ERP Solution – October 17,2017

Current Situation• HR/Payroll and Financial Systems

at technical end of life▫ Systems written in COBOL▫ Systems use IDMS (non-relational

or network-based DBMS)• Decreasing ability to obtain

resources with required skills• Institutional knowledge decreasing

based on retirements, turnover, and anticipated retirements

• Increasing business risk to agency ▫ Ability to bill Federal Highway

Administration (FHWA) for reimbursement on construction projects

▫ Processing payroll and employee expense reimbursements

▫ Paying construction contractors

2

ERP• Enterprise resource

planning (ERP) is a software solution that provides for integrated management of human capital and financial management systems• Real-time • On-demand • Cloud based• Integrated applications• Continuously updated• Business Analytics - store,

manage, and interpret data

3

Benefits of an ERP Solution• Reduction in operating costs

▫ Aberdeen Group notes this would range from a 7% reduction on the low-end to a 22% reduction for well-managed organizations

• Reduction in administrative costs ▫ Aberdeen Group notes this would

range from a 4% reduction on the low-end to a 20% reduction for well-managed organizations

• Streamlining and re-engineering of business processes based on best practices and to leverage capabilities of new ERP system

• Real-time access to information for management decision making

• Opportunity to re-direct IT staff and other resources in the agency who were supporting the in-house financial and administrative system to address other high priority Iowa DOT management system’s needs

4

Benefits of an ERP Solution• Opportunity to sunset the

mainframe and reduce operation costs

• Opportunity to embrace post-modern ERP solution

• Opportunity to utilize a cloud-based Software as a Service (SaaS) solution▫ Post-modern ERP provides

continuous product updates• Enhanced mobile capabilities

for employees ▫ Employee Self-Service on

convenient device▫ Time Entry on convenient

device▫ Supervisor approvals on

convenient device 24x7

5

PHASE I• Human Capital Management

• Human Resource Admin• Time and Attendance• Payroll & Employee Expense• Training Administration• eLearning Integration

PHASE II• General Accounting

• General Ledger• Fixed Assets

• Billing• Accounts Receivable• Federal Billing• Other Third Party Billing

• Project Management• Project Accounting• Grant Accounting• Basic Project Management• Integration to future Project

Management System• Integration to Future Grants

Management System• Procure to Pay

• Accounts Payable• Purchasing• Inventory integration with

AssetWorksFUTURE• Planning and Forecasting

• Budget Development• Revenue Forecasting• Cash Forecasting

ERPHuman Capital

Management

General Accounting

Billing Project Management

Procure to Pay

Planning and Forecasting

6

Interfaces – Current Legacy Systems

Interfaces – Pre-ERP Project

Interfaces – Post-ERP Project

ERP Implementation Timeline

10

ID Task Name Start Finish Duration2017

Q2 Q3 Q4Q4 Q2Q4Q3 Q1

3

4

7

129d6/29/20181/2/2018System Configuration, Development and Testing

45d8/31/20187/2/2018System Test

43d1/2/201911/5/2018HR Payroll Deployment

2019

6

5 19d9/28/20189/4/2018Integration Test

24d11/1/201810/1/2018User Acceptance Test

15 20d3/29/20193/4/2019Finance and Procurement Deployment

17 45d8/30/20197/1/2019 Support through First-Year Close

8 42d3/1/20191/3/2019HR Payroll Stablization

11 130d9/28/20184/2/2018System Configuration, Development and Testing

16 44d5/31/20194/2/2019Finance and Procurement Stablization

1 348d3/1/201911/1/2017Phase 1 Implementation (HCM/Payroll)

9 369d5/31/20191/2/2018Phase 2 Implementation (Financials and Procure to Pay)

13

12 43d11/28/201810/1/2018System Test

35d1/18/201912/3/2018Integration Test

14 30d3/1/20191/21/2019User Acceptance Test including FHWA Certification

2018

Q1 Q3

2 43d12/29/201711/1/2017Planning and Design

10 64d3/30/20181/2/2018Planning and Design