SOUTH CAROLINA ENTERPRISE INFORMATION SYSTEM SCEIS Statewide Oversight

SOUTH CAROLINA ENTERPRISE INFORMATION SYSTEM (SCEIS) Statewide Oversight Committee Interested Users Subcommittee July 10, 2002

State of South Carolina Enterprise Information System Agenda w. Introduction w. SCEIS Statewide Initiatives w. Project Background and Status w. Business w. Review Case Study Details DMH Statewide Implementation Issues w. Interested Users Subcommittee Organization Page 1

State of South Carolina Enterprise Information System Goals of Presentation 1. Discuss the State’s strategic direction concerning this project 2. Provide an overview of the project and contract 3. Review the SCDMH Pilot Project Status 4. Review the goals, purpose and content of the SCEIS Business Case Study 5. Establish & Define – Users Group Subcommittee Page 2

State of South Carolina Enterprise Information System Strategic Direction of the State for the SCEIS Project Key Initiatives: 1. Comptroller General (CG) has endorsed the SCDMH Project and views it as an opportunity to move toward a “Statewide Enterprise Solution” 2. Letters from General Lander to agency directors: w September 2001 creating Statewide Oversight Committee w April 2002 Asking for Business Case Study participation Page 3

State of South Carolina Enterprise Information System Strategic Direction of the State for the SCEIS Project Key Initiatives: w. CG and CIO are actively participating in the SCDMH Project and will sign/approve all SOWs for State agency projects initiated under this contract w. With support from the CIO, the Statewide Oversight Committee and KPMG Consulting are embarking on a comprehensive “Business Case Study” for the SCEIS w. Establish the SCEIS User Group Subcommittee Page 4

State of South Carolina Enterprise Information System Statewide Oversight Committee - Leadership Comptroller General Budget & Control Board Pat O’Cain Steve Osborne Vic Traywick Chuck Fallaw David Seigler Department of Revenue Donald Thomas John Taylor State Treasurer Mental Health Paul Jarvis John Bourne State Auditor Danny Edens Rich Gilbert DHEC Wayne Sams Tommy Watson Page 5

State of South Carolina Enterprise Information System Strategic Partnerships w. CG w. CIO - Functional Decisions and Perspective - Technical Infrastructure and Perspective w. SCDMH - Agency Perspective and Realization Page 6

State of South Carolina Enterprise Information System Business Case Study- A Blueprint for the Future With support from the CIO, the Statewide Oversight Committee and KPMG Consulting are embarking on a comprehensive “Business Case Study” for the SCEIS. Business Issues to Address: w Where are we now? w Where do we go from here and how do we get there? w Support Structure w w Statewide? w Agency Level? Funding & Return on Investment w Implementation? w On going Support? Page 7

State of South Carolina Enterprise Information System Business Case Study Timeline w Project Kickoff Meeting held on June 20, 2002 w Final Report/Presentation to the State - November 15, 2002 w State Project Team: Chuck Fallaw, Pat O’Cain, Dell Kinlaw and Barbara Fletcher w KPMG Consulting Project Team: Tim Perkins, Bryan Groden, Richard Fox and Joe Gubbins Page 8

State of South Carolina Enterprise Information System SCEIS Users Group - Momentum Through Involvement 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. State Budget and Control Board Opportunity School South Carolina School for the Deaf and Blind Department of Transportation Department of Health & Environmental Control Department of Mental Health Department of Corrections State Auditor’s Office (Representing BARS Agencies) State Library (Representing BARS Agencies) Department of Corrections Department of Revenue Labor, Licensing and Regulation Department of Disabilities and Special Needs Parks, Recreation and Tourism Department of Vocational Rehabilitation Department of Probation, Parole and Pardon Department of Commerce Housing Authority Page 9

State of South Carolina Enterprise Information System Purpose and Reason for this Subcommittee Communication, Communication u. Keep interested agencies informed u. Gather u. Solicit input from a cross section agencies help solve implementation issues input concerning your agency needs and requirements Page 10

State of South Carolina Enterprise Information System Chuck Fallaw – Project Management Office, Division State CIO Page 11

