david b. andrews, senior executive, accenture local

Copyright © 2006 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Dave AndrewsMay 14, 2008

Implementing ERPs at a DOT

2Copyright © 2008 Accenture All Rights Reserved.

Goal of Session

• To provide a definition of an ERP• To create awareness of the unique challenges for a DOT to implement ERP packages

• To discuss the pros and cons of different implementation approaches in relation to a statewide ERP implementation

• To discuss what other DOTs are doing• To create awareness of the DOT Community of Practice


DOT Community of Practice

• Quarterly Conference Calls to discuss specific topics on implementing ERPs at a DOT

• Sharing of implementation stories• Sharing of modifications• Community of Practice website hosted by FHWA• http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home

http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home


What is an ERP?

• ERP = Enterprise Resource Planning• Functionality typically includes:

– Financials and Procurement– Human Resources and Payroll

• Primary software vendors are SAP, Oracle/PeopleSoft, and CGI/AMS

• Typically implemented as statewide projects; sometimes implemented at DOTs


History of DOT Systems

• Legacy DOT systems– Many legacy systems custom built in the 1970’s– Satisfy the specific business needs of a DOT– Typically weak in reporting

• ERP systems– In 1990’s, ERPs did not have functionality to

meet the specific needs of a DOT• States implemented new ERPs and DOT interfaced

– Now, functionality exists to satisfy DOT needs• ERPs beginning to be implemented at DOTs


ERP Functionality

Payroll

InventoryHuman Resources

Fixed AssetsTime Entry

Fleet ManagementBilling

Federal BillingAccounts Receivable

Project SchedulingFederal AgreementsAccounts Payable

Maintenance ManagementProject CostingPurchasing (Contracts)

Construction ManagementProject PlanningGeneral Ledger

DOT-specific functionality that could NOT be satisfied

by an ERP

DOT-specific functionality that could be satisfied by

an ERP

Administrative functionality satisfied by

an ERP


DOT Financial Process

KS ERP 329

Budget Establishment

and Monitoring

Budget Establishment

and Monitoring

Construction Contract Payment

Construction Contract Payment

Vouchers Payments

Vouchers Payments

Vouchers PR/PO

PaymentPayment

Item Receipts

Item Receipts

Item Reorder

PR/PO

Trans-actions

Adjust-ments

Allocated Charges

Request for Reimburse-

ments

Reimburse-ment

PaymentExternal Parties

Project Cost Allocation

Project Cost Allocation

Third Party Billing

Third Party Billing

GL Accounting

GL Accounting

Budget Limits

Actuals

PurchasingPurchasing

Revenue Receipts

Third Party Receipts

Third Party Receipts

Usage ChargesUsage Charges Labor Distribution

Equipment Usage

Equipment Usage

Inventory Usage

Inventory Usage

Time and Cost

Collection

Time and Cost

Collection

Project AccountingProject Accounting


DOTs Unique Needs

• Project management – Need to estimate and capture costs by project

• Project attribute data - Need to capture a number of data elements that are not standard in an ERP

• STIP and Capital Program - Need to produce the STIP and Capital Program


DOTs Unique Needs

• Federal appropriations - Need to manage balances of federal appropriations

• One federal agreement funded by multiple federal appropriations - Need ability to prioritize usage of federal appropriations

• Splitting of transactions - Need to split transactions for multi-funded projects

• Federal bill - Need to electronically interface federal bill to FHWA


DOTs Unique Needs

• Number of users – System used for not only financial purposes, but also for project management purposes

• Volume of transactions – Split-funded transactions create a large volume of transactions

• Amount of history – Project data needs to be kept from inception to closure


Traditional Implementation Approach

DOT Systems

Statewide Systems


ERP Implementation Approaches

• All out: Keep all DOT legacy systems and interface to new statewide ERP system

• All in: Convert all DOT legacy systems to new statewide ERP system

• Half in/half out: Convert only DOT administrative systems to new statewide ERP system; keep DOT legacy project management and billing systems

