Enterprise Resource Planning Systems (ERP):


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Enterprise Resource Planning Systems (ERP):

  1. 1. Enterprise Resource Planning Systems (ERP): Lessons Learned Jim S.C. Tom Associate Vice Chancellor for Information Technology UMSL for BA5800
  2. 2. Topics <ul><li>Introduction </li></ul><ul><li>ERP at a University </li></ul><ul><li>Lessons </li></ul><ul><li>Current status </li></ul><ul><li>Future </li></ul>
  3. 3. What’s an ERP? <ul><li>“ enterprise resource planning” system </li></ul><ul><li>“ integrated” system to manage: </li></ul><ul><ul><li>Financial transactions and records – accounts payable/receivable, payments, invoices, vendors, etc. </li></ul></ul><ul><ul><li>Personnel – records, payroll, benefits, taxes, etc. </li></ul></ul><ul><ul><li>Other components that might be included: </li></ul></ul><ul><ul><ul><li>Inventory and asset management </li></ul></ul></ul><ul><ul><ul><li>Factory operations </li></ul></ul></ul><ul><ul><ul><li>Supply chain management </li></ul></ul></ul><ul><ul><ul><li>Customer relationship management </li></ul></ul></ul>
  4. 4. The Hope <ul><li>Integrate all the information required to operate and plan a business </li></ul><ul><li>Decision making information at your fingertips </li></ul><ul><li>Get rid of the mainframe </li></ul><ul><li>Cheaper, faster, better </li></ul>
  5. 5. The Reality <ul><li>A lot harder than people realized </li></ul><ul><li>Over budget </li></ul><ul><li>Over time </li></ul><ul><li>Integration not achieved </li></ul><ul><li>Operating costs much higher than expected </li></ul>
  6. 6. ERP at a University <ul><li>Financial system </li></ul><ul><li>HR system </li></ul><ul><li>Student information </li></ul><ul><li>Other components that might be included: </li></ul><ul><ul><li>Constituent relationship management (CRM) </li></ul></ul><ul><ul><li>Fund-raising (development) </li></ul></ul><ul><ul><li>Classroom scheduling and management </li></ul></ul>
  7. 7. ERP at University of Missouri <ul><li>Latest effort began around 1995 – well before my time </li></ul><ul><li>Started in earnest in 1998 </li></ul><ul><li>Goals: </li></ul><ul><ul><li>Streamline administrative processes (reduce costs) </li></ul></ul><ul><ul><li>Replace administrative software systems </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>Over time </li></ul></ul><ul><ul><li>Over budget </li></ul></ul><ul><ul><li>User dissatisfaction </li></ul></ul><ul><ul><li>Ambiguous achievement of goals </li></ul></ul>
  8. 8. Lesson 1: Ask the hard questions <ul><li>What problem are we trying to solve? </li></ul><ul><li>Who cares? </li></ul><ul><li>What are the assumptions? </li></ul><ul><li>Where’s the payoff? </li></ul><ul><li>Do you have buy-in? </li></ul><ul><ul><li>Who are the stakeholders? </li></ul></ul><ul><ul><li>Do you have executive/managerial support? </li></ul></ul><ul><ul><li>Have you involved the end-users? </li></ul></ul>
  9. 9. Lesson 2: Plan <ul><li>Develop a Charter to capture </li></ul><ul><ul><li>Goals </li></ul></ul><ul><ul><li>Executive/management sponsorship </li></ul></ul><ul><ul><li>Answers to the hard questions </li></ul></ul><ul><li>Develop an overall concept </li></ul><ul><ul><li>Broad milestones and timeline </li></ul></ul><ul><ul><li>Required resources, internal and external </li></ul></ul><ul><li>Develop as realistic a budget as you can </li></ul>
  10. 10. Lesson 3: Communicate <ul><li>This is crucial, not “motherhood and apple pie” </li></ul><ul><li>Communicate to executive/management </li></ul><ul><li>Communicate within your team </li></ul><ul><li>Communicate with all your stakeholders </li></ul><ul><li>Honesty, openness – problems as well as successes </li></ul>
  11. 11. Lesson 4: Manage the Project <ul><li>Appoint a Project Manager </li></ul><ul><li>Develop detailed tasks and timelines </li></ul><ul><li>Develop accountability </li></ul><ul><li>Track progress </li></ul><ul><li>Adjust as necessary </li></ul>
  12. 12. Lesson 5: It’s not about Technology <ul><li>Success is not just “on time” and “on budget” </li></ul><ul><ul><li>Nice as those outcomes are </li></ul></ul><ul><li>Success is about changing the way you do business </li></ul>
  13. 13. Current Status at UM <ul><li>Finance and HR systems are operational on latest version of software </li></ul><ul><li>January 2007, UMSL is heading into the formal implementation phase of a new Student Information System </li></ul><ul><li>UMR is already “live” </li></ul><ul><li>UMKC and UMC are in the middle of implementation </li></ul>
  14. 14. What’s different? <ul><li>UMSL has been preparing for a year </li></ul><ul><li>The outcomes or measures of success are clear, including: </li></ul><ul><ul><li>Self-service – that is, direct access to relevant student information for faculty, staff and students </li></ul></ul><ul><ul><li>Improved service to students </li></ul></ul><ul><ul><ul><li>Recruitment </li></ul></ul></ul><ul><ul><ul><li>Admissions </li></ul></ul></ul><ul><ul><ul><li>Advising and retention </li></ul></ul></ul><ul><ul><ul><li>Financial management </li></ul></ul></ul><ul><li>teamwork </li></ul>
  15. 15. UMSL plans <ul><li>Began building a joint team with resources from ITS and from Student Affairs </li></ul><ul><li>Secured buy-in from Chancellor, Provost, Vice Chancellors, Deans </li></ul><ul><li>Learned (and continue to learn) from sister campuses as well as other universities </li></ul><ul><li>Developed a Charter and preliminary plan </li></ul><ul><li>Developed budget and resource requirements </li></ul>
  16. 16. Progress <ul><li>Completing a number of preparatory tasks </li></ul><ul><li>Developing a communications plan </li></ul><ul><ul><li>Faculty, staff and students </li></ul></ul><ul><li>Creation of a Project Management Office </li></ul><ul><li>Developed overall timeline and task definitions </li></ul><ul><li>Found space for a “teamroom” </li></ul>
  17. 17. Challenges <ul><li>Resources </li></ul><ul><ul><li>Internal – difficult to recruit </li></ul></ul><ul><ul><li>External – consultants are expensive and in short supply as well </li></ul></ul><ul><ul><li>System – major technical work is done by System resources, who will still be working on UMKC and UMC implementations </li></ul></ul><ul><li>Keeping current operations going while implementing a new system </li></ul>
  18. 18. Future <ul><li>Fully operational in Fall 2006 – old system will be shut down </li></ul><ul><li>Changes in business processes to “best practice” – more user or “customer” focused </li></ul><ul><li>Better information for decision-making </li></ul><ul><li>Ambiguity in underlying software system – our ERP is Peoplesoft, bought by Oracle. New versions will be “converged” system called “Fusion,” due in 2009 </li></ul>
  19. 19. Where’s the market going? <ul><li>Disclaimer: my personal thoughts </li></ul><ul><li>End of monolithic systems </li></ul><ul><li>Encapsulation of core functionality </li></ul><ul><li>Modular functionality that will interact using “Service-oriented Architecture” </li></ul>
  20. 20. But what’s the key? <ul><li>What does it do for the business? </li></ul>
  21. 21. Questions