CSMFO Annual Conference –Soarin’ over California Finance...

CSMFO 2012 Conference“How to Select a New Financial System”

3/4/2012

NexLevel Information Technology, Inc.www.nexlevelit.comMarch 2, 2012 1

CSMFO 2012 Annual Conference – Soarin’ over California Finance

How to Select a New How to Select a New Financial SystemFinancial SystemFinancial SystemFinancial System

2012 CSMFO Conference2012 CSMFO ConferenceAnaheim, CaliforniaAnaheim, California

Listen. Plan. Deliver.www.nexlevelit.com

Listen. Plan. Deliver.Listen. Plan. Deliver.

Friday, March 2, 2012Friday, March 2, 201210 :00 AM 10 :00 AM –– 11:15 AM11:15 AM


Agenda

Acronyms DefinedAcronyms Defined

Why is the procurement of a new system difficult?

Introduction of checklist handoutProcurement Framework

Key Takeaways


Lessons Learned – City of Dublin


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Acronyms Defined

Enterprise Resource Planning (ERP) System

Integrated pre‐defined application that facilitates flow of information to multiple financial and operational functions

Common user look and feel across all modules

Commercial‐off‐the‐shelf (COTS) Solution

Commercially developed software solution



Considering an ERP?



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Why is the procurement of an ERP difficult?

Top “3” ReasonsTop 3 ReasonsProject Scope

Conversion, Integration and Interfaces Requirements

Solution Alternatives



Project Scope…

Financial Modules General Ledger

ERP

Financial

Payroll

HRLicensing /Permitting

Other

General Ledger Accounts Payable Accounts Receivable Cash Receipts Fixed Assets Purchasing Inventory Budgeting Project Accounting


Utility Billing

Asset Mngmnt/ Work Orders

Project Accounting Grant Accounting Contract Management Financial Reporting Treasury/Banking

Management


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Project Scope…

Payroll / HR Payroll Processing

ERP

Financial

Payroll

HRLicensing / Permitting

Other

Payroll Processing Benefit Administration Timekeeping Training/Certification Position Control Applicant Tracking

Utility Billing

Asset Management


Utility Billing

Asset Mngmnt / Work Orders

Asset Management

Licensing/Permitting

Other Fleet/Fuel Management Self‐service modules


Conversion, Integration and InterfacesBusiness Application Integrations P itti B i Li Utiliti Cl /F ilit Permitting, Business License, Utilities, Class/Facility reservation, cashier, etc.

Enterprise Technology Integrations Document Management, Geographic Information System, Intranet, Internet, etc.

External Entity Interfaces


External Entity InterfacesBanking ‐ online bank reconciliation, CalPERS, Treasury management, tax agencies, bill print/mail, remittance processing, online systems, etc.

Conversion


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Solution Alternatives



Be forewarned…..


It takes 1,000’s of small decisions to make the one “big” decision


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Handout – “Checklist”



Procurement Framework

Project Initiation and Planning

Evaluation and Selection

RFP Development

Needs Assessment


Implementation

Negotiation and Contract Execution


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Key Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Develop a project charter – authorizing documentSet, communicate, and manage expectations

Formalize a project planDocument project risks – be realistic

Carefully consider resource availability assumptions


y y p

Begin change management

“If you don’t have time to do it right the first time, how do you have time to do it again”


Needs Assessment

Key Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Get staff involved

You need their expertise, it promotes buy‐in, and prepares staff for long‐term support requirements

Focus on “high priority” and “unique” processes

Clearly define integration and interface requirements


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Revisit project charter scope – is it still accurate?


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RFP Development

Key Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Ensure accurate and complete documentation

Create awareness in the vendor community

Develop evaluation criteria

Recognize the RFP provides the foundation for the final agreements


final agreements

“Efficiency is doing things right; effectiveness is doing the right things.” – Peter Drucker


Evaluation and SelectionImplementationNegotiation

Evaluation and SelectionRFP DevelopmentNeeds Assessment

Planning

RFP Released

Proposal Submission

Evaluation of Proposals

Short‐listed Vendor(s) Announced

Short‐listed Vendor Demos

Finalist Vendor Identified

Finalist Proof‐of‐

Capabilities

Contract Negotiation and Award



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Key Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Validate company stability and commitment to market

Execute Proof‐of‐Capabilities (POC) w/ agency scripts and data

Carefully consider total cost to own (TCO)

Complete vendor reference checks


Complete vendor reference checks

Conduct on‐site visit to current client

Re‐visit Project Charter and Risks

“Perfect is the enemy of good”


Negotiation

Key Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Be prepared for multiple agreements

Clearly define “acceptance” criteria per phase

Insist on “holdback” based on acceptance

Incorporate by reference prior work


“Follow effective action with quiet reflection. From the quiet reflection will come even more effective action” – Peter Drucker


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Transition Activities

Implementation

Negotiation


RFP Development

Needs Assessment


Implementation

Formalize transition from vendor “sales team” to “implementation team” – and ensure ongoing access to reconcile issues

Re‐evaluate risks, budget, resources, schedule – start implementation with accurate project management


implementation with accurate project management plan

“You got to be careful if you don't know where you're going, because you might not get there.” ‐ Yogi Berra, baseball catcher (1925‐present)


Key Takeaway #1



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Key Takeaway #2



Key Takeaway #3



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Questions



CONTACT INFORMATION

NEXLEVEL INFORMATION TECHNOLOGY, INC.6829 FAIR OAKS BLVD. SUITE 100

CARMICHAEL, CA 95608916‐692‐2000, EXT. 201WWW.NEXLEVELIT.COM


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Contact – Terry Hackelman, Managing Principal

[email protected]

CSMFO Annual Conference –Soarin’ over California Finance...

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