• Own ERP: Implement a new DOT-only ERP system


Implementation Approaches

DOT Systems

Statewide ERP System

All-out

DOT Systems


All-in

Project Systems


Half-in/Half-out

New DOT ERP System


Own ERPAdmin

Systems


All-out

Payroll









by an ERP


an ERP


an ERP


All-out

Payroll









by an ERP


an ERP


an ERP

DOT keeps legacy systems

Little change to

business

processes

No new systems

Eventually, the legislature will

likely force DOT to

move to th

e

statewide system


All-in

Payroll









by an ERP


an ERP


an ERP


All-in

Payroll









by an ERP


an ERP


an ERP

State funds new system

Replaces legacy systems

Big change for a DOT

Lose control to

statewide

processes, procedures, and

policies


Half-in/Half-out

Payroll









by an ERP


an ERP


an ERP


Half-in/Half-out

Payroll









by an ERP


an ERP


an ERP

DOT moves some systems to

statewide ERP

DOT keeps legacy DOT-specific

systems

Reconciliatio

n of data between

the two systems is diffi

cult and

cumbersome


Own ERP

Payroll









by an ERP


an ERP


an ERP


Own ERP

Payroll









by an ERP


an ERP


an ERP

DOT controls development o

f

new system to match business

processes

Expensive

Need to justify

own ERP


Recommendation

All-in


How to succeed

All-in• Be an active participant throughout the entire project – your voice needs to be heard

• Have top-level support on the steering committee – ditto

• Take advantage of the ERP functionality – it is better than what it used to be

• Train your IT staff to support your needs after go-live – your needs require more support than others


The challenges you will face

All-in• Adaptation to standard statewide COA – it is likely different and more high level than what you have today

• Inability to make desired DOT-specific modifications – there will be a few modifications that you will need

• Loss of control of reporting needs – learn to develop your own reports

• Loss of control over processing schedule – be ready to justify your needs


What DOTs are doing

All-inRecently converted to a new ERP and went all-inRecently implemented a new ERPPA

Own ERPRecently implemented their own DOT ERP systemCurrently planning for a new ERPNC

Recently implemented their own DOT ERP system

Currently have own ERP; upgrading to new own ERP

Currently half-in/half-out, but moving towards all-in

Planning to go all-in with new state ERP system

Currently all-out and interfaces to the state ERP

Currently all-out and interfaces to the state ERP

Plans to go all-in with new state ERP system

Recently converted to new state ERP; moving to own ERP

Just converted to new state ERP and went all-in

Currently all-in with state ERP

Planning to go all-in with new state ERP system

Recently converted to a new state ERP and went all-in

Currently planning to implement own DOT ERP system

Currently developing own custom system and plan to interface to state system

DOT

Own ERP

Own ERP

All-in

All-in

All-out

All-out

All-in

Own ERP

All-in

All-in

All-in

All-in

Own ERP

Own new system

Approach

Currently planning for a new ERPAL

Currently implementing a new ERPTN

Currently planning for a new ERPCA

No plans for a new ERPWY

Currently planning for a new ERPVA

Implemented a new ERP 5 years agoVT

Implemented a new ERP 5 years agoOK

Recently implemented a new ERPOH

Currently planning for a new ERPNY

Recently implemented a new ERPNM

Recently implemented a new ERPIN

Implemented a new ERP 8 years agoGA

Currently implementing a new ERPDE

Recently implemented a new ERPCT

StateState


DOT Community of Practice

• Quarterly Conference Calls to discuss specific topics on implementing ERPs at a DOT

• Sharing of implementation stories• Sharing of modifications• Community of Practice website hosted by FHWA• http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home

• [email protected]

http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home

mailto:[email protected]

david b. andrews, senior executive, accenture local

Documents

new dot

dot legacy systems

new statewide erp systemall

erp systemcopyright

erp packagesto

dot interfacednow

dot needserps

statewide erp implementationto