Download - Post-Implementation Evaluation of an ERP/SIS
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Post-Implementation Evaluation of an ERP/SIS
Jim BarryChief Consulting Officer360 Consulting Group
&Wayne D. Powel
Associate Academic Vice PresidentGonzaga University
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Gonzaga University
• Private regional comprehensive university
• Enrollment ~5,000
• Tuition dependent
• Modest technology investments
• Efficiency in business is key
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The Road to an ERP/SIS
• Recognized value of common shared data set in the early 1990s
• Worked on home brewed solution for 2 years
• Project unable to gain traction
• Growing awareness of commercial options
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The Road (continued)
• Committee formed and RFP let in 1995• Vendor chosen• Two year implementation• Modules Implemented:
– Student– Finance– Human Resources– University Relations– Recruitment
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Present Day
• Desire to look back, assess progress, confirm course– Actual cost of implementation– On-going costs– Comparison to alternatives– Is this still the best choice for Gonzaga
University?
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Additional Goals of Study
• Determine the current value of the system from the user perspective
• Evaluate alternatives currently available in the marketplace– Other ERP / SIS– Best-of-Breed– Hybrid systems
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Additional Goals of Study
• Survey other Jesuit and peers for– What used and – Satisfaction with
• Functionality• Vendor support
• Evaluate other ways of delivering business applications– ASP– Outsource– Consortium
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Survey of Peers
• Of nine surveyed, 100% used ERP
• 67% used the same ERP as Gonzaga
• No propensity to change
• Support good to adequate
• Human cost of change too high
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Evaluation Methodology
• Rapid Economic Justification (REJ)– Combines traditional TCO with:
• Effectiveness in supporting business requirements• Alignment with strategic goals & direction
• 5 step process
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R.E.J. Process
• Determine alignment with business requirements
• Understands the solutions evaluated
• Understand the cost-benefit equation
• Determine and understand the risks
• Evaluate the financial metrics
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Data Gathering Process
• Internal interviews– Department heads– Senior management
• Other CIO’s
• Solution research
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Original ERP Cost
• Hardware $190 k
• Software $ 690 k
• Outside Consulting $ 610 k
• Education $ 243 k
• Staff Investment $ 1.5 m
• Programming $ 292 k
TOTAL $ 3,525,000
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On-Going Support Cost
• Software & Licensing $ 200 k
• Hardware $ 25 k
• Amortization $ 65 k
• Education $ 40 k
• GU Staff $ 360 k
TOTAL $ 690,000
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Value of Current ERP/SIS
• One Integrated v. Disparate Systems
• Single Historical Repository of Business & Student Data
• Standardization of Business Processes, Enforced by the Software
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Value of Current ERP/SIS
• “The system revolutionized the use of data in the University’s environment.”
• “It was critical for Gonzaga to reconcile and standardize its business processes. The system did that for us.”
• “We could not be raising the kind of funds we are today without our system.”
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Value of Current ERP/SIS
• “Implementation of this system was the single greatest achievement of the last decade at Gonzaga.”
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Business Requirements
• Student Information System– Admissions– Registrar– Housing/residence– Financial aid– Certification– Student accounts– Student life
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Business Requirements
• Finance– G/L– Budgeting– Fixed assets– A/R– Procurement – A/P– Endowment management
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Business Requirements
• University Relations (Advancement)– Alumni relations– Development– Major gifts– Annual/planned giving– Government relations
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Business Requirements
• Human Resources– HRIS– Payroll
• Academics– Degree audit– Career services
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Other Solutions
• ERP SIS (5)
• Best-of-Breed (8)
• Hybrid (2)
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Cost Comparisons
SOLUTION ACQUISITION ANNUAL
Current None $690,000
ERP #1 $4,850,000 $770,000
ERP #2 $6,625,000 $1,035,000
Hybrid $4,108,000 $904,000
Best-of-Breed $3,778,000 $821,000
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Other Options
• ASP
• Outsource
• Consortium
• Solution Provider
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Summary
• Cost app. $3.5 M in 1995 $$$’s
• Costs app. $700 K annually to support
• ROI was incalculable
• Value to G.U. of current solution– Met initial expectations– Data extraction & report writing could be better– Has been a springboard for growth
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Summary
• Neither Hybrid nor Best of Breed meets G.U.’s business requirements
• Replacement cost close to that of least expensive comparative solution
• Support cost close to that of least expensive comparative solution
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Summary
• Outsourcing, ASP’s and a Consortium were not palatable to the University
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Application “Mid-Life”
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Recommendations
• REVITALIZE THE APPLICATION
• TAKE THE APPLICATION TO THE NEXT LEVEL
• Learn to use features/functions not being utilized
• Add additional needed functionality
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Recommendations
• Stepped up formal education program
• Develop additional tools for data extraction and manipulation
• Develop a web portal to front-end the ERP/SIS
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Present Day
Still the best choice for Gonzaga University!