| CNIC Initiative |
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| Frequently Asked Questions |
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April 21, 2004
When determining consolidation savings, will a comparison be done to see if savings could be generated some other way short of a full-blown consolidation (i.e. strategic sourcing savings for hardware, software, maintenance, etc. or using existing facilities for agency clusters)?
The scope of the CNIC Initiative is to conduct an assessment of the current data center operations of the 12 participating agencies and create a business case for consolidation of those operations into one or two data centers with a specified return on investment (ROI). Controlling the scope of a project is key to its ultimate success. If the scope was widened to include all possibilities for cost savings, then the time and cost for such an evaluation would increase and the likelihood of successful completion would decrease. A major consolidation is likely the state’s best option for dramatically reducing operating costs and maximizing its return on computing and networking infrastructure investments. This is the focus of the CNIC project. However, as a natural component of Accenture’s assessment methodology, “quick wins” (i.e. other opportunities for consolidation or improvement) will be identified.
The state is, of course, open to considering any superior opportunities brought forward by Accenture beyond the one or two data center consolidation alternatives.
Will there be a review, as part of the business case analysis, agency by agency of the cost savings (for the 12 agencies involved in the first round of consolidation)?
The CNIC Initiative is focused on assessing statewide costs and identifying statewide savings (cost reduction) opportunities while maintaining or improving documented service levels. With that in mind, the business case produced in Phase I will be completed on an aggregate basis for the 12 participating agencies rather than on an individual agency by agency basis.
However, it would not be in the best interest of the state to pursue the consolidation of an individual agency’s IT infrastructure if it does not contribute to the business case. With that in mind, the state’s contract with Accenture states, “The implementation strategy for each CNCA shall also identify any Computing and Networking Infrastructure operations that, for non-economic, mission-related reasons, cannot or should not be included in the Consolidation plan…” Further, the contract states that the vendor must “itemize the business case by identifying the costs/benefits/ROI by platform and by participating agency.
How will staff duties be evaluated? In some small agencies staff have blended responsibilities that may include central computing/networking as well as other duties that are not going to be consolidated.
Identification of all staff and their functional duties is being completed as part of Accenture’s assessment. Each individual is identified by their current role and the tasks they perform. The percentage of time each individual spends performing work in any of 19 categories is being recorded in the CNIC assessment database. Fractional staff assignments will be factored into and addressed in the business case and detailed implementation plan, should that detailed plan be authorized.
What strategies are planned during the implementation phase to assure a strong synergy between center staff, application development staff housed at the agency level, and the agency business units?
The implementation strategy and business case for consolidation will be delivered in June 2004. Specific strategies to assure a strong synergy between consolidated data center staff and agency application development and business unit staff will be developed if a compelling business case is produced and a decision to authorize the completion of a detailed implementation plan and validated business case is made. Assuming a decision to consolidate is made, one part of the state’s strategy to reduce risk in the implementation portion of the project will again center on hiring a firm with consolidation experience to plan and manage the effort. Further, this kind of synergy can be best assured through active participation by agency business and IT leadership and staff throughout implementation.
How will priority conflicts be resolved? It can be anticipated that at times the needs of the enterprise will be at odds with the needs of an individual agency. What policies/procedures will the governing board use to settle conflicts such as determining scheduling priorities between general fund agency projects and other fund agency projects or between an agency that requires continual, rapid change and an agency that simply wants the lowest possible costs?
The consolidated data center will be governed by a board comprised of the directors of the participating agencies. The board will oversee consolidated data center operations, approve the center’s budget and service offerings, and oversee its operational performance. The processing of data for the agencies will remain a service to the business units who are represented on the board. Service level agreements with each customer agency will need to be developed. The board will be responsible for setting/approving the policies, procedures, and project priorities for the consolidated data center. Specific policies and procedures to prioritize and sequence center project activity and to resolve these types of “conflicts” will need to be developed and approved by the board.
Board members collectively will have the same degree of authority for this enterprise shared service that they currently exercise individually over their existing agency data centers.
How is the connection between funding sources and the expectation of those funding sources going to be maintained? Funding sources are going to want to see that there is a clean flow from their source to the service and/or resource they are paying for.
