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Home My WebLink About09.a.Review Information Technology and Operations Technology (IT/OT) Strategic PlanPage 1 of 13 Item 9.a. LICENTRAL SAN October 19, 2023 FROM: CHARLES MALLORY, INFORMATION TECHNOLOGY MANAGER REVIEWED BY: PHILIP LEIBER, DEPUTYGENERAL MANAGER -ADMINISTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: REVIEW INFORMATION TECHNOLOGYAND OPERATIONS TECHNOLOGY (IT/OT) STRATEGIC PLAN The Information Technology/Operational Technology (IT/OT) Strategic Plan was prepared by SDI Presence, LLC (SDI) and Brown & Caldwell (BC) for Central San. The contract for this work was approved by the Board in August of 2021. The IT/OT Strategic Plan scope included Central San's use of information technology to support both its administrative and operational business processes. An similar effort completed in 2015 focused on just the IT related processes but did not review operational technology. With the transformation of information technology from a "back-office" productivity tool to a mission -critical, public -facing component for the delivery of information and services, I T strategic planning is no longer just about information technology, but rather, must also address how organizations, such as Central San, can: • More agilely respond to new and changed requirements. • Align IT directions and priorities with organization directions and priorities. • More effectively manage their total cost of ownership for information technology in the face of limited budgets. • More effectively manage the allocation of limited user and IT resources. • Derive greater value for their investments in information technology. • Better leverage information technology to optimize the ability of Central San to serve the community. • Obtain greater value for its investments in information technology. In the first phase, the SDI/BC team prepared a holistic assessment of Central San's current use of information technology in support of its administrative functions (budgeting, finance, and payroll), and operational functions (planning, management, and monitoring of the treatment plant and collection systems), the challenges that the District is experiencing, and opportunities to use information technology to improve the delivery of services to Central San's internal user and the public. Based on the activities performed during that assessment, the SDI/BC team delivered two key reports that document Central San's current information technology environment. The Business Opportunities Report provided information for Central San regarding opportunities to utilize better its existing portfolio of October 19, 2023 Regular Board Meeting Agenda Packet - Page 77 of 127 Page 2 of 13 enterprise, business, and operational applications. The IT Services Alignment report provided information for Central San regarding the delivery of IT services to its users. Both reports provided findings and actionable recommendations for the District. Based on the information provided in the Business Opportunities and IT Services Alignment reports, the SDI/BC team developed a portfolio of proposed projects to be considered in the Technology Strategic Plan, which provided key metrics for each project, including descriptive information about the project, range of cost, estimated business value, estimated level of risk, and estimated level of effort. The project portfolio was reviewed with staff and revised as needed prior to a Project Prioritization Workshop with the consultant and staff. The final phase in the development of the Technology Strategic Plan included a workshop for Central San's management team in which the SDI/BC team worked with the participants to arrive at a consensus regarding the District's most critical operational priorities, what the information technology needs are, and to shape the plan for responding to them. As a result of the aforementioned activity, five roadmaps by project type were also created for tactical use, and they are as follows: 1. Supervisory Control and Data Acquisition (SCADA) 2. Enterprise Asset Management (EAM) 3. Graphical Information System (GIS) 4. Business Intelligence (BI) 5. Cybersecurity Those roadmaps serve as the overall