DRAFT - Denver Web viewIn March 2012, The City & County of Denver (CCD) initiated a Strategic Resource Alignment (SRA) project for its Technology Services (TS) Department

Technology Services2012 Strategic Resource Alignment Project

October 31, 2012

Executive SummaryIn March 2012, The City & County of Denver (CCD) initiated a Strategic Resource Alignment (SRA) project for its Technology Services (TS) Department. The project determined options for sizing and structuring the department to meet desired service levels at sustainable funding levels.

Of the twelve service areas, Emergency Services Technology Support is performing at the targeted service level, but can benefit from future investment (some of which have the potential to be funded through grants).

The other eleven service areas require additional resources to fix “Routine Operations and Maintenance” and “Incremental Change/Upgrades” issues (i.e. the foundation).

Considering alternative models of service delivery can reduce the overall cost curve of technology, but requires a shift in emphasis from capital expenditures to operational expenditures. In other words, continued investment in software and hardware, without a commensurate increase in personnel to implement and manage these capital investments, will continue to dilute effort and result in less-than-expected return on investment (ROI).

The Base Case Scenario (i.e. the status quo) is unsustainable. Continued execution of the Base Case will result in escalating risks, decreased service levels, and a greater future cost liability in terms of risk exposure and required future investment. This scenario will save $2.5 million from 2013 budget (as compared to 2012 after including citywide growth assumptions).

The Sustainable Base Case Scenario requires elimination of targeted existing services so that resources may be reallocated to meet desired service levels in remaining areas. As in the Base Case scenario above, this scenario includes a $2.5 million budget reduction. This reduction acknowledges no sustained increase in funding and, therefore, that the organization should move towards sustainable service by narrowing scope.

The recommended Pyramid Scenario can deliver transformational results and may be timed to occur over multiple years (three years is the minimum required to fully execute). This scenario requires increased resources in order to progressively achieve desired service levels along the tactical to strategic continuum. This incremental investment totals $66.2 million over a projected three-year implementation1, and includes:

o $14.7 million in recurring annual operating costs once fully implemented.o $3.5 million in recurring annual capital expenditures once fully-

implementedo $22.2 million in “one-time” capital expenditures (those with a depreciable

life of 10 or more years)

1 It is understood that the idea of increasing the TS budget while most other agencies experience budget cuts is a sensitive topic. The rationale and actual 2013 investment is explained more fully in the Implementation and Next Steps section at the end of this report.

Technology Services 2012 Strategic Resource Alignment Page 2

Routine Operations and Maintenance

Incremental Changes/Upgrades

Business Opportunities

Strategic Partnership and Innovation

Tactical

Strategic

Just as TS is a product of the Shared Services concept, consolidating federated technology services across CCD into one agency, it may be able to free existing resources by consolidating non-core administrative functions with other agencies specializing in that work.

TS may be able to free resources through increased management span of control in and across business units. A Career Service Authority (CSA) review found that most business units were adequately defined and that span of control issues were largely a result of reduced staffing in those units.2 However, it appears that TS continued to fill its entire allotment of management positions through promotion and hiring even as production personnel positions are reduced.

TS and the Budget & Management Office (BMO) can free resources by utilizing contractors less, holding managers accountable to supervise and develop internal employee expertise, and eliminating short-term budgetary incentives that lead the Department to hire contractors vs. additional full-time equivalents (FTE).

The project aligns with TS’ strategic planning efforts to maximize delivery of technology to CCD agencies and citizens.

BackgroundIn 2005, TS moved from a federated to a centralized model as part of a CCD Shared Services initiative. While this is a sound strategy for an organization of CCD’s size, the execution and resourcing were insufficient, even at 2008 levels. Compounding matters, the organization has downsized since 2008 due to non-strategic budget cuts.3

2 See Attachment D: Career Service Authority Review3 Non-strategic are based on every agency reducing resources at comparable levels, which in turn creates a disincentive to run leanly during better economic times in order to maintain extra resources that may be cut during downsizing years with minimal impact.


As a provider of scalability and efficiency, most private organizations view technology as a way to reduce expenses elsewhere, whereas in a public government setting technology may be viewed as a way to expand the bureaucracy and expand services. This creates an inherent conflict in translating technology investments into smaller government. 4

The formal SRA project began in April and ended in July of 2012. The SRA recommendation team consisted of personnel with subject matter and/or analytical expertise. The project team included:

Deputy Chief Information Officer Ethan Wain City Councilwoman Mary Beth Susman City Council Director Janna Bergquist Clerk & Recorder Debra Johnson Budget Director Brendan Hanlon Controller Beth Machann Budget & Management Office Analyst Theresa Wilson Development Services Manager Kelly Leid Deputy Manager of Safety Laura Wachter Denver Human Services Deputy Manager June Allen Public Works Chief Operating Officer George Delaney Parks & Recreation Manager Lauri Dannemiller Mayor’s Office Neighborhood Liaison Michael Sapp

Chief Information Officer Chuck Fredrick and Chief Performance Officer David Edinger led the project. The project was supported by a working group of TS personnel and vendors who contributed significantly to the analysis. Unlike the traditional SRA approach, the technical detail and uniqueness of Denver’s TS Department required the subject matter experts to provide much of the analysis, with objectivity introduced through a variety of clients and other stakeholders.

A series of six meetings were held to analyze the twelve service areas, gauge appropriate service level targets, and identify options for each service level targets. These options were then grouped into seven scenarios, from which one recommendation and two alternatives are presented in this report.

The “13th” service area, Other, includes administrative and support functions not otherwise analyzed (e.g. Finance). This area, and the entire organizational structure, was reviewed separately with Career Service Authority Director Nita Henry, her staff, and a smaller team including CIO Chuck Fredrick.

Steve Foster, President and CEO of Colorado Technology Association, reviewed the analysis to provide an external technology perspective. Given the criticality of security,

4 An anonymous survey of SRA recommendation team members revealed that only 20% would consider technology investments as a way to increase service levels and would not be willing to reduce budget appropriations as a result of increased operational efficiency.


Mr. Foster recommended a Security Advisory Board comprised of local security experts to advise Technology Services on its potential buildup of this area. David Suppes, Chief Operating Officer of Denver Public Schools, also provided critical feedback, particularly in the area of budgeting and prioritization. Mark Pray, CIO for the City of Aurora, and Molly Rauzi, former CIO of Technology Services, also reviewed the draft report and provided feedback and input. All perspectives were incorporated into the final draft of this report.

Methodology & Research The SRA project scope is based on maximizing technology services as detailed in the TS strategic plan (www.denvergov.org/peakperformance in the Strategic Plan section). The SRA sought to identify the best paths to achieving desired service levels. These service level definitions were derived from the 2011 Gartner IT Service Delivery Process Assessment (Attachment A). On a five point maturity scale (0 is low, 5 is high), CCD scored 1.85 (slightly lower than the average for peer state and local governments of 2.33). For SRA purposes, the goal is generally a 3.0 or higher maturity for each service area. This rating translates into sufficient service levels for an organization of CCD’s size and practice (government services). Higher levels may be sought in particularly critical areas (e.g. Public Safety) or when achieving those levels is possible without significant incremental cost (e.g. Collaboration, where the cost between a 3.0 and 4.0 maturity is the same). When possible, service levels are also expressed in terms of annual percentage time in service (e.g. 99.9% up time).


http://www.denvergov.org/peakperformance

CCD Maturity

AssessmentRating

Gartner considers CCD a Level One (aka. Ad Hoc) organization, describing this state as follows:

“A Level 1 organization does not specify processes and leaves the determination of the right approach to individual contributors; thus, it does not have much repeatability, if any. Every time a certain activity is performed, the team starts anew or "from scratch." There's no learning and no real enhancement, and any improvements are made by specific individuals. When they move on, so do the improvements. A Level 1 organization depends on individual workers, because they will get the work done no matter how many times they have to do it or how long it takes.”

