project proposal vccs ais final

8/7/2019 Project Proposal VCCS AIS FINAL

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Project Proposal

A. General InformationProvide basic information about the project including: Project Title The proper name used to identify this project;

Project Working Title - The working name or acronym that will be used for the project; Proponent Secretariat - The

Secretariat to whom the proponent agency is assigned or the Secretariat that is sponsoring an enterprise project;

Proponent Agency The agency that will be responsible for the management of the project; Prepared by The

person(s) preparing this document; Date Prepared - The date this document is initially prepared.

Project Title: Administration InformationSystem

Project WorkingTitle:

AIS

ProponentSecretariat:

Education ProponentAgency:

VirginiaCommunityCollege System

Prepared by: Jo Jo Martin, Director ProjectManagement and AdministrativeServices, ITS

Date Prepared: May, 2006

Answer the following questions by marking Yes or No and provide a brief response as appropriate. Yes No

Is this an updated Project Proposal Document? If yes, what is the reason for this update?

X

Is this a follow-on to a previous project? If yes, what is the project name and date of completion?

Name of previous project: Date completed:

X

Will the project deliverable(s) replace a current asset or group of assets? If yes, what is being

replaced? FRS

X

Is the Project Initiation Phase effort funded? If yes, what is the amount of funding? $199,050 X

Is the Project Planning Phase effort funded? If yes, what is the amount of funding? $8,912,835 X

Points of ContactList the principal individuals who may be contacted for information regarding the project.

Position Title/Name/Organization Phone E-mail

Project Sponsor Karen Petersen,Administrative Service,

Executive Vice Chancellor

(804) 819-4910 [email protected]

ProgramManager

Jo Jo Martin, Director ofProject ManagementServicesVCCS Systems Office


Project Manager Bob Swab, Project ManagerBearingPoint


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ProponentCabinetSecretariat

Dietra Trent,Deputy Secretary ofEducation, Virginia (804) 786-1151

[email protected]

ProponentAgency Head

Glenn Dubois, ChancellorVirginia Community College

System


Customer (User)Representative(s)

Dave Mair, Fiscal ServicesController


Other Neil Matkin, Vice Chancellorof Information TechnologyServices


B. Project PurposeExplain the business reason(s) for doing this project. If the Project Analysis Worksheet was completed, the Project

Purpose (Section B) from the worksheet provides information to support completion of this section.

1. Business ProblemThe Business Problem is a question, issue, or situation, pertaining to the business, which needs to be answered or

resolved. State in specific terms the problem or issue this project will resolve. Often, the Business Problem is

reflected as a critical business issue or initiative in the Agencys Strategic Plan or IT Strategic Plan.

The current financial management system utilized by the Virginia Community College System(VCCS) employs obsolete technology which limits the expansion of functionality necessary toremain competitive in the higher education market and to meet VCCS educational and publicservice missions. VCCS uses a fixed asset inventory system which is not integrated with thefinancial management system. The fixed asset system requires extensive manual processing,

reconciliation activities, and additional reporting. To address these problems, VCCS plans toimplement commercial software for financial management. The proposed system will provideself-service access and business process support to students, faculty, and staff and improveworkflow for major financial functions performed throughout the VCCS colleges and CentralOffice. Enhanced interoperability with other VCCS internal and external application systems willprovide additional benefits from information sharing, elimination of redundant data entry, andbusiness process improvement.

The capabilities of the PeopleSoft financial module will support reengineering efforts andbusiness process improvements. The reduction in manual reconciliations and processing willresult in a significant cost savings for the 23 colleges represented in this project.

2. Project Business ObjectivesDefine the specific Business Objectives of the project that correlate to the strategic initiatives or issues identified inthe Commonwealth or Agency Strategic Plan. Every Business Objective must relate to at least one strategic initiative

or issue and every initiative or issue cited must relate to at least one Project Business Objective.

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The following list represents the teams goals and objectives in implementing PeopleSoft FinanceModule at VCCS:

Facilitate communication Establish and improve analytics Increase the efficiency of business operations

Promote data-driven decision-making Targeted automation/integration Improve Change Management capabilities of the organization Facilitate access to business data and reporting Enhance access to the business systems

3. Core Business Activity ImpactedCore Business Activities are agency defined cross-functional processes that produce the agency's primary products

and services, or support the production of the products or services. List the Core Business Activities impacted by the

project and identify the impact.