header/grouping for sub -projects, which are further prioritized into categories 1,2,3, with "1" representing most important. The presentation also includes a slide which focuses on anticipated costs and resources needed to address the scope of projects identified. However, this is not a request for incremental resources; most of these costs are included the current O&M spending level, and Cl P. To the extent additional resources may be needed, these would be evaluated during future budgeting processes, or project timelines adjusted to fit within existing resources. The attached presentation provides an overview of the process used to develop the Information Technology/Operational Technology (IT/OT) Strategic Plan, and a summary of the key project roadmaps listed above. Strategic Plan Tie -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally GOAL SEVEN: Innovation and Agility Strategy 1 - Leverage data analytics to become a more efficient utility, Strategy 2 - Implement organization -wide optimization, Strategy 3 - Be adaptable, resilient, and responsive ATTACHMENTS: 1. Presentation October 19, 2023 Regular Board Meeting Agenda Packet - Page 78 of 127 Page 3 of 13 Attachment 1 z tr ASDI 5 D 1 P R E S E N C E L L C Central SAN IV IT/OT Strategic Plan Project Review i October 19, 2023 ! odisory services. technology 1WI.entaVi --d f 1 • IT/OT Strategic Plan Methodology • High-level Review of Documents • SWOT • Next Steps 2 October 19, 2023 Regular Board Meeting Agenda Packet - Page 79 of 127 Page 4 of 13 3 Development of the IT/OT Strategic Plan 4 October 19, 2023 Regular Board Meeting Agenda Packet - Page 80 of 127 IT/OTStmtegic Plan Development IT/OTStrategic Plan Implementation Whereare we now? How can we get there? How do we implement the plan? where ao we need to go? '., ❑ BI, E , GIS, SCADA SecurkyhR..d..pAW�k,h.p,ORoadmap ommitment Enabling Ro dmaps DIAd. T Anda❑Factors Pd❑ Project DZp-d.n.ieaProjectBlue Well" Devel°P ChartersnazeUpdateIT/OTP p. Central5an radIT/OTIT/OT PreliminaryAuaumark d°dkzakan wwkahop Rasfew Plan WorkFlana Workpkna BudgetRaquast Budnass SarVices "Blue Well" Compl—d Projwt R/OT StrataglcOPPorturikae Prolan RewurcaIT/OT Alignment Report ject 5akadula Shcadula plan ahtw Availability Report RakBFinal OnftBFinal DraftaFinal Legend Qatar ILItpn/ 4 October 19, 2023 Regular Board Meeting Agenda Packet - Page 80 of 127 Project Deliverables ❑ Voice of the Customer Survey Report - April 5, 2022 ❑ Business Opportunities Report - August 12, 2022 ❑ IT Services Alignment Report - September 15, 2022 ❑ IT/OT Strategic Plan - August 14, 2023 ❑ Tactical Roadmaps • Network Security - March 16, 2023 • SMART - March 15, 2023 • Geographic Information System (GIS) - July 19, 2023 • Enterprise Asset Management (EAM) - July 19, 2023 • Business Intelligence (BI) - July 19, 2023 • SCADA - July 19, 2023 5 Page 5 of 13 0 October 19, 2023 Regular Board Meeting Agenda Packet - Page 81 of 127 Page 6 of 13 Voice of the User Survey Centrel sol�Dy� rbaeaipn C,... ;drg61 ❑ Level of participation: 106 Now sadsfwd are ypu whhthe med od used to report issues tp To request Servlar fmm IR98 to IT Best Practices responses out of 375 employees = a ti;earemwthetma�aama�aem`°"`yam97 asPlow 28/ satisfied am lvdh ms rodvnunicauohs th-01 the—bleshomr, prep 1 98 whhthetimeNnessandmrnpla—of fl's f&A -upf97[ M Calk on me serAce pfowdcd? as 19077/7 Hmvsa4:rad wr@ the Oist ,, ncewareavaifeaility? 0 / eller MEN= ❑ Overall level of satisfaction with IT Hm ftredareyrwwitthe Peed°fthao�dte,Inta? Support = 99% Ho Ifted areyou with tTs warm of spam end umran ede mail? 97 naw satisfied areypu with 71 pmmmuni-I rdon IA,rriceotltagesand upcemirtg maintenanR? 49 of✓ Hmv satisfied are ypu with the use of —Isle, wirdess, antl/or remote a—,,services,coverage, and availabllCy in the 01"n.1 sd 7s ✓� YYY� How Satisfied are you with the training you received for Central San',, business appriradpnsP 85 75 ✓,l Haw satisfied are you wiIh IT's control of malware antl prevention ul wruses1 300 90 ✓ Hmv SatlsfiM are you wim IT's ability to rcrover a lost file fir rc[wer damaged filesP SIR 95 ✓_� Hmv satisfied a e ypu with the GIS apple Wtgns antl maps provided ,,he oisairtT 300 75 ✓'i Htrwsati5fiad aRydu whhthe GISaupppttycu-arw? 97 75 ✓ How satishetl re you with IT staff, undentaMing of I" OWI&,, business oyecnvm? 