Electronic Document Management

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THE CITY O F E D I N B U R G H COUNCIL

Item no

14-

Electronic Document Management

Executive

of the Council

7th October 2003

1

1 .I 2 2.1 y. 2.2 2.3 2.4 2.5 Purpose of report

To approve a preferred supplier and proposed way forward for the implementation of an Electronic Document Management system for the Revenues & Benefits Division. Background

Electronic Document Management (EDM) is a term used to describe a range of technologies enabling an organisation to control electronic files or images. In this sense, a document was traditionally seen as a piece of paper, such as a letter that has been scanned in as-an image; or documents created in applications like Microsoft Word or email. The term can now also encompass the use of digital photographs, videos, speech and faxes and other media.

An

EDM

system will help the Council to provide a clear audit trail for each customer transaction or case and improve the ease of access to information delivering

improved quality of work and customer service. In addition time spent on filing and retrieving documents will be significantly reduced allowing staff to focus on their core work areas. Further efficiency can be gained through exploiting the potential to automate certain processes and improve work allocation.

In August 2002 the Council Management Team agreed an outline EDM strategy based upon, where possible, sharing of common components between departments to reduce costs and allow integration of management information.

In addition it was agreed that any solution be implemented in a staged approach. This approach would reduce risk and allow the Council to learn from experiences gained on the early projects. A plan for implementation would be phased, priority being given to business processes and functions which would benefits most from such technology. Traditionally, in Local Government, EDM systems have been implemented in Revenues & Benefits first, due to the high volume of transactions and paper. A detailed benefits analysis showed that the division could achieve savings of up to €260,000 of time spent on filing and retrieving documents alone. Days to process new claims could be reduced by almost 40%. A full benefits analysis is

provided in Appendix 2.

in February 2003 the Council was successful in a bid for €512,000 from the Department for Work and Pensions (DWP) to implement a system for processing benefits cases. Following this award it was decided to tender for the contract using the EU Restricted Procurement route.

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3 Procurement Process 3.1 Basis of Tender

3.1 . I In April 2003, having short-listed 25 notes of interest, an Invitation to Tender was sent to four suppliers. These were returned on the June. The tender was based on procuring a solution that not only met the specific requirements of the Revenues & Benefits Division, but was also aligned with Smart City Vision and could be deployed in the future across other Council services.

3.2 Evaluation Methodology

3.2.1 In order to ensure a robust evaluation the Council drew up a points-based evaluation methodology, with a technicaVquality to price split of 70% to 30% respectively. The points were awarded according to compliance with the following criteria:

Product Quality -The technical features of the offered system and the degree of match with the Council’s statement of requirements. This included adherence to mandatory legislation and national standards and frameworks. An important element was the usability of the system, which was evaluated by ‘front line’ users.

Supplier Quality -The quality of the services and knowledge and experience of staff provided by suppliers, including references from other local authorities. This included evaluation of project management, implementation approaches, long term

sustainability and financial viability.

Strategic Case

-

Capability to scale up to corporate requirements and proposals for exploitation in other service areas in the Council, including the Councils commitment to developing Customer Relations Management strategy.

Financial Case

-

Due to funding provided affordability issues were significantly reduced. However the evaluation needed to ensure that any solution represented value for money and was financially sustainable in the long term.

3.2.2 The tender evaluation team was led by the e-Government Division and included representatives from the Revenues & Benefits Division, Legal Services, Customer Services Team and other Council Services. The evaluation team considered each tender document in detail, undertook site-visits and held formal presentations.

3.3 Recommended Supplier

3.3.1 The recommendation is that the contract be awarded to Comino PIC, who had a combined score of 93.1% compared to the second placed bid that scored 87.2%. Appendix I provides a detailed breakdown of scores. Although the Comino solution was not the cheapest solution it was rated highest for quality and therefore was considered to represent the best value for money.

3.3.2 Comino were rated the highest for product quality and met all the essential requirements, including adherence to all standards and the Government

lnteroperability Framework. Critically, front line users rated the solution as the most likely to deliver service improvements.

