Technology Roadmap

The City of Ottawa 5-Year Technology Roadmap responds to the challenge of transforming the way municipal government operates and helping the organization deliver on Council’s commitment to Service Excellence.

This plan describes large-scale Strategic Technology Investments that support Citizen Centricity and Governance and stresses technology as the key to maximizing efficiencies and service delivery.

Sponsored by the IT Sub-Committee of the Finance and Economic Development Committee (FEDCO), the Roadmap is a living document that is refreshed annually to remain relevant in response to economic, social and technological influences, to inform annual budget deliberations, and to communicate the City’s technology priorities and directions.

Technology investment over the coming five years is being driven by 3 primary factors:

· Service improvements and efficiencies

· Increasing regulatory compliance and risk management

· Infrastructure modernization

Amalgamation was the catalyst for significant investment in information technology between 2001 and 2004. The new systems and technologies were major contributors to the City’s ability to manage amalgamation and achieve its objectives, but the benefits from these investments have been fully “harvested”. In response, with the tabling of the 2011 budget, Mayor Watson announced the “Service Ottawa” Program, a major business transformation initiative which includes technology investments over 5 years in a new Citizen Service Management system (CSM), improved integration of existing business systems, new tools and systems for front-line staff, service delivery and knowledge workers to optimize their productivity and respond more effectively to citizen needs, and other strategic investments in technology to improve the efficiency of a range of business processes.

The Roadmap also recognizes that systems deployed during amalgamation are quickly reaching their “end-of-life”, meaning that replacement of the City’s fleet of servers, desktop/laptop computers, and network infrastructure must be modernized to support the City’s business transformation.

Guy Michaud

Director IT Services & Chief Information Officer

February 2011

Executive Summary

The 5-Year Technology Roadmap outlines planned key strategic investments and building blocks that position the City of Ottawa to respond to business needs and citizen expectations. With a focus on exploiting the Internet and improving interaction with citizens and access to services via broadening the channel options, the City is expecting that this approach to “eGovernment” will result in improved operational performance and citizen satisfaction and achieving a higher level of confidence and trust in the City as a public institution.

In order to implement full technology solutions, realize savings and continue to deliver services, investment is required in 3 key areas:

· Specific technology that enables key Service Excellence initiatives (Service Ottawa);

· Initiatives designed to improve operational performance, reduce the complexity of the IT environment, and support the day-to-day business of the City (IT Operations);

· Reduce the risk of service interruption by modernizing an aging infrastructure and deploying foundational technology that supports Service Ottawa and City services (IT Asset Renewal).

The Roadmap includes the following priorities:

eGovernment: corporate investments in new and/or emerging solutions and technologies that ultimately provide citizens with greater choice, convenience and flexibility in service delivery modes, while simultaneously achieving operational improvements and efficiencies (i.e., Service Ottawa).

Foundation Technology: building blocks on which Service Ottawa and future eGovernment initiatives are dependent and that need to be in place in order for ITS to effectively and rapidly deploy and support the new technologies.

IT Efficiency Projects: investments in new technology or best practices that result in improved operational performance, annualized savings and/or deferral of capital expenditures.

Operations and Lifecycle Renewal: ongoing capital spending to maintain/upgrade/replace existing technology to ensure the City’s technology infrastructure and assets continue to support day-to-day operations.

The cost to implement the investments identified in the Roadmap is projected to be $84.1M over 5 years, with total annual benefits of $44.5M by 2014. The 2011 capital requirements are $27.6M and are identified in the 2011 budget documents (Strategic Initiatives and Renewal).

As a living document, the Roadmap allows Council to guide and influence the City’s technology priorities and investments and ensure that they remain relevant, reflect changing business priorities and citizen needs, emerging technology, and fiscal constraints.

1.0 Introduction

The concept of “eGovernment” is not new, having emerged over the past 10 years as an opportunity to exploit the Internet to “reinvent government” and move to a more citizen-centric business model. eGovernment is characterized by:

· Balancing cost containment with innovation;

· Doing more but differently in terms of productivity through a more effective workforce

· Greater interaction with citizens and access to services via broadening the channel options;

· IT-enabling more services, and

· Demonstrating “best value” for the tax dollar.

In 2009, the City launched its Service Excellence (SE) program. Service Excellence links employee engagement and improved operational performance with citizen satisfaction and achieving a higher level of confidence and trust in the City as a public institution.

Under the SE umbrella, investment in technology was identified as the primary means to deliver consistent, predictable, high-quality information and services to residents while generating significant savings for the organization. The “Service Ottawa” program is the flagship of Service Excellence - a Citizen Focused, Efficiency Driven program developed with the mandate to fundamentally transform how citizens receive services from the city.

The success of Service Ottawa is tightly coupled to the technology foundation on which the improvements and new solutions are built; ensuring that the underlying infrastructure (networks, servers, devices, and operations) is capable of supporting the transformation initiatives is a critical success factor.

Technology also changes rapidly. New capabilities are being introduced on a daily basis, requiring ongoing assessment, planning, and investment to drive improvement performance and citizen satisfaction with City services.

But technology is not the only consideration when developing cost effective and optimized business solutions and services. In order for technology to deliver to its true potential it must be coupled with the right processes and people with the right skills.

It is the proper confluence of people, process and technology that truly drives innovation and service excellence.

