strategic planning in the changing world of erp john gohsman bill wrobleski university of michigan
TRANSCRIPT
Strategic Planning in the Changing World of ERP
John Gohsman
Bill Wrobleski
University of Michigan
Strategic Planning in the Changing World of ERP
Copyright John Gohsman, Bill Wrobleski, 2007. This work is the intellectual property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permissions of the author. To disseminate otherwise or to republish requires written permission from the authors.
Agenda• Life is good
• Caught looking at our navel
• Let’s write some shelf-ware
• Let’s not and say we did
• So how did that work out for you?
Life is good• ERP in place
• Saving some coin
• Lotsa data
• Planning to retire with PeopleSoft
Looking at our Navel then…
BAM!
Lets Write some Shelf-ware• Found one brave soul (Gartner) to
help us
• Started to write the big honkin plan
• Stopped writing a plan, started thinking
Lets not and say we did• Lets think strategically
– Started with Gartner’s framework, but came up with our own process• Small teams• Motivated experts• Internal and external scanning• Iterative
• But tell everyone we’re writing a strategic plan
Framework
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Business Strategy
Example: Business Strategy• Interviewed every dean and VP
• Developed 17 key business goals
• Examples included:– Increase the level of research funding (private
and public)– Continue to increase the size of the university’s
endowment through private fundraising– Maintain and increase the excellence of our
faculty– Maintain and increase the excellence and size of
our academic programs and facilities
Example: Application Strategy
• Should we ride PeopleSoft for as long as we can?• Should we commit to Oracle’s long range vision?• Should we form a strategic partnership with SAP
or Microsoft?• Was this the time to move to Open Source?• Do we want to avoid putting all of our eggs in one
basket?• How important is best of breed versus integrated
solution?• Should we build applications ourselves?• Could our University “stomach” significant
change in these economic times?
We will…• Let “Best of Breed” trump ERP
• Be expert in both Java and .Net
• Shift resources from transactional activities to business intelligence
• Shift resources from traditional applications such as student admin, finance and human resources toward support of Research Administration and Fundraising
We will…• Build select software from scratch
when appropriate
• Move to Fusion in the long run but be open to “best of breed” solutions including open source
• Build our infrastructure out gradually over the next several years to prepare us for Fusion
Our Evolution
1995
Build90%
1995Plan
2005
Buy90%
2006Plan
2015
Buy/Acquire70
%
Build
30%
Do Overs• Missed things
– Workflow, Portal
• Some assumptions were wrong– Cost to move to Oracle middleware beyond our
means– Apple making a comeback– Business Intelligence is driving infrastructure
changes faster than our applications
• Vendor decision changes– PeopleSoft Applications Unlimited
Lessons Learned• Great is the enemy of good
• Concise list of business drivers is crucial
• Small working groups speed the process
• Regular reviews allow you to adapt the plan (changes come fast: keep up!)
• Annual list of strategic priorities– Important communication tool– Alignment drives the right results
Closing ThoughtsVendor Parties: Free
Conference Fee: $280
Food: $300
Airline Ticket: $400
Beer: Not tellin’
Taking Credit for Other’s Good Work: Priceless
Taking credit for their work…
• Barry MacDougall• Rob Thomas• Laura Patterson• Deb Mero• Mike Loviska• Barry MacDougall• Holly Nielsen• Darcy Turner• Pam Fons• Jim Bujaki• Frances Mueller• Kim Rinn
• Peggy Bennett• Terry Houser• Brian McRae• Jon Turbett• Carol Dacko• Dave Holzschuh• Hai Hoang• Nancy Medd• Judy Smutek• Cheryl Van Kirk• Brent Dickman• Shane Fortune
• Pat McCormick• David Sweetman• Judy Shirley• Seth Meyer• Chris Wood• Dave McLaughlin• Dan Drumm• Debbie Gowan• Pat Connelly
(Gartner)• And more!
Questions?
Just the Facts• Three campuses
– Ann Arbor (40,000 students, 23,000 faculty/staff)– Dearborn & Flint (12,000 students, 1,800 faculty/staff)
• Financial Picture– Financial Annual Budget >$4 Billion (10% from State of
Michigan)– $823M research funding per year (NIH 47%, NSF 9%, DOD
8%)– Endowment: $6 billion
• Health System– Includes: Medical School, 3 hospitals, 30 health centers and
120 outpatient clinics (13,000 total employees)
• Michigan values its highly decentralized nature– “Coordinated autonomy”