June 19-20, 2014

Information TechnologyAnnual Report

Gary K. AllenUM Vice President – Information Technology

MU Chief Information Officer

June 20, 2014OPEN – GB – INFO 3-1

June 19-20, 2014

University of Missouri System

OPEN – GB – INFO 3-2June 19-20, 2014

What is UMIT?

The Information Technology functions of UM, MU, UMKC, UMSL and S&T acting as one geographically dispersed function, while retaining their individual missions

CIOsUM/MU – Gary AllenMUHC – Tiger Institute – Bryan BlivenMissouri S&T – Greg SmithUMKC – Mary Lou FrittsUMSL – Larry Frederick

OPEN – GB – INFO 3-3June 19-20, 2014

What do we do?

Telecom

Network Services

Customer Services

UsersStudents, Faculty,

Staff, Public

Information Security

Applications

Systems and Operations

Research Support Patient Care

Teaching and Learning

LibrarySupportServices

OPEN – GB – INFO 3-4June 19-20, 2014

OPEN – GB – INFO 3-5June 19-20, 2014

OPEN – GB – INFO 3-6June 19-20, 2014

MOREnet SE Missouri Proposed Fiber Expansion

OPEN – GB – INFO 3-7June 19-20, 2014

OPEN – GB – INFO 3-8 June 19-20, 2014

OPEN – GB – INFO 3-9 June 19-20, 2014

University of MissouriSystem June 19-20, 2014

UM Strategic Plan

OPEN – GB – INFO 3-11 June 19-20, 2014

UM Strategic Plan – OEI Accountability

OPEN – GB – INFO 3-12 June 19-20, 2014

Efficiency Strategies and OutcomesSteps Taken to Manage Costs (past 5 years)

Engaged Accenture/Hackett to Benchmark Administrative Cost (2010)

Implemented Operational Excellence Initiative (OEI)• Centralized procurement (Show Me shop)• Automated Expense Reimbursement (T&E)• Automated Personnel Actions (ePAF)• Accounts Payable Shared Service

Limited Raises and Instituted Hiring Freezes System-wide, between 2002 and 2012, student to faculty ratio

increased from 17.4 to 19.7 Deferred Plant Maintenance and Renewal

• Backlog of M&R needs increased $479M between 2008 and 2013

OPEN – GB – INFO 3-13June 19-20, 2014

Opportunities for Continued Improvement

• Staff and support team cost management effectiveness and efficiencies

• Automation, process reengineering, sharing of best practices and consolidation

• Competitive faculty salaries• Update Education Plant• Manage Total Rewards Cost Through Benefits Task

Force Recommendations• Managing IT and ERP Costs Sustainably

OPEN – GB – INFO 3-14June 19-20, 2014

The Operational Excellence Initiative Portfolio – Development & Management

UMStrategies

ITEnvironment

CampusStrategies

Costs

Themes&

Levers

HumanResources

Finance

Academic& Student

InformationTechnology

IntegratedPlan

OEI• Refine• Endorse• Champion

Executive Team• Understand• Prioritize• Integrate

SPMO• Consolidate• Analyze• Recommend• Report

Communication / Management / Metrics / ResourcesOPEN – GB – INFO 3-15

UM Data Center Consolidation

SubprojectsSecurityNetworkInfrastructureService Catalog

Primary in Columbia, Secondary in KCLong-term data center strategic plan

Corporate / institutional partnerships? Research platform?

OPEN – GB – INFO 3-16June 19-20, 2014

UM Data Center Consolidation - subprojects

Security – Standardize / consolidate and create centers of excellence in varied infosec domains (IDS/IPS, firewalls, log analysis, etc.). Consolidate decentralized IT systems into the new DC structure

Network – Simplify / standardize design towards goal of Redundant Active Data Center

Infrastructure – Define and deploy standards for servers, storage, etc.

Service Catalog – Identify all IT services provided by each campus and reduce the duplication of effort and/or spend

OPEN – GB – INFO 3-17June 19-20, 2014

www

www

Benefits

AdmineRecruit

UMSL/S&T

Where we’ve been…Dec, 1997

PS approved by BOC

4 years

General LedgerBudget

ReceivablesBillingAsset

Management

Accounts PayablePurchasing

GrantsProjects Costing

June 19-20, 2014

Shared Services

Benchmark

ERP enhancements, 2008 - present

2008 20152009 2010 2011 2012 2013 2014

2008 - 2011Housing / Judicial

2010 - 2010SAPT8.5

Jan - JanSS

1098T

2011 - 2011Advance v9.5

HR/SA Interfaces2011 - 2012

u.select

2012 - 2012SSN

Vault

2012 - 2012Auth.