CCD’s current maturity may be explained, in part, by its historical spending, which has lagged peer state and local governments (SLGs). However, because technology is inherently scalable, one might expect both metrics to fall as city size increases (e.g. it takes only one records management system for the Police Department regardless of whether the force size is 1,000 or 2,000 officers). So it is unclear whether this benchmark is truly comparable across all cities. On the other hand, there is little


evidence that very large cities such as New York or Los Angeles spend less per capita than Denver.

4.00% 3.80%3.50% 3.60%

2.53% 2.48% 2.51%2.15%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

2008 2009 2010 2011

Perc

enta

ge

Year

IT Employees as % of Total Employees

Gartner

Denver

To the extent IT spending is a measure of investment toward future potential, similar to research and development within the pharmaceutical industry, CCD is significantly lower than average. CCD spends just under 3% of its operational expense on technology. In context, other state and local governments spend 3.6% and the national average across all sectors is 4.5%.


8.98.48.4

5.65.25.1

4.74.5

3.93.63.63.53.43.3

32.97

2.42

1.71.61.51.4

1.2

0 1 2 3 4 5 6 7 8 9 10

Government - National/InternationalSW Publishing and Internet Services

Banking and Financial ServicesMedia and Entertainment

EducationProfessional ServicesTelecommunications

Database AverageInsurance

Government - State/LocalPharmaceuticals, Life Science, Medical

Healthcare ProvidersTransportation

UtilitiesIndustrial Electronics and Equipment

City of DenverConsumer Products

Industrial ManufacturingFood and Beverage Processing

Retain and WholesaleChemicals

Construction, Materials, Natural ResourcesEnergy

PercentageIn

dust

ry

IT Spend as % of Operational Expenses

Denver is not the only city grappling with the question of how to create a sustainable technology enterprise. San Francisco’s Information and Communication Technology Fiscal Plan for 2011-2016 calls for an incremental investment of $338 million over five years (http://www.sfcoit.org/Modules/ShowDocument.aspx?documentid=829).

Service AreasAs part of the SRA process, TS analyzed its services across 12 main functional areas. The functions performed by 311 and Channel 8 are relatively uncommon and are difficult to benchmark, so are generally excluded from these types of comparisons. There are significant interdependencies across the service areas, with three being completely independent by nature (Media and Video; Consulting) or by design (Emergency Services). The three foundational areas of Security, Infrastructure, and Connectivity are necessary for the successful maturity of the remaining areas.


http://www.sfcoit.org/Modules/ShowDocument.aspx?documentid=829

Interdependencies by Service Area

Foundational

Dependent

Independent

The SRA team rank ordered the service areas according to the perceived need for incremental improvement. 5 The purpose of the chart on the following page is to provide a sense of scale between the Base Case and Optimized scenarios. The areas are sorted left to right by ranking.

The current budget amount (blue) represents the total annual spending (operating and capital expenditures).

The incremental spending (red) represents the total cost (operating and capital expenditures) to optimize this service area, as if it were possible to reach the optimized state immediately. Note: this is for comparison purposes only, as it is not possible to reach the optimized state immediately and a portion of the optimized state would create incremental ongoing expenditures.

5 10 of 15 SRA Team members participated in the survey. The team is comprised primarily of internal CCD agencies, so it is not surprising that TS services that enable secure and optimized agency service delivery were ranked higher than those enabling public interaction or information delivery.


Allocation of Spending by Serivce Area

Security and Access (2.1)

Server Infrastructur

e (2.7)

Customer Help &

Support (5)

Emergency Services

(5.4)

Business Solutions

(5.8)

Connectivity (6.2)

Workplace Support

(6.5)

Collaboration (6.9)

Public Interaction

(7.3)

Reporting (8.9)

Consulting (9.6)

Media and Video (11.6)

Optimized (1-year) 2,475,000 4,776,429 2,127,500 3,495,000 6,075,585 7,689,259 1,140,000 1,036,000 3,387,709 5,596,300 2,178,000 219,000 Base Case 726,215 6,406,466 1,515,398 4,440,873 11,900,547 6,262,641 2,591,771 676,440 2,759,636 1,400,049 1,413,463 1,351,651

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000 To

tal S

pend

Note: SRA Team average ranking is in parentheses next to the service area name.

Comparisons of Base Case to Optimized scenarios for each service area are below, based on their status as:

1. Independent: not-interrelated with other service areas.2. Foundational: provides basis for success in other areas.3. Dependent: unable to reach desired maturity without strong foundation.

Multiple options exist for each service, and these options are frequently cumulative – that is, they may be combined to reach the optimized state. Service area options are standalone options unless otherwise noted.

Emergency Services (Independent) provides secure, reliable, and scalable radio and dispatch services for Police, Fire and Emergency Medical Services. This includes support to the 911 Communications Center for maintenance of the Computer Aided Dispatch systems and agency mobile command vehicle support.


Base Case Optimized99.99% Availability of Public Safety Radio Networks (Voice and Data)

99.99% Availability of Public Safety Radio Networks (Voice and Data)

99.99% Availability of CAD Services 99.999% Availability of CAD Services

Response to system outages within 15 minutes

Response to system outages within 15 minutes

The Base Case for Emergency Services is close to optimized, but there are several improvement options:

1. Using Federal grant funding tied to homeland security initiatives, increase mobile bandwidth from 58Kbps to 10Mbps, enabling increased functionality such as video in police patrol cars. This funding is unsecured and matching requirements may exist. CCD Administrative costs would increase by approximately $150,000 annually. This service increase could potentially be distributed to other CCD agencies. Approximately $10 million in grant funding is being pursued by TS.

2. Increase radio replacement from every 14 years to every seven years at an incremental cost of $1.845 million per year. Benefits include greater interoperability, especially with non-Denver emergency agencies, and reduced service calls which may result in cost savings.

Media & Video Services (Independent) provide public meeting coverage and comprehensive video and media production and distribution. This enables City agencies to train their staffs more efficiently, demonstrate government process and transparency to residents, and encourages civic participation. It "tells the story" of CCD, creatively and comprehensively meets the communications needs of City agencies.

Base Case OptimizedCouncil meeting coverage 100% of time, select other public meeting coverage only.

100% public meetings conducted by elected officials and identified city agencies covered.

One Mayor's Office special video project request per week, available within the same week of production.

Denver 8 Media Services produces 95% of all special video projects for Mayor and City agencies instead of outside production companies. Delivered within two weeks 90% of the time.

Community/public policy meeting covered, estimated 95% satisfaction rate. Approximately five requests for coverage were declined because of lack of funding.

Cover all requested community/public policy meetings, averaging 15-20 per year.

Studio programming satisfaction rate 100% (one client)

Multiple studio productions created, with satisfaction rating of 95%

This service area has borne significant cost cutting over the last several years, as citizens have prioritized it below other CCD services. In other words, the Base Case has changed significantly from previous years. Several options exist to reach the optimized state:

1. Sustain Internship Program to maintain current video productions, including partner short and long term projects; produce three Mayoral video projects per week; push video content to multiple distribution pathways. $58,500 annual cost


and an ROI of 137% versus outsourcing this function, mostly due to use of interns.

2. Provide audio-visual support at City agency events for Facilities Management at multiple facilities (Base Case equals 5 per month). $4,400 annual cost and an ROI of 137% based on Facilities Management recovery of custodial staff time.

3. Create training/testing videos for City staff (10 per year) and produce short-length videos with agency partners to communicate with the public. $79,500 annual cost and ROI of 117% based on freeing 360 hours of CSA training time and a 2% decrease of 311 calls.

