 328 142, 346 281, 664 128, 262 306, 650 375, 552 93, 888 259, 706 212, 762 93, 888 375, 552 93, 888 212, 762 23, 472 212, 762 165, 818 40

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Total Cost Vocational Rehabilitation Self Insurance - Employer Ask L&I Crime Victims - Claims COLA-Cost Of Living Adjustments Crossmatch SSO-Social Security Offset Self Insurance Payment Recording System Vocational Link MIPS-State Fund Claims book Of Business CAPT-Claim Appeal and Protest Tracking Employer History LINIIS-L&I Industrial Insurance System Wage Calculation Washington Administrative Code Variance MIPC-System 34 Cencred Solutions PRRTS-Public Records Request Tracking System Crime Victims - ARIS Crime Victims - MIPC HRCAFE WSAW - Stay at Work STARS-System Technical Access Request System Internet Payment Service - IPS AIMS/AFRS Interface Management System Cash. Rec Messaging Online Quarterly Reporting System WADS-Web Application Development Systems Heat Problem Tracking MIPS - Pharmacy Point Of Sale Software Cost Hardware Cost Labor Cost $ $ $ $ $ $ $ 337, 947 336, 500 324, 646 314, 994 314, 475 309, 780 300, 392 291, 313 291, 097 291, 003 291, 003 253, 982 251, 298 245, 798 239, 883 234, 965 234, 955 233, 625 230, 529 229, 742 $ $ $ $ $ $ $ 4, 310 120, 792 4, 310 4, 310 4, 310 4, 310 27, 000 19, 375 4, 310 5, 090 5, 282 4, 310 $ $ $ $ $ $ $ 167, 819 194, 539 63, 022 97, 922 167, 819 167, 819 146, 171 167, 819 167, 819 121, 410 39, 129 38, 647 97, 922 42, 099 41, 897 41, 539 38, 443 37, 656 $ $ $ $ $ $ $ 165, 818 137, 651 140, 832 212, 762 142, 346 137, 651 128, 262 140, 832 118, 967 118, 874 118, 874 128, 262 185, 169 187, 776 137, 651 187, 776 187, 776 $ $ 206, 311 186, 057 178, 647 $ $ 4, 310 31, 000 4, 310 $ $ 14, 225 146, 171 $ $ 187, 776 140, 832 28, 166 Washington State Department of Labor & Industries 41

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Total Cost MIPS Solution Outbound Correspondence Service MIPS-Data warehouse Extract MIPS-System 33 WCFI-Workers Compensation File Information EASE-Employer Accounting System Enhancements Targeting MIPS - Audit Extract MIPS - Crime Victim Audit Extract MIPS-Adds System PAIRS-Permit and Inspection Recording System Generic Document Web Service P 8 Silas Work Flow Web Service EPIS - External Permit & Inspection System SICAM - Self-Insurance Core Assignments Manager APS-Automated Purchasing Systems FIRS- Fiscal Interactive Report SPP-Spending Plan Application Change Control Calendar IRL Quickcards Referral Tracking System - RTS 2/RTS 3 Rochade Web Browser/Web. Accesss ARTS-Apprenticeship Web Application SHRL - Safety & Health Library and Resource Center FACT-Fact Field Audit Computer Technology BBIP-Basic Book Internet Project Enterprise Shared Security Administration - ESSA IMETS-Independent Medical Examination Tracking System Wisetrack AIMS/AFRS - Interface Management System Cashier Software Cost $ $ $ $ $ $ $ 176, 703 176, 330 169, 258 159, 367 156, 617 155, 175 145, 013 144, 711 143, 941 143, 770 143, 264 142, 410 139, 919 139, 787 139, 368 139, 221 138, 073 137, 539 137, 389 136, 903 136, 641 136, 528 136, 038 $ $ $ $ $ $ $ $ 135, 955 135, 854 $ $ Hardware Cost 4, 310 115, 161 4, 310 4, 310 12, 134 4, 310 11, 342 20, 347 4, 310 4, 310 4, 310 4, 310 $ $ $ $ $ $ $ 4, 310 $ Washington State Department of Labor & Industries 148, 921 14, 225 146, 171 14, 225 11, 475 146, 171 38, 991 46, 513 45, 743 38, 540 38, 418 44, 212 41, 721 41, 589 41, 170 41, 023 39, 875 39, 341 39, 191 38, 705 38, 443 38, 330 37, 840 Labor Cost $ $ $ $ $ $ $ 23, 472 46, 944 18, 778 140, 832 4, 694 93, 888 84, 499 93, 888 93, 888 93, 888 93, 888 37, 757 $ 37, 656 $ 93, 888 42

