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ERP solutions for
University
Sudipta RoySudipta Roy
Assam University, SilcharAssam University, Silchar
ERP for University
 EvolutionEvolution
 ERP OverviewERP Overview
 BenefitsBenefits
 PitfallsPitfalls
 ModulesModules
 Case Study: UFCase Study: UF
History of organizational systems
 Calculation systemsCalculation systems
 Functional systemsFunctional systems
 Integrated systemsIntegrated systems
Calculation systems
 1950-801950-80
 Single purposeSingle purpose
 Eliminate tedious human workEliminate tedious human work
 Examples: Payroll, General ledger,Examples: Payroll, General ledger,
InventoryInventory
 Technology used: Mainframes, magneticTechnology used: Mainframes, magnetic
tapes, batch processingtapes, batch processing
Functional systems
 1975-20??1975-20??
 Use computers to improve operationsUse computers to improve operations
 Applications: Human resources, orderApplications: Human resources, order
entry, manufacturing resource planningentry, manufacturing resource planning
 Technologies: Mainframes, PCTechnologies: Mainframes, PC’s, LAN’s’s, LAN’s
Functional systems
 Typically contained within a departmentTypically contained within a department
 Islands of automationIslands of automation
 Applications independently developed andApplications independently developed and
deployeddeployed
 Driving force: availability of mini-Driving force: availability of mini-
computerscomputers
Functional system applications
 Human resources SystemHuman resources System
 Accounting and finance systemsAccounting and finance systems
 Library Management SystemLibrary Management System
 Operations management SystemOperations management System
 Examination SystemsExamination Systems
Example: Human Resources
 RecruitingRecruiting
 CompensationCompensation
 AssessmentAssessment
 Development and TrainingDevelopment and Training
 PlanningPlanning
Problems with function based
application
 Sharing of data between systemsSharing of data between systems
 Data duplicationData duplication
 Data inconsistencyData inconsistency
 Applications that donApplications that don’t talk to one another’t talk to one another
 Limited or lack of integrated informationLimited or lack of integrated information
 Isolated decisions lead to overall inefficienciesIsolated decisions lead to overall inefficiencies
 Increased expensesIncreased expenses
Solution to disparate systems?
 IntegrationIntegration
 ConsolidationConsolidation
 Right-sizingRight-sizing
 Business Process RedesignBusiness Process Redesign
 Enterprise wide systemEnterprise wide system
Integrated systems
or
Enterprise Resource Planning
System
Overview
 What is ERP?What is ERP?
 Benefits of ERPBenefits of ERP
 First StepsFirst Steps
 Costs of ERPCosts of ERP
 The ERP ContractThe ERP Contract
 Limit CustomizationsLimit Customizations
 Use of ConsultantsUse of Consultants
 Project ManagementProject Management
 Creating the single teamCreating the single team
atmosphereatmosphere
 Recruitment andRecruitment and
Retention IssuesRetention Issues
 Morale of the TeamMorale of the Team
 Key Functional IssuesKey Functional Issues
 Key Technical IssuesKey Technical Issues
 What About SmallWhat About Small
Schools?Schools?
 The Future of ERPThe Future of ERP
What is ERP?
 An ERP or Enterprise ResourceAn ERP or Enterprise Resource
Planning system integratesPlanning system integrates
information and businessinformation and business
processes to enable informationprocesses to enable information
entered once to be sharedentered once to be shared
throughout the organization.throughout the organization.
 ERP had its origins inERP had its origins in
manufacturing and productionmanufacturing and production
planning. In the mid-90planning. In the mid-90’s it’s it
was extended to other back-was extended to other back-
office functions such asoffice functions such as
financial management andfinancial management and
human resource management.human resource management.
 More recently these systemsMore recently these systems
have addressed applicationshave addressed applications
specific to higher educationspecific to higher education
system.system.
Common examples includeCommon examples include
SAP, PeopleSoft, andSAP, PeopleSoft, and
BannerBanner
Needs
Assessment
Software
Selection
Process
Reengineering
Pilot
Conference
Room
Training
Phased
Implementation
ERP ProjectERP Project
What are the Benefits of ERP?
 Improve access to informationImprove access to information
 Improve workflow and efficiencyImprove workflow and efficiency
 Improve controls and program alertsImprove controls and program alerts
 Process reengineering -- update old processesProcess reengineering -- update old processes
 Foundation for new processes, such asFoundation for new processes, such as
e-procuremente-procurement
First Steps:
Well Begun is Half Done
 Start with an evaluation of needs and requirements -- thisStart with an evaluation of needs and requirements -- this
is useful not only as a guide to the project, but also as ais useful not only as a guide to the project, but also as a
gauge to the success of the projectgauge to the success of the project
 Compare possible solutions to see which one best fits theCompare possible solutions to see which one best fits the
needs and produces fewer gaps. More gaps may result inneeds and produces fewer gaps. More gaps may result in
more costly customizations.more costly customizations.
 Best of breed vs. integrated solutionsBest of breed vs. integrated solutions
 Big bang vs. phased implementationBig bang vs. phased implementation
What are the Costs of ERP?
 Direct costs only represent a fraction of the totalDirect costs only represent a fraction of the total
costs of ERPcosts of ERP
 Direct costs include hardware, software, andDirect costs include hardware, software, and
people on the project -- the largest category ispeople on the project -- the largest category is
personnel costspersonnel costs
 Indirect costs include the costs of back-fillingIndirect costs include the costs of back-filling
positions, increasing salaries and the total lifepositions, increasing salaries and the total life
cycle costs of the ERP -- maintenance, ongoingcycle costs of the ERP -- maintenance, ongoing
production, and upgrades.production, and upgrades.
The ERP Contract
 The prime vendor --The prime vendor -- “one butt to kick” -- and leave it to the“one butt to kick” -- and leave it to the
experts! However, there are some trade-offs.experts! However, there are some trade-offs.
 Fixed cost vs. time and materials with or without a capFixed cost vs. time and materials with or without a cap
 Build flexibility into the contract to accommodate changingBuild flexibility into the contract to accommodate changing
technologytechnology
 Check referencesCheck references
 Be skeptical of vendor promises -- get it in writing!Be skeptical of vendor promises -- get it in writing!
