The ERP Plan
Advisory Council’s Approach
In developing this ERP Plan for the State of Texas, it was the advisory council’s approach to consider work products, information and communications provided by numerous sources.
Five ERP Workgroups, consisting of agency and higher education subject matter experts, presented reports including findings, recommendations and other considerations related to the following focus areas. See Exhibit A for a summary of the five workgroup’s reports.
- Accounts payable (e-travel voucher)
- Statewide considerations (unique Texas business identifier)
- Global data standardization
- Asset management and inventory
- Vehicle fleet management
The Advisory Council has continued to meet on a monthly basis with the Comptroller. The meetings have been in public forum to ensure the opportunity for public comment as we have moved forward with the ERP initiative. The CFO/CIO ERP Committee was established to further statewide ERP communications and provide a forum for agency and higher education administrators to offer suggestions and ask questions.
- The Texas A&M University System;
- The Texas State University System;
- The Texas Tech University System;
- The University of Houston System;
- The University of North Texas System;
- The University of Texas System; and
- Texas Woman’s University (representing independent institutions of higher education).
In November 2007, the Comptroller’s Office developed a survey that was sent to all state agencies and institutions of higher education. The survey captured high-level information about administrative systems and expenditures related to the application scope listed in HB 3106. Additionally, the Comptroller’s Office asked survey participants to identify the amount of expenditures that were planned over a five-year time horizon to replace, upgrade or maintain these systems.
In June 2008, the Comptroller’s Office hired an independent consulting firm (Salvaggio, Teal & Associates) to develop a comprehensive business case analysis (BCA) and the related strategic planning associated with ERP, collectively referred to as the “study.” Included in the study was a subset of the 182 State agencies. This group was composed of 24 of the State’s largest and most complex agencies and represents at least 97 percent of the state’s total fiscal 2007 expenditures. System stakeholders were included that represent the existing statewide administrative systems (USAS, SPA, TINS, USPS, SPRS, HRIS). The Study was completed on Sept. 17, 2008, and reviewed with the Advisory Council and Comptroller on Sept. 24, 2008. The purpose of the study was to provide the ERP Advisory Council and the Comptroller with alternatives, data and other information necessary to determine whether implementing a statewide ERP system is economically feasible for the state of Texas. The following three alternative scenarios were analyzed:
- Business Case Alternative 1: Status Quo (BCA 1) – The State continues on its current path and each agency and institution of higher education continues operating their existing administrative systems as currently planned. The 11-year cost for this approach per the business case was $1,342,400,000.
- Business Case Alternative 2: Statewide ERP Platform Deployment (BCA 2) – Replace the existing statewide legacy administrative systems (USAS, USPS, SPA, SPRS, HRIS, TINS) with a new, fully integrated, commercially-available ERP system that would provide all functionality identified in HB 3106. One statewide ERP system for all State agencies and all institutions of higher education would be established and operated by the Comptroller. The 11-year cost for this approach per the business case was $1,813,400,000.
- Business Case Alternative 3: Hub Model (BCA 3) – Replace the existing statewide legacy administrative systems (USAS, USPS, SPA, SPRS, HRIS, TINS) with a new, fully integrated, commercially-available ERP system that the Comptroller’s Office would operate as an Application Service Provider (ASP) for all State agencies with the exception of the Health and Human Services (HHS) agencies and institutions of higher education. The HHS agencies and Higher Education would operate under a decentralized processing model as data reporting “hubs.” They would interface into the Statewide Data Warehouse platform and their transactional data would interface into the new ERP system. The 11-year cost for this approach per the business case was $1,377,800,000.
|Cost Elements||Total Cost for FY2010 - FY2020
|Alt 2||Alt 3|
(Implementation and Operation)
|$||$ 930.3||$ 355.2|
|plus: Legacy Costs - Ongoing||$ 1,122.8||$ 785.8||$ 945.5|
|Subtotal||$ 1,122.8||$ 1,716.1||$ 1,280.8|
|Amount in Excess of Status Quo||$||$ 593.3||$ 158.0|
|plus: Legacy Costs - New Projects/Investments,
excluding Statewide Rewrites
|$ 98.6||$ 97.3||$ 97.0|
|Subtotal||$ 1,221.3||$ 1,813.4||$ 1,377.8|
|Amount in Excess of Status Quo||$||$ 592.0||$ 156.5|
|plus: Legacy Costs - New Projects/Investments -
Statewide Rewrites Only
|Total Cost||$ 1,345.4||$ 1,813.4||$ 1,377.8|
|Amount in Excess of Status Quo||$||$ 470.9||$ 35.4|
|% in Excess of Status Quo||0.0%||35.1%||2.6%|