Richard Perry, Chief Financial Officer Bill Ritchie, Group Manager IT & IS Services

Transcription

1 Number DATE 31/07/2014 FROM Richard Perry, Chief Financial Officer Bill Ritchie, Group Manager IT & IS Services SUBJECT ISSP Business Case RECOMMENDATION It is recommended that the Board approve the Information Systems Strategic Plan (ISSP) 2014/15 capital budget of $2.55m. 2 BACKGROUND The (ISSP) was approved by the Board in July 2014 (CI14/06/09). It was agreed that a business case will be submitted to the July Board for funding approval. This business case provides more details of the ISSP projects and requests approval of funding to implement the 2014/15 programme of work. Provisional capital and operational costs were included in the 2014/15 financial budget and have now been further refined for this business case. A comparison between the original estimates (as presented in the budget and to the Board in the ISSP) and the refined costings is provided in section six. Overall, there is a reduction from the original budget and ISSP by around $360k. 3 EXECUTIVE SUMMARY The ISSP was developed to provide a work programme for information management and technology systems in Callaghan Innovation for the next 18 months. The implementation of the recommendations of the ISSP fit directly with the primary goals of Callaghan Innovation as described in the Statement of Intent 1 July June In particular, it will facilitate: Making better use of technology and media to enhance services and customer access to these services. Partnering with others to provide services to increase the effectiveness of the service and/or reduce costs (e.g. through shared facilities and services). Improving and managing organisational health and capability. Capital investment and asset management upgrading of ICT systems, dealing with deferred maintenance of systems and property. Board Paper Template

2 Supporting strategic initiatives and investments in the innovation system (e.g. CRM with NZTE, NZBN etc.). The ISSP was developed around the key principles of ensuring business agility, by building an infrastructure and enterprise architecture that will assist Callaghan Innovation being an agile organisation which adopts and supports initiatives that can rapidly deliver business value. ICT systems at Callaghan Innovation have had no significant investment for a number of years. This has created a situation where significant expenditure would be required to upgrade servers, network storage, business systems and data centres. The ISSP investigated these issues and the future needs of Callaghan Innovation and recommended the solutions as outlined in this paper. The ISSP reviewed the best deployment options to provide these services, including taking into consideration Government ICT policies and direction. The investment rationale identified that capital could be better deployed by purchasing infrastructure as a service in a government approved private cloud data centre. This solution would also mitigate the significant investment that would be required to upgrade the current Callaghan data centres in Wellington and Auckland. The proposed new infrastructure provides high availability, disaster recovery and enhanced flexibility to deliver new business ICT solutions and systems. The ISSP is a significant programme of work split into seven project work streams for this financial year. Project Work Stream Brief Description Revised Costs ($000 s) Cloud Infrastructure See section 5.1 SharePoint (EDRMS and Intranet) See section 5.2 Customer Relationship Management (CRM) See section 5.3 Chemical Inventory See section 5.4 Financial Management (FMIS) Replacement See section 5.5 Website Redevelopment See section 5.6 Build new Callaghan Innovation Infrastructure using All of Government Cloud infrastructure as a service (IaaS). A PRA compliant central document management and Intranet system A new CRM, leveraging the design of the NZTE CRM. A HSNO compliant Chemical Inventory System that will be used by all of Callaghan s business group and potentially tenants. Business analysis and process redesign and creation of an RFP. Creation of a dynamic innovative website aligned with our marketing strategy and supporting and promoting national technology networks. CapEx $750K OpEx $255K CapEx. $850K The Board has requested a separated business case for the CRM project and this will be provided in October CapEx. $300 CapEx. $150K CapEx. $250K Human Resources/Payroll (HRIS) See section 5.7 Business Analysis and process redesign CapEx. $250K 7XUJWW2J4RRN Page 2

