Frequently Asked Questions About Luma
Luma is the new Enterprise Resource Planning (ERP) system that is currently being implemented for statewide use. Luma will manage the State's budget, accounting, procurement, human capital management, and payroll modules. It will replace STARS, EIS and some other specialized systems in various state agencies.
"Enterprise resource planning (ERP) is a process by which a company manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance, and human resources." Ref: Investopedia.
The longer we remain in the status quo, the greater the risk that the state will not be able to meet payroll or pay its bills on time. The existing legacy systems (Statewide Accounting and Reporting System (STARS) and Employee Information System (EIS)) are fast becoming obsolete and do not meet the current business needs and reporting requirements of the State of Idaho.
This system will modernize, consolidate, and standardize business processes and financial information across state agencies resulting in greater transparency of government to the legislature and citizenry.
Chances to make real changes in how daily work is done in government are incredibly rare. When they come along it is incredibly important to seize the opportunity.
We all have the chance to fix the pieces of our current systems that are unnecessarily burdensome and don't make sense. If we don't take this chance, we likely won't have another one in our careers. Seize the chance and embrace the possibility of Luma.
An independent expert advisory company completed a State of Idaho System Modernization Study in 2015 reviewing 19 state agencies consisting of approximately 80% of the State's combined operating budget and 70% of the combined FTE. The estimate is a conservative total cost estimate based on an on-premise solution.
The State will be completing a project plan that incorporates the acquisition and implementation of an ERP system and modernizes State business processes. Costs associated with the project include Request For Proposal (RFP) development and independent advisory services, ERP software, ERP software integrator services, state programmatic systems integration, report development, facilities & equipment, contingency planning, and state personnel backfill as required.
Luma's implementation has already started. The first phase of work includes the budget, finance, and procurement functions and is scheduled to go live in Summer 2021. The second phase will tackle human resources and payroll and will go live in January 2023.
Historically, business operating systems were installed on-premise with large software upgrades completed at 3-5 year intervals. Due to the large acquisition cost and upgrade costs, most companies try to extend the life of their ERP system as long as possible. Today, ERP systems can be installed on-premise, in the cloud, or a hybrid. Modern ERP system vendors are frequently trying to keep systems up to date with more regular system updates. It is anticipated that a new ERP system will be serviceable for over 15 years.
Based on the System Modernization Study it is anticipated that approximately 75 agency-specific systems may be replaced by the new ERP system. The actual cost savings to the state will be a function of how many of these systems will be completely retired and the elimination of current costs to support those systems. Many benefits will be observed in greater efficiencies through the reduction of dual data entry and the increased capability of the new system including more robust reporting functionality across a larger number of state agencies.
This project is of such importance and expense to the state of Idaho that following the annual appropriations process creates a risk to successful acquisition and implementation of a new ERP system. It will likely take two years of planning and implementation from the contract award before the budget planning, financial management, and procurement modules are operational and another 18 months for the payroll and human capital management modules to be operational. With an estimated total four-year project implementation period, a consistent and secure funding source is critical to project success.
Historically, Statewide Cost Allocation Plan (SWCAP) funds are collected into the Indirect Cost Recovery Account 0125 and then transferred into the General Fund as a source of funds when building the next fiscal year budget. For the next five years, the Indirect Cost Recovery Account finds will be directed to the BIIF under the direction of the Controller to provide funding for this modernization project.
Obtaining approval for continuous appropriation authority will eliminate risk by having a consistent and secure funding source. It demonstrates the strong commitment and support across state government and will enable the Leadership Council comprised of the Governor, the Controller, the Speaker of the House, and the Senate Pro Tempore to focus on issues related to successful project implementation and not annual funding requests. Additionally, a consistent and secure funding source will show statewide commitment to potential industry vendors assisting in obtaining a better value to the state during acquisition negotiations.
Teams made up of experts from various state agencies, Luma's software partner Infor, independent oversight partner Information Services Group, implementation partner Deloitte are working full time to prepare and execute the Luma transition. The project team will also provide opportunities for other state employees to engage, provide feedback, and validate configurations throughout the project. To stay up to date on the Luma project and know the upcoming engagement opportunities we recommend you subscribe to the Luma newsletter.
Teams will work to map statewide business activities that will be configured in the Luma system. The team will also look to experts with unique agency-specific knowledge to learn what their pain points are. After mapping these business processes, the project team will get to work setting up the software to perform all of those activities and more, depending on what the needs are. The project team will invite experts from state agencies to test and validate the software configurations, integrations, and help with data conversion. The goal of the project team is to facilitate a smooth transition for all employees. The initial go live for budget, finance, and procurement will happen in the summer of 2021. Immediately following that go live, the project team will get to work using the same process for human capital management and payroll.
There are a lot of different ways for the software powering Luma can be configured and there are many different problems or priorities it can address. By engaging with the project now, employees have a voice in steering the system toward operating in a way that most benefits them. This is a rare opportunity.
Historical information will be kept and it will remain accessible during the project and after it is completed in a data system.
Training will be provided to every state employee who will use the Luma system before it is launched. Support for the new system will also be available from the Luma Project team during and after launch.
Infor is the world's third-largest provider of enterprise software and is one of the fastest-growing enterprise application providers. Built to government specification, Infor CloudSuite Public Sector software is designed to meet the needs of large governments, like the ones present in the State of Idaho. Infor won an extensive nationwide RFP to be the software provider for the Luma project.
Deloitte is a nationally and globally recognized systems integrator and recognized as a leader in
transformation services in the HR and Finance markets as well as the global leader in Cybersecurity, Business Intelligence, and Analytics. Deloitte won an extensive nationwide RFP to manage the implementation of the software.
Information Services Group (ISG) is a global technology research and advisory firm. Based in Connecticut, it serves more than 700 business partners in 20 countries. ISG specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. They have been hired to act as independent oversight for the project.
Every state employee who will have access to Luma. Everyone will be assigned a role and have a level of access to the system based on that role. Employees will have a personal dashboard with the parts of Luma they use most often featured prominently.
In the second phase, when human resources functions are transitioned to Luma, all employees will have access to their work records, payroll information, vacation requests, performance reviews, and other important documents.
Cloud-based software is not installed directly onto your computer, phone or tablet. It is housed in secure servers and is accessed via the internet. For our purposes, this means that you can connect through more devices and the software can be easily updated.
The extent of the features is not yet known because the project team is still gathering data and feedback from state agencies to design a system that fits the state of Idaho and its needs. As the project moves along there will be more information available about what the software is going to do and how it is going to do it.
Talk to the Luma change liaison in your department. Let them know what issues you run into with your current system and what you'd like to see Luma be able to do for you. The more information provided to the project team, the better outcome it will have. There will be opportunities to engage and provide feedback to the project team. Participate! Subscribe to the Luma newsletter to stay up-to-date on the Luma project.
Change liaisons are state employees who have a direct line of communication with the project to relay important information to their colleagues. They will have up-to-date information on the project, receive important alerts, and be provided with resources that help their respective agencies engage with Luma before and after it is launched.
The best place to find more information is the Luma website at luma.sco.idaho.gov. You can find current and archived videos, newsletters, technical documents, and more there. Still have questions? Contact us at firstname.lastname@example.org.