3.3.3 Comino were also rated highest for supplier quality and clearly demonstrated the capability to deliver the solution to the Council’s requirements. A broad range of reference sites were provided including a number of similar size and profile to Edinburgh. In addition the supplier demonstrated a commitment to further

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development of their product and had experience in working in partnership with several organisations.

3.3.4 The product offered contains a series of modules that were specifically designed for Local Government and could be used in a number of Council Services including, Social Work, Housing and Customer Services. The tender document also showed that the supplier has researched and clearly understood the Council’s Smart City vision.

3.3.5 The price proposed by Comino PIC was the second highest. However the variance in the prices provided by all the tenderers were marginal. Moreover considering the rating for the quality of the product the evaluation team concluded that the solution provided by Comino represented best value for money.

3.3.6 The project will be taken forward in partnership with BT and Comino PIC. Both partners have already undertaken preliminary work together. BT will provide

implementation support and Comino will provide the hardware and software, as well as specialist consultancy.

4 Financial Implications

4.1 The estimated financial implications of BT and Comino’s proposal are detailed below. The benefits are those which would be expected using conservative assumptions and are based on current prices (f’000s):

4.1 BT’s costs include validation of technical infrastructure, integration with iWorld, project management, support and testing. BT hardware and service support costs remain to be included. All BT costs will be funded through service credits. Comino’s costs include the provision of software, hardware and specialist consultancy. The Council’s costs represent labour costs for project management, training and contingency. The DWP funding of f512,OOO will cover both Comino and the

Council’s costs. A combination of existing Council resources and service credits will contribute to change management costs. The annual support costs of €37,000 will be funded through efficiency savings.

4.2 The cumulative benefits figure of f2.5m outlined in the above table was calculated through a detailed benefits analysis undertaken as part of the business case that supported the bid to the DWP. Details are provided in appendix 2. All benefits will be revisited during the business analysis phase of the project.

It is proposed that benefits realised in 2004/5 will be used to support the Enterprise Finance project implementation.

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5 5.1 5.2 5.3 5.4 5.5 6

6.1

Proposed Way Forward

It is anticipated that implementation will commence in November 2003. Appendix 5 provides a more detailed project plan. A potential timetable is detailed below:

The implementation is dependent upon the degree of stability of the new iWorld application, the size of backlogs following migration and the speed with which staff adapt to the iWorld application. In order to mitigate the dependency on the above project implementation will be incremental and adaptable to changing circumstances. The e-Government Division will provide the Revenues & Benefits Division with a Senior Consultant to manage the project and two business analysts to provide support. A full breakdown of required Council resources is provided in Appendix 4. The Head of Revenues & Benefits will act as the Project Sponsor and will retain overall responsibility for the project.

The project will follow the agreed project management arrangements for all Smart City projects, with a Project Board being formed reporting through the Major Project Board. Monthly consultation meetings will be held with the Trade Unions through the Departmental Joint Consultative Committee.

In addition the project will co-ordinate closely with other corporate projects such as; Customer Services, Rationalisation of Office Accommodation and Electronic Records Management. One of the deliverables of the project is an implementation model that can be used as guidance for other services. Therefore Revenues and Benefits will act as a prototype for informing developments in other Council services.

Recommendation

It is recommended that the Executive of the Council:

L

Director

of

Corporate Services

note that this report was considered by the Smart City & ICT Partnership Sounding Board on 23 September 2003,

agree to the selection of Comino as the supplier for the electronic document management system for Revenues & Benefits,

agree that benefits realised from this project in the 2004/5 financial year will be used to support implementation of the Enterprise Finance Smart City project and agree to the proposed project plan as outlined within this report.

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Appendices Contactl tel Wards affected Background Papers 1

-

Evaluation Summary 2

-

Benefits Case. 3

-

Risk Register.

4

-

CEC Resource Plan.