3 work to enable a payroll/ HR system. Implementation 4 PROGRAMME DETAILS 4.1 GOVERNANCE AND REPORTING The programme of work will be managed by an experienced programme manager reporting to the Group Manager IT & IS Services. The project will have a Project Steering Committee (comprising some members of the ELT and senior business unit managers) with a defined terms of reference to ensure sound governance. Reporting to the CEO (through the ELT), the Steering Committee will be the governance body and ELT will have ultimate accountability for the programme. The project sponsor (CFO) will chair the Steering Committee and a quarterly status report will be provided to the Board. Executive Leadership Team Programme Sponsor (CFO) IT and IS Manager ISSP Programme Manager Project Manager - Cloud Infrasture Project Manager - Sharepoint Project Manager - CRM Project Manager Project Manager Each project will have an assigned project manager reporting progress/risks/issues/mitigations etc. to the Programme Manager. The business case includes funding for the establishment of the project management governance structure to ensure each element of the programme is supported by effective project management that facilitates the successful implementation of the deliverables of the programme. The size of the Callaghan Innovation ISSP implementation project falls outside of the reporting guidelines to Treasury for major projects assurance. We will use the methodology and disciplines as documented by Treasury to assist in the governance of the programme of work. 4.2 RISK MANAGEMENT 7XUJWW2J4RRN Page 3

4 The programme will have a risk management framework as part of its governance structure. The risk management framework will align to the government major project guidelines and Callaghan Innovation risk management framework. These guidelines include: Developing the programme risk profile. Establishing an integrated programme risk management process. Continuous risk management monitoring. 4.3 PROCUREMENT Our procurement processes for selection and supply have been designed to comply with the latest Government rules for Sourcing and the associated guidelines and to ensure we get the best value for money. The selection process will in general use either an open RFI or RFP process to ensure a fair and independent procurement process can be fully audited, while ensuring that we acquire solutions that best fit our operational requirements and value for money. Each initiative has included a review to use Government ICT procurement services that may offer business value to Callaghan Innovation. These have included: Government Infrastructure as a service (IaaS) use of shared infrastructure services. Government Software as a service (SaaS) use of shared software services. Enterprise Content Management as a service (Cohesion) use of shared content management system. Se -secure encrypted service between government agencies. 4.4 GOVERNMENT ICT ALIGNMENT The Initiatives within the ISSP are in line with the Government ICT Strategy and Action Plan to All new ICT initiatives must align to this strategy. Cloud first cloud services development and deployment. Services are digital by default. Information is managed as an asset. Investment and capability are shared. 4.5 COMPLIANCE A number of the initiatives will assist in achieving legislative compliance: Chemical Inventory Management will assist in developing the controls that ensure the requirements of the Hazardous Substances and New Organisms ACT 1996 (HSNO), including The Hazardous Substance (Tracking) Regulations 2001 are adhered too. Electronic Document Management System (EDRMS) will assist in developing processes required to achieve Public Records Act 2005 (PRA) compliance. Under the Act, Callaghan Innovation is required to create and maintain full and accurate records. New Zealand Business Number (NZBN). The implementation of the single business number, the NZBN, is a key requirement of delivering on the Better Public Services Agenda Result Area PRIORITIES 7XUJWW2J4RRN Page 4

5 1 Cloud Infrastructure: The first priority for Callaghan Innovation ICT Strategic plan is to implementation of the cloud infrastructure. This is key requirement for all future projects. 2 SharePoint (EDRM s / Intranet): SharePoint will be used for the central document repository for systems going forward. 3 Other Projects: Other projects will be able to leverage SharePoint and will be built on the new Callaghan Innovation cloud infrastructure. 1: Cloud Infrastructure 2: SharePoint 3: CRM 3: Chemical Inventory 3: FMIS Replacement 3: HRIS 3: Website Redevelopment 4.7 PROGRAMME TIMELINES Indicative timelines for the ISSP are below 4.8 BUSINESS BENEFITS 7XUJWW2J4RRN Page 5