42 75 Had satisfied are ypu with Rstars under ,,d1ng of ypnr depanmenrs Cosi ness dWan°al 89 75 ✓. Hav satisfied are you whh[he 0lsvices Rchnnmey planning effu-7 as 80 Now u %f W are you with the overate support ypu rec from ff? y9 g5 ✓ �m 7 Central SAN's Conformance to the IT Best Practices ❑ Assessment based on SDI's model for IT Best Practice conformance I October 19, 2023 Regular Board Meeting Agenda Packet - Page 82 of 127 Conformance to IT Best Practices YYYYYYYYY YY / eller MEN= YYY� — =M�-�YY YYYYYYYYYY - YYYYYYYYY Basic Aligned / Integrated ji ❑ Assessment based on SDI's model for IT Best Practice conformance I October 19, 2023 Regular Board Meeting Agenda Packet - Page 82 of 127 Page 7 of 13 Central SAN's Conformance to the OT Best Practices ❑ Assessment based B&C's experience in working with similar organizations Central SAN's Conformance to GIS Best Practices Confornnance to GIS Best Practices m GIS Gwernanoe 4i a Data r� a A - hca5ons C7 PP 0 o Staffing c O Infrastructure Average Conformance Maturity Levels 3 Reactive Proactive III o to za 3a na ca ea m E Less Agile More Agile z3 % of GIS Best Practices Conformance ❑ Assessment based on URISA's GIS Capability Maturity Model (GISCMM) 10 October 19, 2023 Regular Board Meeting Agenda Packet - Page 83 of 127 Conformance to Operational Technology Best Practices �iii�■�■ il■iiii _ lllllllllillllllllli lllllllllillllllllli lllllllllillllllllli a� iii■■®■ OT Administration iiii�■®■ _ _ iiii�■�■ - Basic _ Aligned / Integrated ❑ Assessment based B&C's experience in working with similar organizations Central SAN's Conformance to GIS Best Practices Confornnance to GIS Best Practices m GIS Gwernanoe 4i a Data r� a A - hca5ons C7 PP 0 o Staffing c O Infrastructure Average Conformance Maturity Levels 3 Reactive Proactive III o to za 3a na ca ea m E Less Agile More Agile z3 % of GIS Best Practices Conformance ❑ Assessment based on URISA's GIS Capability Maturity Model (GISCMM) 10 October 19, 2023 Regular Board Meeting Agenda Packet - Page 83 of 127 SWOT Analysis Present Use of Future Use of Information Technology Information Technology I I I I I I I I Lead Tod Opportunities I I I I I I I I , I L Limit � I I I I I I , I Weaknesses Lead To I I I I I I I I I I I I I I I I r -- — — — — — — — — — — —I -- — — — — — — — — — — — — I 11 ❑ Reviewed separately for IT and OT ❑ Primary objectives are to: ✓ Leverage strengths ✓ Remediate weaknesses ✓ Mitigate threats ✓ Realize opportunities Page 8 of 13 SWOT Analysis — Key IT Strengths, Weaknesses, Opportunities & Threats Strengths: ■ Since the completion of the 2015 IT Master Plan Central SAN has made considerable progress in improving the staffing and performance of its IT organization and this is reflected in a high level of user satisfaction with the services provided to them. Weaknesses: ■ Central SAN has yet to implement a sustainable approach to the enterprise governance of information technology. ■ Central SAN has experienced challenges in the implementation of the Oracle Fusion Cloud ERP solution. ■ The continued retention and storage of hard -copy documents. Opportunities: ■ Full and more effective use of Oracle Fusion Cloud ERP. ■ Increased efficiencies through the continuing adoption of digital documents and automated workflows and the digitization of hard -copy documents. Threats: ■ Increased cost of ownership for information technology without realizing increased value for these expenditures. ■ Limited ability to agilely respond to new and/or changed requirements. 12 October 19, 2023 Regular Board Meeting Agenda Packet - Page 84 of 127 Page 9 of 13 SWOT Analysis — Key OT Strengths, Weaknesses, Opportunities & Threats Strengths: ■ Working toward standardization of the plant and collections pumping station electrical switchgears, MCCs, VFDs, PLCs, PLC 1/0, and networking equipment. ■ Awareness of "smart utility," with several initiatives in progress. ■ Strong GIS program. Weaknesses: ■ Lack of documented plans for GIS and SCADA. ■ Lack of proper utility billing system and delays in the completion of the Permitting solution. ■ The Dynac SCADA and Dynac Historian applications are approaching obsolescence and have limited support Opportunities: ■ Standardize SCADA on one product, one implementation. ■ Modernize the data historian to support sharing of data from SCADA with IT systems to improve staff efficiencies. ■ Modernize the plant control room. ■ Staff members nearing retirement will limit Central SAN's ability to support operational applications and sustain operations. 