2.0 Five Year Technology Roadmap

The corporate “Technology Roadmap” was initiated in 2010 as a planning tool to describe and communicate the direction and plans for information technology at the City of Ottawa, including the key initiatives and building blocks that are needed to align IT programs and investments with the City’s Strategic Plan priorities.

Figure 1 – A “Technology Roadmap” reflects a future state business and technology architecture, and establishes the transition plan for the organization. It must be coupled with the right processes and people with the right skills.

The Technology Roadmap describes the specific strategic directions and technology initiatives that help achieve the City's mission through optimal performance of its business processes and models within an efficient information technology (IT) environment, by:

· Implementing technology solutions that support the Service Ottawa initiatives;

· Modernizing the network and telecommunications infrastructure and computing environment by implementing virtualized servers/desktop infrastructure and voice-over IP capabilities;

· Establishing a secure mobile technology platform and infrastructure for those City services that are in the field and require access to information assets;

· Implementing efficiency measures such as multi-function devices (printing, faxing, scanning, photocopying) and consolidation of data centres to reduce costs and lower energy consumption;

· Replacing/upgrading/consolidating legacy applications, hardware, and rationalizing desktop software to reduce the cost of supporting older, unsupported technology and minimize the risk of failure or loss of service;

· Establishing common technology platforms where possible, to reduce the complexity of the current environment;

· Providing a flexible and robust technology base that creates opportunities for the City to capitalize on advanced technologies and new business models; and

· Assessing and planning for emerging trends and technologies such as “cloud computing”, web2.0 and social media to reduce cost and be more responsive to citizen needs.

The Technology Roadmap is a living document. Each year, progress against the plan will be reviewed with Council, and a new 5-year plan produced to reflect changing business priorities, emerging technology, or fiscal constraints. Annual budget submissions to Council will always be reflected in the Roadmap priorities.

3.0 Key Business Drivers

The Five Year Technology Roadmap embeds the activities of the IT Services department with key corporate priorities such as Service Excellence and Sustainability and related programs such as Service Ottawa. At the same time, it reflects the business goals of the department (Appendix 1), guiding principles (Appendix 2), and responds to ongoing analysis of performance measures (Appendix 3) and technology assessments (Appendix 4) that drive change and costs for the ITS department and its clients.

The Roadmap positions the City’s information management and technology to support planned and future business requirements.

The Roadmap includes the following priorities[1]:

IT Efficiency Projects: investments in new technology or best practices that result in improved operational performance, annualized savings and/or deferral of capital expenditures.

Enabling and supporting the Service Ottawa program is the highest priority for the IT Service department and is driving the majority of technology investment for at least the next four (4) years.

The Service Ottawa program was launched in 2010 as a corporate Service Excellence priority, and is comprised of a number of initiatives that leverage technology with the primary goal to improve the way citizens access services from the City.

The Service Ottawa program applies a range of technology and process improvements to how the City engages, interacts with, and provides services and information to citizens, by:

· Simplifying current access points and increasing self-serve capabilities;

· Organizing information and services from the citizen’s perspective;

· Allowing citizens to find the information they need about City services, register for programs, submit forms, make payments and report and track service requests;

· Tracking service requests from the time of report through to resolution;

· Standardizing processes and service standards across the City providing consistent, predictable, high quality services and information to Citizens; and

· Providing a common technology platform for citizens & staff will make them more knowledgeable, engaged, and responsive to client inquiries in a contemporary collaborative environment.

4.0 Key Initiatives by Portfolio

The following section summarizes the initiatives for each priority that comprise the Technology Roadmap (2011-2015). Included are those initiated in 2010 that carry forward into 2011.

4.1 E-Government Solutions

Service Ottawa is the flagship program of Service Excellence and eGovernment, and consequently is a major focus for IT Services and consumes the majority of available capacity and resources.

While other eGovernment opportunities are possible, the capacity of the organization to accommodate other major change initiatives is constrained until 2014.

4.1.1 Service Ottawa

When completed in 2014, the Service Ottawa program will result in deployment of citizen-centric technology including:

1. Citizen Service Management (CSM) system to support 3.1.1. and citizen service requests, integrated with the City’s major financial, administrative, and work management systems;

2. Conversion of eleven (11) call centers required for the CSM solution to include Computerized Telephony Integration (CTI), leveraging the Telecommunications Renewal initiative Voice over Internet Protocol (VoIP);

3. Enhanced Ottawa.ca – new Information Architecture and hardware/software upgrades;

4. Providing the City’s community-based mobile workforce with mobile devices and tools so that they can deliver a broad range of services on-site, report on the progress of these services as they are being delivered, and to connect and collaborate regardless of physical location;

5. On-line and real-time search, viewing and booking of city recreational facilities, including ice rinks.

In addition, integration and enhancement of existing business systems will generate operational improvements and efficiency savings through:

1. Human Resources Management - a suite of technology and process improvements including eRecruitment, Learning Administration Automation, ESS/MSS (employee/management self serve) enhancements, and Case Management/Data Load Tools.

2. Business Intelligence – advanced reporting and analytics in support of CSM, human resource management, financial management and new operational information and management reporting.

3. Work Management – Refinement of existing work management business processes and reconfiguration of the SAP system to support the new processes.

4. Fleet Management – Upgrade and re-configure the M5 Fleet Management System to transform the stores inventory processes and improve integration with the SAP Financial system.