4. Create a Special Projects Team to focus on all non-meeting video productions, including special events and promotional coverage. $219,000 annual cost (inclusive of options 1-3) and ROI of 96% by 0.5% increase in revenue from CCD-owned venues and lowering the production of grant-funded videos (currently outsourced) from $150/hour to $48/hour.

Consulting Services (Independent) provide the needed resources and expertise to estimate, evaluate, and implement technology solutions, including:

– Management project requests and evaluating the ramifications and costs of projects with respect to technology, industry practices, and other projects within CCD.

– Management of implementation of the project with respect to costs, resource, and status.

– Managing ancillary project resources needed for successful completion.

Base Case OptimizedCustomer satisfaction is currently not measured

80% Customer satisfaction of project execution

~42% of projects tracked by the PMO were completed on-time, on-budget, and within scope

90% of projects are completed on-time,on-budget, and within scope

Percentage of architecture reviews completed are currently not measured

Architecture reviews completed 95% of the time for all projects

Total Cost of Ownership reviews completed for projects are not currently not measured

Total Cost of Ownership evaluated for 100% of projects

New Project Requests - Currentlyonly focus on acknowledging the project request

Exploratory meeting for new project requests conducted with two weeks 90% of the time

Consulting services is about planning before doing. Independent research suggests that, initially, the cost of fixing a bug at the requirements stage is nominal. But as the software moves along in its life cycle the cost of fixing a bug increases dramatically. Bugs are relatively easy to fix at the initial development stage when a bug is no more than a change in notion. At the design stage, however, the relative cost can increase five times what it was at the requirements stage. At the code stage, the cost to fix a bug can increase


ten times. By the time the application is operational, the cost to fix a bug can increase 150 times.

Based upon CCD’s recent history at completing projects on time and on budget, and the number of existing projects in various states of limbo (e.g. Parks and Recreation point of sale system, Multi-Jurisdictional Assessor/Treasurer system), that enhancing Consulting Services could lead to a significant ROI.

Several options exist to optimize Consulting Services:1. Convert contract project managers (PM) to in-house PMs. If 75% of contractor

PMs were converted to in-house positions, TS could save approximately $195,000 per year. Under this model the PM cost would be $2,015,000 per year with a net gain of 2 additional PMs. Assuming spending stays near Base Case levels, ROI is 3% but PM capacity would increase from four to six FTE for the same cost. Side benefits include retaining knowledge internally by using in-house resources. Alternatively, PM’s could be converted with capacity held constant, creating a greater ROI.

2. Mature the project intake process by hiring system analysts (both Innovation Fund projects and smaller scope projects). There are no systems analysts to scope new project requests. TS currently utilizes higher cost PMs to do this work for smaller projects and the Business Process Improvement (BPI) Team performs this work for Innovation Fund projects, creating several unneeded handoffs between TS and BMO and pulling BPI capacity from process improvement work in agencies. The annual cost is $315,000 for three Systems Analysts (SAs). The ROI is difficult to calculate, but the key idea is to push costs of change to the left on the chart above.


3. Mature the project solution architecture by converting the existing contract solution architect to in-house personnel, add two additional FTE (incremental cost of $183,000). Also, purchase enterprise architecture toolset (one time cost of $400,000 plus $80,000 per year maintenance). This investment will result in 100% of project requests, requests for proposals, and requests for information will be properly vetted early in the process, saving rework costs later

4. Mature account management function with agencies, identified by Gartner as a specific area of concern to address. There are no dedicated account managers, and agencies are currently staffed by TS managers two to four hours per month (at staff meetings, individual meetings with agency technology leads, etc.). The cost of four FTE is $420,000, and would provide for:

a. Single point of contact to clients, with bandwidth to follow-up on client issues.

b. Improved Shared Service model, similar to the Career Service Authority (CSA), with service delivery practices embedded in the agency.

c. Better understanding of clients’ business models, enabling TS to enhance business partnerships and become more proactive.

Security & Access Services (Foundational) provide protection and compliance of systems and data through protective services, access control, and auditing. Services also include investigating security incidents, documenting root causes, and proactively developing mechanisms to remove risk. These services provide both education to CCD staff and protection of current systems from intrusion and unauthorized use. In the event of security incidents, forensic analysis is conducted to determine the root cause and, potentially, the people involved.

Base Case Optimized100% compliant with CJIS (safety) security mandates; Compliance nearly certified for PCI (payment card)

100% compliant with applicable security mandates (PCI, CJIS and HIPAA).

Critical security incidents will be investigated within twenty-four hours.

Critical security incidents will be investigated within twenty-four hours.

TS Employees and PCI-impacted employees trained in PCI security every three years starting in 2012

100% of city employees trained in security awareness every three years.

Access Requests - Not currently measured

90% of access requests fulfilled within three days.

Security compliance reviews of projects - Not currently measured

100% of projects approved are in security compliance with security standards

CJIS = State of Colorado criminal justice system.PCI = Payment Card IndustryHIPAA = medical records compliance standards

Selected recent government security incidents include:

February 2012: City of Springfield, MOInformation Exposed: Data breach of citizens’ personal information


Records Impacted: 2,100

March 2012: California Department of Child Support ServicesInformation Exposed: Personal records of adults and children including names and social security numbersRecords Impacted: 800,000

April 2012: Utah Department of Technology ServicesInformation Exposed: Medicaid claims, social security numbers, names, birth dates, taxpayer identification numbers, and addressesRecords Reported: 900,000

Security considerations include productivity loss, rework, legal costs resulting from lawsuits and inability to file lawsuits and conduct legal activities, reputational loss, and audit costs. The Denver Auditor’s office found that technical controls are needed to enforce policies: (http://www.denvergov.org/auditor/DenverAuditor/AuditServices/AuditReports/tabid/443012/Default.aspx).

Other findings include:

• Managers were not aware of which policy was in effect for incident response and patch management. Different managers provided multiple and different policies

• 14 of 21 existing Information Security policies have not been updated for more than two years

• Eight of 12 policies identified as critical Information Security policies do not exist • As a result, six of 10 essential information security duties are not being performed

due to staff turnover • Conclusion – A network security monitoring service should be engaged

Using a security breach calculator from Symantec6, the following conclusions were reached:

6 http://www.databreachcalculator.com/


http://www.databreachcalculator.com/

http://www.denvergov.org/auditor/DenverAuditor/AuditServices/AuditReports/tabid/443012/Default.aspx

http://www.denvergov.org/auditor/DenverAuditor/AuditServices/AuditReports/tabid/443012/Default.aspx

• CCD’s average cost per record is $209• CCD’s average cost per breach is $7,833,333• Government organizations with CCD’s risk profile have a likelihood of

experiencing a data breach in the next 12 months of 9.9%• Average likelihood of breach for an organization of CCD’s size is 5.3% (so CCD

is nearly twice the average likelihood)

The proposed option is to develop a proactive security intrusion protection program, to develop and maintain security policies and procedures, and to manage identity and access controls to protect CCD resources. 100% of City employees would be trained in security awareness every three years (training duration would usually be short, such as a one hour webinar, but frequency of at least once every three years is reflective of best practices). Operating expenses for four additional personnel would be required at an annual cost of $625,000.7 Capital expenditures include a one-time investment of $1.56 million and annual capital expenditures of $290,000. Based on reducing the likelihood of a breach from 9.9% to 5.3%, and the estimated cost of a breach, the ROI is 28%.

Connectivity Services (Foundational) provide secure, reliable, and scalable connection services to information sources, people, and locations both inside and outside of the City. This includes voice, video, and data.

