PAPER C

Purpose : for Decision

REPORT TO THE EXECUTIVE

Date : 13 AUGUST 2003

Title : DOCUMENT IMAGING / ELECTRONIC DOCUMENT MANAGEMENT

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

IMPLEMENTATION DATE : 26 August 2003

SUMMARY/PURPOSE

1. To seek approval and funding to progress a corporate Document Imaging / Electronic Document Management project.

BACKGROUND

2. The national Modernising Government agenda set out the principle of building services around citizen’s choices and making services more accessible to the public. The same agenda also set the target that all services which are suitable for electronic provision must be provided by such means by 2005.

3. The Council responded to these challenges by establishing the GAGS (Great Access to Great Services) project approved by Full Council in February 2003 which sets out the vision of becoming a truly customer centred organisation, together with four key supporting principles:

- 80% of enquiries to be dealt with at the point of first contact

- all customer facing points to be managed, and act, in a consistent way

- a wide choice of contact methods / all services available at all service points

- where possible, information to be captured once only and shared as appropriate

4. In order to achieve this vision, the Council needs to implement new mechanisms to capture, manage and move information around the organisation efficiently and effectively so that officers have the necessary information on hand to provide high quality services to customers.

5. The Document Imaging Processing (DIP) / Electronic Document Management (EDM) solution proposed is a key enabler of this and is a central part of the GAGS agenda to improve the efficiency and effectiveness of the organisation.

6. DIP / ERM systems provide a number of different types of functions:

· Document Image Processing (DIP) is the electronic scanning and indexing of paper documents in such a way that the documents can be easily retrieved and viewed on a computer screen. Document Image Processing is a critical element of a digital authority and to achieve the overall vision it will be necessary to introduce the technology across all parts of the authority.

· Electronic Document Management System (EDMS) stores documents electronically instead of in paper format. The exact format of storage is decided by users and can be set up to replicate existing filing systems. An EDMS could in fact be referred to as an Electronic Filing Cabinet. With all documents stored electronically in a central location there is no longer any need to retain large filing areas. Also more than one person can access a document at the same time without the need for a copy to be made.

· Electronic Workflow (EW) is a sophisticated method of working electronically which enables the manual and automatic routing of pieces of work around the organisation according to defined business rules. An example of EW would be if a member of staff were to complete an electronic sickness form on screen. The system can then be programmed to route this form to the line manager for approval and, once approved, a copy can be sent simultaneously to the relevant parts of the authority which in this case would be the payroll and personnel departments.

· Electronic Records Management (ERM) enables the authority to share information collected about people, property and businesses avoiding the inefficiency of duplication and multi entry. ERM would allow the recall of information instantly instead of via the lengthy current paper work process. Retention and Disposal of all documents corporately would be managed by ERM.

· Electronic Forms can collect information electronically and automatically input it in to the appropriate existing ICT Systems. An example of this would be to enable people to submit Planning Applications online.

7. In practice, this means that the organisation will be able to:

- Scan, index store and retrieve paper documents of all types

- Access, update and archive documents in a controlled and auditable manner

- Reduce the amount of physical paper flowing around the organisation

- Reduce the amount of storage space required

- Always have immediate access to relevant information

- Manage information in a manner which properly and fully complies with the requirements of the Data Protection Act , the Freedom of Information Act and similar legislation

- Implement electronic forms

- Route information electronically around the organisation according to pre-defined rules

- Integrate information from back office systems into web based services, for example to provide the public with full on-line planning application information

- Re-engineer business processes into the new ‘front office - back office’ environment.

8. The new system will be implemented initially in the Planning Department and then rolled out across the organisation. The council’s data networks need to be updated to support this and the project allows for the procurement of new network switching equipment and systems management facilities to support the operation of the DIP/EDM system (and other anticipated systems such as the forthcoming Land and Property Gazetteer and Customer Contact Management System).

9. The proposals for this part of the project are based on recommendations from an independent external consultant (the NCC, formerly the government’s National Computing Centre).

STRATEGIC CONTEXT

10. The national Modernising Government agenda set out the principle of building services around citizen’s choices and making services more accessible. The project is entirely consistent with this.

11. The national e-government agenda set the target that all services which are suitable for electronic provision must be provided by such means by 2005. The project is a crucial part of the council’s response to this target.

12. Successfully implementing an EDMS will help move the Council towards its goal of being an excellent provider of services by enabling the Council to develop a customer centred culture through promoting better access to services. This project will also enable the authority to re-engineer business processes in a way which would not otherwise be possible.

