planning for the modernization of administrative systems james lowe, uw-eau claire and david...

Planning for the Planning for the Modernization of Modernization of

Administrative SystemsAdministrative SystemsJames Lowe, UW-Eau ClaireJames Lowe, UW-Eau Claire

andand

David Hemingson, BearingPoint, Inc.David Hemingson, BearingPoint, Inc.

Copyright James Lowe and David Hemingson, 2003. This work is the intellectual property of the authors. 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 authors. To disseminate otherwise or to republish requires written permission from the authors.

CUMREC 2003CUMREC 2003Orlando, FLOrlando, FL

Planning for the Modernization of Planning for the Modernization of Administrative SystemsAdministrative Systems

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OverviewOverview

Background PerspectiveBackground Perspective University of Wisconsin, Eau ClaireUniversity of Wisconsin, Eau Claire UW-System “Common Systems”UW-System “Common Systems” ObjectivesObjectives ApproachApproach The Analytical ModelThe Analytical Model RecommendationRecommendation Wrap UpWrap Up



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Statistics (ECAR)Statistics (ECAR)

Almost 1/2 of universities are using ERP Almost 1/2 of universities are using ERP systemssystems

2/3 of those implementing ERP continue to 2/3 of those implementing ERP continue to use legacy systemsuse legacy systems

Of those who have not implemented an Of those who have not implemented an ERP:ERP:• 10% are currently or will implement in 1 year10% are currently or will implement in 1 year• An additional 25% are expected to do so within An additional 25% are expected to do so within

the next three yearsthe next three years



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Recommended ReadingRecommended ReadingECAR Reports and StudiesECAR Reports and Studies

Enterprise Systems at Three University Enterprise Systems at Three University Systems: California State University, Systems: California State University, University System of Georgia, University of University System of Georgia, University of Wisconsin System, 2002Wisconsin System, 2002

Enterprise Resource Planning Systems in Enterprise Resource Planning Systems in Higher Education, 2002Higher Education, 2002

A Different Kind of ERP: Extending and A Different Kind of ERP: Extending and Renewing Legacy Systems, 2003Renewing Legacy Systems, 2003

The Promise and Performance of The Promise and Performance of Enterprise Systems in Higher Education, Enterprise Systems in Higher Education, 20022002



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UW-Eau ClaireUW-Eau Claire

Liberal Arts Based InstitutionLiberal Arts Based Institution• College of Arts and SciencesCollege of Arts and Sciences• College of BusinessCollege of Business• College of Professional StudiesCollege of Professional Studies

Undergraduate and GraduateUndergraduate and Graduate 10,500 Students10,500 Students 1,150 Staff1,150 Staff 3rd largest in UW-System3rd largest in UW-System



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Current Administrative SystemsCurrent Administrative Systems

Hardware: Unisys ClearPath 5622-32Hardware: Unisys ClearPath 5622-32 Operating System: MCPOperating System: MCP Integrated database: DMS IIIntegrated database: DMS II

• Student Information SystemStudent Information System• Human Resources DataHuman Resources Data• Financial DataFinancial Data• Other…Other…



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UW-SystemUW-SystemCommon SystemsCommon Systems

UW-System: 2 doctorial campuses, 11 UW-System: 2 doctorial campuses, 11 comprehensive and 13 two-year collegescomprehensive and 13 two-year colleges

10 Campuses have adopted PeopleSoft 10 Campuses have adopted PeopleSoft SIS, 1 Datatel, 1 moving from DMS II to SIS, 1 Datatel, 1 moving from DMS II to Oracle, 1 Oracle, 1 DMSIIOracle, 1 Oracle, 1 DMSII

All campuses either feed or use the All campuses either feed or use the PeopleSoft financial systemPeopleSoft financial system

All campuses will be using the Lawson All campuses will be using the Lawson APBS systemAPBS system



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ObjectivesObjectives

Provide better service to faculty, Provide better service to faculty, students and staffstudents and staff• User customizable reporting toolsUser customizable reporting tools• E-businessE-business• Web based interfacesWeb based interfaces• ……

Lower riskLower risk



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Required System AttributesRequired System Attributes

Promotes effective, efficient, best practice Promotes effective, efficient, best practice work process in each departmentwork process in each department

Simple, easy to use and maximizes the Simple, easy to use and maximizes the individual users’ productivityindividual users’ productivity

Networked, industry standard hardware, Networked, industry standard hardware, uses major Operating systems, standard uses major Operating systems, standard protocols and communicates with protocols and communicates with commonly used university softwarecommonly used university software

......



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ApproachApproach

Developed RFS for consulting services - Developed RFS for consulting services - shared with campusshared with campus

Created team to evaluate and rank Created team to evaluate and rank responses to RFSresponses to RFS• Team included: Foundation, Computing and Team included: Foundation, Computing and

Networking Services, University Senate, CFO, Networking Services, University Senate, CFO, Financial Aid Director, CIOFinancial Aid Director, CIO

Be inclusive as possibleBe inclusive as possible Decision must be made at highest levelsDecision must be made at highest levels BearingPoint (formerly KPMG consulting) BearingPoint (formerly KPMG consulting)

selectedselected



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BearingPoint’s RoleBearingPoint’s Role

Structure Analysis of Strategic IT Structure Analysis of Strategic IT AlternativesAlternatives

Develop Analytical ModelDevelop Analytical Model Analyze Findings Against ModelAnalyze Findings Against Model Recommend Strategy for Moving Recommend Strategy for Moving

ForwardForward



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Existing ConditionsExisting Conditions

b

Demand for Administrative IT Services

Time

Service Delivery

Maintenance

IT Development Resource Allocation



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b


Time

Service Delivery

Maintenance


Gap Increasing



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b


Time

Service Delivery

Maintenance


Gap Increasing

Percentage of Resource Available Increasing



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Analytical ProcessAnalytical Process

