2 Topics Financial system replacement overview Project background Project phasesNext stepsJessica/Melissa kick-off forum with “welcome”Introduce self, role on projectIntroduce team members in attendanceQuick recap of topics that will be covered.Introduce FM rep that will be speaking to next slides
3 Financial System Replacement Overview I am excited to be part of the effort to bring a modern financial system to the UW.As [the Associate Controller/Associate Vice President in Finance and Facilities/Finance Director], I experience firsthand the challenges with our existing systems and have heard from many of you about your own challenges.
4 Financial Systems Replacement Project Financial System Replacement ProjectFinancial Systems Replacement ProjectA major effort to replace UW core financial systemsNow in the Needs Assessment phaseTargets three financial systems:FASBGTPASFM reps will speak to this slideWe are here today to talk with you about a major initiative underway to replace the UW’s financial systems.We are currently in the Needs Assessment phase of the projectThe project targets functionality in our three core financial systems: FAS, BGT, PAS
5 When our financial systems were implemented in 1974: Financial System Replacement ProjectWhen our financial systems were implemented in 1974:Pocket calculators appearedOffices began using a primitive word processor resembling a typewriterUW Research volume was $69MFM reps will speak to this slideLet’s take a look at our current systems, which were first implemented in What else defined our world then?Dow Jones at 616Disposable razors were invented by GilletteNixon resignsGas 55cents/galPlease share a compelling story about what life was like trying to manage finances or a budget at the UW in 1974A lot has changed since then, except our core financial systemsA lot has changed… but not our core systems.
6 … And MSU is in process of replacing their financial system. Financial System Replacement ProjectHow Does the UW Compare?Among the UW’s peer group, only one has financial systems older than the UW’s – Michigan State University.… And MSU is in process of replacing their financial system.FM reps will speak to this slideSo, you might wonder how the UW compares to others in this area.Amongst our peers of 30 doctoral research institutions, only one has a system older than the UW’s and they are in the process of implementing a new system.We have underinvested in our administrative systems through the yearsCornell University Ohio State University Texas A&M University University of Arizona University of Iowa University of California – Davis University of California – Davis University of California – Davis University of California – Irvine University of California – Los Angeles Ohio State University Michigan State University University of Florida University of Hawaii University of Kentucky University of Michigan University of Minnesota University of Missouri University of New Mexico University of North Carolina University of Pittsburgh University of Virginia University of Wisconsin University of Utah University of Cincinnati University of California – San Diego
7 UW Financial Systems: Current State Financial System Replacement ProjectUW Financial Systems: Current StateCan’t support new business models and priorities:President Emmert’s 2 Years; 2 Decades InitiativeActivity Based Budgeting (ABB)Self-sustaining business unitsInefficiencies negatively impact staff productivityManual workarounds create additional workHundreds of redundant shadow systemsFM reps will speak to this slideWhy this project is important to themThe UW’s business priorities and direction has changed and our systems don’t support where we are goingAs President Emmert mentioned in his recent address to campus, our systems are “cranky and have not kept up the rapid pace of change at the UW.We need to be looking at the long-term – Where does the UW want to be in 20 years? We need systems that support where we are heading.The current state of our systems illustrate why it’s so important that we pursue replacing our systems nowExamples include….
8 Future Financial System Vision Financial System Replacement ProjectFuture Financial System VisionModern, flexible, effective core financial systemFlexible chart of accountsEffective financial and management reportsNo manual workarounds; streamlined business processesTimely, consolidated, accurate informationIntegrated system supports management and reportingCurrent/future business needs met; limited system customizationFM reps will speak to this slideThe new system will provide the flexibility we need to quickly respond to changing needs.
9 Looking to the Future Status quo is not acceptable Financial System Replacement ProjectLooking to the FutureStatus quo is not acceptableReplacing our core systems is critical to the UW’s futureWe are moving forward!FM reps will speak to this slideBefore I hand things over, I wanted to reiterate the fundamental need we have for a new financial system. It’s critical to our future, and the status quo won’t allow us to get where we need to go.I’m thrilled to be able to say that we are moving forward!I’m now going to hand things over to Melissa & Jessica, who will share more information about the project with you.
