buy or build (or customize or outsource)? the answer is yes!
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Buy or Build (or customize or outsource)? The answer is yes!. Marianne Colgrove – Reed College Dave Smallen – Hamilton College. The resource question: Do we?. Buy. B. Build. Outsource. A. C. Déjà vu all over again?. Dave’s oversimplified characteristics of web and ERP applications. - PowerPoint PPT PresentationTRANSCRIPT
Buy or BuildBuy or Build(or customize or (or customize or
outsource)? outsource)? The answer is yes!The answer is yes!
Marianne Colgrove – Reed Marianne Colgrove – Reed CollegeCollegeDave Smallen – Hamilton Dave Smallen – Hamilton CollegeCollege
The resource question:The resource question: Do we?Do we?
Buy
Build Outsource
A
B
C
Déjà vu all over again?Déjà vu all over again?
Dave’s oversimplified Dave’s oversimplified characteristics of web and characteristics of web and
ERP applicationsERP applicationsWebWeb ERPERP
FormForm FunctionFunctionPresentation Presentation (reporting)(reporting)
Transaction processingTransaction processing
IntegrationIntegration Data integrity/ securityData integrity/ securitySingle institutional Single institutional imageimage
Non-redundancyNon-redundancy
Universal interfaceUniversal interface ProprietaryProprietaryProcess eliminationProcess elimination Process automationProcess automation
Strategic Value
Market MaturityFunctionality
relative to need
Low
High
Low High
Buy/Outsource
BuildBuy and
don’t modify or Build
(resource issue)
??Other factors
Key Decision FactorsKey Decision Factors
Other Decision FactorsOther Decision Factors Resource requirements Resource requirements ($$ and personnel)($$ and personnel) Cost of integration Cost of integration (ERP, LDAP)(ERP, LDAP) Time pressure Time pressure Institutional standards Institutional standards (e.g. LDAP, SQL)(e.g. LDAP, SQL) Personnel talentPersonnel talent Level of riskLevel of risk Technical complexityTechnical complexity (e.g. modular vs. integrative)(e.g. modular vs. integrative) Uniqueness of policies & practicesUniqueness of policies & practices
DriversDrivers1974 – 2004…1974 – 2004…
1974 1990
HR/Payroll
Outsource Buy Build
-Efficiency-Lack of time pressure-Automation-Maturity of technology
Other Info Systems
2000 2004
(Datatel)
Alumni Community
Process elimination IntegrationFunctionality Strategic directionTime pressure CompetitionPredictable costs/ delivery?
??
-Functionality-Time pressure-Resources-Process improvement-Predictable costs/Delivery??
CMS (Blackboard)
Web site (external focus)
Portal
Resource Scheduling??
2001 2002 2003 2005
HR
Payroll
HR/Payroll
Strategic EffortsStrategic Efforts
AdmissionAdmission
Alumni / DevelopmentAlumni / Development
Portal DemoPortal Demo
ThemesThemes1980 – 20051980 – 2005
1980 1992
Payroll
Outsource Buy Build
-Computing out of the cellar-Modules from various sources-Customization necessary
Admin modules
2000 2004
Banner (finance, student, A/D)
Alumni Directory
The Web era Getting data out --> interaction Decentralization --> self service
-Integration-Standard database
Web site (external focus)
??
2001 2002 2003 2005
Student Information Gateway
HR
Course Registration
Admission search web
A/D web & datamart
Reed ExamplesReed Examples BuildBuild
– Student Information Gateway & Course Student Information Gateway & Course Registration (collaboration with Oxy)Registration (collaboration with Oxy)
– Alumni DirectoryAlumni Directory AcquireAcquire
– Banner Web for Alumni/DevelopmentBanner Web for Alumni/Development– and A/D Datamartand A/D Datamart
Student GatewayStudent Gateway Faculty & registrar prioritiesFaculty & registrar priorities Little convergence with Banner Little convergence with Banner
productsproducts No interest in changing practicesNo interest in changing practices Highly modularHighly modular Grant-fundedGrant-funded Opportunity to trade with Oxy Opportunity to trade with Oxy
Alumni Directory Alumni Directory (ReedLink)(ReedLink) Bad experience outsourcing surveyBad experience outsourcing survey Facilitate data updateFacilitate data update Not about fund-raisingNot about fund-raising Highly modular, expandableHighly modular, expandable Shares some services with GatewayShares some services with Gateway
(e.g. Career Services, email (e.g. Career Services, email forwarding)forwarding)
Now reconsidering some outsourcing Now reconsidering some outsourcing
Alumni/DevelopmentAlumni/Development Executive reporting for developmentExecutive reporting for development Highly ad-hoc queries, on the roadHighly ad-hoc queries, on the road Timeline - “yesterday”Timeline - “yesterday” Complex table structureComplex table structure Highly integrativeHighly integrative Web for Alumni/DevelopmentWeb for Alumni/Development Alumni/Development datamartAlumni/Development datamart
Alumni/DevelopmentAlumni/Development Two-year implementationTwo-year implementation Dedicated new staff lineDedicated new staff line Server with second Oracle instanceServer with second Oracle instance Not necessarily faster, but feels betterNot necessarily faster, but feels better Both staff and infrastructure bring Both staff and infrastructure bring
other benefitsother benefits
Build Build ProsPros
– Close match with Close match with needsneeds
– Easier integrationEasier integration– Maintain Maintain
standardsstandards– Expertise for Expertise for
other projectsother projects
ConsCons– Vulnerable to Vulnerable to
staff changesstaff changes– Vulnerable to Vulnerable to
changes in changes in technologytechnology
– Needed project Needed project managementmanagement
Buy Buy ProsPros
– Community of Community of usersusers
– Ability to Ability to interface with interface with existing systemsexisting systems
– Big jump in Big jump in functionalityfunctionality
– SustainabilitySustainability
ConsCons– CostCost– Difficulty of Difficulty of
customizingcustomizing– Uncertainty of Uncertainty of
continuing costs (or continuing costs (or certainty of increase)certainty of increase)
– Viability of Viability of company/productcompany/product
– Planning still requiredPlanning still required
Outsource Outsource ProsPros
– Focused Focused expertise Faster expertise Faster implementationimplementation
– Predictable Predictable implementation implementation costscosts
ConsCons– Integration with Integration with
other systemsother systems– Lack of featuresLack of features– Unpredictable Unpredictable
continuing costscontinuing costs– Collaborative Collaborative
relationship a relationship a mustmust
Where are we going?
and why are we in this handbasket?
"When you come to a "When you come to a fork in the fork in the road....take it ”road....take it ”-- Yogi-- Yogi Berra Berra