5. Smart Energy - Implementation of an Integrated Building Management System (IBMS) and Monitoring and Targeting (M&T) solution.

6. Business Transformation – Identification of new ‘To-Be-Operating’ models that will be supported by the new technologies.

The overall investment is $79.3M over 5 years, resulting in annualized efficiency savings of $43.15M by the planned completion in 2014.

4.1.2 Municipal “O-Card

The potential for smartcard technology was first identified in 1997 during a study on Transit Fare payment methods. Subsequent analysis identified potential opportunities in the areas of parking, library, program registration, and community services, but was unable to establish a compelling business case for a single, multi-purpose card given the state of organizational readiness, consumer demand, and other technology priorities resulting from amalgamation. Council authorized Transit Services to partner with the Province of Ontario and several municipalities in the Greater Toronto Area (GTA) on the introduction of a stored value transit fare payment card.

The IT Sub-Committee recognized in 2010 that there may be opportunities to leverage and/or consolidate its existing use of smartcard technology, in an effort to generate greater convenience for citizens and achieve operational efficiencies. As an initial step, the costs and benefits of implementing a multi-purpose “O-Card” need to be determined so that Council is able to make an informed decision whether or not to proceed.

At this time, the level of investment is unknown, and no funding or resources are currently available to carry out the planning and assessment effort in 2011.

4.2 Foundation and Modernization Initiatives

To be successful, the Service Ottawa program depends on a modern and robust technical infrastructure, including voice/data networks, servers, security services, database platforms, end-user computing devices, services-oriented architectures (SOA), and supporting operational processes such as configuration and change management, portfolio/project management, and enterprise architecture.

Investments in modernizing the foundation infrastructures are the building blocks on which Service Ottawa and other future eGovernment initiatives are dependent and that need to be in place in order for ITS to effectively and rapidly deploy and support the new technologies, and contribute to reducing the complexity of the IT environment.

4.2.1 Server Virtualization

Modernization and consolidation of servers through “virtualization” technology will simplify deployment of new applications and as an added benefit, reduce long-term lifecycle replacement costs. The overall investment is $1.0M over 3 years.

The 3-year program was initiated in 2010 and when completed in 2013 is expected to yield the following returns:

· Replace approximately 260 servers with 15 virtualized servers.

· Estimated annual power savings of $35K (operating power by 103.6 kWatts, cooling power by 129.5 kWatts, and data center footprint by 3,219 square feet).

· Carbon emission reduction of 2,731,394 lbs. (1,239 tons), the equivalent to average emissions of taking 228 cars off the road per year.

· Reduction of future capital expenditures by approximately $600K over 6 years. (Note: since the City does not purchase maintenance on existing servers, there is no immediate operational savings).

· Reduction in the overall complexity of the server environment by simplifying system management, improving the delivery time for new and updated applications by eliminating the time needed to procure, install, and configure servers (i.e. rapid deployment), improving disaster recovery and reducing the risk/cost of lost productivity.

4.2.2 Modernization of Telecommunications System

Modernization of the City’s telecommunications systems and migration to a VoIP infrastructure is being driven by three primary factors: a) the City’s telecommunications and voice mail system is at “end of life” and there is a significant risk of service interruption and increased maintenance/repair cost as the technology ages and becomes obsolete (projected to be 2015), b) there is limited capability to grow/expand current technology to accommodate user growth, and c) Service Ottawa requirements for 311 Contact Centres, and the Community-Base mobility project, will be significantly enhanced.

When fully implemented, benefits include:

· Reduces voice/data communications circuits’ monthly charges and reduced maintenance contracts by $800K annually;

· Reduces risk and cost of downtime resulting from failure of existing systems or components;

· Foundation for advanced telephony-based applications including call centres, unified messaging, video/audio conferencing.

The overall investment is $6.6M over 5 years, and will pay for itself in 10 years. This project has previously been approved and no capital funding is required in 2011.

4.2.3 Data Storage

A Data Storage Strategy is required to address the anticipated high demand for data storage driven by the Service Excellence initiatives and growth in structured and unstructured data.

The strategy will identify whether the current Storage Network Infrastructure (SNI) will meet the anticipated demand and identify options and alternatives to achieve an optimum storage infrastructure that is:

· Flexible and Scalable - By separating the storage from the servers, this network facilitates the expansion of servers, storage, and applications across the enterprise;

· Centralized data management - Configuration and monitoring can be done through a centralized console;

· Economies of Scale - Centralized storage devices can be shared cost effectively among many servers;

· High Performance - Multiple segments of the storage network can be aggregated to achieve higher bandwidth and performance;

· Simplify Support - Disk space can be added and removed from single point of control without impacting the server operation.

The overall investment is to be determined, but an initial investment of $75K was identified in 2010 to examine technology options and plan a multi-year budget.

4.2.4 Virtual Desktop Infrastructure (VDI)

Virtual Desktop Infrastructure (or “thin client”) is technology that will allow ITS to deploy new software/applications to the desktop more rapidly and efficiently.

An initial pilot will assess the extent to which VDI benefits can be realized and quantified. Industry estimates suggest that this technology can reduce lifecycle hardware replacements costs significantly. In addition, benefits can be expected in the following areas:

· More rapid deployment of desktop services to the user

· Reduce capital costs

· Reduce IT support and lifecycle costs

· Reduce power consumption at the desktop

The overall investment is anticipated to be at least $1.1M over 3 years, with an initial investment of $225K in 2010 to examine technology options, pilot solutions, and develop a multi-year budget/implementation plan.

