Post-Implementation Evaluation of an ERP/SIS


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Post-Implementation Evaluation of an ERP/SIS

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