Base Case OptimizedNetwork Availability - Not currently measured

99.9% availability of all resources from internal and external locations

Public Radio Network (non-safety) - Not currently measured

99.9% Availability of Public Radio Network (non-safety)

Priority 1 Service Request responded to within 2 hrs

Priority 1 Service Request responded to within 15 minutes

Priority 2 Service Request responded to within 1 business day

Priority 2 Service Request responded to within 4 hrs

Priority 3 Service Request responded to within 3 business days

Priority 3 Service Request responded to within 3 business days

Connectivity workload will increase substantially in the near-term, fundamentally changing the resource requirements.

Network Devices Current FutureWireless Access 224 500+Security and firewall 117 150Data Switches/Routers 3344 3344UPS 271 271

7 These personnel will monitor external threats (hacking, coordinating with the State, better monitoring of known hacking sites, increased analysis of CCD logs); coordinating across CCD’s various compliance programs – PCI, HIPAA, CJIS; and coordinating responses for the various audits (BKD and external auditors). They will also look internally – being more proactive at monitoring for vulnerabilities and keeping CCD staff up to date on security roles/responsibilities. One staff member will be dedicated specifically to digital identity and role management.


2

1598

4090

2701

1407

392

244208

192

5848

46

0500

100015002000250030003500400045005000

2009 2010 2011

Problem Tickets Received (By Priority)

1

2

3

4

Cloud computing requires a completely reliable network, and several of the dependent service area strategies seek to take advantage of it. Remote sites (or “edge” sites) are the biggest risk factors. The Denver Auditor’s recent audits depict the risks associated with the outer periphery of the network and related to the age of equipment (currently on a 27 year replacement cycle in the Base Case). To support these strategies, and to handle wireless demand, a redundant Internet access point for failover is required. Options include:

1. Improve service level to agencies by adding six FTE to reduce project backlog, provide redundant expertise, manage assets, and reduce the 19 security risks identified by the Denver Auditor.8 Annual cost of $671,000.

2. Increase Wi-Fi to 60% of user sites ($657,000), and add second redundant Internet connection and bandwidth (724,000 one-time and $73,000 annually), plus $100,000 annually for one network technician.9 This option supports cloud strategy and mobility.

3. Reduce network equipment replacement cycle from 27 to 10 years, improving reliability and reducing maintenance costs. $2.9 million one-time catch-up on half the equipment, plus $367,000 annual increase (costs may be shifted between amount of one-time catch-up and annual increase).

4. Replace the remaining 14 voice PBX systems with Cisco IPT system so CCD is on one system. The current system is nearing end-of-life support and this would enable citywide collaboration. Phones, switches, and licenses cost $2.3 million (one-time) and the ROI is 12% versus the cost of maintaining and upgrading the existing system.

8 Requests include technology services related to employee moves, support for new buildings/sites (this is starting to wind down with the bond money, but every time there is a remodel or physical work to a building, there is usually work for the network team), routine work/maintenance for each of the 250 buildings, with network closets on each floor. TS would also dedicate one person to asset management for network equipment with separation of duties from field work, as identified in the Network Security audit.9 Wi-Fi will not replace physical cabling in the near term. The bandwidth for Wi-Fi would be too slow, for example, to enable everyone in the Webb Building use Wi-Fi as their primary network source.


Infrastructure Support Services (Foundational) provides servers and related infrastructure10 to drive serviceability, availability and reliability. Server hosting is provided both remotely as well as in multiple CCD data centers. These services address the complete server lifecycle, including procurement, installation, configuration, hardware troubleshooting and repair, hardware and operating system refreshes, moves, additions, changes, and retirement.

Base Case OptimizedSystem availability – not currently measured, but average 5 critical outages per month

99.9% availability

Disaster Recovery - Service restoration between sites within 10 minutes. Capability on 7 out of 34 tier 1 critical systems.

Disaster Recovery - Service restoration between sites within 10 minutes on 100% of tier 1 critical systems.

Disaster Recovery - Service restoration between sites within 4 hours. Capability on 3 out of 14 tier 2 critical systems.

Disaster Recovery - Service restoration between sites within 4 hours. Capability on 100% of tier 2 critical systems.

55% of production servers are backed up. Restores can take up to 3 days.

100% of production servers are backed up. Restores within 1 day.

Other service gaps include:- Server teams have a backlog of routine and preventive maintenance- Lack of tools to enable servers with proactive health monitoring or alerting of

issues – users call TS with problems rather than automatic alerting- Lack of proactive security log monitoring, which would be combined with

existing server log monitoring on the same work teams

As CCD systems grow, workload is increasing without a commensurate increase in personnel or productivity tools to help existing personnel manage the increase.

8500

9000

9500

10000

10500

11000

11500

2010 2011

Overall Server Team Support Tickets

Options include:1. Increase the number of IT System Administrators from 21 to 29, reduce server

replacement cycle to five years, and purchase system administration tools. This will result in a service level increase from 98% to 99.9% availability, decreasing downtime from 175 hours per year to 8.6 hours per year. The annual cost is

10 The asset base is manually administered and is unlikely 100% accurate. Some of the tools proposed as part of the SRA would help automate inventory management.


$971,000 plus one-time capital expenditures of $413,000. The ROI is 270% based on reduced downtime for CCD workers using average fully-loaded salaries.

2. Disaster recovery using a hosted cloud solution at a third party data center. 11 Production data is replicated to this site and recovery servers can be brought up in four hours should any one of CCD’s three datacenters suffer partial damage or go completely off-line. The annual operating cost is $2.17 million and $957,000 in one-time capital costs.

3. Invest in data management and tapeless backup.12 Service level will improve successful backups to 95% of the time versus the current 70%. Growth of data will be reduced due to file archiving and data de-duplication. The annual incremental operating cost is $266,000 and capital expenditures are $1.915 million.

Customer Help and Support Services (Dependent) provides a single point of contact with TS for all IT service disruptions, questions, and service requests via telephone, email and self-service. The centralized Service Desk provides:

– Start-to-finish (opened ticket to closed ticket) incident management– Response using known workarounds, solutions, and a customized, continuously

updated knowledge base– Incident escalation and coordination according to customer-defined escalation

process

Base Case OptimizedCurrently no ability to measure customer satisfaction with this service.

Annual IT customer satisfaction surveys indicate a minimum of 90% satisfaction.

1st Call Resolution for 2011 at 51.7%. 65% of calls are resolved on the first call (1st Call Resolution).

Average time to answer cannot currently be measured.

Speed to Answer will average 60 seconds or less

Call Abandon Rates cannot currently be measured.

Average call abandon rate not to exceed 7%.

Reopen rate, or Incident rework rate, cannot currently be measured.

No more than a 10% reopen rate for Incidents not resolved properly.

Call volume is increasing due to additional agencies requiring support and an increase in system instability. Challenges have been partially offset by a 2011 re-organization, but staffing is thin and weekend and evening coverage is particularly vulnerable when technicians go offsite to fix problems.

11 It is possible to host primary systems as well as disaster recovery (DR), but starting with DR is a good first step towards a longer migration path.12 This could also be hosted, but would not be cost effective to move large amounts of data over a limited bandwidth network, so it makes more sense to evaluate this option if/when servers are externally hosted.


10573 9828

15366

2703030327

33942

0

5000

10000

15000

20000

25000

30000

35000

40000

2009 2010 2011

Volu

me

Year

Problem Tickets

Service Requests

44%

47%

52%

40%

42%

44%

46%

48%

50%

52%

54%

2009 2010 2011

1st Call Resolution – (Goal:65%)

8%

11%

0%

2%

4%

6%

8%

10%

12%

4/10-4/16 4/17-4/23

Call Abandon Rate – (Goal: 7%)

First call resolution trends are encouraging and recently captured call abandon rates are above desired rates (due to training and other factors). Simply adding personnel would increase service levels and move this area to a Gartner maturity level of 2. The strategic option is to invest in IT Service Management (ITSM) software to automate 22 IT processes instead of the existing tool that manages one. This is already underway at a cost of $90,000, and is the source of the call abandon graph above. In addition, TS could provide dedicated staff to focus on improving IT service management processes (an industry best practice suggested by Gartner). Finally, TS should provide after-hours coverage in emergency situations. Three additional FTE at a cost of $225,000 annually, plus $17,500 in annual on-call resources are being proposed to achieve this service level. Based on productivity gains for the rest of the CCD workforce, the calculated ROI is 63%. First call resolution would increase to 65%, critical incidents would be reduced by 10%, and 24x7 coverage would be extended.