Review of Documented StrategiesReview of Documented Strategies• University Mission, ObjectivesUniversity Mission, Objectives• University System IT StrategyUniversity System IT Strategy• University IT StrategyUniversity IT Strategy

Conduct Focus GroupsConduct Focus Groups• StudentsStudents• Faculty – Open ForumsFaculty – Open Forums



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Analytical ProcessAnalytical Process(continued)(continued)

Conduct InterviewsConduct Interviews• IT StaffIT Staff• Functional UsersFunctional Users

RequirementsRequirements Incremental Enhancements over Status QuoIncremental Enhancements over Status Quo

• Senior University LeadershipSenior University Leadership• University System IT LeadershipUniversity System IT Leadership

Estimate 5-Year CostsEstimate 5-Year Costs Develop Estimated TimelineDevelop Estimated Timeline



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Analytical ProcessAnalytical Process

Develop Consensus Around Develop Consensus Around AlternativesAlternatives

Develop ModelDevelop Model Assess Alternatives Against ModelAssess Alternatives Against Model



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AlternativesAlternatives

1 – Technology Migration1 – Technology Migration 2 – Combined Migration and 2 – Combined Migration and

Implementation of New ApplicationsImplementation of New Applications 3 – Implementation of New 3 – Implementation of New

ApplicationsApplications



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Considerations in Considerations in Analytical ModelAnalytical Model

Alignment with Shared ObjectivesAlignment with Shared Objectives Organizational Change DimensionOrganizational Change Dimension Technology/Support ImpactTechnology/Support Impact Resource Allocation ImpactResource Allocation Impact Impact on User CommunityImpact on User Community Impact on Institutional Bargaining PositionImpact on Institutional Bargaining Position Cost ConsiderationsCost Considerations Timing ConsiderationsTiming Considerations



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Analytical ModelAnalytical Model

Alignment with Shared ObjectivesAlignment with Shared Objectives Organizational Change DimensionOrganizational Change Dimension

• Magnitude of Organizational ImpactMagnitude of Organizational Impact Leadership SupportLeadership Support Potential for Re-assignment and Re-Potential for Re-assignment and Re-

classification of Positionsclassification of Positions

• Extent of Key Person DependencyExtent of Key Person Dependency• Control of PrioritiesControl of Priorities



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Analytical Model Analytical Model (continued)(continued)

Technology/Support ImpactTechnology/Support Impact• Alignment with University System Alignment with University System

StrategyStrategy• Degree of Flexibility -- Ability to Enhance Degree of Flexibility -- Ability to Enhance

through Compatible Standards-based through Compatible Standards-based ApplicationsApplications

• Degree of Control – Software Degree of Control – Software Development Priorities and TimingDevelopment Priorities and Timing



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b


Time

Service Delivery

Maintenance

Application of Skills to Full Application Support




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b


Time

Service Delivery

Maintenance

Application of Skills to New Development




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Impact on User CommunityImpact on User Community• Recognized Need to Evaluate Recognized Need to Evaluate

Administrative PracticesAdministrative Practices Applicability of “Best Practices”Applicability of “Best Practices” Value of Knowledge SharingValue of Knowledge Sharing

• Breadth of ImpactBreadth of Impact Impact on Institutional Bargaining Impact on Institutional Bargaining

PositionPosition• Likelihood of University System Likelihood of University System

“mandate”“mandate”



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Cost ConsiderationsCost Considerations• 5 Year Planning Horizon5 Year Planning Horizon• MagnitudeMagnitude

Incremental Cost/Benefit over Status QuoIncremental Cost/Benefit over Status Quo View as Annual CostsView as Annual Costs

• Spend PatternSpend Pattern• Degree of Cost Certainty – Risk of Degree of Cost Certainty – Risk of

OverrunOverrun• Utilization of University System Utilization of University System

Allocated CostsAllocated Costs



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Total Projected Annual Costs (Draft: Subject to Revision)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Status Quo

Technical Migration A

Technical Migration B

Compromise: Migration andImplementation

Full Implementation



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Timing ConsiderationsTiming Considerations• Financial EnvironmentFinancial Environment• Other Environmental IssuesOther Environmental Issues• Duration Duration

Risk of Loss of SupportRisk of Loss of Support

• Time to BenefitTime to Benefit Expected State at End of Each YearExpected State at End of Each Year



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RecommendationRecommendation

Institutional PrioritiesInstitutional Priorities Institutional ConditionInstitutional Condition

• ObjectivesObjectives• PreparednessPreparedness

CommitmentCommitment FundingFunding

Consultant ExperienceConsultant Experience

Apply Development Staff “At the Margin”Apply Development Staff “At the Margin”



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ConclusionConclusion

1 – Technology Migration1 – Technology Migration 2 – Combined Migration and 2 – Combined Migration and

Implementation of New ApplicationsImplementation of New Applications 3 – Implementation of New Applications3 – Implementation of New Applications

Decision to be Made at Highest Levels Decision to be Made at Highest Levels Following Determination of Acceptable Following Determination of Acceptable Degree of Institutional Change Degree of Institutional Change



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Wrap UpWrap Up

Process is Time Consuming but Process is Time Consuming but ValuableValuable

Inclusive as PossibleInclusive as Possible• Students, Faculty, StaffStudents, Faculty, Staff

Impacts All Campus OperationsImpacts All Campus Operations• Changes Require Extensive TrainingChanges Require Extensive Training

Process Must be StructuredProcess Must be Structured Decision Must Be Made at the Decision Must Be Made at the

Highest LevelHighest Level

planning for the modernization of administrative systems james lowe, uw-eau claire and david...

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