13. The implementation of a corporate EDMS supports the Island Futures Community Strategy by helping improve access to services. It will do this by allowing staff at all points of enquiry access to information regarding all Council services. By doing this it will also help reduce social exclusion based on such things as transport, communications etc.

14. The project helps the IW Council achieve the commitments listed in the Statement of Intent from the Isle of Wight Council, The Isle of Wight Primary Care Trust and the Isle of Wight NHS Trust.

CONSULTATION

15. The project was originally proposed as part of the corporate ICT strategy and was subject at that time to extensive consideration by both Members and officers. Further consultation has taken place as the project has developed with Members, Directors, Heads of Service, front line staff - especially in the Planning department, other authorities, St Mary’s hospital, technical advisors and suppliers.

16. During the project, consultation has also taken place with the following;

DIP Project Board consisting of

David Price, Executive

Roger Brown, Senior Supplier

Muriel Miller, Senior User (Members)

Andrew Ashcroft, Senior User

David Hughes, Senior User

Sue Thompson, Senior User

Caryl Murphie, Senior User

IWC Planning Department Management and relevant Officers

IWC ICT Department Head, Networks and Software Development Managers, relevant Department Officers

IWC Property Services Department Management

IWC GAGS Programme Board

IWC Legal Services department

IWC Finance & Business Services department

IWC Audit Department

17. Technical advice was purchased from the NCC for both the DIP/EDM system and the supporting core network upgrade.

18. In a recent coincidental review of DIP/EDM suppliers by SOCITM (the local authority of Society of IT Managers), the Society concluded that the suppliers recommended in this proposal were the clear leaders in terms of supplier performance, functionality and reliability.

19. The project has taken account of the potential needs of strategic partners such as the NHS Trust and the Primary Care Trust as far as is reasonably possible at this and the proposed system would be capable of meeting partner requirements subject to the procurement of additional user licences, storage and processing power at the appropriate time.

FINANCIAL/BUDGET IMPLICATIONS

20. The proposed solution will cost £2.09m over five years, an average annual cost of around £418kpa. Of this, £152k is covered by existing expenditure leaving a funding requirement of £1.94m over five years as follows:

(a) 2003/04 - £507k

(b) 2004/05 - £473k

(d) 2006/07 - £287k

(e) 2007/08 - £257k

21. These costs can be funded from the strategic ICT budget that the Council may make from year to year.

22. It should be noted that the project consumes a significant portion of the overall GAGS budget that has been made available to date and Members should be aware that the other major projects which form part of the GAGS portfolio (call centre, land and property gazetteer, contact management system) will require additional funding to the tune of around £600kpa. However the Directors Group has committed to finance the development over the five year life of the project. Decisions on these issues will be sought from the Executive in September once the advice from an external consultant is to hand.

23. The project offers the potential for significant financial savings although the extent to which these will be genuinely cash releasing is not yet clear. Example efficiency gains identified in the Business Case include:

- Time saved in looking for / retrieving documents £160kpa

- Time saved in filing documents £166kpa

- Telephone call back costs avoided £90kpa

- Photo copying avoided £30kpa

- Not replacing Netware File Servers £27k

24. The extent to which it will be possible to identify the eventual savings from the project is also questionable as it is anticipated that the new system will be implemented for the most part alongside other GAGS initiatives. Any cash releasing benefits achieved are therefore likely to be due to a combination of the enabling capacity of DIP / EDM technology and the business process re-engineering that will be carried out as part of the front office / back office shift.

LEGAL IMPLICATIONS

25. The Council will enter into a formal contractual arrangement with a third party supplier for the procurement of the proposed system. A contract for this purpose has already been negotiated and approved by the Legal Department and implementation can begin as soon as the project is approved.

26. The recommendation supports the improvement of delivery of a range of statutory functions in a manner consistent with the duty to deliver continuous improvement.

27. The power to incur expenditure is contained within section 111 of the Local Government Act 1972 and part 1 Local Government Act 2000 in conjunction with the substantive powers and duties creating the various functions of the Council.

OPTIONS

28. Option 1 - Do Nothing – If no action were taken then paper work would continue to build up requiring an ever increasing amount of money to be spent on storage. An increased percentage of files would be lost and the service delivered to the public would decline in quality. Therefore this option is not recommended.

29. Option 2 – Develop an in-house solution. - Although the IW Council has an excellent software development department (its work in developing the IW Councils website is widely agreed to be outstanding) in order to develop an in house solution several additional staff would need to be recruited specifically. Given the increasing difficulties being experienced in attracting and retaining staff this process may mean a delay of months or even years before a suitable team is assembled. Therefore this option is not recommended.