Limit Customizations and Scope
 To change or not to change the old businessTo change or not to change the old business
practice?practice?
 Are you paving cow paths or improving yourAre you paving cow paths or improving your
business process?business process?
 Are customizations really needed? Have youAre customizations really needed? Have you
factored in the total costs of the modification?factored in the total costs of the modification?
 Watch out for scope creep and hiddenWatch out for scope creep and hidden
customizationscustomizations
Use of Consultants
 Many different roles for consultants:Many different roles for consultants:
 staff projectstaff project
 backfill office staffbackfill office staff
 audit projectaudit project
 serve as prime contractorserve as prime contractor
 project managementproject management
 Too many consultants relative to university personnel mayToo many consultants relative to university personnel may
limit knowledge transferlimit knowledge transfer
 Too few consultants may limit ERP expertise on theToo few consultants may limit ERP expertise on the
projectproject
 Right of refusal over consultants – carefully watch out forRight of refusal over consultants – carefully watch out for
the green oversold consultantthe green oversold consultant “in training”“in training”
ERP Project Management
 One of the most important decisions on an ERP is theOne of the most important decisions on an ERP is the
selection of the project manager (PM).selection of the project manager (PM).
 The PM should be a professional manager with experienceThe PM should be a professional manager with experience
in project management, loyal to the university, with bothin project management, loyal to the university, with both
functional and technical knowledge.functional and technical knowledge.
 Use a standard methodology to provide guidance andUse a standard methodology to provide guidance and
structure to the projectstructure to the project
 In addition, to the project manager, there should beIn addition, to the project manager, there should be
functional and technical managers.functional and technical managers.
 Individual functional teams should have a designated lead.Individual functional teams should have a designated lead.
 Use of committees and executive steering group.Use of committees and executive steering group.
Creating “single team” atmosphere
 AvoidingAvoiding ‘us’‘us’ versusversus ‘them’‘them’
 Partnership between functional and technicalPartnership between functional and technical
teamsteams
 The partnership between senior management --The partnership between senior management --
e.g., thee.g., the VCVC, the, the RegistrarRegistrar, the, the COECOE, the, the
LibrarianLibrarian and theand the FOFO..
 Partnerships with consultants -- teams composedPartnerships with consultants -- teams composed
of consultants and university personnel workingof consultants and university personnel working
side by sideside by side
 Partnerships with usersPartnerships with users
Recruitment and Retention Issues
 Bonuses forBonuses for “life of project” efforts“life of project” efforts
 Find and nurture people earlyFind and nurture people early
 Back-filling StaffBack-filling Staff
 Staffing matrixStaffing matrix
 Knowledge transfer and mentoringKnowledge transfer and mentoring
 Stress managementStress management
 Team buildingTeam building
Morale of the Team
 ERP projects can put a strain on personnelERP projects can put a strain on personnel
 Schedule down times and events to help boostSchedule down times and events to help boost
moralemorale
 Keep an eye out for individuals on the edgeKeep an eye out for individuals on the edge
 Celebrate the achievement of milestones andCelebrate the achievement of milestones and
recognize individual and team contributionsrecognize individual and team contributions
Key Functional Issues
 Needs analysisNeeds analysis
 Process engineeringProcess engineering
 Back-filling staffsBack-filling staffs
 TrainingTraining
 Recruiting andRecruiting and
retaining staffretaining staff
 Conference room pilotConference room pilot
(CRP)(CRP)
 ReportingReporting
 Gaps analysisGaps analysis
 Setting expectationsSetting expectations
 Obtaining user acceptanceObtaining user acceptance
 Validation of data andValidation of data and
systemssystems
 CommunicationsCommunications
 Process documentationProcess documentation
 Audit of data and systemAudit of data and system
Key Technical Issues
 Sizing the systemSizing the system
 Recruiting the talentRecruiting the talent
 Holding the line onHolding the line on
modificationsmodifications
 Conversion of dataConversion of data
 InterfacesInterfaces
 Report developmentReport development
 Change managementChange management
and problem trackingand problem tracking
 Desktop requirementsDesktop requirements
 Network issuesNetwork issues
 Distributed versusDistributed versus
centralized productioncentralized production
 Help Desk and ongoingHelp Desk and ongoing
supportsupport
 Planned upgrades andPlanned upgrades and
revisionsrevisions
 Production budgetsProduction budgets
Modules
 Admission, Academics and ExaminationAdmission, Academics and Examination
 Time Table Management SystemTime Table Management System
 Human Resource Management System (HRMS)Human Resource Management System (HRMS)
 Financial Accounting SystemFinancial Accounting System
 E-TenderingE-Tendering
 Stores and PurchaseStores and Purchase
 Asset ManagementAsset Management
 Grievance ManagementGrievance Management
 Legal Section SystemLegal Section System
 Alumni Management SystemAlumni Management System
 File Movement SystemFile Movement System
 Letter Movement SystemLetter Movement System
 Document Management System (DMS)Document Management System (DMS)
 Generator Maintenance and LogbookGenerator Maintenance and Logbook
 Vehicle Maintenance and LogbookVehicle Maintenance and Logbook
ERPs in Higher Education:
 Oracle: PeopleSoft Enterprise CampusOracle: PeopleSoft Enterprise Campus
SolutionsSolutions
 SAP: Finanace, HR, Students & otherSAP: Finanace, HR, Students & other
modulesmodules
 Sungard Higher Education: Unified DigitalSungard Higher Education: Unified Digital
CampusCampus
 Datatel: Active Campus ExperienceDatatel: Active Campus Experience
 Jenzabar: Total Campus ManagementJenzabar: Total Campus Management
 Campus Mangement: For post-secondaryCampus Mangement: For post-secondary
institutions since 1988institutions since 1988
ERPs in Higher Education:
 Oracle PeopleSoft Enterprise Campus SolutionsOracle PeopleSoft Enterprise Campus Solutions
(OPSCS)(OPSCS)
 Stanford University; Cambridge University;Stanford University; Cambridge University;
University of California; Cornell University;University of California; Cornell University;
Princeton University; Duke University;Princeton University; Duke University;
University of FloridaUniversity of Florida
 IGNOU: 18 modules by TCS in 2008IGNOU: 18 modules by TCS in 2008
 IIM, Shillong: OPSCS by Citagus India Pvt. Ltd.IIM, Shillong: OPSCS by Citagus India Pvt. Ltd.