13 14 October 19, 2023 Regular Board Meeting Agenda Packet - Page 85 of 127 Page 10 of 13 Detailed Project Planning 15 Magnitude of Effort ❑ IT Strategic and SMART Utility - 35 projects ❑ OT Strategic and GIS - 27 projects ❑ IT Tactical Projects including foundational - 22 projects ❑ OT Tactical Projects including foundational - 31 projects 16 October 19, 2023 Regular Board Meeting Agenda Packet - Page 86 of 127 How do we implement the plan? I ❑ B4 t-4, Gn, SCApA I I I ❑ [ereene aesoq.« i spe[iadzed Nee, Commixmenu EAa6lirtg DistrictTechnro- I Roadmdps I ❑ Estimated Prajerl FaMdx Pf1OYl1ief 1 1eRiess I I I Regglremenu I I ❑ Prgjecx Dependencies I I I Project I I Devetgp Charters I CLntYai S. RfOT Strategic Update Prelimlrldry I I Review Plan Develapmlttt R(OT I R/OT I W I WDYkptans odq.lans Budget I I � I Requests I Completed Prpjectl R/OT Sbate¢ic I I Project Resource I I 5[hlbdle J Plan I StaNs AVaiWORlty I I I I I Draft & Fina1 I I I I I I I I I I I I I I I I I 15 Magnitude of Effort ❑ IT Strategic and SMART Utility - 35 projects ❑ OT Strategic and GIS - 27 projects ❑ IT Tactical Projects including foundational - 22 projects ❑ OT Tactical Projects including foundational - 31 projects 16 October 19, 2023 Regular Board Meeting Agenda Packet - Page 86 of 127 Magnitude of Effort What it DOES and DOESN'T Represent • Represents: • Overall level of effort and cost for the portfolio of potential projects, prioritized into categories • Recognition that some or even most of the costs may already be included in the existing 10 -year CIP and current level of O&M funding • A good check -point along the way in the determination of "what" should be done 17 • Does NOT Represent: • An indication that INCREMENTAL resources are needed • A request for additional resources • A completely planned out project schedule, with precise resources identified • A fully executable and final plan • The precise "when" & "at what incremental cost" Page 11 of 13 Magnitude of Estimate Cost (This is a cost estimate of the total effort and is not a request for additional funding. Most of the resources are budgeted.) - 66 3.75 $ 824,600 $ 253,000 $ 1,283,060 ®BI EAM 18 0.75 $ 359,250 $ 80,000 $ 439,250 SCADA 75 1.05 $ 712,506 $ 2,100,000 $ 2,812,500 Bi 33 6.5 $ 2,855,000 $ 320,000 $ 3,175,000 EAM 45 3.25 $ 1,051,500 $ 310,000 $ 1,361,500 GIS 57 6.7 $ 2,554,250 $ 550,000 $ 3,104,250 SCADA 75 8.25 $ 6,199,106 $ 4,056,666 $ 10,255,100 36 7 $ 1,461,600 $ 200,000 $ 1,661,000 EBi EAM 63 10.5 $ 2,255,000 $ 390,000 $ 2,645,000 GIS 36 2 $ 414,325 $ 150,000 $ 564,325 SCADA 66 3.7 $ 3,445,750 $ 2,875,660 $ 6,326,756 MEAM 21 1.5 $ 394,600 $ 305,000 $ 699,000 SCADA 60 2.8 $ 1,323,000 $ 1,976,000 $ 3,299,000 Grand Total 645 57.75 $ 23,848,675 $13,565,000 $ 37,619,675 * All programs will be assigned an owner 18 October 19, 2023 Regular Board Meeting Agenda Packet - Page 87 of 127 Page 12 of 13 Current Status of Projects and Recommendations ❑ Key IT/OT Strategic projects • IT/OT Governance structure implemented • Oracle ERP implementation and improvement on-going • OT Network improvements underway • Initial phases of SCADA project started • Oracle Permits system being developed • Detailed project charters and implementation plans being created 19 IT/OT Strategic Plan and Roadmap Enablers ❑ IT/OT Governance (Collaboration & Communication) ❑ Project Charters • Scope and Objectives • Critical Success Factors • Cost • Resource Requirements • Schedule ❑ Organizational Change Management ❑ IT/OT Resources to meet new requirements and increased expectations • Project Management • Technical Resources • IT/OT support organizations restructuring (Response and Agile) ❑ Budget 20 October 19, 2023 Regular Board Meeting Agenda Packet - Page 88 of 127 Page 13 of 13 21 October 19, 2023 Regular Board Meeting Agenda Packet - Page 89 of 127