IPMA Forum 2012T-12 Improving IT Financial

TransparencyInsights into managing IT spendingTuesday, May 22 1:00PM-2:00PM

Moderator: Larry Dzieza, Office of the Chief Information Officer

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Strategic Action 2: Improve Accountability and Insight into IT

• Purpose of this session is to present a little and listen a lot.

• Your participation in sharing your insights and questions are needed.

• What are the IT financial issues driving your organization?

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Strategic Action 2: Improve Accountability and Insight into IT

OCIO Lead: Larry Dzieza & Bob Zych, OCIO

Agency Lead & Executive Sponsor: Bharat Shyam, OCIO

The following objectives are part of the strategy:– Work with DES to lead a transparency and accountability initiative

• Help agencies learn more about their IT spend• Drive improvements

– Partner with OFM to present an IT budget that is more transparent than in the past

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The Context of IT Financial Management

The Legislature interest in IT financial issues has never been higher.

OFM has initiated several efforts to set a better foundation for ITFM.• Tracking IT spending in AFRS (X,Y coding)

• Introducing state agencies to Gartner’s total cost of ownership model.

• Convening a collaborative IT data improvement effort

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IT Improvement Direction

• Make information about IT spending visible and meaningful.

• Less one-off, one-time data wrangling, more reliance on systems of record;

• Move beyond data for compliance and provide tools to improve IT management and ops;

• Provide both an agency and an enterprise perspective on IT spending and metrics; and

• Mine the data to drive decisions, inform opportunities for improvements, justify investment asks and save money.

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Hard Earned TCO Knowledge

Enter Apptio

• Our Gartner total cost of ownership effort was the first phase in a greater effort to achieve a better understanding of our agencies’ IT cost.

• The result: Overall, we are in-line with the other “federated” IT enterprises.

• We knew that there are tools available that can ease the data reporting burden, provide greater insight, model alternative approaches and help plan for the future.

• We are progressing to complete an agreement with Apptio to provide a tool for all agencies to use.

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Apptio Builds On Your TCO Knowledge

Apptio Builds On Your TCO Knowledge

Phase 1 Deployment - High Level Scope

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• Objective: Ready to support State budgeting activities in late Oct / Nov; transform IT through financial transparency and accountability

• Time Period: May – Oct 2012• Financial Transparency:

– CTS: provide improved Bill of IT for IT Services delivered to other State of WA agencies

– Top 45 agencies: provide high level service costing analysis of IT operating expenditures; analysis at the financial, resource tower and service category views

– Create standard costing structure to analyze, compare and consolidate agency budgets across multiple models

• 2013 Budgeting– Use existing budgeting process for agencies submission in August– Configure Apptio Budget & Finance model to import, consolidate and present

parallel view of IT 2013 budget submission

Phase 2 Deployment - High Level Scope

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• Objective: Transform IT across the agencies to focus on Service Optimization and reduce the State’s overall IT spend

• Time Period: Nov 2012 – Mar 2013

• Service Optimization– CTS: visibility into infrastructure utilization and service costs to provide

better information to make decisions on transitioning other agency infrastructure services to CTS

– All agencies: deeper analysis into application TCO and infrastructure utilization and costs

– CTS: transition to a chargeback Bill of IT to the State agencies– DSHS and DES: provide showback Bill of IT to the department heads within

their agency for the IT Services delivered to support the agency

Proposed Deployment Agency Grouping:

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List of Agencies by Group (descending order of IT Spend)

Month Agency Count Sum of Annual Budget Avg of Annual Budget % of Annual Budget Comment1 10 528,438,630$ 52,843,863$ 53.4% Top priority, agencies to provide TBMAs2 10 85,744,949$ 8,574,495$ 8.7% Next priority, " "3 11 204,587,829$ 18,598,894$ 20.7% Next priority, " "4 10 107,351,271$ 10,735,127$ 10.9% Next priority, " "5 2 51,727,940$ 25,863,970$ 5.2% Next priority, " "6 2 10,820,715$ 5,410,358$ 1.1% Low priority, may limit to GL reporting Grand Total 45 988,671,334$ 21,970,474$ 100.0%

Agency Grouping Agency Grouping Agency GroupingDepartment of Social and Health Services Over30M Department of Ecology Over10M University of Washington HiEd Consolidated Technology Services Over30M Department of Natural Resources Over10M Military Department Other Department of Employment Security Over30M Department of Veterans' Affairs OCIO/COE Department of Financial Institutions Other Department of Enterprise Services Over30M Washington State Health Care Authority Other Western Washington University Department of Labor and Industries Over30M Department of Retirement Systems Other Department of Early Learning Other Department of Corrections Over30M Washington State Patrol Over10M Department of Commerce Other Department of Transportation Over30M State Parks and Recreation Commission Other Offi ce of the Attorney General Other Department of Health Over10M Department of Agriculture Other Utilities and Transportation Commission OCIO/COE Department of Revenue Over10M Department of Fish and Wildlife Other Board of Industrial Insurance Appeals Cabs Department of Licensing Over10M Superintendent of Public Instruction Over10M Offi ce of the State Treasurer Other

Offi ce of the State Auditor Other Offi ce of the Secretary of State Other

Agency Grouping Agency GroupingLiquor Control Board Cabs Eastern Washington University HiEd State Investment Board OCIO/COE Washington State University HiEd

Community and Technical College System HiEd Central Washington University HiEd Offi ce of the Insurance Commissioner Other Higher Education Coordinating Board HiEd The Evergreen State College HiEd Western Washington University HiEd Offi ce of Administrative Hearings Cabs State Lottery Commission Cabs Washington State Criminal Justice Training Commission

Cabs

Recreation and Conservation Funding Board Cabs Washington State Gambling Commission Cabs

Month 1 Month 2 Month 3

Month 4 Month 5

Moderator: Larry Dzieza, OCIO

Panel Members: Bharat Shyam, OCIO Greg Leskinen, Apptio Bob Zych, OCIO

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