Integrated Financial Management System (IFMS) Status and Plans Ahead: for CFO Forum
This presentation outlines the current state and future plans of the Integrated Financial Management System (IFMS), focusing on progress, critical path procurement, implementation principles, and software procurement progress. It details the engagement with stakeholders, software procurement timeline, and the IFMS solution stack utilizing Oracle technology for various business modules and enterprise development platforms.
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Presentation Transcript
Integrated Financial Management System (IFMS) Status and Plans Ahead: for CFO Forum Presenter: Lindy Bodewig | Chief Director: National Treasury | 12 August 2016
Overview Present State of Progress Critical Path Procurement of Software Licenses, Fit-For-Purpose Considerations for Way Forward Implementation Principles Rollout Considerations Intensity of Focus Centralised Design Engagement with PT s 2 2
IFMS I vs. IFMS II November 2013 IFMS I IFMS II
Software procurement progress Value Assurance Contracting November 2015 - Business processes concluded and submitted to OSM for process-to-product mapping - Governance strategies for PMO are drafted in anticipation of rapid team expansion Procurement: Evaluation and Administration March 2016 - Value assurance completed - Legal negotiations advanced - Commercial negotiations advanced - Steering Committee meeting to seek approval of key principles for conclusion of software purchase - MoF briefs Cabinet on imminent software procurement April 2016 January 2016 Value Assurance Processes kicked off; process (P2P) compliance assessed; product demonstrations held; technical workshops conducted; legal and commercial work stream activity intensifies - Software procurement concluded - Internal planning intensifies - Oracle Corporation (OSM) receives conditional award, post conclusion of functional and price evaluation of bids June / July 2015 Aug / Sept 2015 - OSM Engagement Strategy Completed - OSM Kick-Off Session held with OSM 4
IFMS solution stack (Oracle) Customers Customers Agents Employees User Access Devices Phone, Mobile / Disconnected Application Management Text Email Chat Text Local Office Chat Phone, IVR Kiosk Web Email Fax, IVR Web Suite for Oracle E- Business Suite BUSINESS MODULES Business Intelligence Oracle Identity Manager Financial Management Payroll Human Capital Management Supply Chain Management Project Management Master Data Management ENTERPRISE DEVELOPMENT PLATFORM Jdeveloper Governance Risk & Controls ENTERPRISE MANAGEMENT Security Management & Modeling ENTERPRISE SECURITY MIDDLEWARE AND ITEGRATION Diagnostic and Tubing Oracle Data Integrator Weblogic Suite Web Tier SOA Suite Business Process Management Oracle Service Bus Webcenter Content Webcenter Enterprise Capture Webcenter Forms Recogn. Fusion Middleware Adp. UPK Oracle Access Management DATABASE Database Enterprise Edition Real Audit Vault & DB Firewall Advanced Security Database Vault OAF Application Clusters Partitioning Data Masking Middleware Mnagaement ENTERPRISE SHARED INFRASTRUCTURE Packs Data Centre Hosting Facilities Server & Storage Infrastructure Advanced Analytics Network Connectivity Virtualisation 5
Applications procured The licenses are perpetual meaning that RSA pays a one time license fee that allows continued use of the software for as long as RSA complies with all terms of the license agreement Core Business Modules & Audit Oracle Enterprise Data Quality Profile Standardization & Match Oracle Enterprise Data Quality Business Intelligence Supply Chain Analytics Procure & Spend Analytics Project Analytics Financial Analytics HCM Analytics EAM Analytics Oracle BI Foundation Suite Endeca Financial Management Supply Chain Management Oracle Order Management Oracle Purchasing Oracle Sourcing for Oracle Purchasing Oracle Procurement Contracts for Oracle Purchasing Oracle Enterprise Asset Management Oracle Self-Service Work Requests for Oracle Enterprise Asset Management Oracle Services Procurement for Oracle Purchasing Oracle Inventory Management Oracle iSupplier Portal for Oracle Purchasing Oracle Mobile Supply Chain App for Inv. Management Oracle iProcurement Oracle Supplier Lifecycle Management Oracle Advanced Pricing for Oracle Purchasing Oracle Sourcing Optimization for Oracle Purchasing Project Management Primavera Gateway & Primavera Unifier Proj Controls Oracle Project Costing Oracle Project Billing for Oracle Project Costing Oracle AutoVue 2D Professional Oracle Fusion Project Resource Management Oracle Project Collaboration Oracle Financials Oracle iReceivables Oracle Internet Expenses Hyperion Enterprise Planning Suite Hyperion Public Sector Planning & Budgeting Hyperion Financial Data Quality Management Hyperion Financial Management Plus Data Relationship Management, Stewart, Governance Oracle Project Financial Planning Payroll Oracle Payroll Human Capital Management Oracle Human Resources Oracle Self Service Oracle Performance Management Oracle iRecruitment Oracle Succession Planning Oracle Time & Labour Oracle Compensation Workbench Oracle Advanced Benefits Oracle Learning Management Master Data Management Oracle Advanced Controls for Oracle E-Business Suite Governance Risk & Controls Oracle Product Hub Add-on for Record Oracle Supplier Hub Data Steward Oracle Supplier Hub Add-On for EBS