Agency Core Business Activity Impact on Core Business Activity

Core BusinessActivity Title

Core BusinessActivity Sub-Function Title

Higher Education High EducationAcademic Support

Foster and facilitate improvedcommunication, information gathering,decision making and routine businessprocesses by leveraging moderntechnology.

Higher Education Higher EducationStudent Services

Foster and facilitate improvedcommunication, information gathering,

decision making and routine businessprocesses by leveraging moderntechnology.

Higher Education Higher EducationInstitutional Support


Higher Education Higher EducationStudent FinancialAssistance


Higher Education Operation andMaintenanceAssistance


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4. ConstraintsConstraints are items that by their nature restrict choice. Identify Constraints that will influence the selection of a solution to

resolve the Business Problem. Constraints can include but are not limited to: time, funding, personnel, facilities, and managementlimitations.

TimeThe optimal time to implement a new financial system is tied to the VCCS fiscal year,but is also impacted by the colleges academic calendar. Therefore, carefulconsideration of scope by phase is crucial to the success of the project.

FundingThe funding required for the AIS project represents a large investment in technologywhich will require a significant funding commitment from the Commonwealth and/orthe VCCS. In anticipation of the need to replace FRS, the VCCS has committedfunding for the project and on-going maintenance. Any changes or modificationsoutside the scope will be constrained by available funds.

PersonnelThe internal staff available for substantial project time commitment is limited. Thisproject will require a substantial commitment of staff time in both functional andtechnical areas; the VCCS decision to rely on vendor developed and supportedadministrative systems and implementation services is intended to minimize the staffrequired for implementation and operation.

InterfacesThe Administrative Information System will interface to five other automated systems.The internal interface between the Student System and AIS will have a major impact

on ability of the VCCS to improve services to students. External interfaces must bedeveloped to legacy state systems requiring specific data formatting and codingconfigurations.

C. Project DescriptionDescribe the project approach,the specific solution, customer(s) served, and expected benefits. The approach is the

overall strategy for solving the Business Problem. The solution should identify in specific terms how the project is

accomplished and include information about the general timing and cost of major procurements or purchases. If the

Project Analysis Worksheet was completed, the Preliminary Project Description (Section C) and the Recommendation

(Section G) on the worksheet provide information to support development of the Project Description.

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The VCCS strategy is to replace mainframe-based financial, asset management andlimited procurement functionality with PeopleSoft Financials (Version 8.9). In additionto the replacement of legacy software, the implementation of an AdministrativeInformation System (AIS) for finance will include re-engineering of business processes

(both automated and manual) and development and implementation of interfaces toVCCS and Commonwealth of Virginia systems with the objective of improving servicedelivery to customersthe VCCS students, faculty and staff.

Detailed scope by module and functionality is included in AIS Project Charter.

D. Strategic Justification

Identify how the project is consistent with the Commonwealth and Agency Strategic or IT Strategic Plan. If the

project is not consistent, explain why the project is being proposed.

Answer the following questions in the space provided. Attach detailed explanations and analysis as appendices.

1. Briefly, describe how this project supports or is consistent with the Commonwealth of Virginia Strategic Plan forTechnology. If it does not support the Commonwealth of Virginia Strategic Plan for Technology, explain why this

project proposal is being submitted.

Commonwealth Goal Applicable Objectives Project Objective

Goal #2Facilitate IT collaborationand partnerships

Objective 2.1Share data easily acrossboundaries of government

Objective 2.2Create a knowledge

sharing culture

Objective 2.3Promote IT solutions thatsupport common businessprocesses

Enhanced interoperability with otherVCCS internal and externalapplication systems will provideadditional benefits from informationsharing, elimination of redundantdata entry, and business process

improvement.

Goal #3Ensure a trusted andreliable technicalenvironment

Objective 3.1Ensure consistent, anytime,anywhere service levels

Objective 3.2Protect the assets,

credentials and privacy ofCommonwealth of Virginiasystems and their users

Improve budgeting, executivedecision making, and reportingcapabilities of the VCCS throughenhanced access and analysis offinancial information.

