1. Enterprise Resource Planning Systems (ERP): Lessons Learned Jim S.C. Tom Associate Vice Chancellor for Information Technology UMSL for BA5800

2. Topics Introduction Introduction ERP at a University ERP at a University Lessons Lessons Current status Current status Future Future

3. What’s an ERP? “enterprise resource planning” system “enterprise resource planning” system “integrated” system to manage: “integrated” system to manage: –Financial transactions and records – accounts payable/receivable, payments, invoices, vendors, etc. –Personnel – records, payroll, benefits, taxes, etc. –Other components that might be included:  Inventory and asset management  Factory operations  Supply chain management  Customer relationship management

4. The Hope Integrate all the information required to operate and plan a business Integrate all the information required to operate and plan a business Decision making information at your fingertips Decision making information at your fingertips Get rid of the mainframe Get rid of the mainframe Cheaper, faster, better Cheaper, faster, better

5. The Reality A lot harder than people realized A lot harder than people realized Over budget Over budget Over time Over time Integration not achieved Integration not achieved Operating costs much higher than expected Operating costs much higher than expected

6. ERP at a University Financial system Financial system HR system HR system Student information Student information Other components that might be included: Other components that might be included: –Constituent relationship management (CRM) –Fund-raising (development) –Classroom scheduling and management

7. ERP at University of Missouri Latest effort began around 1995 – well before my time Latest effort began around 1995 – well before my time Started in earnest in 1998 Started in earnest in 1998 Goals: Goals: –Streamline administrative processes (reduce costs) –Replace administrative software systems Results: Results: –Over time –Over budget –User dissatisfaction –Ambiguous achievement of goals

8. Lesson 1: Ask the hard questions 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? –Do you have executive/managerial support? –Have you involved the end-users?

9. Lesson 2: Plan Develop a Charter to capture Develop a Charter to capture –Goals –Executive/management sponsorship –Answers to the hard questions Develop an overall concept Develop an overall concept –Broad milestones and timeline –Required resources, internal and external Develop as realistic a budget as you can Develop as realistic a budget as you can

10. Lesson 3: Communicate This is crucial, not “motherhood and apple pie” This is crucial, not “motherhood and apple pie” Communicate to executive/management Communicate to executive/management Communicate within your team Communicate within your team Communicate with all your stakeholders Communicate with all your stakeholders Honesty, openness – problems as well as successes Honesty, openness – problems as well as successes

11. Lesson 4: Manage the Project Appoint a Project Manager Appoint a Project Manager Develop detailed tasks and timelines Develop detailed tasks and timelines Develop accountability Develop accountability Track progress Track progress Adjust as necessary Adjust as necessary

12. Lesson 5: It’s not about Technology Success is not just “on time” and “on budget” Success is not just “on time” and “on budget” –Nice as those outcomes are Success is about changing the way you do business Success is about changing the way you do business

13. Current Status at UM Finance and HR systems are operational on latest version of software Finance and HR systems are operational on latest version of software January 2007, UMSL is heading into the formal implementation phase of a new Student Information System January 2007, UMSL is heading into the formal implementation phase of a new Student Information System UMR is already “live” UMR is already “live” UMKC and UMC are in the middle of implementation UMKC and UMC are in the middle of implementation

14. What’s different? UMSL has been preparing for a year UMSL has been preparing for a year The outcomes or measures of success are clear, including: The outcomes or measures of success are clear, including: –Self-service – that is, direct access to relevant student information for faculty, staff and students –Improved service to students  Recruitment  Admissions  Advising and retention  Financial management teamwork teamwork

15. UMSL plans Began building a joint team with resources from ITS and from Student Affairs Began building a joint team with resources from ITS and from Student Affairs Secured buy-in from Chancellor, Provost, Vice Chancellors, Deans Secured buy-in from Chancellor, Provost, Vice Chancellors, Deans Learned (and continue to learn) from sister campuses as well as other universities Learned (and continue to learn) from sister campuses as well as other universities Developed a Charter and preliminary plan Developed a Charter and preliminary plan Developed budget and resource requirements Developed budget and resource requirements

16. Progress Completing a number of preparatory tasks Completing a number of preparatory tasks Developing a communications plan Developing a communications plan –Faculty, staff and students Creation of a Project Management Office Creation of a Project Management Office Developed overall timeline and task definitions Developed overall timeline and task definitions Found space for a “teamroom” Found space for a “teamroom”

17. Challenges Resources Resources –Internal – difficult to recruit –External – consultants are expensive and in short supply as well –System – major technical work is done by System resources, who will still be working on UMKC and UMC implementations Keeping current operations going while implementing a new system Keeping current operations going while implementing a new system

18. Future Fully operational in Fall 2006 – old system will be shut down Fully operational in Fall 2006 – old system will be shut down Changes in business processes to “best practice” – more user or “customer” focused Changes in business processes to “best practice” – more user or “customer” focused Better information for decision-making Better information for decision-making Ambiguity in underlying software system – our ERP is Peoplesoft, bought by Oracle. New versions will be “converged” system called “Fusion,” due in 2009 Ambiguity in underlying software system – our ERP is Peoplesoft, bought by Oracle. New versions will be “converged” system called “Fusion,” due in 2009

19. Where’s the market going? Disclaimer: my personal thoughts Disclaimer: my personal thoughts End of monolithic systems End of monolithic systems Encapsulation of core functionality Encapsulation of core functionality Modular functionality that will interact using “Service-oriented Architecture” Modular functionality that will interact using “Service-oriented Architecture”

20. But what’s the key? What does it do for the business? What does it do for the business?

21. Questions