1. Making the Right Enterprise Information Decisions Dennis Cromwell Associate Vice President Enterprise Infrastructure May 24, 2007 dcromwel@iu.edu Copyright Dennis Cromwell, 2007. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

2. Session Topics Buy vs. Build Decision Promise and Reality of ERP Community Source What’s the answer?

3. Gartner Group CIO Outlook Thoughts of the Corporate CIO CIO budgets across all industries will increase near 3% Total IT spending will increase near 5% Recommendation - Create a track record for creating business value Question – How does institutional buying power compare?

4. Buy vs. Build Conventional Wisdom Build – Applications that give you a strategic/competitive advantage Buy – Anything else This is an age old conventional wisdom. What is strategic? What is a business differentiator? If it is not strategic then the business models that the software supports are also not strategic and are subject to change and commonality.

5. Build vs Buy Unique needs Control destiny Cost – In some cases Customization Control pace Push frontiers Meet cultures Maybe better integration Cost – in some cases New processes Best practices Drive change Complete refresh of process and/or technology Hardened product Implementation time Staff – Leveraging expertise User communities Support Maintenance Build it Buy it

6. ERP – A different kind of buy “ But the companies that have the biggest problems – the kind of problems that can lead to disaster – are those that install an ES (enterprise system) without thinking through its full business implications ” People don’t like to change, and ERP asks them to change how they do their jobs….The software is less important than the changes companies make in the ways that they should do business. “ Davenport – HBR 1998 Koch – 2006

7. The ERP Promise Integrated solutions will unlock data End-to-end tight integration of business process Administrative systems are not strategic Refocus central IT staff to important problems Save money over the life of the system (implement vanilla)

8. The ERP Reality Lack of data warehouse and reporting makes access to information worse Best practice turns out to be difficult to define and nothing is unique It takes more IT staff to manage ERP than legacy system Upgrades are disruptive and expensive Total Cost of Ownership is high Very complex Security is not a good match – for some It addresses back office and not outwardly focused Big Cultural Shift

9. Looking for a better model Community Source Projects Partnering Organizations Licensing Fees Maintenance Fees Commercial Coordination Closed IP Bundled IP & Support Stakeholder Coordination Open IP Unbundled IP & Support + Commercial Support Options Creating Software Sustaining Software Source: [ Wheeler,4]

10. Hey Kids, Let’s Become a Software Developer Be honest, how many of you have thought of Community Source in this fashion?

11. Community Source “Institutional Investments for Institutional Outcomes” “Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.” www.sakaiproject.org Source: [ Wheeler,5]

12. Community Source The Basics 1.Pooled investments 2.Strong board 3.Tendered resource to the project 4.Strong team and leaders 5.Semi-benevolent tech dictator 6.Sustainability in organization Source: [ Wheeler,4]

13. Community Source Killer Items 1.Licensing issues 2.Reduced commitment 3.Failed governance Source: [ Wheeler,4]

14. Community Source Functionality of Systems integration, standards…innovation Cost of Systems operations, maintenance, timing, evolution Time to Deliver Chandler/Westwood Source: [ Wheeler,5]

15. Licensing Issues Birkenstocks and Wingtips “Copy Left”– GNU modelOpen/Open – BSD Model Source: [Gandel and Wheeler]

16. What is the answer?

17. Beware of Silver Bullets Compilers CASE Third generation languages Objects are nearer than they appear ERP Software as a Service

18. SOA Service Oriented Architecture What is SOA? SOA is a programming or deployment methodology. (SO) Also, a description of the way an enterprise addresses its application portfolio (A) It requires reuse and a reuse discipline (some say governance) A governance model would place architecture as the role of central IT and it requires centralization. If you cannot resolve what department code to use in your applications (or building code, etc.) then it will be difficult to be successful with SOA.

19. Silver Buckshot

20. What do we do? Staffing This is a challenge. Location and competition for talent plays comes into play, but some things to consider Build HE skills for your institution, reward institutional knowledge. Build generalist who are not afraid to reuse Avoid the not invented here syndrome Bring some deep technical expertise use consultants sparingly.

21. What do we do? – Buy Clear ROI Focus and support our business Demand more from our vendors' –Cost of upgrades –Support for integration –Not sold here syndrome

22. What do we do? Build together Community Source is important – support it Look for projects that minimize the risk Don’t be afraid to use without contribution

23. Snazzy Conclusion

24. Copyright Information Copyright Dennis Cromwell, 2007. This work is the intellectual property of the author. Permission is granted for this material to be shared for non- commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

25. References 1.Gartner Inc. The Gartner Scenario 2006: The Current State and Future Direction of IT. October 27, 2006 2.Gandel, Paul B. and Wheeler, Bradley C. Of Birkenstocks and Wingtips: Open Source Licenses. EDUCAUSE Review. January/February 2005. http://www.educause.edu/ir/library/pdf/ERM0517.pdf http://www.educause.edu/ir/library/pdf/ERM0517.pdf 3.Davenport, Thomas H. (1998) Putting the Enterprise into the Enterprise System.” Harvard Business Review July-August 1998. 4.Koch, Christopher (2006) The ABCs of ERP. January 10, 2006. http://www.cio.com/research/erp/edit.erpbasics.html http://www.cio.com/research/erp/edit.erpbasics.html 5.Wheeler, Bradley C. (2004) Code, Coordination, and Community. Open Source Summit. Phoenix, AZ. http://wheeler.kelley.indiana.edu/pdfs/Code- Coordination-Community.ppthttp://wheeler.kelley.indiana.edu/pdfs/Code- Coordination-Community.ppt 6.Hardin, Joseph and Mitra, Amitava (2005) Sakai – The Road Ahead. EDUCAUSE Orlando, FL. www.educause.edu/ir/library/powerpoint/EDU05250.pps.www.educause.edu/ir/library/powerpoint/EDU05250.pps