Enterprise Resource Planning (ERP) 101: WASHINGTO WASHINGTON What You Need to Know
Enterprise resource planning (ERP) 101: WASHINGTO WASHINGTON What you need to know
Enterprise ResourceN Planning (ERP) is a set of common business practices and a software system that implements core business practices across an organization. A complete ERP system combines business functions (finance, procurement, budget, payroll, and HR) across an organization’s main resources – its people, money, information and assets – and provides decision makers with real-time enterprise information.
BUDGETING PAYROLL Includes processes to prepare the Paying employees; allows for organization budget and manage the execution of of payroll to be managed in a structured the budget. Enterprise Resource manner. Planning (ERP) HUMAN RESOURCES is the integrated Used to track different management of main PROCUREMENT employee and talent business processes, Manages purchase-to-pay, management functions such as often in real time and supplier and vendor management, recruitment, hiring, and mediated by software p-cards, and punch out catalogs. performance management. and technology. CONTRACT MANAGEMENT FINANCE Manages contracts from vendors Managing gov’t funds through and partners. the planning, monitoring, and governing an entity’s financial Replacing and streamlining outdated finance systems will be resources. the focal point of the first phase of the OneWa ERP transformation. How will the state use the ERP? Currently, Washington agencies have siloed, disparate legacy systems, processes, and ways of working that are unique to each agency. These systems do not talk to each other, and they are difficult to maintain. AGENCY A AGENCY B HOW THE Uses the statewide budget system, Has its own finance and HR system as a but has very unique processes large agency, and has unique processes S TATE for using each system OP ERATES TODAY… AGENCY C AGENCY D Purchases some services Uses the statewide payroll system, but from DES also uses shadow systems
In implementing an ERP solution and transforming the processes that support the state’s business, OneWa will help ensure decision-makers have access to data that is accurate and timely, standardize common business processes across agencies and improve service delivery.
HOW THE A single enterprise-wide system that integrates and S TATE C AN ma na ges finance, procurement, HR, payroll, a nd budget OPERATE information. WITH AN ERP… AGENCY A AGENCY D AGENCY B AGENCY C WASHINGTO WASHINGTON N What are the benefits of an ERP system? There are several benefits to implementing a single ERP system – illustrative benefits are outlined below. Please note that specific ERP capabilities for Washington depend on the design decisions made by state business owners.
Paperless Transactions Electronic Requests Real-time Data Improved functionality Most ERPs provide data in With appropriate workflows, real-time. This allows accurate ERP functionality will help ERPs allow agencies and their agency leaders better track employees to have increased ERPs can route requests to the reporting and information on how taxpayer dollars are spent, paperless transactions. appropriate person or group of headcount, information on people who need to approve or staff, and organizational and will improve employee access to financial data, be made aware of a structures. Example: Electronic receipts requiring less dependence on can be substituted for paper transaction. others to produce reports. receipts for expense reporting. Example: When a requisition is submitted to purchase an item, Example: New screens and once approved (after budget automation will replace manual checks), it becomes a Purchase processes and spreadsheets. Order (PO).
Simpler Maintenance User-friendly technology Mobile Capabilities The ERP solution vendor can be ERP software is intuitive and ERPs allow employees to responsible for routine updates user-friendly, which can reduce access data from anywhere and maintenance. This can the need for the expensive and with different devices, reduce maintenance costs shrinking pool of COBOL including mobile devices. associated with outdated, programmers. disparate legacy systems.
Phase 1a of the One Washington ERP Implementation: Core Finance There are two major objectives in Phase 1a: AFRS Replacement, and Core Financials implemented in Workday (the selected vendor). Phase 1a implementation will focus on migrating core finance activities from AFRS into Workday. This will be the first step towards moving finance, procurement, HR, payroll, and budget business processes to Workday, the state’s new Software-as-a-Service (SaaS) ERP system.
Phase 1a of Workday Functionality will include: • General Ledger • Medicaid & Standard Cost Allocation • Accounts Receivable • Vendor/Customer Management • Accounts Payable & Invoicing • Interagency Billing • Fixed Assets