0 CUMREC 2005 Leveraging Enterprise Technologies Copyright Billy T. Herndon This work is the intellectual property of the author. 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 author. To disseminate otherwise or to republish requires written permission from the author.

1 CUMREC 2005 Leveraging Enterprise Technologies Leveraging Enterprise Technologies to Meet the Business Needs of a Major Research University

2 CUMREC 2005 Leveraging Enterprise Technologies Billy T. Herndon ~~~~~~~~~~ Assistant Vice President for Enterprise Information Systems & Services Office of Information Technology Duke University

3 CUMREC 2005 Leveraging Enterprise Technologies TOPICS Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

4 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

5 CUMREC 2005 Leveraging Enterprise Technologies Duke University Overview University & Health System –$2.8 Billion Operating Budget –$3.1 Billion Endowment –37,000 Employees –15,300 Students 7,900 Undergraduate 7,400 Graduate & Professional

6 CUMREC 2005 Leveraging Enterprise Technologies Duke Health System 3 Hospitals – Duke – Durham Regional – Raleigh Community Physician Practices Hospice Other related entities

7 CUMREC 2005 Leveraging Enterprise Technologies Duke’s Administrative Systems SAP/R3 –Financials –Procurement –HR/Payroll –Business Warehouse –Managers’ Self Service PeopleSoft SA – Student Information System BSR Advance – Alumni Development Blackboard –Learning System

8 CUMREC 2005 Leveraging Enterprise Technologies Duke’s SAP Systems R/3 Financials R/3 Procurement R/3 HR/Payroll Business Warehouse Managers’ Self Service

9 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

10 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors Financial Steering Committee Procurement Steering Committee HR/Payroll Steering Committee Administrative Systems Management

11 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors Financial Steering Committee Procurement Steering Committee HR/Payroll Steering Committee Administrative Systems Management

12 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors UniversityHealth System Executive Vice President Vice President - Financial Services Vice President – Info Technology / CIO Executive Vice Provost for Finance Vice President – Human Resources Executive Vice President Senior Vice President/CFO & Treasurer Vice President & CIO Vice Chancellor, Medical Center

13 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors Financial Steering Committee Procurement Steering Committee HR/Payroll Steering Committee Administrative Systems Management

14 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure Financial Steering Committee UniversityHealth System Vice President, Financial Services Assistant Vice President & Controller Assistant Vice President, Budget Assistant Vice President, Cost & Reimbursement Accounting Director, Academic Fin Services/Systems Assistant Vice President, Administrative Systems Management Assistant Vice President, Enterprise Information Systems & Services Associate VP, Finance Associate Vice Dean, Finance and Resource Planning

15 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors Financial Steering Committee Procurement Steering Committee HR/Payroll Steering Committee Administrative Systems Management

16 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure Procurement Steering Committee Assistant Vice President, Procurement Material Services - Health System Assistant Vice President, Administrative Systems Management Assistant Vice President, Enterprise Information Systems & Services

17 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure SAP Sponsors Financial Steering Committee Procurement Steering Committee HR/Payroll Steering Committee Administrative Systems Management

18 CUMREC 2005 Leveraging Enterprise Technologies Governance Structure HR/Payroll Steering Committee Vice President, Human Resources Vice President, Financial Services Director of Payroll Assistant Vice President, Recruitment Assistant Vice President, Compensation Assistant Vice President, Administrative Systems Management Assistant Vice President, Enterprise Information Systems & Services

19 CUMREC 2005 Leveraging Enterprise Technologies Organizational Structure Administrative Systems Management Office of Information Technology Executive Vice-President, CFO Vice-President for Finance Vice-President, Information Technology CIO

20 CUMREC 2005 Leveraging Enterprise Technologies Organizational Structure Administrative Systems Management HR/Payroll 4 FTE Financial 3 FTE Procurement 2 FTE Training & Change Management 3 FTE

21 CUMREC 2005 Leveraging Enterprise Technologies Organizational Structure VPIT / CIO Assistant Vice President, Enterprise Information Systems and Services Application & Database Services Centralized Desktop & Server Support SAP, BW, EDI, DBA ( 16 FTE ) Communications and Systems Infrastructure OS, Backup, Storage ( 2FTE ) Second Level Support ( 2 FTE ) Help Desk Call Center ( 1 FTE )