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Total Cost AIMS/AFRS - Interface Management System Vendor pay AIMS/AFRS Interface Management System CRV AIMS/AFRS Interface Management System Lockbox AIMS/AFRS-Interface Management System Accounting Verify Medical Examiners Handbook Test Crystal Enterprise BPERS-Budget Projection Entry and Reporting System Hyperion Server Application LIMS-Laboratory Information Management System Out Of State Database TRACC ZENWORKS WIN-Activity Reporting WIN-Appeals WIN-Consultation WIN-Data Exchange WIN-Enforcement WIN-File Tracking WIN-Laboratory WIN-Quality Assurance Administration WIN-Risk Management WIN-Subscriber WIN-Training WIN-Views ECKO-Enhanced Collections & Key Accounts Right To Know Risk Management Retrospective Rating SCSD - Interactive Voice Response CRPSI-Contract Release Premium Status Information Software Cost $ 135, 854 $ $ $ $ $ $ $ $ 135, 854 133, 561 133, 288 126, 787 112, 423 112, 423 109, 798 109, 798 109, 798 109, 673 103, 512 $ $ $ $ $ $ $ $ Hardware Cost 4, 310 $ 4, 310 4, 310 65, 618 4, 310 4, 310 4, 310 4, 310 4, 310 4, 310 $ $ $ $ $ $ $ $ Washington State Department of Labor & Industries Labor Cost 37, 656 $ 93, 888 37, 656 35, 363 35, 090 14, 225 14, 225 35, 598 35, 598 35, 598 11, 475 52, 258 93, 888 93, 888 46, 944 93, 888 93, 888 69, 889 69, 889 69, 889 93, 888 46, 944 $ $ $ $ $ $ $ $ 43

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application SAM $ EBPS - Electronic Benefit Payments System $ EBPS - Enterprise Payment Delivery System $ EBPS - External web interface $ Electrical Mobile Inspections $ Find A Doctor $ ESCH-Employment Standards Case Handling $ Provider Express Billing $ Find a Doctor - MPN $ Settlement Documents $ ICD Mapping Process (IMP) $ MIDAS $ Occupational Nurse Consultant Claim Log $ Office of Financial Management Agency Financial $ Reporting System Data Feed Provider Database $ Provider Fraud Referral Tracking Database $ PSRS-Vocational Provider Audit System $ RDS-Worklog $ Software Asset Management $ SSS -Shared Security Service $ Vocational Provider Application Tracking Systems $ PSRS Vocational Referral Application $ SAP/Business Objects BI Platform $ Endeavor $ LNIEMP $ ((Blank)) $ Mobile Inspections $ Online Reference System $ BEAR $ Washington$ DUE Total Cost State Software Cost Hardware Cost Labor Cost 92, 758 81, 440 80, 594 76, 563 68, 444 67, 207 66, 436 65, 888 65, 479 $ $ $ $ 32, 435 4, 310 11, 342 33, 215 4, 310 19, 375 4, 310 $ $ $ $ 60, 323 14, 225 45, 780 38, 654 40, 662 39, 425 38, 654 46, 513 14, 225 $ $ $ $ 62, 905 23, 472 4, 694 23, 472 46, 944 65, 479 65, 479 $ $ $ $ 4, 310 4, 310 $ $ $ $ 14, 225 14, 225 $ $ $ $ 46, 944 46, 944 14, 225 11, 475 34, 875 48, 704 48, 609 $ $ $ $ $ 46, 944 46, 944 44 - 65, 479 $ 62, 729 $ 62, 660 $ 55, 875 $ 53, 806 $ Department 52, 919 $ of Labor & 4, 310 $ 4, 310 $ 51, 185 $ 21, 000 $ 5, 102 $ Industries 4, 310 $