4.2.5 Internet Filtering Enhancement

The City has been using an Internet Filtering product and service since 2003 to help managers and staff access business-appropriate Internet sites and also to protect the City’s network from Internet-borne threats and security risks that could compromise or jeopardize City assets and/or citizen information. The current service contract is up for renewal, providing the opportunity to deploy several key new features and enhancement that are needed to support Service Ottawa initiatives and future Web 2.0 technologies.

This total project cost is $550K and will be completed in 2011/12. It is anticipated that further enhancements and upgrades will be necessary in 2014/15 to remain current with Internet-borne threats.

4.2.6 Identity Management and Network Access Control

The growing demand for Internet access to the City network through the Internet by citizens, businesses and City partners, including community groups, requires changes to the current restrictions and security limitations of the infrastructure. Legislation such as PHIPA (Public Health Information Protection Act) and industry requirements such as PCI (Payment Card Industry) Data Security Standards compliance require organizations to secure their information and systems via processes such as two-factor authentication.

Future trends also point to the need and value of allowing non-City computer assets to access the network and various citizen-facing or self-serve applications, such as the ability to rent or reserve City facilities. This initiative will investigate, select and implement a range of identity management and network access control capabilities to securely accommodate Internet access to the City network or information assets with non-City assets without introducing risk to the City network from potentially compromised, dangerous, or malicious non-city devices.

An investment of $400K is planned in 2012 to assess existing capabilities in this area and develop a plan to deploy this technology.

4.2.7 Public Cloud Services Strategy and Adoption

Public cloud computing is one of the biggest trends which promises pay-as-you-go economics and the capability for agile delivery of infrastructure, new tools and applications. The public cloud model is characterized by outsourcing specific components of the City’s technology environment to reduce capital investment and pay for computing services on an “as required” basis via the Internet (the “Cloud”). There are several variations on this model which have applicability for the City, including:

· Modernization of legacy and generic applications to turnkey Software-as-a Service solutions with minimal customization;

· Quickly activating new applications to improve efficiencies or service delivery;

· Use of Cloud applications for peak capacity/seasonal demand;

· Improve resiliency and disaster recovery.

While the benefits may be many and significant, the capability is new and service level agreements, pricing and interoperability varies widely. In addition, there are risks that need to be considered in terms of privacy legislation, performance, data repatriation, escrow and data recovery, and usage and access privileges. It is also recognized that Canada’s cloud computing industry lags behind the U.S. industry by roughly three years that could constrain options in the near term.

At this time, there are no funds identified to leverage Public Cloud capabilities, but the goal is to identify specific opportunities in 2011 and establish a plan to leverage this capability beginning in 2012.

4.3 Efficiency and Effectiveness Initiatives

Specific investments have been identified that complement and leverage the priority on technology modernization, but also enhance the cost and effectiveness of City operations.

4.3.1 Consolidating Data Centres

In 2008, an independent assessment identified the opportunity and feasibility to consolidate the City’s four data centres, thereby returning space to the corporation and reducing facility operating and facility lifecycle costs (e.g., UPS, A/C, Power Distribution Units, and Fire Suppression Systems).

The planned investment is $200K, with required funds approved in 2010. The major components include design and project management fees, architectural/structural, mechanical, electrical work in addition to new equipment such as server racks.

When completed in 2011, the 1500 St. Laurent Data Centre will be relocated to a secure basement facility with a smaller footprint, releasing prime office space to accommodate Transit Services real estate requirements.

4.3.2 Consolidating Printing Devices

The City’s current fleet of copiers, printers, scanners, and fax machines are aging and becoming more expensive to repair and maintain. The industry trend to replace multiple printing devices with fewer Multi-Function Device (MFD) technologies allows the City to streamline administration, management and support/maintenance, as well as introduce value-added capabilities such as scanning, document security, lower power consumption, less real estate and greater convenience/productivity.

The planned investment is $400K over 2 years, with an initial $300K approved in 2010. The investment is expected to pay for itself in 3 years, with $200K of annual savings based on a reduction of 1,275 devices/machines and associated consumables, lease costs and operational support.

4.3.3 Consolidating Desktop Software Solutions

There are over 700 different and multiple versions of desktop software supported by ITS, with the number steadily increasing each year. Many older versions have reached ‘end of technical life’ and no longer run on current or future operating systems (i.e. Windows XP/Windows7). Collaboration and information exchange is difficult, and the cost to support multiple types and versions of desktop software across the enterprise can be significant.

Consolidating to common versions and standards will occur over 3 years, with an initial budget of $250K approved in 2010 to begin the process of replacing obsolete or unsupported products. The project is expected to pay for itself in 5 years by reducing expenditures on licensing multiple software products and associated support costs.

4.3.4 Enterprise Portfolio Management

Enterprise Portfolio Management (EPM) is the capability to effectively manage projects, programs, portfolios and other activities, while ensuring they remain aligned with the organization’s strategic and tactical goals. ITS is accountable for multiple projects and programs but lacks the tools to manage them efficiently and cohesively through a common platform. EPM will increase project transparency and efficiency, and support the ITS business goal of creating a balanced mix of projects and sustaining work that supports the organization’s goals within its investment and capacity constraints.