22 CUMREC 2005 Leveraging Enterprise Technologies Organizational Structure Application & Database Services ( 16 FTE ) Basis Administration ( 3 FTE ) ABAP Programmers ( 8 FTE ) EDI ( 2 FTE ) Database Administration ( 2 FTE ) Business Warehouse ( 1 FTE )

23 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

24 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Financials Business Functions / Applications

25 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Financials at Duke… Financials 4.0 – 1999 –FI, CO, PS, FM –Extended to Durham Regional and Raleigh Hospitals –Upgraded to 4.5b Internal Orders – 2002 Employee Travel Financials Rolled out to University Depts – 2003 Upgrade to 4.7 – R/3 Financials users

26 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement SAP R/3 Financials Business Functions / Applications

27 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement at Duke… Materials Management 4.0 – 1999 –Single point of entry for Hospital materials ordering –EDI transactions with major suppliers –Fully automated replenishment model –Online requisitioning and approvals –Extended to Durham Regional and Raleigh Hospitals Upgraded to 4.5b – 1999 Upgrade to 4.7 – 2004 Integration with Patient billing system, R/3 Procurement users

28 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement SAP R/3 Financials SAP R/3 HR/Payroll Business Functions / Applications

29 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 HR/Payroll at Duke… Go-Live August, 2002 on 4.5b –Replaced 20+ year old legacy system –Worked with SAP to incorporate functionality into core R/3: 403b / Multiple 403b vendors Secondary positions Effort and activity reporting for Sponsored Research –Biweekly, monthly, and non-compensatory payrolls –37,000 employees –Direct deposit, checks and vouchers –Numerous systems interfaces Upgraded to 4.7 in 2004

30 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement SAP R/3 Financials SAP R/3 HR/Payroll SAP BW - Procurement Business Functions / Applications

31 CUMREC 2005 Leveraging Enterprise Technologies BW Implementation Plan - Scope Phase I – Implementation of BW System with limited Procurement and Financial Functions Phase II – Complete development of Procurement and Financial functions Phase III – Implementation of HR/Payroll functions Phase IV – Addition of non-R/3 data

32 CUMREC 2005 Leveraging Enterprise Technologies BW Procurement Material Master Data Analysis Vendor Master Data Analysis Material Usage and Trend Analysis Vendor Spend Analysis by Cost Object and Cost Element Pricing Trends for Material Master Items Purchasing Activity Analysis by Vendor, Material, Purchasing Groups Inventory Stock Values and Goods Movement Activity Vendor Payment History and Balances Vendor Transaction Line Item Summary Business Functionality

33 CUMREC 2005 Leveraging Enterprise Technologies Procurement Solutions 10 InfoCubes Material Usage Vendor Spend Pricing Trends Purchasing Activity Purchasing Groups Material Stock/Movements Slow-Moving Items (Multi) Accounts Payable Line Items Accounts Payable Transaction Data (Monthly balances)* Vendor Activity* (Multi)

34 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement SAP R/3 Financials SAP R/3 HR Payroll SAP BW- Procurement SAP BW-Financials Business Functions / Applications

35 CUMREC 2005 Leveraging Enterprise Technologies BW Financials Controlling Activity (Cost Centers and Projects) Fund Trial Balance General Ledger Activity Historical Fund Activity from Legacy System Profit Center Activity (Plan vs. Actual) Funds Management/Controlling/Profit Center Accounting Variances - to ensure FM, CO, and PCA balance in R/3. Financial and Controlling Line Item Detail School of Medicine Programmatic Reports - provides business managers with line-of-business (i.e. programmatic) reporting via Excel front-end. Lines of business include education, research, auxiliaries, etc. Allows drilldown to line item detail. Faculty Web Reporting - provides faculty with inception-to-date reporting for sponsored projects via web browser. Allows drilldown to line item detail. Business Functionality

36 CUMREC 2005 Leveraging Enterprise Technologies Financials Solutions 11 InfoCubes Costs and Allocations Funds Management G/L Monthly Balances DAFT Funds Management Profit Center Accounting Project System Controlling Project System Dates Cost and Allocations/Profit Center Accounting (Multi) Funds Management/Controlling/Profit Center Accounting (Multi) Financial/Controlling Line Items (Multi) Project System Controlling/Dates (Multi)

37 CUMREC 2005 Leveraging Enterprise Technologies Faculty Grant Information Some faculty members wanted to look view their financial status of their grants on-line Faculty didn’t want to use SAP R/3 –Too complicated –Required training Administration didn’t want faculty members in SAP R/3