 IIM, Lucknow: OPSCS by PWC.IIM, Lucknow: OPSCS by PWC.
 Sharda University: selected module of OPSCSSharda University: selected module of OPSCS
by Citagusby Citagus
ERP Mission (GoI):
 Consortium of Institutes to frame open source ERPConsortium of Institutes to frame open source ERP
 IIT Kanpur : Mentor InstituteIIT Kanpur : Mentor Institute
 Aligarh Muslim University; Jamia Milia University;Aligarh Muslim University; Jamia Milia University;
 Dayalbagh Educational Institute; IGNOU; etcDayalbagh Educational Institute; IGNOU; etc
 Modules:Modules:
 Course Management; Student record, profiles;Course Management; Student record, profiles;
Faculty Expertise Database; Online Examination;Faculty Expertise Database; Online Examination;
Online Admission; Project Management;Online Admission; Project Management;
Time Table Management; Library Managemnt;Time Table Management; Library Managemnt;
Payroll and Tax Management; General Accounting SystemPayroll and Tax Management; General Accounting System
Purchase and Inventory Control;Purchase and Inventory Control;
Ed-ERP Brihaspati:
 Developed Modules:Developed Modules:
 Brihaspati General Accounting SystemBrihaspati General Accounting System
(BGAS)(BGAS)
 Payroll SystemPayroll System
 Purchase and Inventory Control (PICO)Purchase and Inventory Control (PICO)
 Library Managemnt System (LibMS)Library Managemnt System (LibMS)
 Learning Management System (LMS)Learning Management System (LMS)
 Project Management System (PMS)Project Management System (PMS)
 Election Management System (EMS)Election Management System (EMS)
 Brihaspati Sync: Live lecture delivery andBrihaspati Sync: Live lecture delivery and
interaction toolinteraction tool
A case study:
University of Florida (UF)
Why is UF doing this?
 Most major universities have alreadyMost major universities have already
implemented ERP systems and businessimplemented ERP systems and business
process changes to improve services andprocess changes to improve services and
benefit from real-time information.benefit from real-time information.
 With the changes in university governanceWith the changes in university governance
in Florida, existing administrative systemsin Florida, existing administrative systems
provided by the state and used by UF mustprovided by the state and used by UF must
be replaced.be replaced.
Who is doing this?
 Fred CantrellFred Cantrell is the UF ERP Project Manager.is the UF ERP Project Manager.
UF is working with Florida State University (RussUF is working with Florida State University (Russ
Henderson, Project Manager) and FloridaHenderson, Project Manager) and Florida
Agricultural and Mechanical University (BeverlyAgricultural and Mechanical University (Beverly
Barrington, Project Manager) as a consortium toBarrington, Project Manager) as a consortium to
obtain savings on licenses, maintenance andobtain savings on licenses, maintenance and
implementation costs.implementation costs.
 Mike Conlon is coordinating the IT efforts relatedMike Conlon is coordinating the IT efforts related
to ERP.to ERP.
 The Data Center will be hosting the UF ERPThe Data Center will be hosting the UF ERP
system.system.
How will the work be done?
 Each university has ten project teams and a projectEach university has ten project teams and a project
manager. Each of the three schools has a vision team tomanager. Each of the three schools has a vision team to
provide project oversight. Final decisions are made by theprovide project oversight. Final decisions are made by the
vice presidents for finance and administration of the threevice presidents for finance and administration of the three
schools.schools.
 The ten project teams areThe ten project teams are
 University Management,University Management,
 PayrollPayroll
 Human ResourcesHuman Resources
 Vendor RelationshipsVendor Relationships
 Sponsored ResearchSponsored Research
 Property and FacilitiesProperty and Facilities
 StudentsStudents
 Technical ArchitectureTechnical Architecture
 IT InfrastructureIT Infrastructure
 User Training and Communication.User Training and Communication.
Technical Architecture
 Technical architecture is concerned with design andTechnical architecture is concerned with design and
implementation of processes and data structures forimplementation of processes and data structures for
development and data management involving the ERPdevelopment and data management involving the ERP
 Warren Curry is the consortium team leader for technicalWarren Curry is the consortium team leader for technical
architecturearchitecture
 Team members include Mike Conlon, Scooter Willis,Team members include Mike Conlon, Scooter Willis,
Janice Devlin, Bryan Cooke, Matt Herring, TBAsJanice Devlin, Bryan Cooke, Matt Herring, TBAs
IT Infrastructure
 IT Infrastructure is concerned with the hosting of the ERPIT Infrastructure is concerned with the hosting of the ERP
system, including hardware, software, staffing, training,system, including hardware, software, staffing, training,
processes leading to scalability, high availability,processes leading to scalability, high availability,
survivability, throughput.survivability, throughput.
 Mike Conlon is the consortium team leader for ITMike Conlon is the consortium team leader for IT
Infrastructure.Infrastructure.
 Infrastructure team members include John Bevis, SteveInfrastructure team members include John Bevis, Steve
Ware, Andy Olivenbaum, Dick Elnicke, Warren Curry,Ware, Andy Olivenbaum, Dick Elnicke, Warren Curry,
TBAs.TBAs.
UF in a Nutshell
Full-time employeesFull-time employees 13,00013,000
FacultyFaculty 4,0004,000
Temporary Employees 13,000Temporary Employees 13,000
Undergraduate StudentsUndergraduate Students 35,00035,000
Graduate StudentsGraduate Students 12,00012,000
Annual new hiresAnnual new hires 7,5007,500
Campus acreageCampus acreage 2,0002,000
Campus buildingsCampus buildings 800800
Administrative unitsAdministrative units 400400
CollegesColleges 2323
Academic departmentsAcademic departments 125125
Annual expendituresAnnual expenditures $1857 M$1857 M
HSCHSC $605 M$605 M
E&GE&G $571 M$571 M
Student AidStudent Aid $238 M$238 M
IFASIFAS $204 M$204 M
AuxiliariesAuxiliaries $190 M$190 M
AthleticsAthletics $44 M$44 M
Student GovernmentStudent Government $4 M$4 M
EndowmentEndowment $635 M$635 M
UF Vision Statement
1.1. UF requires 10 systems and 10 system integrationsUF requires 10 systems and 10 system integrations
2.2. The UF standard user interface is the ERP systemThe UF standard user interface is the ERP system’s web’s web
portalportal
3.3. UF self-serve transactions and financial transactions areUF self-serve transactions and financial transactions are
processed by the ERP system.processed by the ERP system.