Access

2009 - 2009Time & Labor

(T & L)

2010 - 2010Time

Clocks

2010 - 2010T & L

MUHC

2010 - 2010eRecruit

KC/MU/UM

2011 - 2011HR V8.9 à v9.1

2012 - 2012Advance

v9.8

2012 - 2012SA v8.9 à v9.0

PT v8.52

2010 - 2012PS à Hyperion Interface

2012 - 2012StrategicBudget(LRP)

2013 - 2013FY14

BudgetPlan(FIN)

2013 - 2013FY14

BudgetMgt.

(FIN & EDW)

2014 - 2014FY15

BudgetPlan – position

(HCP)

2014 - 2014FY15

BudgetMgt. – position(HCP & EDW)

2008 - 2008Financials / SCM

v8.8 à v9.0

2010 - 2010Inventory / ePro

MUHC

Housing / Judicial

SAPT

v8.5SS

1098T

Advance v9.5HR/SA Interfaces

u.select

SSN Vault SA

Auth. Access

Advance v9.8

Financials / SCMV8.8 v.9.0

SA v8.9 9.0PT v8.52

T & L

Inventory / eProMUHC Time

Clocks

T & LMUHC

eRecruitKC/MU/UM

HR v8.9 v9.1

PS HyperionInterface

StrategicBudget(LRP)

BudgetPlan. - position

(HCP)

Operational Excellence Initiative

UMSLGo-Live

SSN VaultHR & FIN

ePAF

CRI

T&E SPMOOTPVPA

BudgetMgt. - position(HCP/EDW)

BudgetPlan.(FIN)

BudgetMgt.

(FIN/EDW)

COMPASS

OPEN – GB – INFO 3-19June 19-20, 2014

OPEN – GB – INFO 3-21June 19-20, 2014

OPEN – GB – INFO 3-22

UMKCMU

UMSL S&T

OPEN – GB – INFO 3-23

Modifications (mods) we have made to “as distributed” software *

* There are mods required to make the software operational

Modules CS Mods %Total PS Solution

% of Total (All Apps)

Total 550 100.00% 31.36% SA – Student Administration 28 5.09% 1.60% AA – Academic Advising 1 0.18% 0.06% AD - Admissions 54 9.82% 3.08% CC – Campus Community 77 14.00% 4.39% FA – Financial Aide 85 15.45% 4.85% REP - Reporting 17 3.09% 0.97% RES – Residential Life 16 2.91% 0.91% SF – Student Finance 69 12.55% 3.93% SR – Student Records 139 25.27% 7.92% SS – Self Service 64 11.64% 3.65%

Finance Modules FIN Mods

% Total PS Solution

% of Total (All Apps)

Total 838 100% 48%Payables 142 17% 8%GL 141 17% 8%Grants 138 16% 8%PO 114 14% 6%PSExpenses 79 9% 5%ePro 51 6% 3%Receivable 41 5% 2%Budgets 30 4% 2%Uncategorized 28 3% 2%Billing 23 3% 1%Inventory 22 3% 1%Ast. Mngmt 14 2% 1%Purchasing 10 1% 1%NA 3 0% 0%HR 1 0% 0%Payroll 1 0% 0%

Sub-system # of Mod’s

Finance 838

Human Resources/Payroll 301

Campus Solutions 550

June 19-20, 2014

Central Administrative Systems Budget (ASB) Expenditures

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 $-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

Cost to campuses

Total cost

OPEN – GB – INFO 3-25June 19-20, 2014

Central Administrative Systems Budget (ASB) Expenditures

~14% Growth annually FY15 – $ 19.4 M FY16 – $ 22.1 M FY17 – $ 25.2 M FY18 – $ 28.7 M FY19 – $ 32.7 M FY20 – $ 37.3 M

?

June 19-20, 2014

Alternatives

Status quo – not an optionReimplementation of selected servicesSoftware as a Service (SaaS) – CloudOpen SourceBusiness Process Outsourcing“Next-generation” ERP – core system of recordSome combination of the above

OPEN – GB – INFO 3-27June 19-20, 2014

Our administrative systems approach

Governance is key – need to articulate policies, principles, and expectations that everyone supports and promulgates throughout the organization

Free up resources from processes that are “required but not strategic” to reallocate them to fund strategic initiatives

Effectiveness and efficiency comes from working together towards common goals. The concept of “we not me”

Accept effective/efficient practices built into administrative systems Standardize and eliminate exceptions as much as possible Avoid unnecessary local optimization; bring IT and business

process-related decisions to the appropriate leadership groups for discussion and direction

OPEN – GB – INFO 3-28June 19-20, 2014

Phases Key Tasks Key Deliverables

Phase 1: Define / Validate Current State & Identify Opportunities for Integration and Shared Capabilities

Conduct project kickoff and finalize expectations, objectives, scope, approach, schedule, stakeholders, participants, benchmarking peer group and data needs

Conduct key stakeholder interviews (UMS President, Chancellors, UMS VP’s, CIO’s, selected DoIT Directors & Managers, Functional Area Leads, Campus Representatives, Faculty & Staff, Students, OEI Chair and OEI members)

Review / validate the functional areas’ strategic and operating plans, infrastructure and operating model