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Interpreter Lookup Service $ Conveyance Management System - Elevator $ Inspection & Tracking P 8 Silas Content Engine Web Service $ Front Counter $ ASC-Fee Schedule Update $ DME-Durable Medical Equipment Fee Schedule $ Update Application Prosthetics and Orthotics Fee Schedule Update $ Independent Medical Exam Scheduling System $ Significant Employer Case - SEC $ HRTS -- Human Resources Tracking System $ ICW - Infraction Citations Writer $ PWIA-Prevailing Wage I&A - Internet $ PWIA-Prevailing Wage I&A - Intranet $ Explosive $ LMS $ External Agency Interfaces $ Interactive Voice Response AVAYA $ Master Business Application $ IRS $ My LNI - SEAP $ Enterprise Referral Tracking System(ERTS) $ SHIRTS $ IT Middleware Services $ EOS-Enterprise Output Solution $ Office Of Information & Assistance Referral System $ Vocational Disputes Resolutions $ JARS- Job Archive Retrieval System $ Data Warehouse - CV $ Reforestation $ Washington$ Appeal Action Tracking System Total Cost State Software Cost 51, 355 51, 217 $ $ 50, 085 47, 843 47, 366 $ $ 47, 366 $ 46, 660 $ 44, 990 $ 43, 149 $ 42, 730 $ 42, 671 $ 40, 610 $ 39, 695 $ 39, 257 $ 39, 185 $ 29, 320 $ 27, 924 $ 27, 805 $ 27, 710 $ 25, 174 $ 23, 230 $ 20, 480 $ Department 18, 535 $ Hardware Cost 32, 435 $ 11, 342 $ 4, 310 of Labor & $ $ 4, 310 $ 32, 435 $ 4, 310 $ 4, 310 $ 4, 310 $ 5, 102 $ 4, 310 $ 4, 310 $ 4, 310 $ Industries 4, 310 $ Labor Cost 14, 225 $ 39, 875 $ 4, 694 - 45, 775 43, 533 38, 361 $ $ 4, 694 38, 361 14, 225 35, 986 38, 839 38, 420 38, 361 36, 300 35, 385 11, 475 34, 875 24, 218 14, 225 23, 495 23, 400 11, 475 14, 225 11, 475 14, 225 $ $ $ $ $ $ 4, 694 23, 472 9, 389 4, 694 45 -

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application Total Cost Cluster Identification Application Data Warehouse - ARC Data Warehouse - Crime Victims Data Warehouse - Fiscal Data Warehouse - Industrial Insurance Employee Grievance Tracking FALLS-Identification Application Governor's Industrial Safety & Health IID-Tracking System IPROVIDERS - Providers Information Minor Injury Report Quarterly Reporting FILEFAST IMIS-Integrated Management Information System LDS- Loss Development Study Data Pesticides Prevailing Wage Intent and Affadavit - PWIA Work Assignments Contractor Xmatch EBIBS FRAUD Invoice Pay Quick. Cards TERRS - Training and Education Reporting CAS Cost Allocation Survey Manager/Contact Position Control AFRS DL to DW Indirect Model Upload HR DL to HEAT/STARS/LINIIS HRDD -- Human Resources Data Dashboard $ $ $ $ $ $ $ $ 18, 535 18, 535 18, 535 15, 785 15, 785 15, 785 4, 310 4, 310 Software Cost $ $ $ $ $ $ $ $ Hardware Cost 4, 310 4, 310 4, 310 4, 310 4, 310 4, 310 4, 310 4, 310 $ $ $ $ $ $ $ $ Washington State Department of Labor & Industries 14, 225 14, 225 14, 225 11, 475 11, 475 11, 475 - Labor Cost $ $ $ $ $ $ $ $ 46

