ERP at UF: Selection, Implementation and Implications Mike Conlon, PhD PeopleSoft Implementation Officer

Three reasons for UF to implement ERP 8/6/ Must replace finance systems and payroll system provided by the state 2. Should improve operations – reduce administrative time and effort 3. Should reduce operating costs

University Vision 8/6/20153  Integrated, on-line, secure, self-service processes for university business  Eliminate dependence on State of Florida Systems  Implement Vanilla – adopt the PeopleSoft processes  Eliminate costly mainframe technologies  Implement Finance, Research Administration, Human Resources, Student, Portal and Data Warehouse

Vision Process 8/6/20154  Executive engagement  Consultant for executive orientation to ERP  Value proposition  Steering Committee  Senior executives and thought leaders  Develop vision statement  Risk Assessment  Peers  Self assessment

Risk Factors 8/6/20155  Scope of work – scale, timeline, complexity  Scale and scope of the university – well known result that while most Higher Ed ERPs go in on time and on budget, most Research One ERPs do not.  Decision making – many decisions to be made very quickly  Change management – many changes  Team skills and talents, new technologies

Selection Process 8/6/20156  Eleven evaluation teams – 2 technical, 1 support, 8 functional  Four vendors – SAP, Oracle, PeopleSoft and SCT/Banner (now SunGard SCT)  Four Schools – FAMU, FSU, UF, UNF  Eleven months  150 page RFI  Three 80 hour presentations – 40 hours technical, 40 hours functional  Eleven reports, 120 people for the read backs

From Selection to Contract 8/6/20157  PeopleSoft selected July 2002  “Conference Room Pilot” – six weeks in Tallahassee mid- Aug to end of Sept 2002  Contract with PeopleSoft September 30, 2002  Project staffing Oct, Nov, Dec 2002  Development and portal infrastructure in place, Dec 2002

Implementation Challenges Before Go-Live 8/6/20158  Product Knowledge  Consultants know the product, or claim to know the product. UF staffers do not know the product  UF Knowledge  UF staffers know UF, or claim to know UF. Consultants do not know UF  “Keep it vanilla”  Changing UF business processes. How much change can we handle?  Decision Making  Advisory committees, stakeholders, deans, vice presidents, executive sponsors

From Contract to Go-Live 8/6/20159  Portal launched March 31, 2003  Data warehouse and Enterprise Reporting using Cognos Business Intelligence Suite launched August 8, 2003  HR and Finance pre-launch June 18, 2004  HR and Finance full-launch July 1, 2004  Eighteen PeopleSoft modules. Largest single launch ever in Higher Ed

Implementation 8/6/  UF Bridges, a new organization to create the new services, formed off-site in October  Three-way staffing model:  Existing UF staff: 60%  Temporary UF staff25%  Hourly Consultants15%  Project Management Office – Fred Cantrell, Mike Conlon, Mike Corwin, Warren Curry  Matrixed teams

Project Organization -- Matrix 8/6/201511

Methodology Overview 8/6/  Fit/Gap  What must be done? What does PeopleSoft do?  Design  How to address gaps? Business Process? Mod? Bolt-on? Product?  Development / Data Conversion  All UF data must be accounted for; Millions of records; thousands of tables; paper documents; 100% accuracy expected  Testing  Unit, Integration, Load, Legacy  Training  Core users, end users. Modalities  Deployment  Conversion, stabilization

Managing Risk 8/6/  Executives well prepared and engaged  Resources available as needed  Team built with three-way model  Manage decision making  Learn from the peers  Contract the scope to make deadline  Change management – orientation, training, communication, engagement

Implementation Challenges After Go-Live 8/6/  Some facts about UF  Very distributed processes. Ten times the number of Finance users expected by PeopleSoft  Very low staff turn over. Staff had no experience with other systems or processes  Very low management overhead. Staff members work independently. Managers are typically academic with other responsibilities

Implementation Challenges After Go-Live: Training 8/6/  Difficult to get people to training before launch. 48,000 seat-hours filled  Multiple modalities. In class, on-line, readings, web videos  Training environment and pilot environment  Discrepancies between training materials, environment and production

Implementation Challenges After Go-Live: Change Management 8/6/  PI needs to pay person from a grant  Staff not familiar with chart fields  Chart fields not populated for grant  Grant money not in appropriate accounts  Staff not familiar with payroll distribution  Administrators not authorized to perform functions  Bottom line – person does not get paid from the grant, person gets paid from other funds, must do transfers, sponsors not billed appropriately  Effort throughout each process to enable payroll distribution from grants. Improved each pay period

Implementation – The Good News 8/6/  On-time and On-budget  Project costs ($29 mill) were 1/6 that of peer schools, saving UF over $150 mill  All modules implemented  Payroll, Purchasing, many others, have run smoothly

Implications 8/6/  Operational improvements  Payroll, grants, finance, hiring, benefits, self-service, portal, purchasing, expense, warehouse  Operational savings  Manage the budget, data driven decision making, common processes, resources from support to core business  Savings could be $50 mill per year  Position for future  E-commerce, system integration, scalable, supported platform

The not so good news 8/6/  Significant problems with grants, warehouse, reporting  Work-arounds spring up to compensate for missing/broken/undesirable features  Some processes failed to engage units But – a silver lining – new engagement with senior leadership

Post Implementation 8/6/  Reset expectations  Use the data  Management reports and metrics  Engage the Community  Finance Roundtable, HR Forum, Research Steering, Reporting Task Force, Student Financials Advisory  Accelerate the pace of adoption  Best practices, training  Reduce work-arounds  Develop process improvement

Recent and Current Work  Electronic Personnel Action Forms  Simplify hiring and job actions. Reduce errors  Identity Management  Automate lifecycle management of computer accounts  Implement Student Financials  New options for fees. AR processes. Full coverage.  Implement Oracle Database  Oracle bought PeopleSoft  Add Direct Service Organizations  UF Foundation ($1.2B) plus 20 others  Research Administration  New processes to cut award setup from 20 days to 1 day.  Clean-up data, fully implement electronic routing of proposal approval 8/6/201521

Additional Info 8/6/  Bridges Web Site  Training guides, presentations, advisory processes, support   Web Portal  News, PeopleBooks   Higher Ed Users Group  White papers, product and technical advisories, peer reports 