1. Financial System Replacement Project
Fall 2009

2. Topics Financial system replacement overview Project background
Project phases
Next steps
Jessica/Melissa kick-off forum with “welcome”
Introduce self, role on project
Introduce team members in attendance
Quick 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 Project
Financial Systems Replacement Project
A major effort to replace UW core financial systems
Now in the Needs Assessment phase
Targets three financial systems:
FAS
BGT
PAS
FM reps will speak to this slide
We 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 project
The project targets functionality in our three core financial systems: FAS, BGT, PAS

5. When our financial systems were implemented in 1974:
Financial System Replacement Project
When our financial systems were implemented in 1974:
Pocket calculators appeared
Offices began using a primitive word processor resembling a typewriter
UW Research volume was $69M
FM reps will speak to this slide
Let’s take a look at our current systems, which were first implemented in What else defined our world then?
Dow Jones at 616
Disposable razors were invented by Gillette
Nixon resigns
Gas 55cents/gal
Please share a compelling story about what life was like trying to manage finances or a budget at the UW in 1974
A lot has changed since then, except our core financial systems
A lot has changed… but not our core systems.

6. … And MSU is in process of replacing their financial system.
Financial System Replacement Project
How 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 slide
So, 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 years
Cornell 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 Project
UW Financial Systems: Current State
Can’t support new business models and priorities:
President Emmert’s 2 Years; 2 Decades Initiative
Activity Based Budgeting (ABB)
Self-sustaining business units
Inefficiencies negatively impact staff productivity
Manual workarounds create additional work
Hundreds of redundant shadow systems
FM reps will speak to this slide
Why this project is important to them
The UW’s business priorities and direction has changed and our systems don’t support where we are going
As 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 now
Examples include….

8. Future Financial System Vision
Financial System Replacement Project
Future Financial System Vision
Modern, flexible, effective core financial system
Flexible chart of accounts
Effective financial and management reports
No manual workarounds; streamlined business processes
Timely, consolidated, accurate information
Integrated system supports management and reporting
Current/future business needs met; limited system customization
FM reps will speak to this slide
The 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 Project
Looking to the Future
Status quo is not acceptable
Replacing our core systems is critical to the UW’s future
We are moving forward!
FM reps will speak to this slide
Before 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.

10. Project Background

11. UW Strategic Roadmap UW Strategic Roadmap (2008)
Project Background
UW Strategic Roadmap
UW Strategic Roadmap (2008)
Comprehensive strategic plan for future of UW information and administrative systems
Involved 170 key stakeholders across UW
Recommendations--Five key initiatives including:
Replace our financial systems
Redesign business processes
Outcome:
Financial Replacement Project

12. Project Scope Fixed Assets Project Accounting Purchasing/Receiving
Capital Projects
Accounts Payable
Budgeting
Travel/Expense Reporting
Budget Activity Reconciliation
Vendor Management
Accounts Receivable
Cost Accounting
Debt/ILP
Service/Recharge Centers
Endowment Mgmt.
General Ledger
Bank Reconciliation
Grants Management

13. Project Principles Transform how we do business
Project Approach
Project Principles
Transform how we do business
Changes of this magnitude take time
Start preparing for change now
Select vendor package/open source–don’t build
Minimize customization to reduce risk/cost
User involvement critical during every phase
No system will meet 100% of our needs

14. A New Approach Past efforts focused on incremental enhancements
Financial System Replacement Project
A New Approach
Past efforts focused on incremental enhancements
Long-term solution is radical: replace our core systems
Scope and scale are larger and more complex than anything UW has undertaken in this area
Highlight scope/scale of this project vs past efforts.
Elephant metaphor for size/scale of project

15. Setting the Stage for Success
Financial System Replacement Project
Setting the Stage for Success
Highest level of institutional support
Executive sponsors:
Phyllis Wise, Provost
V’Ella Warren, Executive Vice President, Finance & Facilities
Funding the new approach:
First project phases have been funded
Executive Sponsors actively working on funding for new system

16. Broad Community Involvement
Project Organization Structure
Broad Community Involvement
User Work Groups
Financial
Core Team
Project Steering Committee
Technical Advisory Group
Project Sponsors:
Ann Anderson
Sara Gomez
Gary Quarfoth
Executive Sponsors:
V’Ella Warren
Phyllis Wise
Accounting Advisory Team
FSNA Project Team

17. Project Phases: The Road Ahead

18. System Replacement Life Cycle
Project Life Cycle
System Replacement Life Cycle
Phase 1
Needs Assessment
Phase 2 Alternatives Analysis
Phase 3
Implementation Planning
Phase 4
Design & Development
Phase 5
Final Preparation
Phase 6
Post Implementation Support
Communication
Business Process Redesign & Change Management
Go-Live 20XX
Funded
Funding Strategy Discussions Underway
Major Investment
2010
2011 – 201?
We are currently in phase 1 of a multi-year financial systems replacement effort

19. Phase 1: Needs Assessment
Financial System Replacement Project
Phase 1: Needs Assessment
Goal: Define what UW needs in a new financial system
Interviews: Over 100 users explore issues; document existing business processes
Focus Groups: 26 focus groups help determine what’s needed in a new chart of accounts
Retreats: 225 users help define requirements for each functional area
Phase 1
Needs Assessment
Phase 2 Alternatives Analysis
Phase 3
Implementation Planning
Phase 4
Design & Development
Phase 5
Final Preparation
Phase 6
Post Implementation Support

20. Phase 1: Needs Assessment…
Financial System Replacement Project
Phase 1: Needs Assessment…
Activities taking place now:
Gathering high-level requirements to select system
All financial system users invited to provide input
Input collected via Web survey
Because of the large # of users, we are collecting input via a web-based survey
Refer to handout with forum info
Information collected from campus will be used to select a new financial system next year
Phase 1
Needs Assessment
Phase 2 Alternatives Analysis
Phase 3
Implementation Planning
Phase 4
Design & Development
Phase 5
Final Preparation
Phase 6
Post Implementation Support

21. Phase 2 – Alternatives Analysis
Financial System Replacement Project
Phase 2 – Alternatives Analysis
Goal: Evaluate alternative systems against our needs; identify best fit for UW
Use feedback collected via the survey to:
Identify priorities for new system
Evaluate options for new system
Talk with peer institutions that have implemented new financial systems
Recommend system solution for the UW
Phase 1
Needs Assessment
Phase 2 Alternatives Analysis
Phase 3
Implementation Planning
Phase 4
Design & Development
Phase 5
Final Preparation
Phase 6
Post Implementation Support

22. Phase 3 and Beyond System replacement
Financial System Replacement Project
Phase 3 and Beyond
System replacement
Approach will be influenced by the system selected
Activities will include:
Gap analysis
System pilots
Business process redesign
Testing
Training
Phase 1
Needs Assessment
Phase 2 Alternatives Analysis
Phase 3
Implementation Planning
Phase 4
Design & Development
Phase 5
Final Preparation
Phase 6
Post Implementation Support

23. Next Steps Provide your input via Web- based survey by December 4
Attend a survey information session to learn more
Check out the FSNA site for updates:

24. Financial System Replacement Project
Questions?