EPM provides capabilities for ITS management to:

· Understand the ITS skill and resource base, allocation and capacity vs. demand and adjust in real time to re-balance portfolio priorities as the demand and priorities change;

· Reduce the significant manual effort required to manage demand/capacity, program/project status monitoring and reporting;

· Align performance metrics to stakeholder and client expectations;

· Ensure consistent compliance with policy and process requirements;

· Improve forecasting of project timelines, costs and resource commitments (forward planning).

An initial investment of $200K is required to acquire EPM capabilities and deploy to IT program/ project managers.

4.3.5 IT Service Management

IT Service Management (ITSM) is an IT industry management control framework that applies best practices and process methodologies to improve the efficiency, security, and quality of IT services delivered by an organization. ITSM involves the redesign and implementation of new processes and associated tools that are core to IT operations and support, and links directly to achieving IT Business Goals (Appendix 1).

Current ITSM priorities include Incident Management (i.e., Service Desk response and resolution), Change Management (i.e., controlling changes to system configuration), and Problem Management (i.e., root cause analysis and problem resolution).

When completed in 2013, ITS expects to:

· Improve Service Desk response by a) reducing the number of incidents, and b) enabling self serve for customers via web portal;

· Improve operational performance with tools and processes that identify trends and pro-actively address problems with IT infrastructure and technologies, thereby increasing systems and technology availability and minimizing productivity loss;

· Improve customer satisfaction by reducing the time/effort to resolve incidents and problems;

· Achieve internal efficiencies by eliminating and automating manual tasks;

· Improve asset management, legal compliance, and reduce licensing costs through better asset management and re-deployment of unused licences;

· Increase compliance with Information Systems audit control frameworks (i.e. CobIT).

The total cost of ITSM is estimated to be $710K over 4 years, with $345K required in 2011.

4.3.6 IT Business Solution Testing and Quality Assurance

Software testing has largely been a manual and labour intensive process, and ITS lacks tools and capabilities that assist development teams investigate software bugs, verify functionality, and ensure the reliability and security of the software that is developed, integrated and/or purchased from vendors. By detecting functional, performance and security issues more efficiently, benefits include faster “time to desktop”, improved software quality and performance, improved product lifecycle management processes, and better risk analysis and benchmarking. An initial investment of $300K has been identified in 2011 to plan, acquire and deploy testing tools and capabilities.

4.4 IT Infrastructure Lifecycle Renewal and Sustainment

IT Services supports and maintains the computing infrastructure on behalf of the City. This includes both hardware and software. The goal is to ensure that the technology and infrastructure continues to operate according to specifications and service levels required by the City’s business units and needed to run City business.

Lifecycle renewal and sustainment funding averages $11-12M / year, with annual variations influenced by vendor upgrade and release cycles, growth in number of users, volume of data stored on City servers, additional City facilities requiring network connectivity and services, and new systems which are implemented (i.e., Roadmap initiatives).

4.4.1 Technology Infrastructure

Technology infrastructure includes the City’s desktop computers, laptop computers, servers, and related networking equipment and software on which City departments use on a daily basis to deliver public services.

It also includes security systems that focus on protection of City information and technology assets, and includes components such as intrusion protection and detection, internet and email filtering, anti-spam, identity management, and regulatory compliance.

The network infrastructure is the backbone electronic “highway” for the City. It is used by more than 9,300 users to securely transport and store data information packets for all City applications and systems (e.g. SAP, GIS, MAP, CLASS, e-mail, security video cameras, security card readers, etc.), and supports the City’s public presence in the form of services such as OTTAWA.CA, OCTRANSPO.COM and secure external e-mail communications.

Ongoing lifecycle investments are required annually to ‘rust proof’, upgrade the capacity and improve the resiliency of the corporate technology infrastructure, to:

· Ensure continuous vendor support as required by licensing and use agreements;

· Remain current with operating systems and components that to ensure new business requirements from client departments can be met;

· Ensure that the lifecycle renewal plans addresses anticipated or known future requirements (e.g., increased network capacity for rich media, data storage, obsolescence, etc.);

· Ensure that the City's information assets and resources are secure and protected from unauthorized use, disasters, viruses and other potential risks.

The goal is to optimize the replacement/upgrade cycle of network infrastructure and computers and reflect industry best practices (e.g., desktop computers 4-5 years and 3 years for laptops). Deferral of lifecycle results in increased operational costs as more time and resource effort is spent on fixing, supporting and managing older computers, and results in eventual “rust-out” of the infrastructure and its components.

From 2003-2009, the amount of funding available to replace aging equipment was approximately 75% of what is recommended to sustain the infrastructure (i.e., the “gap” between what is needed and what the City can afford). Roadmap strategies and modernization investments in virtualization (and potentially public cloud services), will help address the lifecycle gap.

Lifecycle investments on technology infrastructure (servers, network infrastructure, security systems, desktop/laptops and other devices,) will total $5.26M in 2011.

4.4.2 Enterprise & Business Systems Sustainment

ITS currently supports mission critical enterprise systems such as SAP, GIS/MAP, the City’s website, and approximately 59 business suites (groups of applications / tools that together meet a business requirement or function), and 235 independent applications - all providing capabilities for staff to access information and enable the City to transact business with its citizens and businesses.

