2017 Category Management Conference

Transcription

1 2017 Category Management Conference Category Management: Acting as One for Better Mission Delivery WEDNESDAY, MARCH 1, 2017 RENAISSANCE WASHINGTON 7:0 AM 4:00 PM

2 Administrative Shared Services Beth Angerman, Executive Director Unified Shared Services Management

3 Sharing Systems and People for Administrative Functions Makes Good Business Sense This matters to me because: I AM GOVERNMENT: I can do my job more efficiently if technology is innovative and enabling and I receive consistent, predictable services. I AM AN AGENCY CXO: I let someone else worry about the systems and transactional work so my office can focus more on mission. I AM A TAXPAYER: My hard-earned dollar is maximized for mission-use to build a more efficient government. Demonstrated Success: Over 90% of Fortune 500 companies use shared services to standardize processes, systems, and workforce, resulting in reduced costs and improved operations. Proctor and Gamble s move to global business services delivered $800 million in cost savings. Bristol Myers Squib s, pharmaceutical giant, realized $1.5 billion in annual savings through shared services. Process Efficiencies to enable agency mission Increase cyber security Gain economies of scale and skill Realize Cost efficiencies Better data for analytics and decisions 2

4 Human Resources Financial Management 28+ Agencies Are Migrating to a SSP today CUSTOMER PROVIDER FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 NLRB (HR, FM, Acq) Market Research Labor Market Research Education Market Research OPM (Lift & Shift) Transportation VA USDA TSA Interior Coast Guard Interior S&T, DHS HQ, CIS, NPPD, OHA Interior ICE Interior FEMA NRC Commerce GSA and customers (OPM, NCUA, RRB, USIP) Market Research USDA Move to Enterprise Services* Market Research Justice USDA NFC Education Market Research/Pilot SBA IBC Export-Import Bank IBC Broadcasting Board of Governors HHS HRIT Modernization Farm Credit Administration USDA NFC HHS (Internal) UDSA TBD TBD TBD TBD 4 TBD TBD Key: Phase 1: Readiness Phase 2: Selection Phase : Engagement Phase 4: Migration Phase 5: O&M Labor and Education are currently modernizing legacy FM in anticipation of moving to SSP; another three () agencies are currently exploring SSPs at phase 0.

5 But we still face many challenges to sharing, scaling, modernizing and optimizing Requirements, business processes, and configuration are not common across government to recognize economies of scale Offering services to other Federal agencies may create risk to the core mission of parent agencies Current technology lacks innovation and continuous improvement because of inefficient funding models for IT modernization Investment is still required to pay for transition costs Today s marketplace does not offer agencies the many service types they need 4

6 Federal & Commercial Providers* And those challenges have informed our proposal for a dynamic and competitive marketplace. Administrative Service Catalog identifies common administrative functions agencies can obtain from a commercial or Federal provider, separating technology from services. People Business services commercial or Federal that will follow standard processes Process Uniform process for defining: Technology Modern technology that is interchangeable and agnostic Subject Matter Expertise Transaction Processing (technology agnostic) Analytics Supplier and Vendor Management System Integration Services Program Management Business process outcomes, metrics, and standards** 80% Common 20% Customized*** SaaS Software as a Service (includes PaaS & IaaS) PaaS Platform as a Service (includes IaaS) IaaS Infrastructure as a Service Commercial Providers* Performance measurement and assessment Key Assumptions/Criteria: * Federal providers will be designated by USSM, commercial providers by Category Management. ** Outcomes and standards are defined by managing partners with process management/support from USSM *** Customized requirements to address unique mission aspects could potentially be shared by multiple agencies with similar mission areas. 5

7 Category management and shared services are complementary and critical DRAFT Discussion Purposes Only Category Management: Improves ability to deliver results through increased alignment with supplier markets Increases government buying power Eliminates waste and inefficiency by standardizing supply chain strategies Shared Overarching Objectives Category management and shared services both focus on how best to deliver against a defined requirement. Both contribute to the government s goal of increased efficiency by acting as one. Complementary Value Propositions Shared Services: Mutually Aligned Benefits & Results Enables agencies to deploy critical resources to mission delivery Drives economies of scale by standardizing business processes Reduces the number of legacy, high-risk systems Administrative and purchasing efficiency Reduced fragmentation and duplication Increased buying power of customers Reduced total cost of service delivery Increased spend under management Controlled marketplace for customers 5

8 Because lack of efficiency can impact taxpayers. DRAFT Discussion Purposes Only Duplicative Investments & Aging IT More than 661 information technology investments in human resources management alone Over 45 FM systems across government Over 75% of IT Budget to Legacy O+M Workforce Challenges One third of employees are eligible for retirement There are x as many IT employees over 60 as under 0 Risk to Mission Increased Cyber Vulnerabilities Resources and Energy Diverted from the Mission Data Does Not Support Decision Making Low Satisfaction with Mission Support Functions 7

9 But the truth is that sharing is really, really hard. 9