Goal #4Create a reputation ofperformance fortechnology

Objective 4.1Provide technology in anaccountable, responsive,open and results orientedmannerObjective 4.2

Implement system solution that willutilize commercially availableenterprise resource planning (ERP)software and allow for full integrationof all administrative and studentfunctions within the VCCS and with

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Ensure continuousimprovement for technologyObjective 4.3Facilitate consistent capitalfunding for technology

external Commonwealth systems(e.g., eVA, CARS, CIPPS, PMIS,BES, etc.).

Goal #5Increase workforceproductivity through theuse of technology

Objective 5.3Increase workforceknowledge and skills in theuse of technology

Implement software to effectivelyprocess mission critical administrativefunctions within the VCCS SystemOffice and the 23 colleges of theVCCS

3. Explain where and how this project is identified in the Agency IT Strategic Plan most recently approved by the Chief InformationOfficer. If it is not identified in the plan, explain why this project proposal is being submitted.

The proposed system is identified in the VCCS IT Strategic Plan as the AdministrativeInformation System and was Recommended for Funding of the Detailed Business Case in theITIB Recommended Technology investment Projects (RTIP) 2005 Report Survey Results.

4. Briefly, describe how the planned solution complies with Commonwealth Enterprise Architecture Standards. If it does not complywith the Commonwealth Enterprise Architecture Standards, explain why this Project Proposal Document is being submitted, and identify

which Commonwealth Enterprise Architecture Standard(s) are not being met.

Requirements for the AIS system have been approved by the VITA Enterprise Architecture(EA) staff as complaint with the Commonwealth EA standards. The EA staff will continue tomonitor compliance of the system to Commonwealth EA standards.

E. Estimated Project Development Schedule (Major Milestones)Identify major Project Milestones for planning, execution, and closeout.

No. Phase / Activity Date

Phase I General Ledger, Accounts Payable

1 Plan & Design 5/1/2006 - 9/29/2006

2Build & Unit Test 10/2/2006 3/30/2007

3System & Integration Test 4/2/2007 5/11/2007

4User Acceptance Testing & Training 5/14/2007 6/15/2007

5 Post Implementation Support7/2/2007 8/31/2007

6 Close Project Phase 9/3/2007

Phase II Asset Management / Time and Expense

1 Plan & Design 8/1/2007 - 9/14/2007

2Build & Unit Test 9/17/2007 10/26/2007

3System & Integration Test 10/29/2007 11/16/2007

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4User Acceptance Testing & Training 11/19/2007 12/1/2007

5 Post Implementation Support 12/3/2007 2/1/2008

6 Close Project Phase 2/4/2008

F. Financial EstimateProvide an economic justification for the project based upon the Cost Benefit Analysis and the expected return oninvestment. Identify the estimated funding resources required to complete the project and then identify the funding

requirements to operate or maintain the product(s) or service(s) developed from the project.

1. Cost Benefit Analysis SummaryAnswer the following questions in the space provided. Attach detailed explanations and analysis as appendices.

a. Summarize the results of the Cost Benefit Analysis. Explain why the expected monetary and non-monetary benefits validate theexpenditure of resources for this project. Attach the Cost Benefit Analysis as Appendix A. Describe saving achieved and separate

savings from cost avoidance.

The VCCS currently employs the SCT Banner product FRS for financial management and theOracle/PeopleSoft Student Administration system for student administration management. Thereis no enterprise solution implemented across the VCCS and colleges for human resourcemanagement. However, the VCCS owns licenses to the Oracle/PeopleSoft financials and humanresource management modules. A goal of the VCCS is to attain seamless integration ofadministrative management information and will ultimately implement integrated solutions for alladministrative functions. Therefore for the purpose of product selection, the VCCS evaluated thecost and benefits of implementing comparable suites of the Oracle/PeopleSoft and SCT Bannerproducts. This comparison is reflected in the Solutions #1 and #2 presented in the detailed CostBenefit Analysis.

For the purpose of determining a project return on investment after selection of theOracle/PeopleSoft suite of products, the scope of the project was limited to an implementation ofselected Oracle/PeopleSoft financials modules. This evaluation is presented in Solution #4, andreflects the cost and benefits which will be transferred to the project proposal.

