Enterprise Resource Planning Enterprise Resource Planning Systems (ERP):Systems (ERP):

Lessons LearnedLessons Learned

Jim S.C. TomJim S.C. TomAssociate Vice Chancellor forAssociate Vice Chancellor for

Information TechnologyInformation TechnologyUMSLUMSL

for BA5800for BA5800

TopicsTopics

IntroductionIntroduction ERP at a UniversityERP at a University LessonsLessons Current statusCurrent status FutureFuture

What’s an ERP?What’s an ERP?

““enterprise resource planning” systementerprise resource planning” system ““integrated” system to manage:integrated” system to manage:

– Financial transactions and records – accounts Financial transactions and records – accounts payable/receivable, payments, invoices, payable/receivable, payments, invoices, vendors, etc.vendors, etc.

– Personnel – records, payroll, benefits, taxes, etc.Personnel – records, payroll, benefits, taxes, etc.– Other components that might be included:Other components that might be included:

Inventory and asset managementInventory and asset management Factory operationsFactory operations Supply chain managementSupply chain management Customer relationship managementCustomer relationship management

The HopeThe Hope

Integrate all the information required Integrate all the information required to operate and plan a businessto operate and plan a business

Decision making information at your Decision making information at your fingertipsfingertips

Get rid of the mainframeGet rid of the mainframe Cheaper, faster, betterCheaper, faster, better

The RealityThe Reality

A lot harder than people realizedA lot harder than people realized Over budgetOver budget Over timeOver time Integration not achievedIntegration not achieved Operating costs much higher than Operating costs much higher than

expectedexpected

ERP at a UniversityERP at a University

Financial systemFinancial system HR systemHR system Student informationStudent information Other components that might be included:Other components that might be included:

– Constituent relationship management Constituent relationship management (CRM)(CRM)

– Fund-raising (development)Fund-raising (development)– Classroom scheduling and managementClassroom scheduling and management

ERP at University of MissouriERP at University of Missouri

Latest effort began around 1995 – well before my Latest effort began around 1995 – well before my timetime

Started in earnest in 1998Started in earnest in 1998 Goals:Goals:

– Streamline administrative processes (reduce costs)Streamline administrative processes (reduce costs)– Replace administrative software systemsReplace administrative software systems

Results:Results:– Over timeOver time– Over budgetOver budget– User dissatisfactionUser dissatisfaction– Ambiguous achievement of goalsAmbiguous achievement of goals

Lesson 1: Ask the hard Lesson 1: Ask the hard questionsquestions

What problem are we trying to solve?What problem are we trying to solve? Who cares?Who cares? What are the assumptions?What are the assumptions? Where’s the payoff?Where’s the payoff? Do you have buy-in?Do you have buy-in?

– Who are the stakeholders?Who are the stakeholders?– Do you have executive/managerial support?Do you have executive/managerial support?– Have you involved the end-users?Have you involved the end-users?

Lesson 2: PlanLesson 2: Plan

Develop a Charter to captureDevelop a Charter to capture– GoalsGoals– Executive/management sponsorshipExecutive/management sponsorship– Answers to the hard questionsAnswers to the hard questions

Develop an overall conceptDevelop an overall concept– Broad milestones and timelineBroad milestones and timeline– Required resources, internal and externalRequired resources, internal and external

Develop as realistic a budget as you canDevelop as realistic a budget as you can

Lesson 3: CommunicateLesson 3: Communicate

This is crucial, not “motherhood and apple This is crucial, not “motherhood and apple pie”pie”

Communicate to executive/managementCommunicate to executive/management Communicate within your teamCommunicate within your team Communicate with all your stakeholdersCommunicate with all your stakeholders Honesty, openness – problems as well as Honesty, openness – problems as well as

successessuccesses

Lesson 4: Manage the ProjectLesson 4: Manage the Project

Appoint a Project ManagerAppoint a Project Manager Develop detailed tasks and timelinesDevelop detailed tasks and timelines Develop accountabilityDevelop accountability Track progressTrack progress Adjust as necessaryAdjust as necessary

Lesson 5: It’s not about Lesson 5: It’s not about TechnologyTechnology

Success is not just “on time” and “on Success is not just “on time” and “on budget”budget”– Nice as those outcomes areNice as those outcomes are

Success is about changing the way you do Success is about changing the way you do businessbusiness

Current Status at UMCurrent Status at UM

Finance and HR systems are operational Finance and HR systems are operational on latest version of softwareon latest version of software

January 2007, UMSL is heading into the January 2007, UMSL is heading into the formal implementation phase of a new formal implementation phase of a new Student Information SystemStudent Information System

UMR is already “live”UMR is already “live” UMKC and UMC are in the middle of UMKC and UMC are in the middle of

implementationimplementation

What’s different?What’s different? UMSL has been preparing for a yearUMSL has been preparing for a year The outcomes or measures of success are clear, The outcomes or measures of success are clear,

including:including:– Self-service – that is, direct access to relevant Self-service – that is, direct access to relevant

student information for faculty, staff and studentsstudent information for faculty, staff and students– Improved service to studentsImproved service to students

RecruitmentRecruitment AdmissionsAdmissions Advising and retentionAdvising and retention Financial managementFinancial management

teamworkteamwork

UMSL plansUMSL plans

Began building a joint team with resources Began building a joint team with resources from ITS and from Student Affairsfrom ITS and from Student Affairs

Secured buy-in from Chancellor, Provost, Secured buy-in from Chancellor, Provost, Vice Chancellors, DeansVice Chancellors, Deans

Learned (and continue to learn) from sister Learned (and continue to learn) from sister campuses as well as other universitiescampuses as well as other universities

Developed a Charter and preliminary planDeveloped a Charter and preliminary plan Developed budget and resource Developed budget and resource

requirementsrequirements

ProgressProgress

Completing a number of preparatory tasksCompleting a number of preparatory tasks Developing a communications planDeveloping a communications plan

– Faculty, staff and studentsFaculty, staff and students Creation of a Project Management OfficeCreation of a Project Management Office Developed overall timeline and task Developed overall timeline and task

definitionsdefinitions Found space for a “teamroom” Found space for a “teamroom”

ChallengesChallenges

ResourcesResources– Internal – difficult to recruitInternal – difficult to recruit– External – consultants are expensive and in External – consultants are expensive and in

short supply as wellshort supply as well– System – major technical work is done by System – major technical work is done by

System resources, who will still be working on System resources, who will still be working on UMKC and UMC implementationsUMKC and UMC implementations

Keeping current operations going while Keeping current operations going while implementing a new systemimplementing a new system

FutureFuture

Fully operational in Fall 2006 – old system Fully operational in Fall 2006 – old system will be shut downwill be shut down

Changes in business processes to “best Changes in business processes to “best practice” – more user or “customer” practice” – more user or “customer” focusedfocused

Better information for decision-makingBetter information for decision-making Ambiguity in underlying software system – Ambiguity in underlying software system –

our ERP is Peoplesoft, bought by Oracle. our ERP is Peoplesoft, bought by Oracle. New versions will be “converged” system New versions will be “converged” system called “Fusion,” due in 2009called “Fusion,” due in 2009

Where’s the market going?Where’s the market going?

Disclaimer: my personal thoughts Disclaimer: my personal thoughts End of monolithic systemsEnd of monolithic systems Encapsulation of core functionalityEncapsulation of core functionality Modular functionality that will Modular functionality that will

interact using “Service-oriented interact using “Service-oriented Architecture”Architecture”

But what’s the key?But what’s the key?

What does it do for the business?What does it do for the business?

QuestionsQuestions