Project SkyVU Launch March 15, 2016

1

Executive Steering Committee

Eric Kopstain John Lutz

Brett Sweet Barb Carroll

Susan Wente

Dennis Johnson

2

Vanderbilt's ongoing evolution and our impending separation

combine to create demand for new core administrative systems

Separation assurance

Strategic evolution

Lagging technology

Lost productivity

Significant risks

3

Vanderbilt's profile has changed significantly over the thirty years

since we implemented the ERP finance modules

• Increasing regulatory burden

(e.g., Uniform Guidance)

• Expanding research base

• Evolving international footprint

• Broadened external partnerships

• Thriving endowment

• Enhanced cross-institutional

collaboration

• Expanded financial aid program

We have seen substantial growth in a number of areas...

Unrestricted

operating revenue Endowment Total enrollment Faculty and staff

$1,500

$1,000

$500

0

in millions

2014

$1,225

1985

$172

7.1x

...resulting in additional complexity across the University

$5,000

$4,000

$3,000

$2,000

$1,000

$0

in millions

2014

$4,046

1985

$284

14.2x 12,710

8,122

0

5,000

10,000

15,000

2014 1985

1.6x

473 1,826

2,685

4,680

0

2,000

4,000

6,000

8,000

1985 2016

3.9x

1.7x

Staff Faculty

Our tremendous growth coupled with increasingly complex

business processes presents significant challenges

4

5

For example, Vanderbilt's core financial systems today... Processing FedEx® charges shouldn’t be this difficult

6

7

The separation of the Medical Center will not only magnify existing

risks but also create new risks for the University

Business Processes Vendor Systems Operational Risks

• There is substantial risk in sharing key business processes and

core systems as two separate legal entities

• The shared key contracts / vendor agreements increase the

likelihood of key vendors abandoning support

• Sharing legacy systems and processes create significant

operational and technical risk for the University

8

Images to talk over

9

Our staff is frustrated with the old, unconnected applications and

inefficient business processes

"Vanderbilt has a homegrown budgeting system

– VUbudget, implemented in 1996, and no

updates ever since... it is hard to utilize because

the system doesn't have much functionality"

"Only one person knows how to use the

system now, and she's moving to the Medical

Center"

"We have lots of paper based processes... many

can be automated"

"We have to manually track and manually run

queries to check... because we have much

customization, PeopleSoft can't get updates"

"We have boxes of paper invoices for scanning...

We have to manually open, sort, and scan the

invoices... there is no workflow"

"We have to take every transaction in the

institute and allocate it to different offices"

"PeopleSoft does not talk to GL, so we have to talk

to two systems... The reconciliation is huge"

Source: Vanderbilt University internal interviews

“We are losing the hearts and minds of our staff"

10

While we have made significant strides on many fronts, we are

behind our peers in administrative technology

Princeton University

Harvard University

Yale University

Columbia University

Stanford University

University of Chicago

MIT

Duke University

University of Pennsylvania

Cal Tech

Johns Hopkins University

Dartmouth University

Northwestern University

Brown University

Cornell University

Vanderbilt University

Washington U

Rice University

University of Notre Dame

UC, Berkeley

Ranking

Vanderbilt is a Top 20 institution with lagging

administrative systems to support the mission

Source: 2016 US News National Universities Rankings

Ran

kin

g

Ranking vs. Information technology landscape

Top 10

1980s – Mainframe era 1990s – Client/Server era 2000s – Mobile/Cloud era

Information technology landscape

moving to ERP

solution

moving to ERP

solution

11

We evaluated vendors and products across a number of technical

and non-technical dimensions

Demo

Scorecards

Strategic vision

alignment

Reference

calls with peer

universities

Market report

Solution

functionality

comparison

Vendor's

commitment

ROI/Benefit

analysis

Implementation

proposal

assessment

Vendor

selection

Vendor Proposed

Vanderbilt Specific

Marketplace

12

Our assessment showed Oracle is one of the most competitive

business system vendors on the market

Source: Oracle's 2015 10K annual reports; BCG analysis

Higher Ed Experience Stability Product Vision

13

BI Launch Pad

New Business

Objects

Application

eDog

General Ledger

Data

DMS

Departmental

Management

System

C2HR

Connect to HR

Concur

Vanderbilt

Business Travel

and Employee

Reimbursement

ePac

Personnel Action

Change

Kronos

Electronic Time

and Attendance

System

e-Timesheet

Electronic

Timesheet

Exempt Time Off

Exempt Time Off

eProcurement

Purchase

Requisitions

NCOA

Narrative Chart Of

Accounts

WALDO

Labor Data

Taleo

Employee

Recruiting

PM

Privilege

Management

Pcard

Procurement Card

14

15

pictures

16

Support Vanderbilt University’s academic mission by

modernizing its financial, administrative and research support systems

Improved quality and accuracy

New opportunities

Modern processes and systems

Risk mitigation

17

Education

We must offer and absolutely

outstanding educational

experience for all our students.

Research

We must undertake world-class

research that produces new and

important discoveries that address

important problems and

questions.

Deep Societal Impact

We must guarantee these first two

goals are mutually reinforcing so as

to ensure Vanderbilt’s impact on

society is deep and enduring.

18

Pictures

19

Spring 2016 Summer 2016 Fall 2016 Spring 2017 Summer 2017

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Oracle

ERP / HCM

Business

Process

Mapping and

Training

Change

Management

IDM & MDM

Business

Intelligence

Research

Systems

High-level Timeline of Implementation Work Streams

Design

BP Mapping

Communications, Project website, Change Network engagements, Roadshows

Configure Validation

End User

Training Prep

Build User

Training

Deliver End User

Training

IDM implementation

MDM - Person data (EPI replacement) implementation

Oracle Business Intelligence Suite (On-premise)

Additional Data

Configuration

Evaluation and Replacement (Coeus and PEER)

FY16 FY17

Today Go-Live

(Phase I)

20

Commonalities…

21

Guiding Principles

Simplification & Standardization

Forward Focus

Accountable Governance

Transparency & Inclusion

Measurable Results

22

Questions?

SkyVU@vanderbilt.edu