1	Justifying Your Must-Do IT Investments APHSA – ISM August 26, 2003
2	Introductions Art Stephens Commonwealth of Pennsylvania Deputy Secretary (CIO) for Information Technology Phil Hernandez Pennsylvania Department of Public Welfare Chief Information Officer (CIO) Mike Coulson Director: Bureau of Program Support, Office of Income Maintenance, Department of Public Welfare
3	Agenda How are project requests processed today? Art Stephens How do business units prioritize multiple project requests? Mike Coulson How does an information technology office prioritize Department-wide project requests? Phil Hernandez How will the Commonwealth of PA prioritize agency IT project requests going forward? Art Stephens
4	Background The Commonwealth has made substantial investments in technology. No current inventory of IT systems exists in the Commonwealth. Need to implement comprehensive process to prioritize new and ongoing IT expenditures across Commonwealth agencies/enterprise.
5	Current IT Project Request Process and Results
6	"Control IT spending." Control IT spending. Assure investments are consistent with and support Governor’s highest priority objectives. Ensure leveraging of existing solutions, and maximizing investments across agencies. Encourage interoperability across the enterprise (data sharing).
7	How do business units prioritize multiple project requests?
8	DPW Business Units Receive Input From a Number of Stakeholders
9	This is How the Planning Process Can Feel to a Manager. . .
10	Business Drivers Impact Initiative Requests
11	The Office of Income Maintenance Initiatives Must Support the DPW Mission as well as align with the Department’s IT Strategy and Standards
12	Planning Timeline in the Context of the Budgeting Process: Business Unit Focus
13	Business Units Submit Detailed Planning Documents for Review by the Information Resource Management Team
14	Why go through this particular process every year? What are the benefits?
15	""Nothing is ever done..." "Nothing is ever done until everyone is convinced that it ought to be done, and has been convinced for so long that it is now time to do something else" -- F.M. Cornford, British author, poet, translator (1874-1943)
16	How does an information technology office prioritize Department-wide project requests?
17	Everyone Wants to be #1
18	Project Evaluation Criteria
19	Project Prioritization Workbook Resources 30% of Score Costs Recurring Non-recurring Benefits Tangible Intangible Scoring is based on benefit-to-cost ratio Risk 20% of Score Risk of NOT doing the project (14%) Risk of doing the project (risking failure) ( 6%)
20	Project Prioritization Workbook Stakeholder Impact 20% of Score DPW Mandate (3.5%) Program Office Mandate (2.9%) Federal Government Mandate (2.9%) Commonwealth of PA Mandate (2.9%) Legal Pressure – Probability & Impact (2.9%) Public Opinion/View (2.5%) County/Local Government Staff Impact (1.2%) Customer Service Enhancement (1.2%) Cross-Agency Collaboration 30% of Score Multiple DPW Programs (10%) Other Commonwealth Agencies (10%) County Government Offices (10%)
21	Scoring Process Results
22	Project Prioritization – Consideration of Project Scores and Other Factors Commonwealth and Department Priorities Strategic Value New capabilities/functionality Reusability Business/IT Mix Business Process Reengineering vs System Development Phase of the Project Year 1, 2, 3, …. Planning, design, development, operations Degree of Automated Support already Present
23	Prioritization Process Results
24	Planning Timeline in the Context of the Budgeting Process: IT Planning Focus
25	Why go through this particular process every year? What are the benefits?
26	How will the Commonwealth of PA prioritize agency IT project requests going forward?
27	Agenda
28	"Control IT spending." Control IT spending. Assure investments are consistent with and support Governor’s highest priority objectives. Ensure leveraging of existing solutions, and maximizing investments across agencies. Encourage interoperability across the enterprise (data sharing).
29	How would it be organized? Structured on the concept that various state agencies engage in similar or common types of activities. As such, prioritization of IT projects could be grouped according to “communities of practice.”
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31	Individual Agencies Agencies will complete project profile and scoring sheets. Agencies will prioritize their IT investments to present to the “community of practice” meeting. Federal funds discussion to occur within community of practice.
32	Multi-Agency Communities of Practice Investments would be prioritized by agencies in that community of practice. Meeting would be chaired by Governor’s Policy Office or other Governor appointee. Initiatives would be discussed against a standard set of criteria. Output of the meeting is a prioritized list of projects. Note: Follow-up process must be implemented to keep agencies accountable for the benefits.
33	IT Investment Board The process would be directed by an IT Investment Board comprised of:
34	Key Considerations Program offices with special funding circumventing the system Administrative buy-in Comptroller participation/role Projects > $100K and no maintenance Develop common/related ROI model
35	Hurdles Agency Autonomy/change in culture Timing of organizing approach Agency staff knowing how to create business cases No existing IT inventory Integrate federal funds into prioritization process
36	IT Project Template Cost Benefit Analysis 30% of Evaluation Return on Investment 1) ROI within 1 year (30 points) 2) ROI within 5 years (20 points) 3) ROI within 5-10 years (10 points) 4) ROI within 10-15 years (5 points) 5) ROI > 15 years (0 points)
37	IT Project Template Collaboration 20% of Evaluation 1) Collaboration (10%) Commonwealth Enterprise Project (10 points) Five or More Entities (State or Local) (7 points) 1-5 Entities (3 points) One Entity (0 points) 2) Experienced Commonwealth IT Project Manager (5%) 3) Agency Resource Allocation (5%) No External Resources Needed (5 points) External IT Resources Needed Only (3 points) External Business Resources Needed Only (2 points) External IT and Business Resources Needed (0 points)
38	Why go through this particular process every year? What are the benefits?
39	Summary
40	Questions?