Draft – for discussion purposes only Total Cost of Ownership: Application Portfolio Application OHR IDM CAATS Total Cost $ $ 4, 310 Software Cost $ $ Hardware Cost 4, 310 $ Washington State Department of Labor & Industries Labor Cost - $ $ - 47

Draft – for discussion purposes only Software Contracts Washington State Department of Labor & Industries 48

Draft – for discussion purposes only Software Contracts Washington State Department of Labor & Industries 49

Draft – for discussion purposes only Software Contracts Washington State Department of Labor & Industries 50

Draft – for discussion purposes only Health Assessment: Core Application Results ID Application Name 10 11 14 16 18 21 23 24 26 ARC- Accounts Receivable Collection System ARTS-Apprenticeship Web Application BBIP-Basic Book Internet Project BPS-Benefit Payment System CAPT-Claim Appeal and Protest Tracking Claims book Of Business Claims Management Claims Overpayment COLA-Cost Of Living Adjustments Conveyance Management System - Elevator Inspection & Tracking Crossmatch Early Claim Solutions - ECS Employer History Employer Services Intranet EPIS - External Permit & Inspection System ESCH-Employment Standards Case Handling FACT-Fact Field Audit Computer Technology Front Counter Internet Payment Service - IPS IRL Quickcards LIMS-Laboratory Information Management System 27 31 41 50 51 52 58 60 62 68 82 85 88 OVERALL FUNCTIONAL HEALTH SCORE OVERALL STRATEGIC FIT SCORE 2. 3 4. 0 2. 8 2. 3 1. 2 3. 9 1. 9 2. 5 2. 8 2. 6 2. 8 3. 9 1. 8 3. 6 2. 9 4. 6 2. 0 1. 7 1. 9 2. 4 1. 9 3. 9 2. 0 0. 9 3. 3 4. 2 1. 0 ID 89 114 119 120 127 129 130 132 133 141 142 143 146 148 153 158 161 164 166 167 185 190 192 197 210 211 212 213 Application Name LINIIS-L&I Industrial Insurance System ORION- Organized Information Online PAIRS-Permit and Inspection Recording System Pensions PRRTS-Public Records Request Tracking System PWIA-Prevailing Wage I&A - Internet PWIA-Prevailing Wage I&A - Intranet RAP-Rates Adjustments Rates Actuaries Self Insurance - Employer Self Insurance -Claims Self Insurance Payment Recording System SIAPTS-Self Insurance Audit & Penalty Tracking System SIEDRS SSO-Social Security Offset Third Party Crime Victims Vocational Link Vocational Rehabilitation Wage Calculation Washington Administrative Code Variance BEAR IRS Quick. Cards Verify DUE WIN (All Modules) LINIIS (All Modules) MIPS (All Modules) Washington State Department of Labor & Industries OVERALL FUNCTIONAL STRATEGIC FIT HEALTH SCORE 2. 8 3. 2 3. 9 2. 8 4. 1 2. 8 2. 8 1. 9 3. 0 3. 9 1. 9 2. 2 4. 3 1. 9 1. 9 2. 8 2. 8 3. 8 4. 0 4. 6 3. 2 3. 8 4. 2 2. 8 3. 2 1. 9 1. 9 3. 8 2. 5 2. 9 2. 2 3. 8 3. 9 3. 1 51

Draft – for discussion purposes only Application Infrastructure Risk Assessment The portfolio includes many large applications which are heavily modularized to support specific capabilities § 207 Applications are identified in the Rochade Portfolio Tool § The 207 applications do include multiple individual instances of key applications. Some examples are listed in the table below Key Application Name Rows in the Rochade Portfolio Tool Examples WIN 12 WIN-Appeals, WIN-Enforcement & WINRisk Management MIPS 9 MIPS-State Fund, MIPS-Audit Extract and MIPS-System 33 30 Benefits Payments System, Claims Management, and various Self. Insurance modules LINIIS Washington State Department of Labor & Industries 52