Inventory enterprise and campus specific systems Document high-level current process workflows and identify opportunities for

improvement, integration and shared capabilities (for Human Resources, Finance and Student)

Conduct deep dive analysis on up to 7 processes (e.g., 4 Student, 1 Human Resources, 1 Finance, 1 Development) enabled by different campus specific systems and identify opportunities for streamlining and shared capabilities leading towards de-customization recommendations

Identify peer group Universities and conduct discussions to understand their ERP deployments, issues and future direction (Student only)

Define / validate total current ERP cost of ownership (including related campus solutions)

Enterprise and campus specific systems inventory

High-level current state process maps (see example in Appendix)

Opportunities for improvement, integration and shared capabilities and de-customization analysis

Current ERP cost of ownership

Approach and Outcomes

* Time will be allocated accordingly to the various functions/processes within Student, Human Resources and Finance based on agreed upon priorities and relative complexity.

OPEN – GB – INFO 3-29June 19-20, 2014

Approach and Outcomes

Phases Key Tasks Key Deliverables

Phase 2: Define Future State Processes

Conduct future state workshops with selected functional and IT representatives Define desired future state processes enabled through optimization of the ERP

system Define preliminary ERP business and functional requirements to support desired

future state processes

Future state process maps

ERP business and functional requirements

Phase 3: Develop ERP Optimization Strategy and Action Plan

Develop recommended ERP optimization strategy and action plan to include: Key initiatives Timeline Business Case / Budget Resourcing and training needs ERP/IT governance structure

Draft ERP optimization strategy

ERP/IT governance structure

Phase 4: Finalize and Gain Agreement on ERP Optimization Strategy and Action Plan

Validate / gain feedback on the ERP optimization strategy and action plan, timeline and budget with all appropriate UM System, Campus and DoIT stakeholders

Finalize the action plan, timeline and business case and budget Finalize the ERP/IT governance structure

ERP optimization strategy ERP/IT governance

structure

* Time will be allocated accordingly to the various functions/processes within Student, Human Resources and Finance based on agreed upon priorities and relative complexity.

OPEN – GB – INFO 3-30June 19-20, 2014

Phases May June July Aug Sept Oct Nov Dec

Phase 1: Define / Validate Current State & Identify Opportunities for Integration and Shared CapabilitiesPhase 2: Define Future State Processes

Phase 3: Develop ERP Optimization Strategy and Action PlanPhase 4: Finalize and Gain Agreement on ERP Optimization Strategy and Action Plan

ERP Optimization Project Timing

* Project timing is dependent on UM System and Campus resource availability and the time required for validation and building system wide support/agreement.

Kick-off

Target Completion

Contingency

OPEN – GB – INFO 3-31June 19-20, 2014

HR approach

Process unification – to increase agility and to move towards true Talent Management (pre-hire recruit through retirement)

Full utilization of system functionality — move to best HR practices; less focus on transactionsePAF has reduced transactional work; they continue to

aggressively pursue new capabilitiesCompleted Global Grading Study allows focus on career paths

and succession planningCompensation and Performance Management (unused or

underused functionality) are other areas to add value

OPEN – GB – INFO 3-32June 19-20, 2014

Finance Approach

Decrease costs and support of technology through modification reduction (“Zero-Mod” Approach)

Leverage new functionality to support shared services and streamline administrative processes

Review system architecture and develop a long-term plan for Finance applications

Develop a new governance model for managing Finance applications

OPEN – GB – INFO 3-33June 19-20, 2014

Campus Solutions Analysis Approach

Recommended ApproachConduct a feasibility analysis of moving to one instance of Oracle Campus Solutions (PeopleSoft) from the four instances today

Benefits• Focus on proving out potential

future state• Identification of opportunities,

impact and costs/benefits• Demonstration of Oracle

multi-institution capabilities• Modification and key process

review within context of one optimized instance

Key Activities Review the business reasons that

drove the original decision to utilize four instances

Document the current high-level processes workflows and key functional requirements/scripts to identify future state optimization opportunities

Explore impact of adopting unused PeopleSoft functionality and reducing selected manual processes

Collaborate with Oracle on scripted demonstrations of the multi-institution capabilities utilizing the functional requirements/scripts

Identify changes to key business processes and policies that would be impacted by the change

Develop a cost/benefit analysis of one versus four instances

OPEN – GB – INFO 3-34June 19-20, 2014

Highlights of current portfolio

FinanceHyperion Budget Upgrade, PeopleSoft Finance 9.2 Upgrade,

Strategic Reporting Data Warehouse UMIT

Data Center Consolidation, ERP Study, PPM Tools Upgrade, Upgrade Telepresence, Faculty/Staff Email Strategy

Academic/Student Starfish, Schedule Builder, Academic Mapper/Planner, Missouri

Reverse Transfer, Degree Audit, myVITA

OPEN – GB – INFO 3-35June 19-20, 2014

OPEN – GB – INFO 3-36