Track 6 – Enterprise Resource Planning
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Track 6 – Enterprise Resource Planning

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Track 6 – Enterprise Resource Planning Track 6 – Enterprise Resource Planning Presentation Transcript

  • Higher Education ERP: Lessons Learned Ken Orgill West Virginia University Dave Swartz George Washington University
  • Overview
    • What is ERP?
    • Benefits of ERP
    • First Steps
    • Costs of ERP
    • The ERP Contract
    • Limit Customizations
    • Use of Consultants
    • Project Management
    • Creating the single team atmosphere
    • Recruitment and Retention Issues
    • Morale of the Team
    • Key Functional Issues
    • Key Technical Issues
    • What About Small Schools?
    • The Future of ERP
  • What is ERP?
    • An ERP or Enterprise Resource Planning system integrates information and business processes to enable information entered once to be shared throughout the organization.
    • ERP had its origins in manufacturing and production planning. In the mid-90’s it was extended to other back-office functions such as financial management and human resource management.
    • More recently these systems have addressed applications specific to higher education such as student systems and grants management.
    Common examples include SAP, PeopleSoft, Banner and Oracle . Needs Assessment Software Selection Process Reengineering Conference Room Pilot Training Phased Implementation ERP Project
  • What are the Benefits of ERP?
    • Improve access to information
    • Improve workflow and efficiency
    • Improve controls and program alerts
    • Process reengineering -- update old processes
    • Foundation for new processes, such as e-procurement, with significant ROI
    Ship Product Receiving Buyer or Management Approval Cycle Supplier Fulfillment Route to Recipient Requisitioning Purchase Order User Product Selection Accounts Payable General Ledger Financial Reconciliation
  • First Steps: Well Begun is Half Done
    • Start with an evaluation of needs and requirements -- this is useful not only as a guide to the project, but also as a gauge to the success of the project
    • Compare possible solutions to see which one best fits your needs and produces fewer gaps. More gaps may result in more costly customizations.
    • Best of breed vs. integrated solutions
    • Big bang vs. phased implementation
  • What are the Costs of ERP?
    • Direct costs only represent a fraction of the total costs of ERP
    • Direct costs include hardware, software, and people on the project -- the largest category is personnel costs
    • Indirect costs include the costs of back-filling positions, increasing salaries and the total life cycle costs of the ERP -- maintenance, ongoing production, and upgrades.
  • The ERP Contract
    • The prime vendor -- “one butt to kick” -- and leave it to the experts! However, there are some trade-offs.
    • Fixed cost vs. time and materials with or without a cap
    • Build flexibility into the contract to accommodate changing technology
    • Check references
    • Be skeptical of vendor promises -- get it in writing!
  • Limit Customizations and Scope
    • To change or not to change your old business practice?
    • Are you paving cowpaths or improving your business process?
    • Are customizations really needed? Have you factored in the total costs of the mod?
    • Watch out for scope creep and hidden customizations
  • Use of Consultants
    • Many different roles for consultants: staff project, backfill office staff, audit project, serve as prime contractor, project management, etc.
    • Too many consultants relative to university personnel may limit knowledge transfer
    • Too few consultants may limit ERP expertise on the project
    • Right of refusal over consultants -- watch out for the green oversold consultant “in training”
  • ERP Project Management
    • One of the most important decisions on an ERP is the selection of the project manager
    • The PM should be a professional manager with experience with project management, loyal to the university, with both functional and technical knowledge.
    • Use a standard methodology to provide guidance and structure to the project
    • In addition, to the project manager, there should be functional and technical managers.
    • Individual functional teams, such as grants management, should have a designated lead.
    • Use of committees and executive steering group
  • Creating the “single team” atmosphere
    • Avoiding us versus them
    • Partnership between functional and technical teams
    • The partnership between senior management -- e.g., the CIO and the CFO.
    • Partnerships with consultants -- teams composed of consultants and university personnel working side by side
    • Partnerships with users
  • Recruitment and Retention Issues
    • Bonuses for “life of project” efforts
    • Find and nurture people early
    • Back-filling Staff
    • Staffing matrix
    • Knowledge transfer and mentoring
    • Stress management
    • Team building
  • Morale of the Team
    • ERP projects can put a strain on personnel
    • Schedule down times and events to help boost morale
    • Keep an eye out for individuals on the edge
    • Celebrate the achievement of milestones and recognize individual and team contributions
  • Key Functional Issues
    • Needs analysis
    • Process engineering
    • Back-filling staffs
    • Training
    • Recruiting and retaining staff
    • Conference room pilot (CRP)
    • Reporting
    • Gaps analysis
    • Setting expectations
    • Obtaining user buy-in and acceptance
    • Validation of data and systems
    • Communications
    • Process documentation
    • Audit of data and system
  • Key Technical Issues
    • Sizing the system
    • Recruiting the talent
    • Holding the line on modifications
    • Conversion of data
    • Interfaces
    • Report development
    • Change management and problem tracking
    • Desktop requirements
    • Network issues
    • Distributed versus centralized production
    • Help Desk and ongoing support
    • Planned upgrades and revisions
    • Production budgets
  • What About Small Schools?
    • Go vanilla, if possible.
      • Your mantra – no mods, no mods …
    • Contain the scope creep.
    • Minimize the amount of data to be converted.
    • Look toward consortiums.
    • Check into “Quick Start” programs
  • Post-Implementation Issues
    • Most problems end up being process issues and incorrect usage of the system
    • Gearing up for round two – the upgrade path to the next ERP release