Collaboration Services (Dependent) improve productivity by providing tools that allow for sharing, communicating, and interacting. These services provide one-on-one communication tools as well as group collaboration. The tools allow for email, instant messaging (IM), voice calls, video calls, and document sharing.


Base Case Optimized98.0% availability for Email with 100 MB of storage

99.9% availability with 25 GB of storage

Audio conferencing available with setup within 2 hrs 99.9% availability; restrictions apply with usage

99.9% availability with setup within 5 minutes

Web Conference Account available within 1 business day; limited licensing available

Web conference accounts available for immediate use; no restrictions

Future collaboration service considerations include:• IM/Chat – enabling instant messaging and its positive productivity implications• Video Conferencing – providing physical infrastructure (video conference rooms)• Team Collaboration Site – providing access to shared site for tracking projects,

documents, resources, task completion and schedule management• Document sharing – develop, edit, and publish documents in an organized and

cataloged manner versus, shared drives and email in the Base Case

The Base Case for collaboration is, in a word, email. Recent email outages have affected large swathes of users (e.g. everyone with a last name beginning with G-M, and everyone who attempted to communicate with them, over several weeks).

0

1

2

3

4

5

6

7Email Outages

Email Outages

0

2000

4000

6000

8000

10000

Exchange 2003

Exchange 2007

exchange 2010

Users on each version of Exchange

Users on each version of Exchange

Collaboration is a potentially transformative service area, with the ability to address multiple issues and increase productivity by changing the way CCD conducts business. Options for consideration include:

1. Implement an externally hosted environment, increasing service levels from 98% to 99.9% and increasing mailbox sizes to 25 GB without expanding existing infrastructure. This option expands the scope of collaborative services. Startup costs are $340,000 and incremental annual costs are $696,000. Based on restoring lost productivity, the ROI is 553%.

2. Expanding the current infrastructure without expanding the scope of existing services (primarily email). One-time costs of $1.1 million and annual costs of $1.25 million would yield mailbox sizes of 1 GB and service improvement from 98% to 99% (i.e. 3.65 days of downtime). The projected ROI is 420% based on productivity recovery. This option does not expand collaboration services.


Public Interaction Services (Dependent) provide multi-channel access and support to residents for all City services, information, and transaction requests. Users have timely interactions that meet their individual needs whether on-site or remotely located. These services include the 311 Contact Center, Denvergov.org, mobile applications, and social media sites. Constituent Relationship Management (CRM) applications are included in this area.

Base Case Optimized311 – Contact Center Calls – 29% within 30 Seconds, 3 min average speed to answer

311 – Contact Center Calls – 80% within 20 Seconds, 30 second average speed to answer

98% Denvergov.org Availability 99.9% Denvergov.org availability

24-48 hour response on 311 ContactCenter emails/mobile app submissions

4 hour response on 311 ContactCenter emails/mobile app submissions

311 Contact Center Hours 7am-8pm M-F and 8am-5pm S-S

311 Contact Center Hours 7am-8pm M-F and 8am-5pm S-S

Several factors have impacted service levels at 311 over the last four years, including an increase in the number of agencies served and a reduction in personnel and hours of operation.

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2008 2009 2010 2011

Num

ber o

f Inq

uirie

s

311 Inquiries Offered / Handled / Abandoned by Year

NCO

NCH

NCA

2008 2009 2010 2011NCO 553,729 517,050 584,813 583,129NCH 497,736 470,560 491,656 438,476NCA 52,509 41,610 82,178 130,021

0

20

40

60

80

100

120

140

2008 2009 2010 2011

ASA

(sec

)

ASA: Target vs. Actual

ASA (sec)

ASA Target

Year ASA (sec) ASA Target2008 32 302009 25 302010 63 302011 122 30

Definitions: NCO = number of calls offered (received) NCH = number of calls handled NCA = number of calls abandoned ASA = Average seconds to answer


131415161718192021222324

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Num

ber o

f Age

nts

2011 Authorized & Actual Agents

2011 Auth

2011 Actual

311 service levels are predictable by function of staffing and other assumptions such as service time per call and call volume. Adding call takers increases service, as measured by the percent of calls answered within 20 seconds.

Incremental Staff and Service Level ChangesSTAFF ADDITIONS SERVICE LEVELS COST

PLUS 2 45%/20 SECONDS $83,460

PLUS 4 55%/20 SECONDS $166,920

PLUS 6 65%/20 SECONDS $250,380

PLUS 8 80%/20 SECONDS $333,840

Denvergov.org has also experienced service outages, which increase in severity as customers’ use of this medium increases.

Q2 Q3 Q4 Q1DenverGov 2011-2012 14 16 5 4

02468

1012141618

Num

ber o

f Out

ages

DenverGov 2011-2012

Future opportunities include:• Mobile applications for all major platforms (Android, Windows, Blackberry, etc.).


• Continuous monitoring with full bi-directional communications for major Social Networking Sites (Facebook, Twitter, You Tube, etc.).

• Open Data/API to support citizen inquiries and public-private partnerships to leverage externally generated and internal transactional data for citizen benefit.

• Development Contests for education or economic development• Interactive TV - programming, comments, payments, voting• Multifunctional kiosks to serve citizens onsite (e.g. permits)• Potential software replacement (or in the least a major upgrade)• Potential upgrade or replacement of Denvergov.org system • Text and/or live chats to contact centers

Options include:1. Improve 311 service levels with additional staffing ($342,000 annually) and tools

($140,000 capital expenditure). 2. Replace PeopleSoft with a hosted solution that perpetually updates (up to three

times annually). Implementation cost of $2 million and an annual subscription increase of $14,000. An ROI of 78% is based on cost avoidance for major upgrades, reduction in administration servers from ten to seven, and increased employee productivity due to outage reductions.

3. Replace web content management system with a hosted CMS, costing $195,000 up front and $82,000 annually. An ROI of 813% is based on an increase in productivity due to reduced number of outages 99.9% uptime and cost avoidance of in-house upgrades.

4. Increase webmaster support personnel (currently 1 FTE), providing agency support and completing one website redesign for each agency every two years. Three FTE would cost $306,000. Over $125,000 was spent by agencies contracting with external providers in 2011 due to low in-house levels of support.

5. Development and deployment of multi-purpose kiosks that are both informational and transactional. One time contractor cost of $160,000, plus twelve kiosks totaling $72,000. Self-service transactions can reduce employee head count and direct customers to a lower cost channel. Improved customer service though creation of sites for constituents to transact with the City more conveniently. Reduction in wait and counter times. For affected customers, the “excellent” overall customer service rating could rise from 25% to 85% based on a similar initiative in Excise and Licenses.

Reporting Services (Dependent) provide data and information, primarily for decision-making, to City staff and constituents on a repeatable, on-going basis and for ad-hoc requests. It also includes complex dashboards that allow interaction with the user for analytics and training business users to produce their own dashboards. Reports may include historical, current, and predictive data views. Requests may be for application data, financial data, personnel data, geospatial information systems (GIS) data, or other specialized system related data.


