1. ERP Implementation as an Agent of Organizational Change Stephen Lightcap VP Finance & Admin., Cabrini College Michael Scheuermann Sr. Consultant, Drexel University May 2004

2. Agenda Project description –Drexel implementing Banner at Cabrini Background on each institution Foundation for project –initial relationship — IT support Challenges to implementation project ERP as organizational change agent Lessons learned Future directions S

3. Project Description Drexel University in ASP capacity, implementing SCT Banner at Cabrini College CMDS would no longer be supported –need to change and make significant investment Cabrini interested in expanding and enhancing administrative and support services to students –on-line registration –financial statements –reviewing transcripts, etc. S

4. Project Description (cont.) Maintain niche culture while providing e- services expected by parents and students Commitment to providing related infrastructure to support access to services— wireless, desktop access, robust and secure network. S

5. Cabrini College Liberal arts & sciences—2100 students, religious affiliation, former women’s college, now co-ed, established in 1957 68 full-time faculty-150 adjunct faculty-147 staff & admin-48 outsourced personnel —IT staff of 5 CMDS (Jenzabar)/ ADP / Raiser’s Edge / SIRSI in library Some home-grown Web tools to access directory, room reservations S

6. Drexel University Private institution founded in 1891 First microcomputer requirement in nation –Begun as Macintosh-only program in ’83 –Platform selection made “open choice” in ’97 Major wired upgrade from ’98 – ‘00 Wireless Initiative started in late 1997 –Library and student center were pilot projects –Entire campus by Fall 2000 Provide I-2 connectivity to other institutions Provide IT services (ASP) for MCP Hahnemann University & other colleges – DUCOM M&A 7/02

7. Initial Relationship “Phase I” Drexel CIO and Cabrini President prior working relationship Drexel asked to provide temporary IT leadership and assist in strategic plan Six month relationship –staff changes, –assistance with infrastructure, –introduced WebCT, –solving computer lab issues, –developing policies and documenting procedures From “Trust” to development of formal, contractual relationship Reorganize support services, use technology to provide support Recommendations for future S

8. Expanded Relationship “Phase II” Discussion about admin services, business processes, what to do after CMDS Cabrini—desire to use top tier ERP—cost prohibitive Discussions with vendor—proposed an ASP model with benefits to all Developed plan to implement Banner system at Cabrini S

9. Cabrini Context Drexel assist in development of RFP to replace core admin. system Concerns re: partner’s access to strategic information IT staffing requirements of stand-alone system Desire to further strategic partnership with Drexel IT not core function @ Cabrini…why do it ourselves? S

10. HE Environment - Limits Vendor and Institutional Solutions Comprehensive Research Universities Other 4 year Colleges and Universities Community Colleges and 2 year institutions Total 9362 968 440 Trade Schools 1,563 1,972 5041,470 Number of U.S. Institutions of Higher Education By Segment Public Private

11. HE Environment – Limits Vendor and Institutional Solutions Lack of experienced IT Leadership –One year of experience ten times –No developed IT strategy Technical skills often limited –Dependence on products one knows –Risk not a criteria in product “choice” Lack of resources –Short life cycle for technology demands continual renewal and cost –Competing institutional priorities IT Fragility

12. Small School Context Limited resources to procure and staff Limited opportunities for IT staff professional growth Limited mobility opportunities Recruitment and retention challenges for IT staff Supervisory challenges in an Academic-Centered environment Cultural Myopia Knuckleheads S

13. Institutional Challenges Provide IT solutions to critical business and academic needs 24x7 Optimize scarce resources to provide –Robust server and network infrastructure –Timely business and academic applications –Professional skills and support structure Develop & document policies and procedures Facilitate productivity – utilize Web, email

14. Vendor Challenge Optimize “feet on the street” Leverage investment in current applications –Time is the enemy (3 years is only 6 months in Internet time) Expand use of applications to other institutions Reinforce the ASP model as a solution to academic and business challenges Promote virtual services are a “click” away

15. Institutional Choices Self develop Best of breed Single vendor Outsource staffing of in-house facilities Consortium – Just doesn't work! Managed service provider / Co-location Application Service Provider (ASP)

