Frequently Asked Questions (FAQ)

What is ERP?

ERP stands for Enterprise Resource Planning. An ERP system is an integrated software solution used to manage important administrative functions, including acquisition, asset management, budget, finance, grants, human resources, payroll, and time and attendance.

What is the status of the state’s ERP procurement?

The state remains committed to the goals and continuation of the ERP program and will work to achieve those goals through a more targeted acquisition strategy. Due to state budget constraints, instead of proceeding toward a single, all-in-one ERP system at this time, the state has set out to improve ERP functional areas (e.g., acquisition, asset management, budget, finance, grants, human resources, payroll, and time and attendance) through more targeted projects. This approach allows the state to achieve benefits in the short term while staying within budget.

Following through on this more results-driven strategy for ERP, payroll and time and attendance have been identified as targeted projects. A Request for Proposal (RFP) was released on Feb. 16, 2016, and pre-solicitation notifications were sent to potential vendors one week prior to the RFP release. On June 29, 2016, the State of Hawaii issued a Notice of Award to CherryRoad Technologies Inc. to modernize payroll and time and attendance systems to provide greater functionality and efficiencies in serving more than 75,000 full- and part-time employees statewide. Read the news release.

What are the anticipated benefits and outcomes of the Enterprise Payroll and Time & Attendance Modernization?

The project will benefit all branches of state government (executive, judicial and legislative). Additionally, Department of Education, Hawaii Health Systems Corporation, Office of Hawaiian Affairs and the University of Hawaii System are also in scope for this project.

Anticipated Benefits & Outcomes

Current Process or Function Modernized Process or Function
High-risk of mainframe system inoperability and sustainability Implementation of new and reliable payroll application with transfer of risk to vendor
Paper-based payroll change schedule Electronic payroll change schedule
Mainframe-based, basic legacy payroll engine Platform agnostic, full featured payroll application
Manual transfer of payroll funds to employee bank accounts Automated electronic transfer of payroll funds to employee bank accounts
Paper pay statements/annual statements with manual distribution & routing to employees Online pay statements/annual statements with no distribution requirements; print-on-demand option
Limited audit reports and triggers for pay errors or overpayments Multiple levels of audit (system triggers and notifications, industry standard payroll reports)
Significant level of data entry that causes delays in execution of other scheduled mainframe jobs Distributed data entry and/or data upload options via modern applications and tools to minimize disruption to other mainframe jobs

What is being done to ensure success of the project?

This statewide project is subject to the newly implemented Information Technology (IT) Governance process administered by the Office of Enterprise Technology Services in partnership with the key executive branch central departments. The IT Governance process was launched in December 2015 to ensure that taxpayer funds for IT development and modernization programs will be subject to an efficient planning review and approval process, and to provide the essential state oversight necessary so that intended objectives are achieved and positive return on investment is realized for the people of Hawaii.

What are the next steps in the RFP process for Enterprise Payroll and Time & Attendance Modernization?

The formal Notice to Proceed was issued on Oct. 17, 2016, with the system replacement expected to occur within 18 months from that notice. Under the proposal, payroll will be modernized first, followed by time and attendance.

DAGS and ETS will continue to oversee the development and implementation. To further ensure success, the initiative is also subject to new IT governance processes launched by ETS in December 2015.

Inquiries about the project should be directed to ets.erp@hawaii.gov. General updates on the project may also be found on this website.

What will happen to all the work completed through previous ERP procurement efforts?

The members of the ERP Evaluation Committee and the functional and technical Subject Matter Experts from throughout the state who participated in the previous procurement process and other related activities have done outstanding work that will have long lasting benefits. The work completed by these dedicated staff members has already resulted in significant accomplishments, including fostering a spirit of cooperation across departments to accomplish a common goal, and identifying opportunities for departments to collaborate in other areas in addition to ERP.

The work completed so far will have many uses going forward. The comprehensive statewide requirements for ERP can be used for targeted projects. Also, many current business processes have been documented, paving the way for these processes to become more consistent across departments, and providing opportunities for departments to achieve progress through their own process improvement efforts.

My department has been waiting for ERP to address some issues we are facing. If ERP will not do that with the selected targeted projects, is my department able to procure the new systems we need?

Departments may pursue needed system projects and should follow the state’s governance process defined in Administrative Directives 15-02 and 11-02. This governance process will help ensure that the state continues to use ERP-related technology investments to achieve the ERP program goals.

What has the state’s ERP program accomplished so far?

The program has already made significant progress through several interim and associated projects which were intended to lay the foundation for the future ERP system. These projects include:

  • Asset Management: Launched the State Building Asset Management (SBAM) system, an integrated inventory management system for more than 6,000 state-owned or operated buildings, facilities and other similar structures. System go-live: September 2015.
  • Budget Variance Reporting: Near real-time information on budgeted vs. actual expenditures which helps managers make better decisions about spending. Used in Budget & Finance; statewide rollout to be planned. System go-live: February 2015.
  • Human Resources Management System Upgrade: Improved technical foundation resulting in more reliable access and better performance. Used by HR professionals statewide. System go-live: January 2015.
  • Grants: Improved view into revenues and expenditures to better predict spending and support compliance. Used statewide for new federal awards. System go-live: August 2014.
  • Uniform Chart of Accounts: Pending statewide implementation, this allows consistent financial classification and reporting, resulting in better accounting quality, more efficient reporting, and faster data analysis.
  • Business Process Alignment: All state departments collaborating to document current ERP-related business processes that helped to identify and implement some early process improvements, and paved the way for statewide initiatives that require standard processes.
  • Infrastructure Improvements: ERP funds supported significant infrastructure improvements that will be used for ERP and other initiatives statewide. These improvements are in the areas of  cloud computing, network hardening and expansion, cybersecurity and data center transition. They reduce the state’s risk, increase capacity, provide a more cost-effective technology environment, and contribute to the state’s technology modernization.

How can I learn more about the ERP program and related targeted projects?

To learn more about the ERP program and projects underway or planned, email ets.erp@hawaii.gov.