Over time, software must be upgraded to remain current with underlying operating systems and components, to ensure vendor support is maintained, to maximize the sunk costs of previous investments, to optimize the useful life of the software, and to reduce the probability of systems failure and impact on the services that depend on technology.

Lifecycle and sustaining investments on enterprise and departmental business systems will total $4.02M in 2011.

4.4.3 Business Systems Application Renewal Program

The City and its former pre-amalgamated municipalities invested in business applications to automate manual tasks and to manage volumes of information needed to service its citizens. In 2001, the new City inherited over 1,200 such applications. Since that time, ITS has worked to standardize, eliminate and consolidate these systems.

Of the approximately 59 business suites and 235 independent applications currently supported by ITS, over 90 of these applications have reached “end of technical life” with additional applications being added each year. “End of life” applications are written using technologies that are greater than 8 years old and have no vendor support; there are limited or no internal resources with the skill sets to provide support; external resources are limited and/or very expensive; and there is an increased risk that these applications will not function with modern versions of hardware and software that the City implements.

Migrating legacy applications to new technology solutions will:

· Contain or reduce the cost of supporting the overall portfolio of business applications;

· Reduce the complexity of the application environment by consolidating where possible and/or migrating to existing technology solutions and common platforms;

· Increase the stability and flexibility of existing and legacy applications and improve the responsiveness of IT to new business requirements

For 2011, the systems planned for renewal include Aquacis (Water Billing) and Elections Management. Both are major systems that have been identified as renewal priorities. The total renewal program is estimated to cost $9.5M over 5 years, with $2.5M identified in 2011.

5.0 Financial Summary

Table 1 provides a high-level summary of the proposed Roadmap investment plan, including Service Ottawa and other related Technology Roadmap initiatives, IT infrastructure renewal and sustainment.

Priority/Portfolio Investment Type	Total 5 Year Investment ($000)	Anticipated Annual Benefits ($000)	2011 Capital Requirement ($000)	Capital Funding Source
Service Ottawa: Priority Initiatives (9)	$79,304	$40,318	$14,250	Strategic Initiative
Other Technology Roadmap Initiatives	$4,840	$440	$750	Strategic Initiative
Sub-Total	$84,144	$40,758	$15,000

Lifecycle Renewal/Sustainment			$12,600	Asset Renewal

Table 1 – High Level Financial Summary

Table 2 provides a portfolio view of each initiative, including capital estimates and projected requirements (2011-2015).

As of December 2010, projects highlighted in green are in progress or substantially complete.

Table 2 – Roadmap Priorities

Table 3 identifies the annual lifecycle, renewal and sustainment costs associated with the City’s technical infrastructure, based on current vendor contracts and the projected impacts from new technology.

Table 3 – Lifecycle Renewal and Sustainment

6.0 Risk Management

The Roadmap represents a significant investment in technology, people and process, and will challenge the City’s capacity and ability to execute.

This risk can be mitigated by ensuring that:

· Investment plans have clear, realizable benefits in terms of efficiency savings, improved operational performance, service improvements and citizen satisfaction;

· Accountability for delivering the Roadmap initiatives and achieving the benefits is defined and managed;

· Investment decisions are transparent and strongly aligned with Council’s service delivery and sustainability priorities and strategic directions;

· Impacts of investments on resources, capital and operating budgets, business risks, and service standards are clearly articulated; and

· Performance measures are established to define success and focus management and execution of each initiative.

Moreover, the need to contain costs by controlling the technical complexity of the IT environment, while remaining responsive and flexible, will challenge the IT Services department.

This risk can be mitigated by ensuring that enterprise architecture is developed that:

· Translates the organization’s business mission, vision, strategies, goals, pain points, issues and concerns into a future state vision of “to be” business models and technologies;

· The “future state” reflects principles of reusability, flexibility, and economy; and

· Investment plans are prioritized to expedite the journey to the future state.

7.0 Conclusion

To make eGovernment a reality requires modernization of the internal operations of the City’s technology infrastructure. Much of this re-design work is, and will remain, invisible to the general public. More visible will be the adoption of eGovernment technology initiatives by the City’s service delivery units.

Through the strategic application of information technology, the City will provide seamless, efficient and effective service and provide better value to Ottawa taxpayers and business partners.

Our goal is to contribute to ensuring that Ottawa is the best place to live, learn, work, do business and visit.

* * *

Appendix 1 – ITS Business Goals

For ITS to be successful in delivering information and technology against the City’s business requirements, IT activities are organized into a process model[2] that is comprised of four major domains, including:

· IT Planning & Organization

· Acquisition and Implementation of Automated Solutions

· Delivery and Support

· Monitoring and Evaluation

Each domain includes a number of processes that are designed to ensure that IT goals are linked to the City’s business goals.

1. Planning & Organization Goals

· Align IT strategic planning with current and future business needs;

· Be transparent about benefits, costs and risks; Supply accurate and timely information on current and future IT services and associated risks and responsibilities;

· Be agile in responding to the City’s business strategy while ensuring compliance with governance requirements;

· Be agile in responding to business requirements, provide reliable and consistent information, and seamlessly integrate applications into business processes;

· Provide stable, cost-effective, integrated and standard application systems, resources and capabilities that meet current and future business requirements;

· Analyze and communicate IT risks and their potential impact on business processes and goals;

· Continuously improve ITS cost-efficiency with integrated and standardized services that satisfy end-user expectations;

· Provide defined and competent points of contact;

· Acquire competent and motivated people to create and deliver IT services;

· Ensure continuous and measurable improvement of the quality of IT services delivered;

· Ensure the delivery of project results within agreed-upon time frames, budget and quality.