Base Case OptimizedReport Delivery - Currently not measured

80% of the time, provide requested reports within two weeks

Dashboard Delivery - Currently not measured

80% of the time, provide requested dashboards within two months

Data analysis - Currently not measured

80% of the time, provide data analysis (including spatial analysis) within two weeks

Data Warehouse requests - Currently not measured

Provide estimate and analysis of Data Warehouse requests within two weeks

CORA Requests - Currently not measured

100% of the time, confirm receipt of CORA request within 72 hours

More on the current state of business intelligence (BI), reporting, and warehousing:• 10-15 new BI dashboard requests submitted in the last two years. Four BI projects

have been delivered to date, three required additional Innovation Fund resources to complete.

• Staffing challenges have required a change in support approach (twice).• TS officially supports approximately 1,500 reports and about 200-300 users

generating reports using a variety of tools.• 250 to 300 new report requests submitted per year.• One complete data warehouse model (budget) and one partial data model (public

safety) exist for all of CCD.

Enterprise Architecture, with assistance of the vendor community analyzed Reporting across several sub-categories, none of which met the desired maturity level.

0 1 2 3 4 5

Data Model Design & DistributionData & Data Type Standardization

Data Model ConsistencyData Lineage

Unified Data Access LayerData Usage Semantics

Content-Based IntelligenceInformation Security

Information OwnershipSingle Version of Truth

Data/Information

Vision Current

A shift towards several alternatives would create a more sustainable and productive reporting service. This includes an increased focus on data models and data warehouses,


better toolsets for predictive analytics, more cloud-based solutions, and a focus on open-data. Options include:

1. Basic support and maintenance, delivering small ongoing enhancements, adding failover and data backup functionality, and resolving heat tickets within two weeks. One-time costs of $2.77 million and recurring annual costs of $1.3 million. Gartner maturity from 0.9 to 2.0.

2. (Incremental to Option 1) Implement predictive analysis capabilities in a citywide service oriented data access model. $745,000 one-time capital expenditures plus $1 million in recurring annual costs. Gartner maturity from 2.0 to 3.0.

Workplace Support (Dependent) provides all services required for clients to effectively use end-user devices to access CCD IT resources. The goal of this service is to provide secure, "choice-rich" technology platforms and access to enhance worker productivity and satisfaction by enabling personalized and secure work spaces and individualized tools. Base Case Maturity: 2.0.

Base Case OptimizedCurrently no ability to measure customer satisfaction with this service.

Annual IT customer satisfaction surveys indicate a minimum of 90% satisfaction.

Workplace moves - Not currently measured. Workplace moves and changes will be completed within 3 business days of committee approval and receipt of the assignment 95% of the time.

Quotes for new Hardware- Not currently measured.

Hardware quote requests will be provided within 3 business days, 98% of the time.

Delivery of new Hardware - Not currently measured.

Ordered personal computing and technology devices (PCs, laptops, printers, etc.) will be delivered to the worker within 3 business days of TS receipt of the device, 95% of the time.

Replacement cycle - 5-Year PC Replacement cycle, which was 4 months behind previous year’s schedule. Monitors are currently replaced when broken or when an Agency funds their own replacements.

A 3-Year PC Replacement cycle with 100% of eligible PCs, laptops and monitors replaced by October 31 of each year.

A snapshot of current annual workload:– Number of personnel supported – 9,261– Number of PCs/laptops – 7,189– Models of PCs and laptops supported – 70– Configurations of PC/laptops – 16– Number of facilities supported by Desktop Field Teams – 250– Average number of incidents worked/day/support member – 3

It is interesting that Denver Human Services (DHS) requires about half the total CCD workload.


237621442082 2179

2679

3242

0

500

1000

1500

2000

2500

3000

3500

Problem Tickets Received Work Orders Received

Field & Hardware Support

2009

2010

2011

3711

2627

3372

27302934

2575

0

500

1000

1500

2000

2500

3000

3500

4000

Problem Tickets Received Work Orders Received

DHS Desktop Support

2009

2010

2011

The quantity of support requests is directly related to average product life. The shorter the hardware replacement cycle, the lower the cost (and the average cost) of maintaining the hardware.

$716 $825 $953$1,136

$1,368$1,623

$0

$500

$1,000

$1,500

$2,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6+

Average Annual Per PC Cost of Supporting Laptop PCs

$433 $500$577

$688$816

$956

$0

$200

$400

$600

$800

$1,000

$1,200

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6+

Average Annual Per PC Cost of Supporting Desktop PCs

Options include:1. (Independent) Implement three-year PC replacement cycle with 100% of eligible

PCs and laptops using a 25% catch-up/year for four years. Replace monitors with flat-screens for knowledge workers – 25% each year for four years. This will add an additional $330,000 of capital expenditures per year for the first four years, then $300,000 per year thereafter. This reduces maintenance costs by 50%. The Gartner maturity level remains at 2.0.

2. (Independent) Virtualize 2,000 desktops over three years at an FTE cost of $180,000 per year. Capital expenditures are covered by the cost of PC replacement savings. Data is safe and secure in a centralized environment so desktop recovery is improved, easier to maintain, and any workstation provides the same desktop at login. ROI of 33% over three years. The Gartner maturity level reaches 3.0.

Business Solutions (Dependent) services provide business solutions that increase efficiency, automate business processes, improve customer service, and meet business objectives. This includes a variety of applications, some Citywide and some business area specific, critical to the efficient operations of the City. This includes core applications like PeopleSoft, GIS, Denvergov.org, Document Management, Enterprise Cashiering, and line of business applications such as Accela, Legislative Information


System, Jail Management System, and the Tax Collection System. The Base Case Gartner maturity level is 1.31.

Base Case OptimizedCustom Application Development58% of major projects delivered on time this year38% of applications use non-standard technologies

90% of projects delivered on-time

<10% of projects utilizing non-standard technologies

Off the Shelf Systems23% of major projects delivered on time in 2011

30% of applications use non-standard technologies


<10% of projects utilizing non-standard technologies

Website Design6 of roughly 25 accomplished in 2011 Support one web site redesign per agency

every two yearsApplications SupportAverage days to resolve P1 & P2 defects was roughly 10 days in 2011In 2011 average speed to resolution for work orders was 25 daysCurrently not MeasuredCurrently not Measured

95% of P1 & P2 defects resolved within 2 days

Average speed to resolution is < 10 work days

<10% of resolved defects reopened90% of systems upgraded within 6 months of release

Systems IntegrationCurrently not measured <10% of projects utilizing non-standard

technologiesQuality AssuranceCurrently not measured

Roughly 36% of projects with oversight

Zero P1 & P2 defects during 30-day post production warranty period100% percent of released applications with direct QA oversight & involvement

Enterprise Applications 68% of major projects delivered on time this year


As new applications are added (and a commensurate number of legacy applications and databases are not retired), service requests have risen. The current inventory is:

• Number of custom applications – 112 • Number of commercial off-the-shelf (COTS) applications – 69 • Number of Enterprise Applications – 9


Options include:1. Replace PeopleSoft HCM and Financials with a perpetually supported, hosted

solution updated up to three times annually. One-time capital expenditure of $3.3 million plus an increase in the annual subscription rate of $182,000. The 58% ROI is based on cost avoidance for major upgrades, reduction in administration for 34 servers and 22 databases, increased productivity due to fewer outages, and elimination of $263,000 in annual maintenance for PeopleSoft products not currently in use. This increases the Gartner maturity level from 1.3 to 3.0.

2. Increase in FTEs and one time injection of contractors to develop custom web applications at a higher rate and convert current applications from non-standard technology. Temporary costs for contractors are $380,000 and ongoing FTEs are an additional $376,000 annually. New web and mobile interfaces for forms and current applications will drive constituent interactions to less expensive channels and increase access for constituents and employees. This increases the Gartner maturity level from 1.3 to 3.0.