13 Project Principles Transform how we do business Project ApproachProject PrinciplesTransform how we do businessChanges of this magnitude take timeStart preparing for change nowSelect vendor package/open source–don’t buildMinimize customization to reduce risk/costUser involvement critical during every phaseNo system will meet 100% of our needs
14 A New Approach Past efforts focused on incremental enhancements Financial System Replacement ProjectA New ApproachPast efforts focused on incremental enhancementsLong-term solution is radical: replace our core systemsScope and scale are larger and more complex than anything UW has undertaken in this areaHighlight scope/scale of this project vs past efforts.Elephant metaphor for size/scale of project
15 Setting the Stage for Success Financial System Replacement ProjectSetting the Stage for SuccessHighest level of institutional supportExecutive sponsors:Phyllis Wise, ProvostV’Ella Warren, Executive Vice President, Finance & FacilitiesFunding the new approach:First project phases have been fundedExecutive Sponsors actively working on funding for new system
16 Broad Community Involvement Project Organization StructureBroad Community InvolvementUser Work GroupsFinancialCore TeamProject Steering CommitteeTechnical Advisory GroupProject Sponsors:Ann AndersonSara GomezGary QuarfothExecutive Sponsors:V’Ella WarrenPhyllis WiseAccounting Advisory TeamFSNA Project Team
18 System Replacement Life Cycle Project Life CycleSystem Replacement Life CyclePhase 1Needs AssessmentPhase 2 Alternatives AnalysisPhase 3Implementation PlanningPhase 4Design & DevelopmentPhase 5Final PreparationPhase 6Post Implementation SupportCommunicationBusiness Process Redesign & Change ManagementGo-Live 20XXFundedFunding Strategy Discussions UnderwayMajor Investment20102011 – 201?We are currently in phase 1 of a multi-year financial systems replacement effort
19 Phase 1: Needs Assessment Financial System Replacement ProjectPhase 1: Needs AssessmentGoal: Define what UW needs in a new financial systemInterviews: Over 100 users explore issues; document existing business processesFocus Groups: 26 focus groups help determine what’s needed in a new chart of accountsRetreats: 225 users help define requirements for each functional areaPhase 1Needs AssessmentPhase 2 Alternatives AnalysisPhase 3Implementation PlanningPhase 4Design & DevelopmentPhase 5Final PreparationPhase 6Post Implementation Support
20 Phase 1: Needs Assessment… Financial System Replacement ProjectPhase 1: Needs Assessment…Activities taking place now:Gathering high-level requirements to select systemAll financial system users invited to provide inputInput collected via Web surveyBecause of the large # of users, we are collecting input via a web-based surveyRefer to handout with forum infoInformation collected from campus will be used to select a new financial system next yearPhase 1Needs AssessmentPhase 2 Alternatives AnalysisPhase 3Implementation PlanningPhase 4Design & DevelopmentPhase 5Final PreparationPhase 6Post Implementation Support
21 Phase 2 – Alternatives Analysis Financial System Replacement ProjectPhase 2 – Alternatives AnalysisGoal: Evaluate alternative systems against our needs; identify best fit for UWUse feedback collected via the survey to:Identify priorities for new systemEvaluate options for new systemTalk with peer institutions that have implemented new financial systemsRecommend system solution for the UWPhase 1Needs AssessmentPhase 2 Alternatives AnalysisPhase 3Implementation PlanningPhase 4Design & DevelopmentPhase 5Final PreparationPhase 6Post Implementation Support
22 Phase 3 and Beyond System replacement Financial System Replacement ProjectPhase 3 and BeyondSystem replacementApproach will be influenced by the system selectedActivities will include:Gap analysisSystem pilotsBusiness process redesignTestingTrainingPhase 1Needs AssessmentPhase 2 Alternatives AnalysisPhase 3Implementation PlanningPhase 4Design & DevelopmentPhase 5Final PreparationPhase 6Post Implementation Support
23 Next Steps Provide your input via Web- based survey by December 4 Attend a survey information session to learn moreCheck out the FSNA site for updates:
24 Financial System Replacement Project Questions?