2. Acquire and Implement Automated Solutions

· Translate business functional and control requirements into an effective and efficient design of automated solutions;

· Align available applications with business requirements, and do so in a timely manner and at a reasonable cost;

· Acquire and maintain an integrated and standardized IT infrastructure;

· Ensure satisfaction of end users with effective user training and operations manuals necessary for successful system operation and use;

· Acquire and maintain IT skills that respond to the delivery strategy, an integrated and standardized IT infrastructure, and that reduce IT procurement risk;

· Manage changes to new or implemented systems to reduce solution and service delivery defects and rework;

· Implement new or changed systems that work without major problems after installation.

3. Deliver and Support

· Ensure the alignment of key IT services with the business strategy by defining and managing service levels;

· Provide satisfactory third-party services while being transparent about benefits, costs and risks;

· Optimize the performance of IT infrastructure, resources and capabilities in response to business needs;

· Ensure minimal business impact in the event of an IT service interruption;

· Maintain the integrity of information and processing infrastructure and minimising the impact of security vulnerabilities and incidents;

· Ensure transparency and understanding of IT costs and improving cost-efficiency through well informed use of IT services;

· Effectively and efficiently use applications and technology solutions and ensure user compliance with policies and procedures;

· Enable effective use of IT systems by ensuring resolution and analysis of end-user queries, questions and incidents;

· Optimize the IT infrastructure, resources and capabilities, and account for IT assets;

· Ensure end users’ satisfaction with service offerings and service levels, and reduce solution and service delivery defects and rework;

· Optimize the use of information and ensure that information is available as required;

· Protect computer assets and business data and minimize the risk of business disruption;

· Maintain data integrity and ensure that IT infrastructure can resist and recover from errors and failures

4. Monitoring and Evaluation

· Ensure transparency and understanding of IT cost, benefits, strategy, policies and service levels through monitoring and reporting process metrics and implementing performance improvement actions;

· Protect the achievement of IT objectives and comply with IT-related laws, regulations and contracts;

· Ensure compliance with Federal, Provincial and other applicable laws, regulations and contractual requirements;

· Integrate IT governance with corporate governance objectives.

Appendix 2 – ITS Guiding Principles

The Information Technology Services Department is guided by a set of principles that inform the outlook and approach to the deployment of IT resources and how the Department achieves its business goals (Appendix 1). While operational planning may be dynamic, the following guiding principles remain relatively constant and are the basis for key decisions:

1. Focus technology investments on large-scale initiatives capitalizing on existing investments wherever possible, thus yielding the largest return on investment and transforming the way the City’s business is done.

2. Prioritize IT investments across the enterprise based on alignment with corporate business strategies and plans.

3. Continuously improve and optimize the network, application and hardware infrastructure, within the financial framework, to achieve a fast, flexible, cost effective and sustainable computing environment that meets the client’s needs, and to reduce risk of disruptions to City services and impacts on citizens.

4. Provide IT services and capabilities where the workers are, including at the office, in the field, or on the move.

5. Provide access to information in a secure manner and protect personal information.

6. Evolve a standards based technology architecture that is integrated with City businesses, enabling cost-effective evolution of services and infrastructure and connectivity with City residents and business partners.

7. Reduce the complexity of the City’s IT environment through an information systems architecture that promotes standardization and reusability.

8. Leverage strategic sourcing to respond to fluctuations in workload and/or reduce support costs/dependencies, lower TCO, improve IT responsiveness and flexibility, and manage risk;

9. Leverage and capitalize on existing investments in enterprise applications (SAP, MAP/GIS, e-Services, CLASS, etc.) as a means to manage complexity;

10. Emphasize data integration and sharing as a primary strategy for supporting business objectives and containing costs.

11. Emphasize greater use of electronic information to conduct day-to-day business and reduce the City’s dependency on natural resources.

Appendix 3 – Key Performance Indicators (2010)

1. Cost of Operations

ITS uses benchmark data from industry analyst Gartner Inc. supplemented with periodic detailed analysis of specific IT functions. Results indicate:

· ITS has been able to apply process and technology efficiencies to its own operation, while City FTEs and the number of computer users has continued to grow. The number of staff required to support this growth has declined overall and remained relatively stable since 2004.

· City of Ottawa IT staff support nearly twice as many clients as their peers. The department’s current full time employee count shows a 1:37 IT/client support ratio, as compared to a 1:20 ratio for peer IT organizations (state/provincial/local, source Gartner).

Other measures include:

· Data Centre cost of operations is 30% below cost of comparative peer group (Source: Gartner 2007).

· Service Desk cost of operations is 21% below cost of comparative peer group (Source: Gartner 2008).

2. Technology Investment and Total Cost of Ownership

Since 2004, technology investment at the City has been characterized by conservative spending on lifecycle replacement and accommodation for growth in the number of locations and users.

As a result, no major improvements to service or savings were realized during this period, and in reality this minor investment added to the ongoing cost structure and complexity of support. The Mayor’s Task Force noted that this was “treating information technology as an expense to manage on an annual basis”, rather than a long-term investment in productivity and service improvement.