6 4.8.1 BUSINESS AGILITY The ISSP focuses on providing technology platforms that will provide the ability to adapt rapidly and cost effective ways in response to changes in our business environment. An example of this agility is the Cloud infrastructure allows Callaghan Innovation to increase its IT hardware capacity as needed. Currently we are constrained by our server and storage capacity. In the cloud model the organisation will pay for what it uses. Adding Disaster recovery or high availability for solutions just involves incremental cost rather than significant capital outlay. Business applications can be created in SharePoint leveraging existing security and documents, including providing workflow and in- built security DATA MANAGEMENT- INFORMATION IS MANAGED AS AN ASSET The ISSP Information Management strategy has initiatives that will grow our information management capabilities. The value of information held will be recognised and actively used in designing and delivering new services, supporting evidence based policy making and optimising decision making. High value information assets will have been rationalised and integrated to deliver authoritative data sources. There will be greater confidence in the security of personal and classified data. There will be an increased emphasis on non-personal information being made open by default, with more information shared between other government agencies and made available in a way that facilitates re-use e.g.: data sharing with NZTE COLLABORATION Development of integrated capabilities that will help improve Callaghan Innovation organisational effectiveness by providing comprehensive content management and enterprise search, shared business processes and facilitating information sharing across our organisational boundaries for better insight of our business data. Key features of the collaborative platforms include: Content Management File management, Records Management etc. Social Computing supports a range of options e.g. forums, blogs, extranets etc. Enterprise Search search on documents, metadata etc. Identity Management improved integrated authentication from a single log on. Mobile Computing supports viewing across multiple platforms. Unified Communications extends communications securely over internet to our customers and stakeholders, by voice and video calling and instant messaging. 4.9 YEAR 2 ISSP PROJECTS The following additional projects were included in the ISSP board paper (CI14/06/09). Details are not provided in this business case as they are planned in budget FY 2015/16. Implementation of the Financial Management System. Business Intelligence solutions. Telephony Integration. 7XUJWW2J4RRN Page 6

7 5 APPENDIXES 5.1 CLOUD INFRASTRUCTURE Use of All of Government Cloud infrastructure as a service. The Cloud computing model allows Callaghan Innovation to consume ICT as a service which leads to better investment and savings for ICT services. The Cloud infrastructure enables a flexible, elastic, cost efficient IT infrastructure which will improve our operational efficiency, optimise resource utilization and improve deployment times. Our current server room environment and Disaster Recovery (DR) require extensive investment.a cloud solution will provide a cost effective high availability and DR solution. Our current DR is overnight replication for a limited number of servers and could affect business continuity SCOPE This project aims to deliver government approved secure infrastructure as a service. This includes domain controllers, exchange ( ), Lync (unified communications), Mobility management, storage and linking to the existing Callaghan Innovation (Ex IRL) environment. The ISSP defined the requirements of this service, based on 450 actual users for licencing and resource management. The IaaS pricing includes one-off setup costs and the ongoing fee for the services. The IaaS Services is based around: 1. Utility Compute (UC) Services based on best of breed enterprise grade hardware and software in a secure virtual network, server and storage environment. The design delivers the benefits of high availability and scalability. The utility service compute service includes: -High availability clustered hardware -10 Gb Backbone connectivity -8GBps SAN connectivity -Bundled Windows Server OS licencing % Availability SLA 2. Storage as a Service Revera utilise fully redundant high performance storage subsystems across all data centres. Underpinning these services is inter- data centre SAN replication for enhanced disaster recovery capability. 3. Backup as a Service All production servers will utilise the managed backup solution. This provides Callaghan Innovation with a fully managed backup and restore facility. 4. AzureAD will be used as the primary identity management function for the new system environment. All other services will be required to integrate with AzureAD. Business application licencing is not included in the IaaS budgets, but is included in the separate budget submissions e.g Sharepoint ERDMS. Our current server room and disaster recover (DR) environments require extensive investment. A cloud solution will provide a cost effective high availability and disaster recovery solution. A high level estimate to upgrade the current Callaghan Innovation data centres in Wellington and Auckland would be approx. $1.8m. 7XUJWW2J4RRN Page 7

