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Buy or Build (or customize or outsource)? The answer is yes! Marianne Colgrove – Reed College Dave Smallen – Hamilton College.

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Presentation on theme: "Buy or Build (or customize or outsource)? The answer is yes! Marianne Colgrove – Reed College Dave Smallen – Hamilton College."— Presentation transcript:

1 Buy or Build (or customize or outsource)? The answer is yes! Marianne Colgrove – Reed College Dave Smallen – Hamilton College

2 The resource question: Do we? Buy Build Outsource A B C

3 Déjà vu all over again?

4 Daves oversimplified characteristics of web and ERP applications WebERP FormFunction Presentation (reporting) Transaction processing Integration Data integrity/ security Single institutional image Non-redundancy Universal interface Proprietary Process elimination Process automation

5 Strategic Value Market Maturity Functionality relative to need Low High Low High Buy/ Outsource Build Buy and dont modify or Build (resource issue) ?? Other factors Key Decision Factors

6 Other Decision Factors Resource requirements ($$ and personnel) Resource requirements ($$ and personnel) Cost of integration (ERP, LDAP) Cost of integration (ERP, LDAP) Time pressure Time pressure Institutional standards (e.g. LDAP, SQL) Institutional standards (e.g. LDAP, SQL) Personnel talent Personnel talent Level of risk Level of risk Technical complexity (e.g. modular vs. integrative) Technical complexity (e.g. modular vs. integrative) Uniqueness of policies & practices Uniqueness of policies & practices

7 Drivers 1974 – 2004… HR/Payroll OutsourceBuyBuild -Efficiency -Lack of time pressure -Automation -Maturity of technology Other Info Systems (Datatel) Alumni Community Process elimination Integration Functionality Strategic direction Time pressure Competition Predictable costs/ delivery? ?? -Functionality -Time pressure -Resources -Process improvement -Predictable costs/ Delivery?? CMS (Blackboard) Web site (external focus) Portal Resource Scheduling ?? HR Payroll HR/Payroll

8 Strategic Efforts Admission Alumni / Development

9 Portal Demo Portal Demo

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14 Themes 1980 – Payroll OutsourceBuyBuild -Computing out of the cellar -Modules from various sources -Customization necessary Admin modules Banner (finance, student, A/D) Alumni Directory The Web era Getting data out --> interaction Decentralization --> self service -Integration -Standard database Web site (external focus) ?? Student Information Gateway HR Course Registration Admission search web A/D web & datamart

15 Reed Examples Build Build –Student Information Gateway & Course Registration (collaboration with Oxy) –Alumni Directory Acquire Acquire –Banner Web for Alumni/Development –and A/D Datamart

16 Student Gateway Faculty & registrar priorities Faculty & registrar priorities Little convergence with Banner products Little convergence with Banner products No interest in changing practices No interest in changing practices Highly modular Highly modular Grant-funded Grant-funded Opportunity to trade with Oxy Opportunity to trade with Oxy

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19 Alumni Directory (ReedLink) Bad experience outsourcing survey Bad experience outsourcing survey Facilitate data update Facilitate data update Not about fund-raising Not about fund-raising Highly modular, expandable Highly modular, expandable Shares some services with Gateway (e.g. Career Services, forwarding) Shares some services with Gateway (e.g. Career Services, forwarding) Now reconsidering some outsourcing Now reconsidering some outsourcing

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24 Alumni/Development Executive reporting for development Executive reporting for development Highly ad-hoc queries, on the road Highly ad-hoc queries, on the road Timeline - yesterday Timeline - yesterday Complex table structure Complex table structure Highly integrative Highly integrative Web for Alumni/Development Web for Alumni/Development Alumni/Development datamart Alumni/Development datamart

25 Alumni/Development Two-year implementation Two-year implementation Dedicated new staff line Dedicated new staff line Server with second Oracle instance Server with second Oracle instance Not necessarily faster, but feels better Not necessarily faster, but feels better Both staff and infrastructure bring other benefits Both staff and infrastructure bring other benefits

26 Build Pros Pros –Close match with needs –Easier integration –Maintain standards –Expertise for other projects Cons Cons –Vulnerable to staff changes –Vulnerable to changes in technology –Needed project management

27 Buy Pros Pros –Community of users –Ability to interface with existing systems –Big jump in functionality –Sustainability Cons Cons –Cost –Difficulty of customizing –Uncertainty of continuing costs (or certainty of increase) –Viability of company/product –Planning still required

28 Outsource Pros Pros –Focused expertise Faster implementation –Predictable implementation costs Cons Cons –Integration with other systems –Lack of features –Unpredictable continuing costs –Collaborative relationship a must

29 Where are we going? and why are we in this handbasket?

30 "When you come to a fork in the road....take it "When you come to a fork in the road....take it -- Yogi Berra


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