David B. Andrews, Senior Executive, Accenture Local
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    David B. Andrews, Senior Executive, Accenture Local David B. Andrews, Senior Executive, Accenture Local Presentation Transcript

    • Dave Andrews May 14, 2008 Implementing ERPs at a DOT
    • Goal of Session
      • To provide a definition of an ERP
      • To create awareness of the unique challenges for a DOT to implement ERP packages
      • To discuss the pros and cons of different implementation approaches in relation to a statewide ERP implementation
      • To discuss what other DOTs are doing
      • To create awareness of the DOT Community of Practice
    • DOT Community of Practice
      • Quarterly Conference Calls to discuss specific topics on implementing ERPs at a DOT
      • Sharing of implementation stories
      • Sharing of modifications
      • Community of Practice website hosted by FHWA
      • http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home
    • What is an ERP?
      • ERP = E nterprise R esource P lanning
      • Functionality typically includes:
        • Financials and Procurement
        • Human Resources and Payroll
      • Primary software vendors are SAP, Oracle/PeopleSoft, and CGI/AMS
      • Typically implemented as statewide projects; sometimes implemented at DOTs
    • History of DOT Systems
      • Legacy DOT systems
        • Many legacy systems custom built in the 1970’s
        • Satisfy the specific business needs of a DOT
        • Typically weak in reporting
      • ERP systems
        • In 1990’s, ERPs did not have functionality to meet the specific needs of a DOT
          • States implemented new ERPs and DOT interfaced
        • Now, functionality exists to satisfy DOT needs
          • ERPs beginning to be implemented at DOTs
    • ERP Functionality Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • DOT Financial Process
    • DOTs Unique Needs
      • Project management – Need to estimate and capture costs by project
      • Project attribute data - Need to capture a number of data elements that are not standard in an ERP
      • STIP and Capital Program - Need to produce the STIP and Capital Program
    • DOTs Unique Needs
      • Federal appropriations - Need to manage balances of federal appropriations
      • One federal agreement funded by multiple federal appropriations - Need ability to prioritize usage of federal appropriations
      • Splitting of transactions - Need to split transactions for multi-funded projects
      • Federal bill - Need to electronically interface federal bill to FHWA
    • DOTs Unique Needs
      • Number of users – System used for not only financial purposes, but also for project management purposes
      • Volume of transactions – Split-funded transactions create a large volume of transactions
      • Amount of history – Project data needs to be kept from inception to closure
    • Traditional Implementation Approach DOT Systems Statewide Systems
    • ERP Implementation Approaches
      • All out : Keep all DOT legacy systems and interface to new statewide ERP system
      • All in : Convert all DOT legacy systems to new statewide ERP system
      • Half in/half out : Convert only DOT administrative systems to new statewide ERP system; keep DOT legacy project management and billing systems
      • Own ERP : Implement a new DOT-only ERP system
    • Implementation Approaches DOT Systems Statewide ERP System All-out DOT Systems Statewide ERP System All-in Project Systems Statewide ERP System Half-in/Half-out New DOT ERP System Statewide ERP System Own ERP Admin Systems
    • All-out Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • All-out DOT keeps legacy systems Little change to business processes No new systems Eventually, the legislature will likely force DOT to move to the statewide system Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • All-in Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • All-in State funds new system Replaces legacy systems Big change for a DOT Lose control to statewide processes, procedures, and policies Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • Half-in/Half-out Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • Half-in/Half-out DOT moves some systems to statewide ERP DOT keeps legacy DOT-specific systems Reconciliation of data between the two systems is difficult and cumbersome Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • Own ERP Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • Own ERP DOT controls development of new system to match business processes Expensive Need to justify own ERP Payroll Inventory Human Resources Fixed Assets Time Entry Fleet Management Billing Federal Billing Accounts Receivable Project Scheduling Federal Agreements Accounts Payable Maintenance Management Project Costing Purchasing (Contracts) Construction Management Project Planning General Ledger DOT-specific functionality that could NOT be satisfied by an ERP DOT-specific functionality that could be satisfied by an ERP Administrative functionality satisfied by an ERP
    • Recommendation All-in
    • How to succeed
      • Be an active participant throughout the entire project – your voice needs to be heard
      • Have top-level support on the steering committee – ditto
      • Take advantage of the ERP functionality – it is better than what it used to be
      • Train your IT staff to support your needs after go-live – your needs require more support than others
      All-in
    • The challenges you will face
      • Adaptation to standard statewide COA – it is likely different and more high level than what you have today
      • Inability to make desired DOT-specific modifications – there will be a few modifications that you will need
      • Loss of control of reporting needs – learn to develop your own reports
      • Loss of control over processing schedule – be ready to justify your needs
      All-in
    • What DOTs are doing All-in Recently converted to a new ERP and went all-in Recently implemented a new ERP PA Own ERP Recently implemented their own DOT ERP system Currently planning for a new ERP NC Recently implemented their own DOT ERP system Currently have own ERP ; upgrading to new own ERP Currently half-in/half-out , but moving towards all-in Planning to go all-in with new state ERP system Currently all-out and interfaces to the state ERP Currently all-out and interfaces to the state ERP Plans to go all-in with new state ERP system Recently converted to new state ERP; moving to own ERP Just converted to new state ERP and went all-in Currently all-in with state ERP Planning to go all-in with new state ERP system Recently converted to a new state ERP and went all-in Currently planning to implement own DOT ERP system Currently developing own custom system and plan to interface to state system DOT Own ERP Own ERP All-in All-in All-out All-out All-in Own ERP All-in All-in All-in All-in Own ERP Own new system Approach Currently planning for a new ERP AL Currently implementing a new ERP TN Currently planning for a new ERP CA No plans for a new ERP WY Currently planning for a new ERP VA Implemented a new ERP 5 years ago VT Implemented a new ERP 5 years ago OK Recently implemented a new ERP OH Currently planning for a new ERP NY Recently implemented a new ERP NM Recently implemented a new ERP IN Implemented a new ERP 8 years ago GA Currently implementing a new ERP DE Recently implemented a new ERP CT State State
    • DOT Community of Practice
      • Quarterly Conference Calls to discuss specific topics on implementing ERPs at a DOT
      • Sharing of implementation stories
      • Sharing of modifications
      • Community of Practice website hosted by FHWA
      • http://knowledge.fhwa.dot.gov/cops/finsys.nsf/home
      • [email_address]