3. Increase in FTEs for application and integration support, database administration, enterprise content management, and quality assurance to ensure layer 1 and 2 maturity. 21 incremental FTEs will cost $1.85 million annually. Project issues would be resolved earlier and less expensively and a greater percentage of projects would be delivered on time and on budget. This increases the Gartner maturity level from 1.3 to 2.0.

Structure and Sizing OptionsThe SRA team evaluated multiple approaches in each service area to create seven scenarios, from which three options emerged. As one form of sanity check, the Pyramid Recommendation13 costs substantially less than the Gartner recommendation as it relies on mostly one-time capital expenditures ($25.6 million) and lower recurring annual operating expenditures. In other words, it leverages technology to achieve CCD objectives.

The Pyramid may be implemented in as little as three years, but CCD can proceed cautiously and with budget constraints in mind by implementing the infrastructure (base of the Pyramid) steps first while planning for the higher levels over a six-year period. This six-year approach may be expedited based on implementation success in the early 13 The Pyramid Recommendation is so named because it enables all levels of the IT pyramid depicted in the Executive Summary of this document.


years (on time and on budget, with expected service level improvement) and as budget considerations allow. Because technology changes so quickly, the SRA team should reevaluate the subsequent year investments on an annual basis, modifying as new opportunities present themselves. A comparison of the three- and six-year implementation is below, and may be extrapolated over any reasonable time frame. The financials are in future dollars and assume TS will continue to implement internal efficiencies to offset normal inflation.

3-Year Implementation 2012 2013 2014 2015Operational $37,362,600 $44,127,393 $50,557,533 $52,070,598Special Revenue $3,919,296 $3,919,296 $3,919,296 $3,919,296Capital - Back Offi ce $4,322,000 $7,054,500 $7,384,500 $7,828,500Capital - IF $10,000,000 $18,240,802 $21,328,944 $12,719,644Total TS Budget $55,603,896 $73,341,991 $83,190,273 $76,538,038

6-Year Implementation 2012 2013 2014 2015 2016 2017 2018Operational $37,362,600 $42,804,809 $46,955,553 $47,849,613 $49,155,733 $51,257,583 $52,070,596Special Revenue $3,919,296 $3,919,296 $3,919,296 $3,919,296 $3,919,296 $3,919,296 $3,919,296Capital - Back Offi ce $4,322,000 $4,879,500 $4,879,500 $5,023,500 $7,198,500 $7,528,500 $7,828,500Capital - IF $10,000,000 $16,405,512 $15,433,944 $11,732,644 $14,235,290 $13,495,000 $10,987,000Total TS Budget $55,603,896 $68,009,117 $71,188,293 $68,525,053 $74,508,819 $76,200,379 $74,805,392

The incremental achievements over the six-year period could include the following (note: the actual 2013 implementation plan is discussed in the final section, Implementation and Next Steps, and needs to be adjusted on an annual basis).

2013 Increased Security: network intrusion protection, training, policies and procedures;

percentage chance of security breach reduced by 1% per year over the next four years. Infrastructure: tools implemented to monitor and preemptively remedy potential

problems. Infrastructure: New Server Backup tool implemented (95% completed). Individual

servers restored from backup within four hours. Infrastructure and Connectivity: service levels improved, work order backlog reduced by

half, asset management implemented. Infrastructure: Applications: Uptime measured and up to 99%;80% of highest severity

problems resolved within 5 business days on average, with average speed to resolve work orders down to 15 days (from 25).

Infrastructure: 10% of network edge equipment replaced; 4 of 14 PBXs replaced. Employee Productivity: Hosted Email/Collaboration implemented, expanded email

storage, videoconferencing, document sharing, etc. System uptime increases from 98% to 99.9%.

Citizen Facing: 311 will achieve 60% calls answered in 30 seconds. Citizen Facing: 12 website redesigns completed annually (up from six). Citizen Facing: 30% of web applications mobile-enabled, following industry trends

indicating that the majority of web-enabled interactions are already on mobile devices. Citizen Facing and Employee Productivity: Denvergov.org replaced and possibly

rebranded to MileHighCity.org. System uptime improves from 98% to 99.9%, is designed for use on mobile devices and drastically easier to use for city content editors.


Citizen Facing: Media Services hours of programming increase by 80 hours of original programming , up to 60 A/V requests supported by facilities management; maintain 79 intern programs.

Employee Productivity: 25% additional PC’s replaced, resulting in fewer trouble tickets and faster employee processing (i.e. more productivity).

Employee Productivity: 60% coverage on Wi-Fi allowing for increased use of tablets within City buildings, backup Internet connection in place.

Employee Productivity: Improved process maturity for three critical IT processes, 65% first call resolution, resulting in higher customer satisfaction for TS Department.

Public Safety: 740 of 8,500 emergency radios replaced starting this year moving forward.

2014 Infrastructure: Backup/failover capability for BI/reporting system, moving service

uptime from 98% to 99.9%. Infrastructure: Remaining monitoring and failover tools implemented. Major infrastructure enhancement: Disaster recovery implemented for all production

systems and data centers; City would be able to function should an entire data center be lost due to a fire, damage, attack, etc.

Infrastructure: New server backup tool implemented 100%. Infrastructure: 20% of network edge equipment replaced; nine of 14 PBXs replaced. Infrastructure: Applications uptime measured and up to 99.5%, 90% of P1/P2 tickets

resolved within five business days on average, average speed to resolve work orders down to 12.5 days (from 25).

Citizen Facing: Media Services intern coordinator hired; maintains 79 intern programs. Citizen Facing: 311 – SLA increases with one new FTE.

2015 Infrastructure: 30% of network edge equipment replaced; all PBXs replaced. Infrastructure: Applications uptime measured and up to 99.5%, 90% of P1/P2 tickets

resolved within five business days on average, average speed to resolve work orders down to 12.5 days (from 25).

Citizen Facing: Media Services hours of programming increase by 80 hours of original programming , 60 A/V requests supported by facilities management.

Citizen Facing: 311 – SLA increases with one new FTE.

2016 Citizen Facing: 311 – SLA increases with one new FTE Citizen Facing: 12 website redesigns completed, up from 6. Citizen Facing: 30% of web applications are mobile enabled, allowing citizens to

conduct business from any smart phone device. Employee Productivity and Citizen Facing: New CRM system implemented, increasing

City productivity, and overall transparency of City operations Employee Productivity: 25% additional PC’s replaced, resulting in less trouble tickets

and faster employee processing (e.g. more productivity). Employee Productivity: 60% coverage on Wi-Fi, backup Internet connection in place. Public Safety: 740 of 8,500 emergency radios replaced.

2017 Citizen Facing: 311 – SLA increases with one new FTE. Citizen Facing: 24 websites redesigned each year.


Citizen Facing: 65% of web applications mobile enabled. Employee Productivity: Partial predictive/real-time business intelligence capability

released; employees and management make smarter decisions with better data and analytics.

Employee Productivity: Major enhancement - Hosted ERP (HR and Financials) implemented; system uptime increases to 99.9%; up to three upgrades per year, drastically better system functionality.

Employee Productivity: 350 workstations on VDI technology. Selected users can access their desktops anytime, anywhere.

Employee Productivity: At least seven major IT processes at full maturity. Employee Productivity: 25% additional PC’s replaced.

2018 Citizen Facing: 311 – SLA increases with one new FTE. Citizen Facing: 12 citywide kiosks for all City business at key locations. Citizen Facing: 90% of web apps mobile enabled. Employee Productivity: Major enhancement - predictive/real-time business intelligence

capability; over seven data models. Employee Productivity: 1,000 PCs on VDI technology. Selected users can access their

desktops anytime, anywhere. Employee Productivity: All IT processes at full maturity.

The remaining scenarios do not require much explanation. TS may continue with Base Case implementation (diluted investment in nearly all service areas), with stakeholders experiencing diminishing service level and the organization falling further on the Gartner maturity scale. This has essentially been the case since the formation of TS, and further customer satisfaction loss is predictable.

