Selecting a Core System - AASCIF
Transcript of Selecting a Core System - AASCIF
Selecting a Core System
• CompSource Project
• Approach & Considerations
• Request for Proposal
• Selection Process
• Implementation
Compsource Project
• Implemented July 1986
• Policy + Claims + Billing
• Developed in-house
• Mainframe CICS Cobol DL/I
• 3270 terminal interface
WORCS
CompSource Project
• Design predates email & web
• Database constraints
• Aging infrastructure
• Minimal image/workflow interface
• Difficult to modernize
System Limitations
CompSource Project
• Implemented in Claims 1993
• Expanded to Policy 2002
• AS/400
• Unusual customization
• Software support end of life
Imaging System
CompSource Project
• Current commercial applications
• Enhanced functionality
• Streamline business processes
• Graphic user interface
• Expand web services
Goals
CompSource Project
• Relational database
• Reporting - data warehousing – BI
• Simplify data exchanges
• Updated infrastructure
• Modern language framework
Goals
CompSource Project
• Policy, Claims and Billing
• Document Management / Imaging
• Document generation
• Reporting software
• Data warehousing - BI
System Replacement - Scope
Approach
Exec Steering Committee
• President/CEO, CFO, CIO/VP IT, VP Business Operations, VP Claims, VP Admin Services, Counsel, Controller, Internal Audit
• Actively engaged in all major areas of the project – scope, selection, contracting, team staffing, change process
• Meets regularly with internal and external project managers for status review and issue resolution
Approach
• Representatives from principal departments • Key personnel with extensive business and
operations knowledge • Product owners with authority to make
decisions • Participate in RFP creation, vendor demos and
scoring
Project Team
Approach
Oversee the selection and implementation of the workers’ compensation insurance processing system • Industry expertise to facilitate the
selection process
• Technical expertise to manage implementations with multiple vendors and systems
Consulting Services
RFP
• Instructions to Vendors
• About CompSource Oklahoma
• Submission Requirements
• System Requirements
• Additional Contract Terms
Request for Proposal
RFP
• Vendor Information Form
• Cost of Proposed Solution
• Appendix (requirements detail, NDA,
etc. )
• Reports, forms and data transfer
master lists
Request for Proposal
RFP
• Client Mgmt
• Underwriting
• Agency
• Billing
• Claims
Functional Requirements
• Accounting
• Reinsurance
• IT
• Reporting
• Risk Prevention
RFP
• 2400+ requirements
• Tremendous effort by the business areas
• Important not only for product comparison but also development and implementation.
Requirements Document
RFP
• Vendor questions and clarifications – amendments distributed to vendors
• Proposals submitted
• Phase 1 - Review proposals for compliance, completeness. Select finalists
• Phase 2 – product demonstrations from finalists
Initial Steps
Demo
• Two or three day on-site engagement for vendor to demonstrate system design, functionality, integration and answer any questions.
• One or more series of finalist demos.
Process
Demo Date: Time: 8:00 am to 5:00pm CST 8:00 – 8:15 Executive Summary 8:15 – 8:30 Management Reporting / Business Intelligence for Policy Administration
•Management Reporting •Dashboards/Charts
8:30 – 9:00 Technology Overview •Architecture •Administration and Configuration •Security •Hosting •Support •Help Screens
9:00 – 10:00 Agency/Insured Self-Service Portal •Agency Inquiry •Agency Application Processing & Quoting •Additional Agency Portal Features (i.e. Issuance of COI) •Insured Online Payments •Insured Payroll Reporting •Insured Application Processing & Quoting
Demo
• Consistent demo scripting and presentation is important
• Broad participant representation across organization functional areas
• Vendor walk-through of business areas prior to formal demo.
• Beneficial not only for specific applications functionality, but look, feel and general ease of use.
Process
Demo
• Illustrate gaps between requirements and proposed system functionality
• Which functions are out of the box?
• Which ones must be customized? Is the customizing minor or major?
• How is custom code managed? Unique version of base code?
Process
Demo
• Vendor business focus and philosophy • Get to know principals, implementation and
support team
• Outline product support structure
• Upgrade release and patch schedules
• Review system architecture
Process
Demo
• High level overview during general demo sessions
• Specific infrastructure and data conversion discussions held separately with IT staff.