5

-

Draft Project Plan

Mike Peterson, Head of Revenues & Benefits, 469 5016 mike. petersonaedin burg h .gov. uk

Andrew Unsworth, Head of e-Government, 469 3965

and rew. u nsworthaed i n bu rcI h .gov.

u

k

All

DWP Bid for Funding Invitation to Tender Benefits Analysis Tender Scorecards

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APPENDIX 1 EVALUATION SUMMARY Consolidation

Prim (1 "5

years)

f?Z6fj,WQ7 &Q7,253 E31 6,BB E334,274

price

Smre

tae 88 81 74

Adjusted @

30%

ma

2 6 5 24 4 22 3

Total Adjusted $ a r e , 73 2 s9 613

+

87 2

Rank 4 3 1 2

Preferred Tender Comino

Quality Consolidation

I

13.0 I 17.0 17

.

+ . I

,Project

Managament

ITOTAL

200.0 22.0 263.5 288.5 3 4 5 2 3 5 4 5 7 3 2 3 2 3 3 1 4 5 15 21 28 5 5 5 3 3 3 24

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/APPENDIX 2 THE COST- BENEFITS ANALYSIS

(f000’s)

(All costs and benefits relate to the Revenues & Benefits Division. No consideration has been given to

funding available. Costs include both Council Tax and Benefit processes)

Financial Analysis Proiect Management 44 Software 100 Optional Software 39 Hardware 71 Implementation 167 SX3 integration 31 Change Management 109 Total Costs 831 37 37 37 37 37 37 37 Filing 0 69 138 156 156 173 173 173 Data retrieval 0 34 69 77 77 86 86 86 Photocopying 0 12 25 28 28 31 31 31 Telephone Calls 0 12 24 27 27 30 30 30 Accommodation 0 21 42 47 47 52 52 52 Performance Management 0 8 17 19 19 21 21 21 PCS 0 8 15 17 17 19 19 19 Total Benefits 0 165 330 371 371 41 2 41 2 41 2 Cumulative Benefits -831 -703 -41 1 -77 257 632 1008 1383

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APPENDIX 2 THE COST- BENEFITS ANALYSIS (f000S)

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APPENDIX 2 THE COSTIBENEFIT- PERFORMANCE IMPROVEMENTS

These service improvements will be revisited during the business analysis stage of the project. In addition Customer Service, Accuracy and Staff Morale benefits will also be addressed.

I

Current 2003104 2004105 2005106

I

_Current _2003104 _2004105 _2005106

1

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APPENDIX 3 RISK REGISTER

The Council has undertaken a detailed risk assessment and will continue to add to the risk register as the project progresses. These risks will be built into planning and review arrangements.

i

Catcuiation of incoming & outgoing mail

! I j Transfer the risk to Suppliers

i

i Low Medium

I

Re-calculate figures. 3usiness

/olumes j may be incorrect. I I

I !

! Risk that new system does not integrate

i

High { with core system

i

linked to acceptance testing and

Systems Low i penalties. Service issues will be

! j addressed through contingency

I

plans.

! j i Transfer the risk to Suppliers

! _{I linked to acceptance testing and}

systems

1

Migration of new system is delayed ! I Medium Low

I

penalties. Service issues will be

!

i

j addressed through contingency

! ;

:

plans.

!

I

Problems occur with core system following

[

i

; migration High

i Ensure new system has Medium sufficient bedding in period system

j On-going liaison with Council I Scottish Executive.

1

Compliance with Data Protection Act I requirements may lead to a different ; approach and may limit what can be

i achieved. ! !

! !

-egislative I j Medium Medium

1

Solicitor and BT and with

j

1

Verification Framework affects full potential !

1

Effective project management in

Medium

1

particular timing

Legislative ! High

!

i I

1

Fail to realise all benefits in accordance

j Medium ! Establish clear plans for Medium j realising benefits Benefits

j with timescale !

! ! !

! j i Establish a Benefits Realisation

/

Level of benefits associated with the

Benefits

;

i n t ~ o d u ~ j o n of EDM may be lower than

\

Medium Medium i ensure new processes are

i estimated ! i aligned with the estimated

;

i

I

benefits.

I

Team. Utilise design stage to

!

j

r Y

1 Risk that implementation costs increase on i ! ! CEC side d i e to risk of underestimating

I the anticipated CEC resourcing for project

I

i Medium

I Ensure detailed planning and High resource availability

Implementation

- .

j management and change management. I ! 8

i Implement change management Medium

/

programme

Implementation CuRural resistance by staff & managers

1

High

I I

i I i Transfer the risk to Sumliers

! !