4.4. The UF master databases are maintained by the ERPThe UF master databases are maintained by the ERP
systemsystem
5.5. The UF numbering schema is the ERP systemThe UF numbering schema is the ERP system’s’s
numbering schemanumbering schema
UF Vision Statement, Part 2
6.6. The UF data dictionary is the ERP systemThe UF data dictionary is the ERP system’s data’s data
dictionarydictionary
7.7. UF will eliminate the use of printed reports forUF will eliminate the use of printed reports for
management informationmanagement information
8.8. UF is to be self-sufficient in providing user training andUF is to be self-sufficient in providing user training and
maintaining the ERP systemmaintaining the ERP system
9.9. UF will adopt the ERP systemUF will adopt the ERP system’s configuration tool set’s configuration tool set
10.10. UF will continue to support the Northeast Regional DataUF will continue to support the Northeast Regional Data
CenterCenter
Scope – ITN
A.A. This Invitation to Negotiate (ITN) invites qualified Proposers toThis Invitation to Negotiate (ITN) invites qualified Proposers to
submit proposals for providing the following products and services tosubmit proposals for providing the following products and services to
the universities: Comprehensive computer systems to support thethe universities: Comprehensive computer systems to support the
University's Financial, Budgeting, Purchasing, Human Resource, andUniversity's Financial, Budgeting, Purchasing, Human Resource, and
Student Management functions.Student Management functions.
B.B. Appropriate and complimentary data warehousing, query, reporting,Appropriate and complimentary data warehousing, query, reporting,
OLAP and decision support tools.OLAP and decision support tools.
C.C. Integrated system administration facilities including navigation,Integrated system administration facilities including navigation,
security, workflow processing, auditing and job scheduling andsecurity, workflow processing, auditing and job scheduling and
interfacing to other university systemsinterfacing to other university systems
D.D. Comprehensive management, user and technical training on theseComprehensive management, user and technical training on these
systems, tools and facilities.systems, tools and facilities.
E.E. Ongoing technical support for these systems, tools and facilities.Ongoing technical support for these systems, tools and facilities.
F.F. Ongoing software maintenance and upgrades of these systems, toolsOngoing software maintenance and upgrades of these systems, tools
and facilities.and facilities.
G.G. Comprehensive and complete documentation for these systems, toolsComprehensive and complete documentation for these systems, tools
and facilities.and facilities.
H.H. The option of offering either an ORACLE or DB2 relational databaseThe option of offering either an ORACLE or DB2 relational database
management system server software, application development andmanagement system server software, application development and
administrative tools adequate for the support of these systems in anadministrative tools adequate for the support of these systems in an
environment of the size, complexity and user base of the universities.environment of the size, complexity and user base of the universities.
Scope – Functionality
 New accounting processes inc budget, treasuryNew accounting processes inc budget, treasury
 New personnel processes inc hiring, classification,New personnel processes inc hiring, classification,
training, payrolltraining, payroll
 New purchasing methodsNew purchasing methods
 New student services inc registration, records, financial aidNew student services inc registration, records, financial aid
 New facilities, inventory and capital projects processesNew facilities, inventory and capital projects processes
 New sponsored research processes inc pre-award, post-New sponsored research processes inc pre-award, post-
awardaward
 New personalized portal access to all servicesNew personalized portal access to all services
 New institutional data stores for reporting and decisionNew institutional data stores for reporting and decision
supportsupport
 New processes for securing access to applications and dataNew processes for securing access to applications and data
 New methods for providing and maintaining software andNew methods for providing and maintaining software and
infrastructureinfrastructure
Scope – Organizations
 All UF Colleges, departments, admin units,All UF Colleges, departments, admin units,
auxiliariesauxiliaries
 UF FoundationUF Foundation
 UF PhysiciansUF Physicians
 UF Athletic AssociationUF Athletic Association
 Other DSOsOther DSOs
What will change
 Business processesBusiness processes
 Security processesSecurity processes
 Development processesDevelopment processes
 IT infrastructureIT infrastructure
Project History
 2001 state announces intention to discontinue state-wide2001 state announces intention to discontinue state-wide
SUS systemsSUS systems
 Mid-2001 – UF begins ERP planningMid-2001 – UF begins ERP planning
 Feb 2002 – Vision Team formedFeb 2002 – Vision Team formed
 March 2002 – Functional teams formed, implementationMarch 2002 – Functional teams formed, implementation
objectives, ITN issuedobjectives, ITN issued
 July 2002 – Scripted demosJuly 2002 – Scripted demos
 August 2002 – PeopleSoft chosenAugust 2002 – PeopleSoft chosen
 September 2002 – Conference room pilot in TallahasseeSeptember 2002 – Conference room pilot in Tallahassee
Project Organization
 School project leaders (UF – Fred Cantrell, FSU -- RussSchool project leaders (UF – Fred Cantrell, FSU -- Russ
Henderson, FAMU – Beverly Barrington)Henderson, FAMU – Beverly Barrington)
 Schools have vision teams to make decisions regardingSchools have vision teams to make decisions regarding
strategystrategy
 School VPs of Finance and Admin (UF – Ed Poppell) haveSchool VPs of Finance and Admin (UF – Ed Poppell) have
final decision-making authorityfinal decision-making authority
 Project consultant – Al EnzweilerProject consultant – Al Enzweiler
Tentative Project Timeline – Next 7 Years
 2001 Vision; Commitment2001 Vision; Commitment
 2002 Product selection; Development/Infrastructure2002 Product selection; Development/Infrastructure
 2003 Portal go-live; Facilities go-live; Version upgrade2003 Portal go-live; Facilities go-live; Version upgrade
 2004 Sponsored Research; Financial go-live2004 Sponsored Research; Financial go-live
 2005 HRMS go-live; Payroll go-live2005 HRMS go-live; Payroll go-live
 2006 Purchasing go-live; Student go-live2006 Purchasing go-live; Student go-live
 2007 Version upgrade2007 Version upgrade
Thank youThank you

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ERP For Univ

  • 1. ERP solutions for University Sudipta RoySudipta Roy Assam University, SilcharAssam University, Silchar
