Enterprise Systems: Sound Investment or Necessary Evil?
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- Gerald Manning
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1 Enterprise Systems: Sound Investment or Necessary Evil? Prof Jeff Haywood & Simon Marsden Information Services University of Edinburgh 1
2 Why do corporate IT systems cost so much and yet sometimes appear to deliver so little for the investment? Structure of the session: 1. How are U21 partners approaching enterprise IT? 2. Why is enterprise IT so often problematic? 3. How do we find good solutions? 4. Where next? 2
3 Enterprise IT - 1 How are U21 partners approaching enterprise IT? 3
4 U21 Systems Survey We asked 3 questions How was the software you use developed How do you deliver the service Who are your suppliers For each of 8 major functions Finance - CRM HR - Virtual Learning Environment Payroll - & Diary Student Records - Library Management System 18 institutions responded 80% 4
5 What we found On average we run more than one system for each function Commercial package software is a strong preference - 83% of systems Hosted solutions account for 13% of our systems Oracle and Microsoft are our two biggest suppliers ERP approach in 45% of institutions 5
6 No of systems per institution Finance HR Payroll Student Record CRM VLE Library MS 6
7 Development method 10% All Functions 6% 1% Virtual Learning Environment 0% 32% 54% 14% 83% Student Record 0% 5% 26% 7 Commercial Open source In House Bespoke 69%
8 Delivery - In house v Hosted All Functions 14% 41% 59% CRM 86% 36% 64% In house Hosted 8
9 Suppliers All Functions Oracle Microsoft Blackboard Ex Libris Google Moodle Millenium Other 9
10 Suppliers by Functions "Corporate" Oracle Other Other Google Microsoft Microsoft Library Management System Virtual Learning Environment Other Other Millenium Ex Libris Moodle Blackboard 10
11 Enterprise Resource Planning Using integrated systems from the same vendor for multiple functions: >2 functions = Enterprise Resource Planning (ERP) 44%, 8 institutions implemented ERP 5 use Oracle, 1 SAP, 1 Elucian (Banner), 1 in house UK survey of 150 CIOs, 60% adopted ERP and of these 63% reported less duplication with better cross departmental process alignment 75% improved business intelligence 11
12 How much IT spend is enough? How much should my university spend on corporate IT? probably more not less How much do others spend? Very difficult to know Gartner shows financial services: 12% turnover Pharmaceuticals: 8% Education: 2.5% UK survey of research intensive U s (Russell Gp) suggests in region of 3-6% of turnover (4.5% +/- 33%!) 12
13 Questions for discussion: Do these data accord with your expectations? How generally satisfied are you with your enterprise IT? If dissatisfied, what are you main areas of unhappiness? 13
14 Enterprise IT - 2 Why is enterprise IT so often problematic? 14
15 Where to invest? Should lead to IT as an investment better business 15
16 Balancing your IT investment 60% run 20% grow 20% transform Run Reduce costs no increase in revenue Grow Increase revenue from existing products Transform New products, new markets 16 IT Strategy Awayday September 2011
17 University of Edinburgh Strategic Plan
18 IT contributions to UoE SP Strategic Goals High Performance Computing Digital research data management Open access research publications/pure Research software +? VLE & e-learning systems / e-assessment Classroom technologies Microlabs & software Student application & self-service systems Accommodation services IT +? directory of experts Open access research outputs Online CPD tools Managing IPR/patents etc +? 18
19 Challenges for strategic ICT JISC / HE Leadership Foundation Strategic ICT Toolkit Are the foundations on which ICT are delivered sufficient to facilitate the level of ICT that will meet corporate objectives? Strategic ICT needs to address these challenges for the university: Lack of IT agility Lack of IT integration Duplication of IT facilities & services Data held in sealed silos Lack of useful Management Information Senior managers cannot identify if what is delivered is vfm 19
20 A return on your investment Is $50M too much for a new X system? NO, if the Total Cost of Ownership < Return on Investment DIRECT COSTS (all staff+ all stuff + all services) during lifetime of system - calculate/estimate OPPORTUNITY COSTS Could have done something more productive 20 QUANTITATIVE JISC Impact Calculator (eg 5 days pa, 1000 staff, 5 years = 1.5M- 5M) Compare to Do-Nothing Option QUALITATIVE Sweat the assets Drive data quality up Streamline processes (eg LEAN) Reputation