Process to Product Mapping Exercise The Business Process Documents (BPDs) 232 Financial Management Supply Chain Management Total number of processes: SCM reform resulted in increase in complexity and breadth of requirements to be supported by the IFMS project; All the new / extended business processes had to be verified against the solution proposed by Oracle to: (a) ensure that the solution proposed still [materially] meets our business requirements; (b) identify any gaps in the solution and requirements and the impact thereof on the IFMS ERP; All activities were undertaken with the respective policy owners Manage Movable Assets Manage Supply Chain Performance Integrated SCM planning Plan to Perform Inventory Manage Immovable / Infrastructure Administer SCM Governance Manage Commodities Fixed Assets (EAM) Order to Cash Manage Logistics, Inventory & Stores Manage Procurement Manage Suppliers Record to Report Procure to Pay Manage Disposals Manage Contracts Cash 83% 93% 79 26 Management Payroll HR Management Personnel Administration Compensation Management Career Management Defined Benefits Pay Time Admin / data maintenance Succession Management Incentives Management E-Recruiting Management Enterprise Learning Management Labour Relations Organisational Management Other Deductions 91% 91 94% 36 Environmental Health & Safety Performance Management HR Resources Planning Business Intelligence
IFMS Programme Critical Path (Short-term) 04/16 05/16 06/16 07/16 08/16 09/16 10/16 11/16 12/16 01/17 02/17 03/17 04/17 05/17 Software Licences Negotiations Inform Cabinet, HODs & others Conduct Envision Phase: Target Operating Model Business Architecture Solution Architecture Implementation Roadmap Procure Envision Phase Services & Mobilisation Finalise Lead Site Selection IFMS Programme Elaborate Phase: Solution Design Procure and Install Hosting Infrastructure Procure Implementation Services Procure Lead Sites Technical Infrastructure Procurement of Communications Infrastructure Construction Phase: Solution Build
Overview Present State of Progress Critical Path Procurement of Software Licenses, Fit-For-Purpose Considerations for Way Forward Implementation Principles Rollout Considerations Intensity of Focus Centralised Design Engagement with PT s 9 9
Implementation Principles The IFMS solution is a COTS ERP Vanilla Wall-to-Wall Implementation; The customisation of the solution must be managed according to OSM Best Practices ; The implementation of the solution will be executed by means of the OSM s implementation methodology and Best Practice as prescribed by the OSM; The IFMS solution will be centrally hosted and managed; Departments are responsible for the accuracy and completeness of data to be migrated to IFMS, according to the required standard as prescribed by the OSM; Departments must ensure that all required infrastructure is in place for implementation, including, but not limited to, last mile infrastructure. Guidance will be provided by the IFMS PMO; and Departments must ensure that suitable human resource capacity is in place to support the implementation.
Rollout Considerations Provincial and National Lead Sites WC (All depts. except health, education), EC (Treasury, Social Development, Office of the Premier) (Under discussion) NT, DPSA, Environmental Affairs and possibly others National Rollout Generic Administrative Departments: Administrative and primarily governed by the Public Service Act (PSA) and the Public Finance Management Act (PFMA), and utilize a single version of the IFMS solution. Differentiated Departments: Governed by special legislation and associated regulations that augment the above legislation: Defence, SA Police Services, Health, Basic Education, Correctional Services, Justice. Consideration is being given to a centralised (cloud-styled) deployment, offering opportunities for accelerated national rollout 11 11
Intensity of Focus (OUM) 12 12
Engagement with PTs and National CFOs Change Management Resource management considerations FM, HR, SCM policy alignment Capacity-building programme Operational Change Working with new technology interfaces Revised operational processes and controls A centralised (cloud-styled) deployment will have implications for the envisaged pace for change-management 13 13
Case Study: LG Electronics Improves HR Management by Consolidating on a Single Global HRMS The key to business success lies in the effective management of human resources. We now use a single HR system developed on Oracle to manage 82,000 employees in 39 countries. The result has been a significant improvement in efficiency, a better understanding of our HR processes, and dramatic cost savings. Mi Jung Kang, Chief Human Resource Officer, HR Management Team, LG Electronics Key benefits: Established enterprise-wide view of operations across 114 subsidiaries in 39 countries by moving to a centralized HR management platform; Improved efficiency by standardizing HR processes Enhanced HR management by giving senior managers real-time access to information Boosted employee satisfaction and eased workload on HR staff by introducing self-service options Boosted staff learning by providing online training