Draft – for discussion purposes only Health Assessment: Interview List Interviewees Assessment Type Application(s) Tracy Johnston Technical LINIIS (All Modules) Karen Peterson Functional LINIIS (All Modules) ORION and ECS Margaret Larkey, Ken Lial Technical ORION and ECS Albert Newman Technical WIN and PRRTS Matthew Carrithers Technical ARC Doric Olson Functional FACT, ARC, Bear/DUE, IRS, ARTS Tom Eden , Kelly Hillman Functional LIMS Nora Sackett , Kelly Hillman Functional WIN Sean Anderson Functional PWIA Sherrie Young, Phyllis Cooper Functional BBIP, CMS, Electronic Mobile Inspections, EPIS, Front Counter, IPS, PAIRS, Quick. Cards, Verify Jacqueline Arlow Technical MIPS Penny Jenson Technical BBIP, CMS, Electronic Mobile Inspections, EPIS, Front Counter, IPS, PAIRS, Quick. Cards, PWIA Washington State Department of Labor & Industries 53

Draft – for discussion purposes only Health Assessment: Survey Categories There are the categories the interviewees were asked about during the Health Assessment Survey sessions Functional Health Assessment Categories • • • Application Functionality Product Innovation & Growth Agility & Flexibility Speed to Market Application Quality Performance & Usage Supportability & Usability Business Risks Strategic Direction Technical Health Assessment Categories • • Operability & Supportability Performance & Reliability Scalability & Adaptability Ease of Application Change Architecture & Interoperability Security Application Design Strategic Direction Washington State Department of Labor & Industries 54

Draft – for discussion purposes only Reference IT Data File Description Object Application Data from Rochade Mainframe CPU Extract Research Source Gartner - IT Key Metrics Data 2016: Key Industry Measure: Government – State and Local Analysis: Multiyear Link: http: //www. gartner. com/document/3175319/meter/charge Washington State Department of Labor & Industries 55

Draft – for discussion purposes only Application Architecture: Functional Redundancy DRAFT Lines of Business Operating Model Applications mapping based on capability definitions from LOB Design Labs. Redundant capabilities indicate the same amount of applications. Recovery Prevention 1 Fraud Detection Reporting 1 Translation 2 Permitting 3 Business Analysis Certification Lab Services Licensing Inspection 2 4 User Relationship 14 Management Account Decision 3 Making Variance Issuance 1 Employer Risk Management Employer Classification 1 Communication Channel Management 3 3 Compliance Adjudication 4 Education & Outreach 3 Investigations Abatement / Compliance Monitoring Appeals 2 Archiving Claims Intake 2 Case Reserving Certifications 7 Fraud Detection 1 Billing 1 Collections 3 ICD Coding 1 Inspection 4 Investigation 1 Reporting 3 Translation Archiving Communications 2 Mail Services Admin Services 6 Facilities Procurement Billing Data Security Legal Services 5 1 Public Records 1 Collections Legend: 7 0 Applications Internal Audit 3 7 Actuarial Services 1 Labor Relations 2 1 Applications 4 Negotiation Facilitation Education & Outreach 3 User Relationship 14 Management Case Decision Making 6 Vocational Management 4 Medical Treatment Adjudication 4 Case Maintenance Case Management 11 Support 1 Change Management Government Affairs & Policy Recruitment & Hiring Project Management Legislative Analysis Training / Skills 1 Development Rule Making Data Management Research & Data 11 Analytics Grant Management Performance Management Strategy & Planning Business Management Financial Management 2 Applications Compliance Adjudication 3+ Applications 8 11 Enterprise Architecture Lean Transformation Services Contract & Purchase Management Computing / Technology Support 1 Application Lifecycle Management 9 Compensation & 2 Benefits Management NOTE: The capabilities of the new LOB's are still being mapped and defined. The updated version of this heat map representing the distribution of the capabilities across the new LOBs will be included in Deliverable 9. Washington State Department of Labor & Industries 56