21 21
22 Questions for discussion: Do you routinely require TCO and ROI estimates for large IT projects? Do you review whether these were achieved afterwards (or just sigh and move on )? 22
23 Enterprise IT - 2 Pick the right stuff 23
24 Strategic Sourcing for IT Systems Sourcing options 1. Commercial systems (implemented by vendor or inhouse) 2. Open source systems 3. In-house built systems (re-)design business to fit software? design software to fit business? Implementation options 1. Do-it-alone 2. Shared services 24
25 25
26 Questions for discussion: What are your main reasons for choosing particular suppliers or sources? Do you expect this to change over the next 5 years? Few U21 partners use open source even though governments often promote their use. Why is this? 26
27 Enterprise IT - 3 How do we find good solutions? 27
28 Is there such a thing as an IT Project? Major IT projects are change projects they need Good governance 28
29 29
30 30
31 Defining Strategic & Major Projects Edinburgh Toolkit Project criteria Score range Features Budget (gross) 1 15 < 0.5M - > 25M Impact students & staff 1-4 Direct impact across U local impacts Complexity 1-4 Low - High Reputation 1-4 Local international If Score 20 or over, then project is a Strategic project If Score is 10-19, then project is a Major project For S & M Projects, Governance Board must be established as Project Oversight with Senior Responsible Owner at SMT level for S Projects. 31
32 Guiding Strategic Projects and learning from them Edinburgh Toolkit Visual aids for project governance boards Ongoing Improvement Measurement Learning Vision Business case Stakeholder buy-in Team building Implementation Communications Project Management Risk & Assurance Governance 32
33 Capability & Capacity for Strategic & Major IT Projects Capability for major IT projects = Maturity Model / Strategic ICT Toolkit / governance toolkits Capacity for major IT projects = bubble graph / quadrants 33
34 Technology Hype Cycle or Maturity Assessment 2011 expectations Social-Learning Platform Media Tablet User-Centric IAM Digital Preservation of Research Data Cloud HPC Learning Stack Open-Source SIS Student Data Standards BPO Bring Your Own Device Strategy Unified Communications E-Textbook Mobile-Learning on Smartphone Lecture Capture Open source E-Learning Repositories Global Library Digitization Projects Hosted Virtual Desktops Federated IAM CRM Enrollment Open-Source Portals Social Media E-Portfolios ITIL Mashups Cloud IT Infrastructure SaaS Admin Applications Virtual Worlds SOA Open-Source VLEs Cloud Organization-Centric IAM Campus App Store As of July 2011 Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity time Years to mainstream adoption: less than 2 years 2 to 5 years 5 to 10 years more than 10 years obsolete before plateau 34
35 35
36 ICT Initiative Capacity Edinburgh s modelling 10 Cloud Timetabling Engagement Win 7 Smart Cards Learning Tools Web Site Staff recruitment Student Administration Research Management Business Intelligence Research Data Storage Strategic Impact Distance Ed Personal Tutors 36
37 Questions for discussion: Do you routinely apply good practice governance processes to major projects? Have they helped, and if not, why not? How does/will your SMT gain comfort that it has the internal capacity and capability to manage major projects? 37
38 Enterprise IT - 4 Where next? 38
39 Likely directions of travel for IT (EDUCAUSE) Desirable actions A. Investments that facilitate improved student retention/progression B. Investments that help increase revenues 1. Recruitment students, new formats of teaching, increased research grant success, new research areas, enhancements to fundraising C. Investments that reduce operating costs 1. Measure costs + manage costs 2. Process efficiency gains 3. Workplace design 4. Shared services Consequences a) Source commodity IT services differently b) Operate with maximum transparency c) Reinvigorate IT governance d) Develop new competencies in IT organisations 39
40 Sharing experiences U21 CIO s Group? Purposes: to share good practice in delivering major projects, and to learn from each other To seek ways to improve U21 partner support for collaborative academic and support service activities Follow up on the good engagement from the survey Conduct business electronically Occasional meetings / conferences 40
41 Thank you for listening. MSc elearning University of Edinburgh 41
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