38 CUMREC 2005 Leveraging Enterprise Technologies Solution – Simple Web Access to BW BW is reporting tool – already loaded with data needed for faculty members BW queries can be presented over the web Quick response to problem

39 CUMREC 2005 Leveraging Enterprise Technologies Challenges with Faculty Access Faculty didn’t want to understand debits and credits –“how much money do I have left” –Over budget displayed in RED Zero training required –“I didn’t need any training to do on-line banking” –Only thing faculty member needs to enter is the month (calendar month) and year Must address multiple needs –“By the way, my business manager needs to use this as well” –Provided business manager views

40 CUMREC 2005 Leveraging Enterprise Technologies Summary Award Statement for a PI

41 CUMREC 2005 Leveraging Enterprise Technologies SAP R/3 Procurement SAP R/3 Financials SAP R/3 HR/Payroll SAP BW-Procurement SAP BW-Financials EP-MSS Business Functions / Applications

42 CUMREC 2005 Leveraging Enterprise Technologies SAP Managers’ Self Service 2004 – H/R Process Re-Design Project –Focused on HR business processes: Position Management –Create, Re-class, Delimit, Create Vacancy Recruiting –Job Requisitions –Candidate Entry –Sourcing/Screening Employee Lifecycle Management –Hire –Staff Changes –Terminations 2005 – Implementation of SAP MSS (Managers’ Self Service) via Enterprise Portal and R/3 4.7

43 CUMREC 2005 Leveraging Enterprise Technologies Moving from manual, paper intensive processes.

44 CUMREC 2005 Leveraging Enterprise Technologies To simple automated processes

45 CUMREC 2005 Leveraging Enterprise Technologies MSS supported our vision for the business process Simple intuitive interface Secure access to people, positions, and applicants Update employee and position data Electronic routing and workflow Simple approval process Status tracking at each step of the process

46 CUMREC 2005 Leveraging Enterprise Technologies View Employee Data over the Web

47 CUMREC 2005 Leveraging Enterprise Technologies On-Line HR/Payroll Transactions

48 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

49 CUMREC 2005 Leveraging Enterprise Technologies Systems / Infrastructure AIX / SP2 (13) AIX / RS6000 (12) AIX / RS6000 (13) R/3 4.0R/3 4.5bR/3 4.7 BW 3.0 EMC Symmetrix 6/3 tb EMC Symmetrix 14/6.6 tb BW 3.1 EP 6.0 Linux (8) SAP Products / Systems Storage (Raw/Usable) Platforms / Servers

50 CUMREC 2005 Leveraging Enterprise Technologies Production Environment R/3BWPortal

51 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

52 CUMREC 2005 Leveraging Enterprise Technologies Technical Staffing Basis (3 FTE) Help Desk (1 FTE) OS/DBA/EDI (6 FTE) ABAP (8 FTE) BW (1 FTE) Second Level Support (2 FTE)

53 CUMREC 2005 Leveraging Enterprise Technologies Functional Staffing Financials (3 FTE) Procurement (3 FTE) HR/Payroll (3 FTE) HR/Payroll (4 FTE) Training & Change Management (3 FTE)

54 CUMREC 2005 Leveraging Enterprise Technologies Combined Staffing FTE 33 FTE 34 FTE

55 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation –Expansion Systems and Infrastructure Staffing Summary Future Plans

56 CUMREC 2005 Leveraging Enterprise Technologies R/3 Procurement R/3Financials R/3HR/ Payroll BW-Procurement BW-Financials EP-MSS FTE 33 FTE 34 FTE 6/3 tb 14 / 6.6 TB R/3 BW EP Business Applications Staffing Disk Storage & Servers SAP Products / Systems Summary View 13 servers 14 servers 20 servers Users

57 CUMREC 2005 Leveraging Enterprise Technologies Overview Governance and Organizational Structure Business Functions: –Implementation and Expansion Systems and Infrastructure Staffing Summary – Expansion and Integration Future Plans

58 CUMREC 2005 Leveraging Enterprise Technologies Future Directions Financials –Cash Management, Treasury, JV workflow HR/Payroll Time Entry, Time Evaluation Additional HR processes, forms Employee Self Service Additional web access to R/3 and BW Archiving

59 CUMREC 2005 Leveraging Enterprise Technologies QUESTIONS?

60 CUMREC 2005 Leveraging Enterprise Technologies For more information please contact : Billy Herndon Assistant Vice President for Enterprise Information Systems & Services