The Web services and electronic workflow capabilities of Oracle PeopleSoft will support re-engineering efforts and business process improvements. The reduction in paperwork andmanual processing will result in cost savings for back office functions (fewer staff needed tosupport operations). Improvements are expected in a number of key business functions.

Tangible Benefits

Five critical business processes* were researched and benchmarked during the requirementsdefinition and are listed below.

Finance, Accounts Payable, Online Query/Reporting1. Weekly manually keying data into Excel Spreadsheets from the FRS systemGeneral Ledger Interface2. Daily transferring the data from the ATV report (SIS to accounting system)3. Daily reconciling the ATV transactions from the SIS/FRS GL interface

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Asset Management4. Account payable to fixed asset coordinationTravel and Expenses5. Completing, copying and getting signatures on your travel and expense vouchers

In addition to these, 28 other business processes will be re-engineered to improve administrative

efficiency and effectiveness.

Summarize the results of the Return on Investment Analysis. Provide ROI for 5 years and 10 years. If the project does not have apositive expected return on investment, explain why this project proposal should be approved. Attach the detailed Return on

Investment Analysis as Appendix B

Calculations derived using VITA on-line CBA tool.

Project Cost = $8,912,835 NPV = $7,818,699

Benefits/Cost Avoidance = $9,906,950 NPV = $8,885,522

(Annual discount rate of 4% assumed)

Return on Investment = 13.6%

Pay Back period = Greater than 4 years

Product Selection Process supporting the economic feasibility analysis.

For product selection, the AIS Steering Committee (Agency Internal Oversight Committee)developed an evaluation framework to guide their recommendation to ACOP and the Chancellor.

There are eight areas included in the evaluation framework.

1) Fit/Gap The College used DecisionDirector to gather requirements from the Collegesand System Office. The two potential vendors were given access to the requirements andprovided information about whether their products meet the requirement and how.

2) Demonstrations The software vendors were provided business process scripts andasked to demonstrate how their product performed the processes outlined in the script.College and System Office participants who attended the demonstrations were then askedto return to DecisionDirector to evaluate each vendors performance against the script.

3) Vendor Risk Assessment Based on information provided by the vendor, vendorreferences and published sources, information was gathered about the vendor, their

product strategy and support model, and availability and quality of upgrade andimplementation consulting support. As well, references were contacted to describe theirexperience with each of the products.

4) Technical Assessment The vendors were sent a list of questions addressing thetechnology and infrastructure implications for each vendors product. These questionsaddressed the development toolset, use of third party vendor products, platformcompatibility, scalability and security Vendors provided written responses that wereanalyzed by the College IT staff.

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5) Cost Analysis Information on costs to own, implement and operate the products wasprovided by the vendors. These costs were evaluated over a five-year period and used toprepare a comparative Total Cost of Ownership Analysis (TCO). Vendors were comparedagainst each other rather than a budget or other independent value.

6) Supporting Technologies and Tools Add-on technology features and functions,

including reporting capabilities, portal technologies and integration tools were analyzedbased on responses to requirements, demonstrations and technical questions.

7) Implications for SIS The College has recently implemented the PeopleSoft studentadministration system. This analysis evaluated the impacts of the vendor products on thestudent system and integration with the AIS.

8) Technical Staffing and Skills Analysis The College technical staff is currentlyproficient in certain technologies. This evaluation was designed to determine the impacton technical staffing levels and skill sets with respect to each vendors product.

Demonstration Process

College obtained sample scripts

AIS Project Team developed scripts for demonstrations

Scripts and demonstration agenda provided to vendors late December 2005

Reviewed script points and agenda with each vendor in early January 2005

Questions during demonstrations (vendors had choice to answer during demo orfollow up in writing)

Oracle completed all questions during demonstrations

SunGard completed all HR/Payroll questions and provided written responses tosome finance questions

Demonstration participants provided evaluations using DecisionDirector

* Evaluation Packages with complete details available on request.

2. Estimate of Execution Expenditures and FundingProvide an Estimate of the Expenditures and Funding required for execution and close out of the project.