  • 2. ERP for University  EvolutionEvolution  ERP OverviewERP Overview  BenefitsBenefits  PitfallsPitfalls  ModulesModules  Case Study: UFCase Study: UF
  • 3. History of organizational systems  Calculation systemsCalculation systems  Functional systemsFunctional systems  Integrated systemsIntegrated systems
  • 4. Calculation systems  1950-801950-80  Single purposeSingle purpose  Eliminate tedious human workEliminate tedious human work  Examples: Payroll, General ledger,Examples: Payroll, General ledger, InventoryInventory  Technology used: Mainframes, magneticTechnology used: Mainframes, magnetic tapes, batch processingtapes, batch processing
  • 5. Functional systems  1975-20??1975-20??  Use computers to improve operationsUse computers to improve operations  Applications: Human resources, orderApplications: Human resources, order entry, manufacturing resource planningentry, manufacturing resource planning  Technologies: Mainframes, PCTechnologies: Mainframes, PC’s, LAN’s’s, LAN’s
  • 6. Functional systems  Typically contained within a departmentTypically contained within a department  Islands of automationIslands of automation  Applications independently developed andApplications independently developed and deployeddeployed  Driving force: availability of mini-Driving force: availability of mini- computerscomputers
  • 7. Functional system applications  Human resources SystemHuman resources System  Accounting and finance systemsAccounting and finance systems  Library Management SystemLibrary Management System  Operations management SystemOperations management System  Examination SystemsExamination Systems
  • 8. Example: Human Resources  RecruitingRecruiting  CompensationCompensation  AssessmentAssessment  Development and TrainingDevelopment and Training  PlanningPlanning
  • 9. Problems with function based application  Sharing of data between systemsSharing of data between systems  Data duplicationData duplication  Data inconsistencyData inconsistency  Applications that donApplications that don’t talk to one another’t talk to one another  Limited or lack of integrated informationLimited or lack of integrated information  Isolated decisions lead to overall inefficienciesIsolated decisions lead to overall inefficiencies  Increased expensesIncreased expenses
  • 10. Solution to disparate systems?  IntegrationIntegration  ConsolidationConsolidation  Right-sizingRight-sizing  Business Process RedesignBusiness Process Redesign  Enterprise wide systemEnterprise wide system
  • 12. Overview  What is ERP?What is ERP?  Benefits of ERPBenefits of ERP  First StepsFirst Steps  Costs of ERPCosts of ERP  The ERP ContractThe ERP Contract  Limit CustomizationsLimit Customizations  Use of ConsultantsUse of Consultants  Project ManagementProject Management  Creating the single teamCreating the single team atmosphereatmosphere  Recruitment andRecruitment and Retention IssuesRetention Issues  Morale of the TeamMorale of the Team  Key Functional IssuesKey Functional Issues  Key Technical IssuesKey Technical Issues  What About SmallWhat About Small Schools?Schools?  The Future of ERPThe Future of ERP
  • 13. What is ERP?  An ERP or Enterprise ResourceAn ERP or Enterprise Resource Planning system integratesPlanning system integrates information and businessinformation and business processes to enable informationprocesses to enable information entered once to be sharedentered once to be shared throughout the organization.throughout the organization.  ERP had its origins inERP had its origins in manufacturing and productionmanufacturing and production planning. In the mid-90planning. In the mid-90’s it’s it was extended to other back-was extended to other back- office functions such asoffice functions such as financial management andfinancial management and human resource management.human resource management.  More recently these systemsMore recently these systems have addressed applicationshave addressed applications specific to higher educationspecific to higher education system.system. Common examples includeCommon examples include SAP, PeopleSoft, andSAP, PeopleSoft, and BannerBanner Needs Assessment Software Selection Process Reengineering Pilot Conference Room Training Phased Implementation ERP ProjectERP Project
  • 14. What are the Benefits of ERP?  Improve access to informationImprove access to information  Improve workflow and efficiencyImprove workflow and efficiency  Improve controls and program alertsImprove controls and program alerts  Process reengineering -- update old processesProcess reengineering -- update old processes  Foundation for new processes, such asFoundation for new processes, such as e-procuremente-procurement
  • 15. First Steps: Well Begun is Half Done  Start with an evaluation of needs and requirements -- thisStart with an evaluation of needs and requirements -- this is useful not only as a guide to the project, but also as ais useful not only as a guide to the project, but also as a gauge to the success of the projectgauge to the success of the project  Compare possible solutions to see which one best fits theCompare possible solutions to see which one best fits the needs and produces fewer gaps. More gaps may result inneeds and produces fewer gaps. More gaps may result in more costly customizations.more costly customizations.  Best of breed vs. integrated solutionsBest of breed vs. integrated solutions  Big bang vs. phased implementationBig bang vs. phased implementation
  • 16. What are the Costs of ERP?  Direct costs only represent a fraction of the totalDirect costs only represent a fraction of the total costs of ERPcosts of ERP  Direct costs include hardware, software, andDirect costs include hardware, software, and people on the project -- the largest category ispeople on the project -- the largest category is personnel costspersonnel costs  Indirect costs include the costs of back-fillingIndirect costs include the costs of back-filling positions, increasing salaries and the total lifepositions, increasing salaries and the total life cycle costs of the ERP -- maintenance, ongoingcycle costs of the ERP -- maintenance, ongoing production, and upgrades.production, and upgrades.
  • 17. The ERP Contract  The prime vendor --The prime vendor -- “one butt to kick” -- and leave it to the“one butt to kick” -- and leave it to the experts! However, there are some trade-offs.experts! However, there are some trade-offs.  Fixed cost vs. time and materials with or without a capFixed cost vs. time and materials with or without a cap  Build flexibility into the contract to accommodate changingBuild flexibility into the contract to accommodate changing technologytechnology  Check referencesCheck references  Be skeptical of vendor promises -- get it in writing!Be skeptical of vendor promises -- get it in writing!
