Next Gen ERP Tyler Munis Replacement Project - Operations Budget & Management Human Resources

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IT Governance Business Case Next Generation ERP Tyler Munis Replacement Project Operations Budget & Management Human Resources

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Background Tyler Munis, the current ERP and Utility Billing system has been in use for over 15 years. It has served as the main system used by Operations and other departments to manage the finances, procurement and utility billing for the City.

Note: the Business Case for the Inspections & Planning Solution (LDO Replacement) has already been submitted and approved.

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Current Business Problem •

The current system is based on 20-year-old technology, making upgrades and

changes increasingly difficult.

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The ability to leverage next generation ERP capabilities is limited with the existing Tyler Munis on-premise version.

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The lack of integration limits the City’s ability to derive informational value from data for strategic use and drive improvement of service delivery.

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The Human Resources’ department and processes are under served by Tyler Munis resulting in the need for multiple supporting applications and many manual processes.

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Current Pain Points • Multiple systems of record that are not integrated resulting in: • Duplication of data, complicating data availability and cross checking • Abundance of manual processes • Time consuming data reconciliation processes • Lack of visibility into the disparate systems providing inconsistent information to decision makers • The inability to make data-driven business decisions due to the absence of aggregated data from a single integrated, reliable solution.

• Increased resource effort spent on non-value-added functions (e.g., re-keying, data validation, tracing transactions).

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Current Pain Points • Lack of reporting capability and business intelligence / analytics • Tyler Munis financials do not integrate well with the Tyler Munis Utility module, making reconciliations time consuming and inaccurate • Individual departments operate with different applications, often providing the same functionality, which contribute to a lack of coordination and cohesion between the departments • Operationally, the existing tools lack the ability to scale as the City grows limiting the opportunity for continued operational efficiency

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Desired Business Value City of Durham’s Strategic Plan Goal: Innovative & High Performing Organization Initiative: Plan and implement the Enterprise Resource Planning system •

Put in place a Next Generation ERP solution to bring the City more business value

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Improve overall decision making at the City by providing a consolidated set of real-time information and analytics

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Provide strategic HR capabilities to enable a strong workforce to deliver the City’s strategic vision

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Improve customer service through a modern Utility Billing solution

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Eliminate manual processes through system automation enabling staff to focus on what matters

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Future State Benefits • Leveraging Next Gen ERP to drive benefits through: • Cloud Computing: Provide secure, scalable and accessible applications with cost certainty • Mobility: Enhance operational efficiency, improve productivity, strengthen business partnership, accessibility/mobility • Artificial Intelligence (AI): Automate high volume and low value transactions to drive process efficiency and improved resource utilization • Integrated Data and Analytics: Leverage real time information to drive responsive decision-making through transparency, cost reductions and improve City of Durham’s service delivery • An all-in-one platform with robust features to replace Tyler Munis and expand capabilities for Human Resources (Talent Management, Workforce Management) • Integrated Financials, HR and Budget/forecasting to provide one system of record for forecasts

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Future State Benefits •

Seamless integration capabilities with several existing applications currently supporting City processes ESRI (mapping) • CityWorks (asset maintenance, work orders) • Kronos (time keeping) • OnBase (document management) •

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Reduce manual processes, improve information accuracy and provide a “single source of truth”

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Reduce number of applications in use at the City to reduce ITS governance complexity & cost

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Recommended Solution and Analysis

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Recommended Solution: Issue a Next Gen RFP Description

Issue an RFP to select a Next Gen, Cloud ERP and Utility Billing Solution

Pros

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Cons

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Modern, future proof, enabling scalability and growth Elimination of large number of manual processes Simplification of the technology footprint Shift resource effort from operational to strategic / value – added activities Provide for data driven decision making

Significant business disruption and change management effort High effort and resource draw from ITS & Business during implementation project

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Recommended Solution - Issue an RFP: Project Financial Estimate COST ESTIMATES

FUNDING

Implementation Costs (Hours)

Post Implementation Run Costs (Hours)/ KTLO

4800 hours

6400 Hours

800 hours

400 hours

4000 hours

6000 hours

Internal Labor New FTE – Year 1 Costs

Internal Portfolios: Operations, City Manager (HR & Budget)

4000 hours

6000 hours

Project One Time Costs (External)

Internal Portfolios: Community Building, Public Safety

500 hours

100 hours

*Total Project Funding Requested for Year 1

$722,800 - $889,600

$722,800 - $889,600

3 Functional Analysts (HR – 2, Fin – 1)

$210,000 - $270,000

$210,000 - $270,000

Project Run Cost (External)

$850,000 - $1,600,000

ITS – Business Analyst, Enterprise Architect, Data Architect

$310,000 - $370,000

$310,000 - $370,000

Internal Labor Ongoing Cost

$722,800 - $889,600

New FTE Benefit cost

$202,800 - $249,600

$202,800 - $249,600

Recurring Costs

$4,520,000 - $6,700,000

$100,000 - $300,000

Description

Departmental Funding Amount:

$0

Labor $ (Hours) Internal TS: TS PMO TS Services

Internal Labor $ (New FTE)

Funding Requested (Y/N):

External Labor $: Professional Services Solution Integrator

$4,000,000 - $6,000,000

City Implementation Project Manager

$150,000 - $200,000

Organization Change Management

$110,000 - $150,000

Project Application Architect

$110,000 - $150,000

Info-Tech Project Health Monitoring

$150,000 - $250,000

Ongoing Solution Support

$100,000 - $300,000

Non-Labor $ Software: ERP

$550,000 - $1,000,000

$550,000 - $1,000,000

Software: Utility Billing

$200,000 - $300,000

$200,000 - $300,000

* Total Project Funding Requested Year 1 includes New FTE Labor, External Labor and Non Labor

Y $722,800 - $889,600 $5,270,000 - $8,000,000

$6,715,000 - $9,779,200

$1,572,800 - $2,489,600

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Estimation Notes •

Annual run costs (hours) will be delivered by the new FTE’s

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Implementation estimated range will be dependent on the number of services being provided by the partner along with the complexity of the solution selected

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Lower implementation pricing typically results in higher internal activities such as testing, training, interface development and data migration

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Solution software pricing is value-based and must be assessed on the transparency of the vendor pricing. Not all subscription licenses are all inclusive.

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Labor costs for FTE’s are based on current market averages

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Majority of implementation costs are for professional services

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Majority of post implementation costs are internal resources

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Post implementation, the City will have several offsetting cost savings due to a reduced application footprint. Size of the offset will be dependent on the selected solution.

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Risk Identification Description of Risk

Risk Impact

Mitigated (Y/N)

Contingency(Y/N)

Lack of Resource Capacity

High

Yes

No

Vendor performance

Medium

Yes

No

Cyber Security

Medium

Yes

No

Poor Data Quality

High

Yes

No

Competing Priorities

Medium

Yes

No

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Mitigation Risk (Costs) •

For Resource Capacity & Competing Priorities – New Functional and Business Analysts ($389,200 - $500,400)

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For Vendor Performance – Project Health Monitoring ($150,000 - $250,000)

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For Poor Data Quality – New FTE position - Data Architect ($152,900 - $180,700)

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For Cyber Security – New FTE position – Enterprise Architect ($180,700 - $208,500)

Contingency Risk (Costs) •

No cost

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Our Ask

We are asking to approve the business case for the Next Generation ERP Tyler MUNIS Replacement for submission to the City Manager for approval and funding through the BMS department.