High Level Architecture View

The high-level technical architecture is represented by a model that decomposes the statewide ERP system into distinct layers, which is depicted in more detail in the following diagram. The layers combine together to provide a complete solution and the model describes how each layer addresses a business role and solution capability. It provides a summary foundation from which the various conceptual components can be analyzed and decomposed further. The components depicted in the high level architecture view were used as input for the budget.

The to-be SAP centric statewide ERP system architecture has been defined in a business, application, and infrastructure context depicted in the following illustration.

The envisioned statewide ERP system architecture consists of:

 Tier-1 ERP transactional backbone: An end-to-end ERP Solution that is the transactional

backbone for all administrative functions, including, but not limited to, financials, budgeting, personnel and payroll management, workforce management, talent management, and material management. The package could potentially be supplemented by a minimal number of point solutions, where necessary, should the ERP backbone fail to provide the required functionality for specific and critical functional components (e.g., budget book publishing).

 Fully-integrated functional modules in ERP Solution: The ERP Solution can be fully

base across major functional domains, such as Financial Business Management (FBM), Human Capital Management (HCM), and Materials Management (MM). It can be fully-integrated to deliver seamless data integration across functional modules (e.g., integration between

procurement, accounts receivable, and accounts payable to enable inter-agency transfers), as well as to facilitate automated, non-disruptive technical and functional upgrades at the State’s discretion in the future.

The decision to move to a fully integrated functional ERP solution is complex. While there are certainly benefits that surround reduced integration and complexity, a single support organization, and a common and standard infrastructure, there are likewise potential costs and process

impacts. This is especially true when considering bringing an existing implementation (such as the Department of Transportation SAP solution) on to a unified instance. While unification is certainly an emerging trend in the ERP space, there are states that have made the decision to keep specific agencies on separate instances. For budget purposes, the cost estimates included in this report have assumed the move of DOT into a unified solution so that the potential cost is fully captured. However, further analysis may be required during the ERP implementation to make the final decision and move forward with a unification strategy.

 System of record: The ERP Solution can serve as the system of record for all financial, human

capital management and procurement-related data, such as, but not limited to, master data (e.g., chart of accounts, employees, positions, job classifications), transactional data (e.g., journal entries, invoices, time cards, payroll transactions, purchasing documents), and

reporting/analytical data.

 Integrated analytics: The State-selected ERP Software Package should include pre-built

analytical applications that are fully integrated with the ERP transactional hub and that include capabilities for analytical reporting, and measuring and tracking key performance indicators across FBM, HCM and MM. Additionally, the ERP Solution can include tools for performance dashboards, ad-hoc analysis, data-mining, as well as bi-directional integration with Microsoft Office tools such as MS Excel.

 Integration framework: A robust integration framework is required at the core of the ERP

Solution and can encompass capabilities and tools for data integration (e.g., ETL, web services, data quality, data profiling, replication, and change data capture), process integration (e.g., SOA, Hub & Spoke), and information integration (e.g., content management, and enterprise search) to enable a seamless information exchange between the ERP backbone and other applications.  Information security: Security and controls across the data, application and infrastructure tiers

are critical features of the envisioned ERP Solution. Since the ERP Solution will contain highly sensitive and confidential data, robust information security, data protection and governance are required, including encryption, firewalls, identity and access management, role-based access control, privileged user access control (i.e., to prevent system and application administrators from unauthorized access to confidential information), digital rights management, at all tiers of the ERP Solution (i.e., from user interface to disk). Additionally, security provisions need to protect the ERP Solution from malicious code, unauthorized access, hackers, and intrusion. Security provisions of the ERP Solution need to be in compliance with State security regulations.

 Hosted solution: In accordance with guiding principles provided by the State for the NC GEAR

ERP assessment the statewide ERP system should either be hosted on premise in State owned data center facilities with system management functions provided by State staff or hosted by a Third Party using a Virtual Private Cloud (VPC) model with system management functions provided by the Third Party hosting provider.

6

Project Level Requirements

Per the Statement of Work, four areas were identified around project level requirements. These areas included Project Management, Stakeholder and Change Management, and Quality and Risk

Management. While these areas are typical across any large scale IT project, they are particularly important when embarking on a statewide ERP implementation (as the scope and scale are larger compared to other IT initiatives). Project Management occurs at the highest level and provides oversight throughout the implementation. Stakeholder & Change Management is used to manage and

communicate changes that will impact identified stakeholders. Quality Management is an essential process that validates that all requirements are being met to full specifications. Risk Management is used to identify risk and mitigate potential risk factors.

Baseline Project, Stakeholder & Change, Quality, and Risk Management requirements were established as a result of input from SMA (Subject Matter Advisors) guidance, Deloitte Methodology, and past project experience from other ERP projects including Michigan, Illinois, and West Virginia. The requirements were presented to the state team for further validation.

A qualified integrator should have specific methodologies, tools, and processes for each of the areas listed below and should provide additional detail as part of an RFP process.