  • 18. Limit Customizations and Scope  To change or not to change the old businessTo change or not to change the old business practice?practice?  Are you paving cow paths or improving yourAre you paving cow paths or improving your business process?business process?  Are customizations really needed? Have youAre customizations really needed? Have you factored in the total costs of the modification?factored in the total costs of the modification?  Watch out for scope creep and hiddenWatch out for scope creep and hidden customizationscustomizations
  • 19. Use of Consultants  Many different roles for consultants:Many different roles for consultants:  staff projectstaff project  backfill office staffbackfill office staff  audit projectaudit project  serve as prime contractorserve as prime contractor  project managementproject management  Too many consultants relative to university personnel mayToo many consultants relative to university personnel may limit knowledge transferlimit knowledge transfer  Too few consultants may limit ERP expertise on theToo few consultants may limit ERP expertise on the projectproject  Right of refusal over consultants – carefully watch out forRight of refusal over consultants – carefully watch out for the green oversold consultantthe green oversold consultant “in training”“in training”
  • 20. ERP Project Management  One of the most important decisions on an ERP is theOne of the most important decisions on an ERP is the selection of the project manager (PM).selection of the project manager (PM).  The PM should be a professional manager with experienceThe PM should be a professional manager with experience in project management, loyal to the university, with bothin project management, loyal to the university, with both functional and technical knowledge.functional and technical knowledge.  Use a standard methodology to provide guidance andUse a standard methodology to provide guidance and structure to the projectstructure to the project  In addition, to the project manager, there should beIn addition, to the project manager, there should be functional and technical managers.functional and technical managers.  Individual functional teams should have a designated lead.Individual functional teams should have a designated lead.  Use of committees and executive steering group.Use of committees and executive steering group.
  • 21. Creating “single team” atmosphere  AvoidingAvoiding ‘us’‘us’ versusversus ‘them’‘them’  Partnership between functional and technicalPartnership between functional and technical teamsteams  The partnership between senior management --The partnership between senior management -- e.g., thee.g., the VCVC, the, the RegistrarRegistrar, the, the COECOE, the, the LibrarianLibrarian and theand the FOFO..  Partnerships with consultants -- teams composedPartnerships with consultants -- teams composed of consultants and university personnel workingof consultants and university personnel working side by sideside by side  Partnerships with usersPartnerships with users
  • 22. Recruitment and Retention Issues  Bonuses forBonuses for “life of project” efforts“life of project” efforts  Find and nurture people earlyFind and nurture people early  Back-filling StaffBack-filling Staff  Staffing matrixStaffing matrix  Knowledge transfer and mentoringKnowledge transfer and mentoring  Stress managementStress management  Team buildingTeam building
  • 23. Morale of the Team  ERP projects can put a strain on personnelERP projects can put a strain on personnel  Schedule down times and events to help boostSchedule down times and events to help boost moralemorale  Keep an eye out for individuals on the edgeKeep an eye out for individuals on the edge  Celebrate the achievement of milestones andCelebrate the achievement of milestones and recognize individual and team contributionsrecognize individual and team contributions
  • 24. Key Functional Issues  Needs analysisNeeds analysis  Process engineeringProcess engineering  Back-filling staffsBack-filling staffs  TrainingTraining  Recruiting andRecruiting and retaining staffretaining staff  Conference room pilotConference room pilot (CRP)(CRP)  ReportingReporting  Gaps analysisGaps analysis  Setting expectationsSetting expectations  Obtaining user acceptanceObtaining user acceptance  Validation of data andValidation of data and systemssystems  CommunicationsCommunications  Process documentationProcess documentation  Audit of data and systemAudit of data and system
  • 25. Key Technical Issues  Sizing the systemSizing the system  Recruiting the talentRecruiting the talent  Holding the line onHolding the line on modificationsmodifications  Conversion of dataConversion of data  InterfacesInterfaces  Report developmentReport development  Change managementChange management and problem trackingand problem tracking  Desktop requirementsDesktop requirements  Network issuesNetwork issues  Distributed versusDistributed versus centralized productioncentralized production  Help Desk and ongoingHelp Desk and ongoing supportsupport  Planned upgrades andPlanned upgrades and revisionsrevisions  Production budgetsProduction budgets
  • 26. Modules  Admission, Academics and ExaminationAdmission, Academics and Examination  Time Table Management SystemTime Table Management System  Human Resource Management System (HRMS)Human Resource Management System (HRMS)  Financial Accounting SystemFinancial Accounting System  E-TenderingE-Tendering  Stores and PurchaseStores and Purchase  Asset ManagementAsset Management  Grievance ManagementGrievance Management  Legal Section SystemLegal Section System  Alumni Management SystemAlumni Management System  File Movement SystemFile Movement System  Letter Movement SystemLetter Movement System  Document Management System (DMS)Document Management System (DMS)  Generator Maintenance and LogbookGenerator Maintenance and Logbook  Vehicle Maintenance and LogbookVehicle Maintenance and Logbook
  • 27. ERPs in Higher Education:  Oracle: PeopleSoft Enterprise CampusOracle: PeopleSoft Enterprise Campus SolutionsSolutions  SAP: Finanace, HR, Students & otherSAP: Finanace, HR, Students & other modulesmodules  Sungard Higher Education: Unified DigitalSungard Higher Education: Unified Digital CampusCampus  Datatel: Active Campus ExperienceDatatel: Active Campus Experience  Jenzabar: Total Campus ManagementJenzabar: Total Campus Management  Campus Mangement: For post-secondaryCampus Mangement: For post-secondary institutions since 1988institutions since 1988