• This included limited demos of data extraction, mapping and integration.
Technical Review
Selection
• Assemble questions and concerns best addressed by references
• Send list to participants well before the call
• Generous, honest participation from references
References
Selection CompSource Oklahoma Vendor System Selection
Reference Check Questions
Vendor: Client: Location:
1. Please explain what services the vendor provided and the dates that they provided the
services.
2. Do you have an overall favorable impression of the vendor? Explain.
3. Did the vendor do a proper job of explaining the scope and breadth of the system implementation?
4. Did the vendor do most of the work on-site or in their offices?
5. Did you or the vendor appoint an overall project manager? Was the project manager a
vendor resource or a third party resource?
6. Did the project manager maintain a project schedule?
7. Did the vendor provide you with written deliverables for the requirements, the detailed design, the test plan, etc?
Selection Document
Document Management System Reference Evaluation Form
Vendor: Client:
Location:
1. What business system do you use that integrates with the document management software?
__________________________________________________________________________
2. How would you rate vendor’s delivery of your requirements including design, test plan, etc?
Excellent ____ Good _____ Average _____ Below Average _____ Pts. ____
3. How well did the vendor meet the milestones for the project?
Excellent _____ Good ______ Average _____ Below Average ______ Pts. ____
4. How would you rate the training provided by the vendor?
Excellent _____ Good _____ Average ______ Below Average _____ Pts. ____
5. How would you rate the implementation of the software?
Excellent _____ Good ______ Average ______ Below Average _____ Pts. ____ 6. Did the vendor adequately explain the scope and breadth of the system implementation?
Excellent ______ Good ______ Average _____ Below Average _____ Pts. ____
Selection
• Scope of services, dates and project length • Vendor work performed on-site or off-site? • Project management - vendor, customer, third
party? • Defined deliverables, design, test plan • Extent of application modifications • Implementation - new & renewal, big bang? • Data conversion
Reference Questions
Selection
• Milestones met? If not, which ones? • Product stability during user testing • Configuration process standardized? • How was training performed? Successful? • User documentation – improvements? • Support agreements and experience
Reference Questions
Selection
• Opportunity to see application in production environment.
• End user experience and perspectives
• Different business processes in use? • Meet implementation & management team
Reference Site Visits
Scoring
• System Functionality
• Technical Approach
• Vendor stability
Scoring Criteria
• Vendor experience
• Implementation plan
• System costs
Scoring
• Initial license fees & software costs
• Hardware cost estimate
• Required third party applications
• Implementation/integration services
System Cost Detail
Scoring
• Source code modification
• Total up front cost to implement
• 7 yr average annual license & maint fees
• Total 7 year cost of ownership
• Custom support rates
System Cost Detail
Selection
• Post demo solution definition and pricing adjustments
• Project team scoring • Results sent to Steering Committee
Final Steps
Selection
• Each finalist proposal demonstrated positive, unique features.
• Prioritize features for best benefit to the organization
Scoring
• Vendor approach to customization vs. configuration
• Presentation vs. features of the application
• Mature, yet innovative products
Consider
Selection
• Demo time is limited – design your process for efficiency of demonstration
• Look down the road. The path of least resistance may not take your company where it wants to be five years from now
Consider
Selection
• Each selection step is individually important
• Blending all steps will provide a detailed comparison of the systems, history and direction of the vendor companies, and the ability to compare them with the strategic goals of your organization.
Bring it all together
Implementation
• Incorporate requirements into specific project deliverables
• Independent audit review of implementation • Associate payment milestones with
demonstrated functionality • Reserve final amount payable following
successful go-live
Implementation
• Consider modifying business processes to match out of the box system functionality instead of customization.
• Establish visibility into process so that you have reliable information on completion rates and resource allocation.
• Emphasize core function delivery and defer some bells and whistles until staff has some experience with the new system.
Implementation
• Preplan your contract template and have a draft ready so you’re ready to finalize the contract once a vendor selection is made
• Entice vendor come to your terms using your contract template as a starting place for the negotiation process rather than their template
• Ensure all the agreed-to items are in writing
Contacts
Steve Dyer CompSource Oklahoma [email protected] 405-962-3939 Steve Flowers State Accident Fund [email protected] 803-896-5848