16. Readiness meetings—demo Banner, promote idea at Cabrini, get buy-in at all levels— Chance for Cabrini to differentiate itself from peer schools. Attract new markets—quality students Operate more effectively and efficiently Manage operations with sound reliable information basis Implementation Plan and Schedule S

17. Student system—undergraduate admissions Finance HR Financial Aid Training, mentoring and support plan Implementation Plan and Schedule (cont.) S

18. Billing processes and workflow Chart of Accounts Financial Aid distribution Managing variety of admissions schedules Implementation Plan and Schedule (cont.) S

19. Non-Technical Issues Work related communication and collaboration among functional staff No regular “work” meetings Staff used to ad hoc ways of recording transactions Skill deficiencies among some revealed when tasked with using the system Transition / turnover S

20. Challenges to Drexel Get more involved to make it work or follow plan and risk project failure (not an option) Time commitment Doing the work—rather than teaching and supporting which was the plan Cost of support D.U. task orientation Business continuity plan

21. Challenges to Cabrini Rationalize outsourced staff Fear of losing control Cultural differences – Small vs. Large Communication styles – written/spoken vs. e-mail CC process orientation Change management Business Process Reengineering Managing Expectations (failure not an option) Human Resources S

22. Application Service Providers ASPs are simply companies that provide access to applications over the Internet Outsourcing switches from assets to access. By 2010, the market share of IT utility providers will be within 29% of the total IT services market – (Gartner Group) Companies will in the future buy their information technologies as services provided over the Internet rather than owning their own hardware and software – (Your Next IT Strategy; Hagel and Brown; HBR 10/01)

23. Why Drexel as a Provider? Trusted technology provider in HE market Higher Education “full service” ASP today First to market – regional flagship focus Four years of proven success Other schools participating – concept works Leadership and skills Entrepreneurial environment Infrastructure in place Vendor relationships Proximity

24. Example: Phase I Progress at Cabrini IT leadership and staffing in place Advisory structure in place Help desk in place Email and Web-mail in place –Virus protection standardized and controlled –100 MB mail per mail box S

25. Services Improved Course development in WebCT in place ― 40 courses developed in 6 months Connection to internet quadrupled Wireless operational throughout campus Web site hosting available CabriniOne ~ portal Server elimination begun Proxy Server in place for off-campus library access

26. Totally Replaced ERP System IT policies, procedures, documentation and standards dramatically improved Substantial savings on new PC purchases Transition to SCT Banner administrative applications –8 month time period –July 2003 implementation –Hosted at Drexel S

27. Schools are Leveraging Drexel Assets IT staffing Operational staffing Software and business applications Hardware and network Via: –specialists –internal consultants / shadowing –ASP services –External relationships Lowering IT costs

28. “We don’t do things that way” - Business Process Re-engineering - How to know what to change and why Does the software drive the organization? How to improve business practices without compromising “culture” Top level support key to success S

29. Schools are Also Receiving Unintended Benefits Business process changes – best practices Cultural changes Increased accountability Cost avoidance (avoiding bad decisions) Increased sense of urgency Improved competitiveness Strategic cooperation vs. “vendor relationship” S

30. Lessons Learned Don’t discount cultural differences between institutions Turnover must be expected and creates opportunities Communicate clearly and regularly with the affected community Consider project management tools Understand process orientation and leverage to maximize linear implementation schedule S

31. Schools are Developing New Metrics Importance of quality and effectiveness of service Evaluating performance vs. peers rather than internal performance Recognizing the capability of access vs. owning assets Refocusing on academic core mission

32. Current Status and Phase II Banner basic functionality fully implemented BPR ongoing Adopt standard administrative processes/ forms/etc. of ASP provider Retain academic autonomy Mentoring CC staff by Drexel functional users C-BUG Best practices cuts both ways S

33. New Directions for Each Institution Drexel—new partners, new initiatives Cabrini – Phase III: –Collaborative purchasing beyond IT & ASP –Best practices –Leverage Banner capabilities as users gain experience –Share experiences with others

34. Questions?