8 All Government agency data centres proposed to be built or upgraded require the approval of the Government CIO, as the direction of Government ICT is to consolidate data centres with a preference that all government agencies use the IaaS service. All new business systems will be installed in the new infrastructure and progressively older business applications will be transferred from the existing Callaghan Innovation infrastructure. This approach provides Callaghan Innovation the agility to develop and implement new business solutions without being impacted by the legacy of the ex IRL systems. The more flexible infrastructure as a service allows new systems to be added or scaled up the Callaghan Innovation ICT environment quickly SCOPE A Voice over IP (VOIP) solution is out of scope as solutions are evolving in this area COST CapEx Item Cost ($000) Infrastructure implementation setup 25 SQL server licensing 130 Active Directory tools 5 Revera Technical resourcing for implementation 120 Data circuit link & implementation POP to Revera 110 Unified Communications (MS Lync) 60 Programme/project management 300 Total CapEx $750 OpEx Item Cost ($000) Infrastructure as a service 185 Mail archive storage 30 Azure directory services 10 Mobility Management 30 Total OpEx $ PROGRESS Final design validation is being undertaken with Revera Limited (AoG Infrastructure provider) and agreement on a proof of concept project. 5.2 SHAREPOINT (EDRMS AND INTRANET) A document management system (EDRMS), which will allow Callaghan Innovation staff to find information and collaborate more easily. This EDRMS will be leveraged to replace the aging 7XUJWW2J4RRN Page 8

9 intranet and provide an integrated collaborative online channel to incorporate business information and act as internal flagship communication channel. SharePoint EDRMS will be used for a central repository for project documents, s and tasks. A project template site with status reporting etc. will standardize the project management process across Callaghan Innovation. This tool will provide base functionality for other systems such as contract management (the recent transfer of staff to VUW highlighted the risks of documents being retained in silos) SCOPE Callaghan Innovation requires an EDRMS for its documents and records management. There is no document management system in place so users store their information in shared directories. This results in silos of information, inefficient document transparency and collaboration and likely significant duplication and data retention FUTURE POSSIBILITIES Leveraging the SharePoint system for other business applications such as a customer centric portal that integrates with our CRM, a HR management portal and other business applications COST CapEx Item Cost ($000) Licensing 240 Design/Build and Consultancy 132 Records Management 201 Management 43 Intranet 100 Training 84 Programme / Project Management 50 Total CapEx $ PROGRESS We have investigated the All of Government SharePoint solution and recommend proceeding with our own on- premise solution as it will be more cost effective. We have a preferred vendor from an RFI process and are currently completing the high level platform design and intranet information architecture. 5.3 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) This project will implement a new CRM, leveraging the design of the NZTE CRM, which will facilitate the sharing of information and client management between the two organisations. A separate business case will be prepared for the CRM project for the October Board following the agreement of proposed shared costings with NZTE. 5.4 CHEMICAL INVENTORY Callaghan Innovation does not have a shared Chemical Inventory System that is used by all of the business groups. 7XUJWW2J4RRN Page 9

10 The recent legislative compliance survey confirmed there are a range of areas where Callaghan Innovation does not adequately meet the requirements of the Hazardous Substances and New Organisms ACT 1996 (HSNO). This had already been identified as a risk. The area s of partial or non compliance are: Hazardous Substances Tracking i.e Callaghan Innovation does not have a capable inventory management system to meet the tracking requirements for hazardous substances. Exempt Laboratories Recording and storage of substances i.e to keep an accurate record of hazardous substances quantities and for correct labeling of hazardous substances SCOPE Implement a single HSNO compliant chemical inventory system that will be used by all user groups (and potentially tenants) at Callaghan Innovation OUT OF SCOPE Other Inventory such as fixed assets and furniture are not in the immediate scope. immediate scope does not include the integration with our current FMIS system. The FUTURE POSSIBILITIES Integration with FMIS and SharePoint COST CapEx Item Cost ($000) Scanning Hardware 35 Inventory Management software 150 Project Management 115 Total CapEx $ PROGRESS Probity Consulting have completed high level business analysis and drafted an Expression of Interest paper (EOI) that was released on the 9 th July This solution may be best provided as Software as a Service which will be considered once the EOI response is received. 5.5 FINANCIAL MANAGEMENT (FMIS) REPLACEMENT The current financial system IFS is over 10 years old. It no longer meets the business needs of Callaghan Innovation, especially in areas such as output reporting and grants management. It uses technology that does not align to our future business system strategy and would require substantial investment in upgrading and customising to meet our business needs. There is no/limited support for this in New Zealand and we are the only substaniall NZ installation. We have key person risk in supporting the technology. 7XUJWW2J4RRN Page 10