  • 28. ERPs in Higher Education:  Oracle PeopleSoft Enterprise Campus SolutionsOracle PeopleSoft Enterprise Campus Solutions (OPSCS)(OPSCS)  Stanford University; Cambridge University;Stanford University; Cambridge University; University of California; Cornell University;University of California; Cornell University; Princeton University; Duke University;Princeton University; Duke University; University of FloridaUniversity of Florida  IGNOU: 18 modules by TCS in 2008IGNOU: 18 modules by TCS in 2008  IIM, Shillong: OPSCS by Citagus India Pvt. Ltd.IIM, Shillong: OPSCS by Citagus India Pvt. Ltd.  IIM, Lucknow: OPSCS by PWC.IIM, Lucknow: OPSCS by PWC.  Sharda University: selected module of OPSCSSharda University: selected module of OPSCS by Citagusby Citagus
  • 29. ERP Mission (GoI):  Consortium of Institutes to frame open source ERPConsortium of Institutes to frame open source ERP  IIT Kanpur : Mentor InstituteIIT Kanpur : Mentor Institute  Aligarh Muslim University; Jamia Milia University;Aligarh Muslim University; Jamia Milia University;  Dayalbagh Educational Institute; IGNOU; etcDayalbagh Educational Institute; IGNOU; etc  Modules:Modules:  Course Management; Student record, profiles;Course Management; Student record, profiles; Faculty Expertise Database; Online Examination;Faculty Expertise Database; Online Examination; Online Admission; Project Management;Online Admission; Project Management; Time Table Management; Library Managemnt;Time Table Management; Library Managemnt; Payroll and Tax Management; General Accounting SystemPayroll and Tax Management; General Accounting System Purchase and Inventory Control;Purchase and Inventory Control;
  • 30. Ed-ERP Brihaspati:  Developed Modules:Developed Modules:  Brihaspati General Accounting SystemBrihaspati General Accounting System (BGAS)(BGAS)  Payroll SystemPayroll System  Purchase and Inventory Control (PICO)Purchase and Inventory Control (PICO)  Library Managemnt System (LibMS)Library Managemnt System (LibMS)  Learning Management System (LMS)Learning Management System (LMS)  Project Management System (PMS)Project Management System (PMS)  Election Management System (EMS)Election Management System (EMS)  Brihaspati Sync: Live lecture delivery andBrihaspati Sync: Live lecture delivery and interaction toolinteraction tool
  • 31. A case study: University of Florida (UF)
  • 32. Why is UF doing this?  Most major universities have alreadyMost major universities have already implemented ERP systems and businessimplemented ERP systems and business process changes to improve services andprocess changes to improve services and benefit from real-time information.benefit from real-time information.  With the changes in university governanceWith the changes in university governance in Florida, existing administrative systemsin Florida, existing administrative systems provided by the state and used by UF mustprovided by the state and used by UF must be replaced.be replaced.
  • 33. Who is doing this?  Fred CantrellFred Cantrell is the UF ERP Project Manager.is the UF ERP Project Manager. UF is working with Florida State University (RussUF is working with Florida State University (Russ Henderson, Project Manager) and FloridaHenderson, Project Manager) and Florida Agricultural and Mechanical University (BeverlyAgricultural and Mechanical University (Beverly Barrington, Project Manager) as a consortium toBarrington, Project Manager) as a consortium to obtain savings on licenses, maintenance andobtain savings on licenses, maintenance and implementation costs.implementation costs.  Mike Conlon is coordinating the IT efforts relatedMike Conlon is coordinating the IT efforts related to ERP.to ERP.  The Data Center will be hosting the UF ERPThe Data Center will be hosting the UF ERP system.system.
  • 34. How will the work be done?  Each university has ten project teams and a projectEach university has ten project teams and a project manager. Each of the three schools has a vision team tomanager. Each of the three schools has a vision team to provide project oversight. Final decisions are made by theprovide project oversight. Final decisions are made by the vice presidents for finance and administration of the threevice presidents for finance and administration of the three schools.schools.  The ten project teams areThe ten project teams are  University Management,University Management,  PayrollPayroll  Human ResourcesHuman Resources  Vendor RelationshipsVendor Relationships  Sponsored ResearchSponsored Research  Property and FacilitiesProperty and Facilities  StudentsStudents  Technical ArchitectureTechnical Architecture  IT InfrastructureIT Infrastructure  User Training and Communication.User Training and Communication.
  • 35. Technical Architecture  Technical architecture is concerned with design andTechnical architecture is concerned with design and implementation of processes and data structures forimplementation of processes and data structures for development and data management involving the ERPdevelopment and data management involving the ERP  Warren Curry is the consortium team leader for technicalWarren Curry is the consortium team leader for technical architecturearchitecture  Team members include Mike Conlon, Scooter Willis,Team members include Mike Conlon, Scooter Willis, Janice Devlin, Bryan Cooke, Matt Herring, TBAsJanice Devlin, Bryan Cooke, Matt Herring, TBAs
  • 36. IT Infrastructure  IT Infrastructure is concerned with the hosting of the ERPIT Infrastructure is concerned with the hosting of the ERP system, including hardware, software, staffing, training,system, including hardware, software, staffing, training, processes leading to scalability, high availability,processes leading to scalability, high availability, survivability, throughput.survivability, throughput.  Mike Conlon is the consortium team leader for ITMike Conlon is the consortium team leader for IT Infrastructure.Infrastructure.  Infrastructure team members include John Bevis, SteveInfrastructure team members include John Bevis, Steve Ware, Andy Olivenbaum, Dick Elnicke, Warren Curry,Ware, Andy Olivenbaum, Dick Elnicke, Warren Curry, TBAs.TBAs.