Control systems that agencies currently have in place should continue to be used. Agency expertise in this area will be invaluable in assuring that these issues are addressed during Phase I planning and Phase II implementation. The issues related to specific funding sources will need to be addressed by the governing board in concert with DAS Budget and Management Division and agency financial subject matter experts.
As staff are moved from their former agency to the new data center, how will continuity of service quality be maintained in agencies that are still supporting an existing operation during the transition which is expected to take 12 to 18 months?
Migration plans are extremely complex. There are many tasks that must be coordinated with careful timing to assure service level continuity. Each agency has peculiarities and special constraints that will need to be addressed in the detailed implementation plan, assuming its creation is authorized in June 2004. With that in mind, the state’s contract with Accenture requires the creation of a transition plan for the receiving and closing site. That plan will involve the following:
“Transition Plan. For the selected CNCA the Contractor shall provide a detailed transition plan for each receiving or closing site(s). The Transition Plan shall outline, without limitation, the required activities and document the process for: (1) conducting the final closing site baseline assessment of workload mix and corresponding performance levels that must be met by the receiving site(s) prior to acceptance; (2) reconfiguration of the receiving site(s) to accommodate additional data processing, communications and networking workload requirements; (3) systems integration and testing to confirm that the configuration meets the design specifications; (4) moving the data processing, communications and networking workloads from closing sites to the receiving site(s); (5) receiving site coordination with closing site customers during the acceptance to confirm, in accordance with mutually agreed upon criteria, that they are receiving service at least equal to that provided in the closing system environment; (6) close-out activities that will be undertaken after the closing site(s) is successfully transitioned and accepted at the receiving site(s); and (7) moving the receiving site(s) data processing, communications, and networking workloads to an optimal processing configuration. The transition plan includes a schedule showing start and end dates for transition tasks and milestones.”
Further, the CNIC project team will create a staffing plan to complement this transition plan.
How will service quality be measured, especially for use of new hardware/software or upgrades to hardware/software?
Service levels can be measured against existing benchmarks that agencies have established. With that in mind, the state’s contract with Accenture requires the documentation of the existence of formal service level requirements within the participating agency, summarization of those service level requirements (i.e. list and brief narrative description), assessment of whether the agency is formally measuring and documenting their performance against those service level requirements, and finally, identification of the location (perhaps the “owner”) of these formal service level-related documents within the agency. Additional benchmarks will need to be established as new consolidated data center services are provided. The governing board will determine the service level expectations for the consolidated data center and the ability to measure both costs and service levels will be built into the data center operating plan.
How is staff morale going to be managed? The fear is that in uncertain times the good staff who have choices will opt to leave the state as a means of taking control of the situation. Associated with this is the question of labor relations.
This is obviously a very difficult aspect of this project and one that is of concern to everyone involved. The machines and software do not care where they work or who they work for, but the people who are key to the state’s continued success are likely concerned about the changes that may happen. One way to allay uncertainty is to complete Phase I of the project as soon as possible. Further, by controlling the scope of the project the state can reduce the duration of the project and thereby, help reduce the duration of this uncertainty.
The bottom line is that the Phase I analysis, implementation strategy and business case will be delivered in June 2004. A decision will be made to proceed or not to proceed at that time. Assuming a decision to proceed, a detailed implementation plan and validated business case would subsequently be delivered in the September 2004 timeframe. As part of that work, a staffing plan for consolidated operations would be created.
The CNIC project team is committed to keeping everyone informed and will communicate information as soon as it is available. This includes communication to all staff that may be affected and their Union representatives. Meetings with the state and Union representatives have begun. Additionally, meetings for affected groups within agencies are planned. Where specific information is not available, the process being used for resolution, and its timeframe, will be explained.
It is critical to the success of this project that the state do everything within its power to retain high quality staff throughout all phases of the project, including operation of the resulting consolidated data center(s).
Finally, agency business and IT leadership can help mitigate this situation by communicating frequently with agency staff to ensure that accurate information about the CNIC initiative is shared on a consistent basis.
During the implementation period, will agencies have the ability to initiate new projects, particularly those driven by some federal or legislative mandate?
Yes, critical projects need to move forward and will need to be considered on a case-by-case basis. The governing board will need to develop specific policies/procedures to prioritize and sequence consolidated data center project activity and to address federal or legislative mandates in a timely manner throughout the implementation period and beyond. What the state must avoid is making investments that will endanger the business case.
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