11 Business analysis and process redesign will be completed. This will enable a release of an RFP for a new ERP/Financial system. The intention is to implement a product with more flexibility to changing business requirements and needs of Callaghan Innovation SCOPE Includes business process review and re-engineering of current processes. Integration with SharePoint and the Chemical Inventory system will be a requirement for any new system. Once the business requirements are defined, an RFP will then be released FUTURE POSSIBILITIES Desktop BI integration and integration into SharePoint Project sites COST CapEx Item Cost ($000) Business process review consultancy 75 EOI /RFP 40 Project Management 35 Total CapEx $ PROGRESS Engaged Probity Consulting to perform business process re-design and create RFP. 5.6 WEBSITE REDEVELOPMENT The current Callaghan Innovation website was implemented during the Callaghan Innovation transition. This project seeks to deliver a dynamic innovative website aligned with our marketing and communication strategies and supporting and promoting national technology networks SCOPE The goal of this new improved website is to provide Callaghan Innovation with a dynamic, innovative and engaging online presence. The website will be a channel to promote clusters, national technology networks, other accelerator services and technical services in line with our strategic objectives COST CapEx Item Cost ($000) Build Phase 150 Market Research and Requirements 50 Design, Branding and Theming 50 Total CapEx $ FUTURE POSSIBILITIES Integration with SharePoint EDRMS 7XUJWW2J4RRN Page 11

12 5.7 HUMAN RESOURCES/PAYROLL (HRIS) This project seeks to identify options for a replacement HRIS/Payroll system that better meets the business needs of Callaghan Innovation This review will include investigating software as service offerings SCOPE Business Analysis and process redesign work will be undertaken in the first instance for a payroll/ HR system. The People and Capability team are improving processes, which includes payroll. This project looks to get better synergies through improved processes and leveraging modern technology COST CapEx Item Cost ($000) Business Requirement/Process Re-engineering 65 Payroll/HR System 185 Total CapEx $ FUTURE POSSIBILITIES Integration with SharePoint, e.g. storing HR files in SharePoint, integrating with the personal profiles etc. 6 BUDGET COMPARISON The Key ISSP initiatives were included with the capital and operational budgets for FY2014/15 and FY2015/2016. This table details comparison of budget figures included within ISSP paper (C I 14/06/09) and this business case. Original CAPEX $000 BUDGET 2014/15 Revised CAPEX $000 BUDGET 2014/15 Original OPEX $000 BUDGET 2014/15 Revised OPEX $000 BUDGET 2014/15 COMMENTS Cloud Infrastructure DRP/Programme Management Cloud Infrastructure + licenses ***NB Comment below ***NB Comment below Website Redevelopment CRM 280 N/A 0 0 *NB comment below 7XUJWW2J4RRN Page 12

13 Intranet/SharePoint EDRMS/SharePoint ERP Replacement/Payroll Chemical Inventory Total 2014/15 $3,190 $2,550 $240 $255 ERP replacement PH2 500 N/A N/A **NB comment below Business Intelligence 300 N/A N/A **NB comment below Telephony integration 200 N/A N/A **NB comment below SharePoint/Application development 100 N/A N/A **NB comment below Total 2015/16 $1,100 OVERALL TOTAL $4,290 * Separate Business Case to be submitted to Board ** Budget to be requested in FY 2015/16 *** Cloud Infrastructure goes live 1 November XUJWW2J4RRN Page 13