  • 37. UF in a Nutshell Full-time employeesFull-time employees 13,00013,000 FacultyFaculty 4,0004,000 Temporary Employees 13,000Temporary Employees 13,000 Undergraduate StudentsUndergraduate Students 35,00035,000 Graduate StudentsGraduate Students 12,00012,000 Annual new hiresAnnual new hires 7,5007,500 Campus acreageCampus acreage 2,0002,000 Campus buildingsCampus buildings 800800 Administrative unitsAdministrative units 400400 CollegesColleges 2323 Academic departmentsAcademic departments 125125 Annual expendituresAnnual expenditures $1857 M$1857 M HSCHSC $605 M$605 M E&GE&G $571 M$571 M Student AidStudent Aid $238 M$238 M IFASIFAS $204 M$204 M AuxiliariesAuxiliaries $190 M$190 M AthleticsAthletics $44 M$44 M Student GovernmentStudent Government $4 M$4 M EndowmentEndowment $635 M$635 M
  • 38. UF Vision Statement 1.1. UF requires 10 systems and 10 system integrationsUF requires 10 systems and 10 system integrations 2.2. The UF standard user interface is the ERP systemThe UF standard user interface is the ERP system’s web’s web portalportal 3.3. UF self-serve transactions and financial transactions areUF self-serve transactions and financial transactions are processed by the ERP system.processed by the ERP system. 4.4. The UF master databases are maintained by the ERPThe UF master databases are maintained by the ERP systemsystem 5.5. The UF numbering schema is the ERP systemThe UF numbering schema is the ERP system’s’s numbering schemanumbering schema
  • 39. UF Vision Statement, Part 2 6.6. The UF data dictionary is the ERP systemThe UF data dictionary is the ERP system’s data’s data dictionarydictionary 7.7. UF will eliminate the use of printed reports forUF will eliminate the use of printed reports for management informationmanagement information 8.8. UF is to be self-sufficient in providing user training andUF is to be self-sufficient in providing user training and maintaining the ERP systemmaintaining the ERP system 9.9. UF will adopt the ERP systemUF will adopt the ERP system’s configuration tool set’s configuration tool set 10.10. UF will continue to support the Northeast Regional DataUF will continue to support the Northeast Regional Data CenterCenter
  • 40. Scope – ITN A.A. This Invitation to Negotiate (ITN) invites qualified Proposers toThis Invitation to Negotiate (ITN) invites qualified Proposers to submit proposals for providing the following products and services tosubmit proposals for providing the following products and services to the universities: Comprehensive computer systems to support thethe universities: Comprehensive computer systems to support the University's Financial, Budgeting, Purchasing, Human Resource, andUniversity's Financial, Budgeting, Purchasing, Human Resource, and Student Management functions.Student Management functions. B.B. Appropriate and complimentary data warehousing, query, reporting,Appropriate and complimentary data warehousing, query, reporting, OLAP and decision support tools.OLAP and decision support tools. C.C. Integrated system administration facilities including navigation,Integrated system administration facilities including navigation, security, workflow processing, auditing and job scheduling andsecurity, workflow processing, auditing and job scheduling and interfacing to other university systemsinterfacing to other university systems D.D. Comprehensive management, user and technical training on theseComprehensive management, user and technical training on these systems, tools and facilities.systems, tools and facilities. E.E. Ongoing technical support for these systems, tools and facilities.Ongoing technical support for these systems, tools and facilities. F.F. Ongoing software maintenance and upgrades of these systems, toolsOngoing software maintenance and upgrades of these systems, tools and facilities.and facilities. G.G. Comprehensive and complete documentation for these systems, toolsComprehensive and complete documentation for these systems, tools and facilities.and facilities. H.H. The option of offering either an ORACLE or DB2 relational databaseThe option of offering either an ORACLE or DB2 relational database management system server software, application development andmanagement system server software, application development and administrative tools adequate for the support of these systems in anadministrative tools adequate for the support of these systems in an environment of the size, complexity and user base of the universities.environment of the size, complexity and user base of the universities.
  • 41. Scope – Functionality  New accounting processes inc budget, treasuryNew accounting processes inc budget, treasury  New personnel processes inc hiring, classification,New personnel processes inc hiring, classification, training, payrolltraining, payroll  New purchasing methodsNew purchasing methods  New student services inc registration, records, financial aidNew student services inc registration, records, financial aid  New facilities, inventory and capital projects processesNew facilities, inventory and capital projects processes  New sponsored research processes inc pre-award, post-New sponsored research processes inc pre-award, post- awardaward  New personalized portal access to all servicesNew personalized portal access to all services  New institutional data stores for reporting and decisionNew institutional data stores for reporting and decision supportsupport  New processes for securing access to applications and dataNew processes for securing access to applications and data  New methods for providing and maintaining software andNew methods for providing and maintaining software and infrastructureinfrastructure
  • 42. Scope – Organizations  All UF Colleges, departments, admin units,All UF Colleges, departments, admin units, auxiliariesauxiliaries  UF FoundationUF Foundation  UF PhysiciansUF Physicians  UF Athletic AssociationUF Athletic Association  Other DSOsOther DSOs
  • 43. What will change  Business processesBusiness processes  Security processesSecurity processes  Development processesDevelopment processes  IT infrastructureIT infrastructure
  • 44. Project History  2001 state announces intention to discontinue state-wide2001 state announces intention to discontinue state-wide SUS systemsSUS systems  Mid-2001 – UF begins ERP planningMid-2001 – UF begins ERP planning  Feb 2002 – Vision Team formedFeb 2002 – Vision Team formed  March 2002 – Functional teams formed, implementationMarch 2002 – Functional teams formed, implementation objectives, ITN issuedobjectives, ITN issued  July 2002 – Scripted demosJuly 2002 – Scripted demos  August 2002 – PeopleSoft chosenAugust 2002 – PeopleSoft chosen  September 2002 – Conference room pilot in TallahasseeSeptember 2002 – Conference room pilot in Tallahassee
  • 45. Project Organization  School project leaders (UF – Fred Cantrell, FSU -- RussSchool project leaders (UF – Fred Cantrell, FSU -- Russ Henderson, FAMU – Beverly Barrington)Henderson, FAMU – Beverly Barrington)  Schools have vision teams to make decisions regardingSchools have vision teams to make decisions regarding strategystrategy  School VPs of Finance and Admin (UF – Ed Poppell) haveSchool VPs of Finance and Admin (UF – Ed Poppell) have final decision-making authorityfinal decision-making authority  Project consultant – Al EnzweilerProject consultant – Al Enzweiler
  • 46. Tentative Project Timeline – Next 7 Years  2001 Vision; Commitment2001 Vision; Commitment  2002 Product selection; Development/Infrastructure2002 Product selection; Development/Infrastructure  2003 Portal go-live; Facilities go-live; Version upgrade2003 Portal go-live; Facilities go-live; Version upgrade  2004 Sponsored Research; Financial go-live2004 Sponsored Research; Financial go-live  2005 HRMS go-live; Payroll go-live2005 HRMS go-live; Payroll go-live  2006 Purchasing go-live; Student go-live2006 Purchasing go-live; Student go-live  2007 Version upgrade2007 Version upgrade