Alternatively, if there is no appetite for additional IT spending, CCD would be better served through implementation of a new TS strategic plan focused solely on strengthening the base layer of the Pyramid Scenario (security, infrastructure, connectivity). This will protect CCD’s current investment, increase reliability and basic service levels, and enable future incremental investment when financial resources allow. Budget reductions in higher pyramid levels and reductions in Innovation Fund capital should be reinvested in the base layers. This will include cuts or elimination of consulting services, reporting services, Channel 8, Denver 311, and other value-add services directly impacting CCD agencies and their constituents, but ensures the long-term viability of CCD’s current investments.

Other RecommendationsThese recommendations should be considered regardless of the scenario chosen for implementation, and include organizational and operational changes.

1. In conjunction with the findings in the Consulting Services service area, The Program Management Office (PMO, a division of Technology Services) should manage technology project intake from start to finish.


a. The Business Process Improvement (BPI, a unit of Budget and Management) should evolve to focus on implementing process improvement and training CCD staff.

b. Consider reallocating resources within the PMO to include up to three business analysts (BAs) to assist with Project Proposal Intake as well as project requirements, definition, and design.

c. Current PMO team size of 15 (seven FTE, eight contractors) should evolve to predominantly FTE. The 75% converted to FTE in Option 1 of Consulting Services translates to $195,000 of free capacity, enough to support three BA’s, or a combination of system architects, BAs, and other specialists.

d. Current workload is 34 projects managed by 15 FTE. Six projects are closing in 2012. The 2013 project load should be no more, and perhaps less, than 2012.

2. Channel 8 should seek to leverage its high ratings (see Attachment B) to create a revenue stream. Current restrictions on advertising should be examined to see if they are self-imposed and, if so, how they might be removed. Channel 8 management should engage the Chief Marketing Officer in this effort to fully capitalize on this significant CCD asset and its viewership.

3. The Innovation Fund has been reconfigured from the former Information Technology Investment Council (ITIC) to focus on value creation using a venture capital style approach based on ROI. TS must now only focus on partnering with agency customers to implement technology that supports refined processes versus determining CCD technology priorities. The Innovation Fund should audit all projects to ensure ROI projections are met or exceeded, and that they come in the form (hard and soft14) originally presented by the executive sponsors. Executive sponsors are ultimately responsible for delivering the forecasted ROI.

4. Evaluate whether the planned PBX conversion makes sense given the rapidly evolving personal mobile device market, the fact that most City employees own and pay for a personal mobile device, and TS’ policy to support mobile devices.

a. Does it make sense for CCD employees to have a desk phone when they already have, in most cases, a mobile device?

b. What is the breakeven point at which CCD can reimburse employees a portion of their costs versus maintaining a desk phone?

5. Integrate 311 more fully into Mayor Hancock’s e-Denver initiative, participating in the Bloomberg Mayor’s Challenge (if selected), and seeking ways to improve the customer experience while reducing transactional costs. From a governance perspective, the customer experience improvement should be managed by the Chief Marketing Officer. From a practical perspective, this involves pulling a

14 Hard ROI involves a Return that is “spent” in the form of budget reductions (i.e. “hard dollar” savings). Soft ROI involves a Return that is reinvested in increased service levels, whether in that particular service, another service within the agency, or an unrelated CCD service. This return is monetized as the difference between the cost of providing this service level without the project and the cost of providing this service with the project. For example, if CCD can produce 600 service widgets (post-project) for the same cost as 500 service widgets before the project, and the incremental cost to produce 600 would have been $100,000 without the project, then the soft return is $100,000. Alternatively, CCD could maintain the level at 500 and create a $100,000 hard return.


greater percentage of customer contacts to lower cost channels like the Denvergov.org website and mobile applications (and away from higher cost interactions such as by phone or in person).

Management span of control is, by CCD standards, fairly reasonable.

Technology Services NumberDeputy CIO to Directors

Director to Managers

Managers to Individual Contributors

Total Deputy CIO 2 3.5 to 1

Total Directors 9 3 to 1

Total Managers 28 7 to 1

Total Employees 208

Total TS Staff 247

Several questions were raised during the SRA and under evaluation by Career Service Authority, in conjunction with TS:

1. Should an IT organization this size have two Deputies plus the CIO?2. Are the organizational divisions correctly structured and are nine Directors

required to manage them?3. Is it possible to increase Manager span of control from 7:1 closer to 12:1, given

that employees are generally not field workers in need of continuous supervision and are generally highly educated and well paid?

Shared service concepts may be applied within TS, particularly with support services that have little IT specialization. In particular, the Controller’s Office should evaluate the workload of the five-FTE Finance Unit to determine if this workload would be more effectively managed as a shared service.

2013 will be a year of transition for TS, with a new CIO refining the strategic plan and implementing the SRA. Further review of the organizational structure will be expected of the leadership team.

ConclusionCCD should continue implementing the strategic concept of evolving a federated, agency-by-agency, structure into a consolidated organization managing a multi-million dollar, 10,000-plus person organization. While hiccups were expected, the Shared Service consolidation that formed TS in 2005 was underfunded and incorrectly staffed. This predicament was further exasperated by budget cuts and incremental investment in new technologies with little regard to the sustainability of the expanded technology portfolio.


As a result, the Base Case (continuing the status quo) is the least attractive of three options under consideration, but could be pursued indefinitely with predictably poor outcomes. A better budget-neutral choice would be to scale back the strategy, strengthening the technology foundation and positioning TS for expanded services at a later date. The recommended approach is incremental investment in foundational service areas as quickly as possible while investing carefully in selected areas that offer improved service at low risks and with positive and quick returns on investment. Part of this incremental investment can and should be derived from TS structural improvements, but the great majority of this expansion will require funding through general fund appropriations. As such, CCD will need to determine the appropriate investment timing through the annual budget process.

Implementation and Next StepsThe 2013 Budget includes an incremental $2.5 million for implementing the SRA. While far short of the full Pyramid Scenario investment, it enables TS to begin implementing this scenario by concentrating on security and infrastructure. Also, TS will not face any budget reductions for 2013, in sharp contrast to most City agencies.

The premise of Technology Services is that it acts as an extension and multiplier for agency service delivery. An incremental investment is a strategic response to a shrinking budget, one in which current practices and service delivery models will no be enough to sustain historic service levels. If this investment were not made, agencies would have little choice but to reduce service levels. This is a more thoughtful budgeting practice than basing future allocations on historical precedent. A second and related point is that capital investments in technology require incremental operating expenditures to ensure these investments are properly managed and maintained. Capital expenditures without a commensurate increase in operating expenditures spread resources too thinly and diminish the return on CCD’s technology investment.

The 2013 implementation will provide for the following:

1. Improved security – additional security staff and major network and monitoring tools to improve the security of the city network, information security policies, and compliance to security standards

2. Increased system and networking stability – additional staff, infrastructure, and monitoring tools to improve the reliability and reduce the number of outages for the City network, servers and applications

3. Collaboration tools for City employees –improved email services, document sharing and collaboration environments, instant messaging, and web conferencing for CCD employees

4. Upgraded Internet Connection – upgrade and provide a redundant internet connection for all city locations, including the libraries, benefiting both city employees and citizens directly

AttachmentsAttachment A – Gartner Report


Attachment B – Denver 8 Viewership MetricsAttachment C – ROI Calculations by Service AreaAttachment D – Career Service Authority ReviewAttachment E – FTE Allocation by Service Area (Base Case)Attachment F – TS Strategic Resource Alignment Summary


Documents

DRAFT - Denver Web viewIn March 2012, The City & County of Denver (CCD) initiated a Strategic Resource Alignment (SRA) project for its Technology Services (TS) Department