Estimated Expenditures ($000)

FY 2006 FY 2007 FY 2008 FY 2009 Total Comments

Internal Staff

Labor 38,509 407,003 191,965 637,477Internal Staff

(New Hire) 527,850 307,913 835,763

Services 152,429 3,765,365 2,135,176 6,052,971

Software Tools 75,000 75,000

Hardware 250,000 250,000 250,000 750,000

Oracle Services 18,000 25,000 20,000 63,000

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Travel and Misc. 5,000 10,000 8,000 23,000

Software

Maintenance

(Portal) 16,500 9,625 26,125

Software

Maintenance 156,000 91,000 247,000

Training

Cost included inServices

PM Support &

IV&V 18,000 117,000 67,500 202,500

Contingency

(Risk)

$730,337 has beenincluded inConsultingServices andOracle Servicesfor contingencybased on identifiedrisks.

Total 556,938 5,274,719 3,081,179 8,912,835

This estimate is accurate to: 50% [ ] 60% [ ] 70% [ ] 80% [ ] 90% [ X ]

Explanation:

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Anticipated (proposed) Funding Source ($000)

FY 2006 FY 2007 FY 2008 FY 2009 Total Comments

General Fund556,938 5,274,719 3,081,179

Non-GeneralFund

Federal

Other

Total556,938 5,274,719 3,081,179 8,912,835

This estimate is accurate to: 50% [ ] 60% [ ] 70% [ ] 80% [ ] 90% [ X ]

Explanation:

3. Estimate of Operations Expenditures and FundingProvide an Estimate of the Expenditures and Funding for Operations and Maintenance of the asset(s) delivered uponproject completion.

Estimated Expenditures ($000)

FY 200_ FY 2008 FY 2009 FY 2010 Total Comments

Internal Staff Labor 169,950 339,900 339,900 849,750

Software Maintenance

(New Product) 6,875 16,500 16,500 39,875

SoftwareMaintenance(Existing

Product) 54,984 131,963 131,963 318,910

Materials andSupplies

Facilities

Telecommunications

Training

Contingency (Risk)

Total231,809 488,363 488.363 1,208,535

This estimate is accurate to: 50% [ ] 60% [ ] 70% [ ] 80% [ ] 90% [ x ]

Explanation:

Anticipated (proposed) Funding Source ($000)

FY 200_ FY 2008 FY 2009 FY 2010 Total Comments

General Fund231,809 488,363 488,363 1,208,535

Non-General Fund

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Federal

Other

Total231,809 488,363 488,363 1,208,535

This estimate is accurate to: 50% [ ] 60% [ ] 70% [ ] 80% [ ] 90% [ x ]

Explanation:

G. Project RiskAfter completing a Preliminary Risk Analysis Worksheet for this project, determine the level of risk for the project andthe risk score. On the chart below, circle the resulting risk level and record the risk score for each risk item. Attach

the Preliminary Risk Analysis Worksheet as Appendix C.

Risk Item Risk Level Risk Score

Budget Risk

What level of risk does the proposed budgetrepresent to the project?

High (1825)

Medium (9-17)

Low (1-8)

None (0)

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External Dependencies Risk

How dependent is the project on other

projects or work efforts?

High (1115)

Medium (6-10)

Low (1-5)

None (0)

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Management Risk

What level of risk does the organizationsproject management capability represent?

High (1115)

Medium (6-10)

Low (1-5)

None (0)

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Mission Critical Risk

How critical is the project success to the

success of the organization?

High (1115)

Medium (6-10)

Low (1-5)

None (0)

2

Failure Risk

What is the risk of failure?

High (1115)

Medium (6-10)

Low (1-5)

None (0)

5

Complexity Risk High (1115) 5

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How complex is project? Medium (6-10)

Low (1-5)

None (0)

Preliminary Risk Assessment

What is the overall risk of the project?

High (73100)

Medium (36-72)

Low (1-35)

None (0)

Total Risk Score:37

H. Approvals

Obtain the Project Sponsors and Agency Heads signatures indicating approval to submit this Project Proposal for

investment consideration. If the Agency Heads signature is the only signature provided, the Agency Head is assumed

to also be the Project Sponsor.

Position/Title Signature DateProject Sponsor

Agency Head

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