I

linked to acceptance testing and

i

High Medium 1 penalties. Service issues will be i Management and performance of sub-

j cantractors

i i addressed through contingency

Implementation

f j

1

plans.

i System failure resulting in inability to ; deliver service.

I I

i

High Medium ! Establish contingency plan Implementation I

! !

i

!

Risk of theft ts data or misuse of data held ;

1 j to be provided.

j Ensure that appropriate security

i

in place. Training in data j protection issues for CEC staff

‘Ow

Security j on the system by CEC staff or another

i

Low

i

party. !

! ! j Ensure that appropriate security

j Risk of deliberate or unintentional misuse _i

in place. Training in data i protection issues for CEC staff

I

i

Security ; of new system, system components or j Low

E

1

to be provided.

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System Performance Future Requirements Future Requirements Future Requirements Training Provision Training System Failure

L

!

Risk to system availability through the j service being unavailable or that the

performance of the system is beiow agreed

levels. !

i

changing departmental requirements

i

Low Low throughout the term contract. !

j

I

’ High Medium

I

Risk of additional cost in relation to _i

i

I

Risk that technology is not refreshed to

remain up to date and efficient with regard j Medium Low

to the project requirements. j

Risk of maintenance provision of application and hardware,

I

1

Medium Medium

!

High Risk associated with staff requiring training

j

Medium

who are also required for service provision. Training affected by delays in

implementation I

1

Medium Medium I ! I Low Risk of failure to provide appropriate back-

[

up, contingency.

! !

High

Transfer the risk to Suppliers linked to acceptance testing and penalties. Service issues will be addressed through contingency plans.

Assess, as far as possible, future departmental

requirements at this stage in the process. Use of operational points .

Establish interim service provision options

Draw up contingency training plan

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APPENDIX 4

-

RESOURCE PLAN

The resource plan is calculated over a full year. Although the actual implementation of EDM into Revenues & Benefits will only last 5 months, pre and post implementation tasks take the whole project life cycle to a full year as shown in the project plan in Appendix 5.

I

/System set up and configuration

1

1 I

User liaison 220

/Change management and communication

I

Data analysis

1

f24,210 1 -I _I -.L-- ,Reference points ~ S e r work groups

1

System Set-up andTonfiguration Trainers. responsible for training staff Acceptance Testing.

!Test Product upgrade 8 new releases

~ 330 ~ - €29,596 15,404 Project Management Training & Contingency

I

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?

APPENDIX 5

-

PROJECT PLAN

-

(Draft 2003/2004)

Report to PSB

Sign Contract

Project Set Up & Admin Business Analysis System Build System Installation

System Data Configuration Training and System Set up Acceptance Testing

Go-Live

P rmess Re-eng i nee r i ng Benefits realisation Plan Project Review

Corporate Roll Out Change Management

a

II

I

Phase1 I

111

9

I

Phase2

l-

i i I 1 i

The above project plan is entirely dependent on preferred implementation methods and other projects such as migration. This will be revisited at the project set up stage.

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Agenda item: Executive of 7 October 2003 Report title: Electronic Document Management

In accordance with the Council’s constitutional arrangements, the contents of this report have been noted by the appropriate Executive Member.

Without prejudice to the integrity of the report, and the recommendations

contained within it, the Executive Member expresses hidher own views as

follows:

For information

-

Paragraph 8.2 of the Council’s Constitutional Arrangements states:

“Officers will continue to prepare reports, with professional advice and recommendations, on matters requiring decisions by the Executive:

P a report seeking decisions on matters of corporate strategy, corporate policy and corporate projects will be submitted direct to the Executive

>

a report seeking decisions on matters relating to the special responsibilities allocated to an

individual member of the Executive will be submitted, in the first instance, to that member. The member will add his or her own recommendation to it before submission to the Executive. Where the Executive member disagrees with the advice and the recommendation of the officers, the Executive member will also state his or her reasons.”

From

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“Capital City Government

-

The New Arrangements” (Appendix 2

-

Constitutional Arrangements)

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agreed at Full Council 18 May 2000.