State of South Carolina Enterprise Information System Goals of this Portion of the Presentation w. Briefly review of the State’s efforts to establish a contract for an agency level financial management system w. Briefly describe what is available (i. e. , modules, consulting services, imaging, etc. ) on this contract w. Briefly describe pricing structures for the various software/services available on this contract w. Provide a brief status of the SCDMH Project - the State’s Pilot Project Page 12

State of South Carolina Enterprise Information System What is an ERP? w. ERP = Enterprise Resource Planning w. ERP Systems automate all tasks involved in performing a business process (i. e. , procurement) w. An ERP attempts to integrate the needs of all departments as it relates to a business process across the enterprise Page 13

State of South Carolina Enterprise Information System ERP vs. Financial Management System • ERP system includes much more than financial information - all of which is fully integrated - for example: • Human Resources/Payroll • Materials Management/Procurement • Grants, Projects and ability to capture costs for specific activities • Gartner Group estimates that up to 40% of the business processes within an agency can be automated through the use of an ERP • Gartner Group research also indicates that the implementation of an ERP system can result in operating efficiencies and rapid ROI: - Increased productivity (enter data once) - Reduced cycle times (many transactions are automated) - Customer service improvements (immediate access to data) - Lower costs (less paper, postage, storage, etc. ) Page 14

State of South Carolina Enterprise Information System Procurement Process w. Issued RFQ in April 2000 · Received 10 responses · Selected 7 vendors to receive RFP w. Issued RFP in September 2000 · Received 4 responses · Identified 3 Finalists · 5 -Day Demos w/360 Scripted Items w. Award issued July 2001 Page 15

State of South Carolina Enterprise Information System Business Processes Included in the State’s RFP for ERP System General Ledger Inventory Projects and Grants HR/Payroll Receivables and Payables Fixed Assets Activity Based Costing Budgeting Procurement Page 16

State of South Carolina Enterprise Information System Additional Requirements Included in the State’s RFP Ad Hoc Reporting Tools Implementation and Consulting Services Fully Integrated Imaging System Work Flow Management Page 17

State of South Carolina Enterprise Information System Consulting Services/Integrator KPMG Consulting (Prime Contractor) ERP Software SAP Document Management Software Team IA Page 18

State of South Carolina Enterprise Information System Type of Contract • Multi-agency term contract (not “mandatory” state term contract) • State agencies and institutions can “opt-in” to purchase off this contract - Approved Statement of work - Must assign a qualified Project Manager to project • Contract is for software and services only (does not include any equipment) • Can implement imaging first if agree to implement SAP within 24 months • Can be used by the CG as the statewide system, at it discretion Page 19

State of South Carolina Enterprise Information System South Carolina Department of Mental Health w. Fixed w. All Price Implementation (Four Phases) Core Modules (Except Payroll) w. Imaging (Central and Remote Offices) w. Replace Eleven (11) Existing Legacy Systems w. Interface with internal and CG Systems w. No Customization to SAP Software Page 20

State of South Carolina Enterprise Information System Status of SCDMH Pilot Project w. Project Preparation - Completed November 2001 w. Business Blueprint - Completed March 2002 w. Realization/Configuration - To be Completed July 2002 w. Final Preparation/Testing/Training - To be Completed October 30, 2002 w. Go Live and Support - November 1, 2002 thru January 31, 2003 CURRENTLY ON BUDGET & ON SCHEDULE!!! Page 21

State of South Carolina Enterprise Information System Pricing/Cost to Implement SAP w. SAP Software (R/3) at 300 Seat Discount Level - One Time Cost of $1, 125 per Professional Seat - 17% Annual Maintenance Cost w. Cost to Implement Phase 1 of SCDMH (which includes interfaces to central state systems, common training materials, etc. ) $4. 2 Million w. Cost to Implement SAP Statewide - Arkansas $30 Million w. Tremendous savings thru structured implementation approach to be identified in the Business Case Study Page 22

State of South Carolina Enterprise Information System Tim Perkins – Managing Director KPMG Consulting Inc. Page 23