Post amalgamation investment in IT declined significantly between 2004-2009

While historical performance measures (such as budget/expenditure, staffing ratios, and “total cost of ownership”) have highlighted the fact that information technology is being managed and supported efficiently, we are beginning to see TCO increasing at a rate which exceeds inflation.

Total Cost of Ownership (TCO), an industry standard efficiency measure, reflects an 11.4% increase in 2009 ($3,324 per user) for the cost of infrastructure and application maintenance and support for the City network user base, indicating a reversal of “under-investment” following amalgamation. This remains below the industry spending rates for State/Local governments, which was averaging $7,400 per user over the same period (source: Gartner).

During the same period, from 2008 to 2009, the annual growth rate of the City’s IT infrastructure and number of computer users was 7.7%, with increases planned for the 2010 year. This increase in user base was also matched with a 13.9% increase in servers and a 95% increase in laptop devices.

Other measures include:

· The cost of IT Services is generally higher than the OMBI median for single tier municipalities, reflecting a broader scope of services supported by ITS, a larger geographic coverage, and size of Municipality. (Source: OMBI );

· The per capita cost of IT Services declined from 2006-2008, but in 2009 was 3% higher than 2006. (Source: OMBI );

· As a percentage of the total City budget, the cost of IT and investments in technology declined over the same period from 2.1% (2006) to 1.8% (2010) (Source: OMBI). State/Local government average for 2009 and 2010 is approximately 4% (source: Gartner).

3. Process Investment

Since 2001, IT Services has investment in continually improving its operational processes as a means to deliver better service but also to remain as efficient as possible. This has included adoption and implementation of industry best practice frameworks such as CobIT (Control Objectives for IT), ITIL (IT Infrastructure Library) for IT Service Management, Portfolio Value Management (IT Governance Institute), and ISO 17999 Security Standards.

4. Awards and Recognition

The City of Ottawa has received recognition from international, national and provincial peer groups:

Computerworld Honours Program

· Selected as a ‘Laureate’ for OC Transpo SmartBus project (Washington DC, 2009).

Government Technology Exhibition and Conference - GTEC

· Honouree (Development Application Search Tool & Interactive Traffic Map) 2009

· Two Gold medals (eFootprint on Ottawa.ca and SHAMIS) and two Bronze medals (Spotlight and Ottawa.ca usability and accessibility) in 2008.

· Chosen as the Showcase municipality in 2001 and 2007.

Municipal Information Systems Association of Ontario - MISA

· Excellence in Municipal Systems Award 2005 for MAP-GIS.

· Special Recognition Award 2005: Annual MISA IT Security Conference.

· Excellence in Municipal Systems Award 2009 for the Development Application Search tool.

Appendix 4 - Current State Assessment of Information Technology

Amalgamation in 2001 was the catalyst for major investments in enterprise information technology as the Regional Municipality of Ottawa-Carleton and the 11 Area Municipalities merged into the new City of Ottawa. Computing facilities, hardware and software were standardized. Over 1600 separate business applications were eliminated or consolidated to approximately less than 400 by 2010.

Since amalgamation:

· Number of locations requiring connectivity (fire stations, police stations, libraries and other new facilities) has grown by 37%;

· Number of computer users supported by ITS has increased by 27% since 2001, with projections that by 2016 this will reach 50%;

· The rate of technological change continues at a rapid pace, driven to a great extent by consumerism and advances in communications technology.

A high level assessment of the City’s current IT environment reveals several critical areas requiring attention over the coming 5 years:

· 14% of desktop and laptop computers are > 5 years old today with 75% falling out of warranty from 2011 to 2013; majority are equipped with Windows XP as the current desktop operating system, which will be obsolete by 2015;

· There are approximately 2,700 separate printing devices (printers, photocopiers, fax machines) of varying vintages;

· Approximately 150 (33%) of the City’s fleet of Intel servers are at/near end of life due to conservative investments in lifecycle renewal;

· Centralized storage systems are at/near end of life. Demand for storage is predicted to grow in excess of 8 to 10 percent per year coupled with increasing requirement to manage rich media. This growth demands a current technology environment that is flexible and scalable to meet data demands.

· The City’s analog voice communications system will be at end of life by 2016; Network switching systems are also at/near end of life and will be renewed beginning in 2011/12;

· Security systems have recently been upgraded to incorporate Intrusion Detection and Prevention capabilities; enhancements & upgrades are continually required to keep ahead of malware, network intrusion, spam, and denial of service (DOS) attacks;

· Enterprise messaging is based on Windows Exchange and Blackberry Enterprise Services, both of which require upgrades in 2011;

· The City’s primary administrative system (SAP) has enabled the City to achieve $40M of cumulative savings since amalgamation, but strategic enhancements are needed to further leverage the original investment and expand its use and value across enterprise processes;

· Approximately 90 (30%) of the City’s business applications are classified “at risk”, as a result of obsolete technology or lack of vendor support;

· While the City continues to meet its legislated records management obligations, the growing volume of information is becoming increasing difficult to store, manage and disseminate to establish a “single source of truth”.

[1] At this time the Corporate Technology Roadmap does not include business-specific technology priorities that may exist within City departments for which ITS accountability is limited to a support role, such as Transit’s Smart Bus or Next Stop Announcement (NSA).

[2] Based on “Control Objectives for IT (CObIT)”, IT Governance Institute