30. Option 3 - To support the Procurement of an Electronic Document Management System – Procuring an accredited solution would enable the authority to implement and maintain an Electronic Document Management System for use within the entire Council within a relatively short timescale. In addition the solution is currently successfully in use in a number of other local authorities. The solution also complies fully with Public Records Office requirements for Electronic Records management.

31. A comprehensive business case has been prepared which covers these options in more detail and is available from Corporate Services.

EVALUATION/RISK MANAGEMENT

32. Risk will be managed through the standard PRINCE2 risk management methodology

33. The risks associated with not introducing Electronic Document Management include the following: -

(a) Continually increasing risk of loss of critical documentation due to such things as fire, theft, accidental loss, flood or vandalism

(b) Increased cost of renting or procuring premises specifically for the retention of paper documents

(d) Inability to meet target of resolving 80% enquiries at first point of contact

(e) Possible undermining of GAGS programme due to increased difficulty of providing back office information to front office staff.

34. The Council has reached the point where it needs to make a series of step changes in the way it works if it is to make the significant improvements in efficiency and service that are anticipated by the central government Modernising Government agenda and by the council’s own GAGS initiative.

35. The efficient management of information is a crucial part of this and the council will need to implement a solution along these lines at some stage in the foreseeable future, if not at the moment, in order to meet these central government expectations as well the requirements of key legislation such as the Freedom of Information Act. The fit with other aspects of the GAGS agenda mean that it is timely to implement the system now.

36. The option of buying in a managed service was considered and rejected as inappropriate given the nature of the council’s services and a comprehensive evaluation of the marketplace was carried out. Of the twenty four companies that responded to the Statement of Need, ten were long listed and three were short-listed, including the supplier of the Revenues and Benefits Service DIP system.

37. The preferred solution was eventually chosen because :

- It provides all of the functionality specified in the Statement of Need

- It offers the greatest fit with other aspects of the GAGS agenda

- It provides a full corporate solution rather than a collection of departmental based solutions

- It is the only solution to have full Public Records Office approval

- Reference sites were highly supportive of the system

38. The project team is therefore confident that the proposed solution is right for the authority and that the organisation has the necessary skills and capacity to implement the solution successfully across the organisation.

39. The system will be implemented initially in the Planning Department and there is an extremely high level of commitment to the project from that area. The department is committed both to implementing the system and to re-engineering their working practices to take advantage of it and this is expected to provide a model for rolling the system out elsewhere.

RECOMMENDATIONS

40. That the Head of Organisational Development in consultation with the Portfolio Holder for Resources and where appropriate with the GAGS Strategic Programme Board, is given a specific delegation to purchase, implement and operate an Electronic Document Management System and associate network improvements.

41. That the costs of the project, based on the projections set out in this report, be met from budgets made available to the Head of Organisational Development for the purpose of strategic ICT development.

BACKGROUND PAPERS

42. Business Case for Document Image Processing Project

43. DIP Business Case Review Report – The NCC Group

44. Isle of Wight Council; Network Core Performance report; NCC Global; May 2003.

45. Implementing E Government Strategy

46. Information Communications Technology Strategy

47. Department of Organisational Development Service Plan (2003 – 2004)

48. Community Strategy

49. Statement of intent from the Isle of Wight Council, The Isle of Wight Primary Care Trust and the Isle of Wight Healthcare NHS Trust – 1^ST July 2003

50. Becoming an “Excellent” Council – Our CPA Improvement Plan

Contact Point:

David Price, Head of Organisational Development

Telephone 01983 823502

Email: [email protected]

David Martin, DIP Project Manager.

Telephone 01983 823332

Email: [email protected]

Andrew Ashcroft, Head of Planning Services

Telephone 01983 823556

Email: [email protected]

Muriel Miller Chairman of Development Control Committee

Email: [email protected]

D PRICE

Head of Organisational Development

R R Barry

Portfolio Holder for Resources

THE “CALL IN” PERIOD FOR THESE DECISIONS EXPIRES AT 5.00 PM ON FRIDAY, 22 AUGUST 2003. NONE OF THE DECISIONS CAN BE IMPLEMENTED UNTIL AFTER THAT DATE.

MINUTES OF A MEETING OF THE EXECUTIVE HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON WEDNESDAY, 13 AUGUST 2003 COMMENCING AT 9.30 AM

Present : Mrs S A Smart (Chairman), Mr R R Barry, Mrs T M Butchers, Mr J H Fleming, Mr E Fox, Mr P G Harris, Mr G S Kendall, Mr D J Knowles, Mr H Rees, Mrs J L Wareham

Also present non-voting :

Mr A C Bartlett, Mr M J Cunningham, Mr J Effemey, Mrs M J Miller, Mr A A Taylor