1. Strategic Planning in the Changing World of ERP John Gohsman Bill Wrobleski University of Michigan

2. Strategic Planning in the Changing World of ERP Copyright John Gohsman, Bill Wrobleski, 2007. This work is the intellectual property of the authors. 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 permissions of the author. To disseminate otherwise or to republish requires written permission from the authors.

4. Agenda Life is good Caught looking at our navel Let’s write some shelf-ware Let’s not and say we did So how did that work out for you?

5. Life is good ERP in place Saving some coin Lotsa data Planning to retire with PeopleSoft

6. Looking at our Navel then…

7. BAM!

8. Lets Write some Shelf-ware Found one brave soul (Gartner) to help us Started to write the big honkin plan Stopped writing a plan, started thinking

9. Lets not and say we did Lets think strategically –Started with Gartner’s framework, but came up with our own process Small teams Motivated experts Internal and external scanning Iterative But tell everyone we’re writing a strategic plan

10. Framework ApplicationsInformationInfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

11. Framework ApplicationsInformationInfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

12. Framework Applications InformationInfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

13. Framework Applications Information InfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

14. Framework ApplicationsInformation Infrastructure Risk Management Service Management & Sourcing IT Governance & Organization Business Strategy

15. Framework ApplicationsInformationInfrastructure Risk Management Service Management & Sourcing IT Governance & Organization Business Strategy

16. Framework ApplicationsInformationInfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

17. Framework ApplicationsInformationInfrastructureRisk Management Service Management & Sourcing IT Governance & Organization Business Strategy

18. Example: Business Strategy Interviewed every dean and VP Developed 17 key business goals Examples included: –Increase the level of research funding (private and public) –Continue to increase the size of the university’s endowment through private fundraising –Maintain and increase the excellence of our faculty –Maintain and increase the excellence and size of our academic programs and facilities

20. Example: Application Strategy Should we ride PeopleSoft for as long as we can? Should we commit to Oracle’s long range vision? Should we form a strategic partnership with SAP or Microsoft? Was this the time to move to Open Source? Do we want to avoid putting all of our eggs in one basket? How important is best of breed versus integrated solution? Should we build applications ourselves? Could our University “stomach” significant change in these economic times?

21. We will… Let “Best of Breed” trump ERP Be expert in both Java and.Net Shift resources from transactional activities to business intelligence Shift resources from traditional applications such as student admin, finance and human resources toward support of Research Administration and Fundraising

22. We will… Build select software from scratch when appropriate Move to Fusion in the long run but be open to “best of breed” solutions including open source Build our infrastructure out gradually over the next several years to prepare us for Fusion

23. Our Evolution 1995 Build 90% 1995 Plan 2005 Buy 90% 2006 Plan 2015 Buy/Acquire 70% Build 30%

24. Do Overs Missed things –Workflow, Portal Some assumptions were wrong –Cost to move to Oracle middleware beyond our means –Apple making a comeback –Business Intelligence is driving infrastructure changes faster than our applications Vendor decision changes –PeopleSoft Applications Unlimited

25. Lessons Learned Great is the enemy of good Concise list of business drivers is crucial Small working groups speed the process Regular reviews allow you to adapt the plan (changes come fast: keep up!) Annual list of strategic priorities –Important communication tool –Alignment drives the right results

26. Closing Thoughts Vendor Parties: Free Conference Fee: $280 Food: $300 Airline Ticket: $400 Beer: Not tellin’ Taking Credit for Other’s Good Work: Priceless

27. Taking credit for their work… Barry MacDougall Rob Thomas Laura Patterson Deb Mero Mike Loviska Barry MacDougall Holly Nielsen Darcy Turner Pam Fons Jim Bujaki Frances Mueller Kim Rinn Peggy Bennett Terry Houser Brian McRae Jon Turbett Carol Dacko Dave Holzschuh Hai Hoang Nancy Medd Judy Smutek Cheryl Van Kirk Brent Dickman Shane Fortune Pat McCormick David Sweetman Judy Shirley Seth Meyer Chris Wood Dave McLaughlin Dan Drumm Debbie Gowan Pat Connelly (Gartner) And more!

28. Questions?

29. Just the Facts Three campuses –Ann Arbor (40,000 students, 23,000 faculty/staff) –Dearborn & Flint (12,000 students, 1,800 faculty/staff) Financial Picture –Financial Annual Budget >$4 Billion (10% from State of Michigan) –$823M research funding per year (NIH 47%, NSF 9%, DOD 8%) –Endowment: $6 billion Health System –Includes: Medical School, 3 hospitals, 30 health centers and 120 outpatient clinics (13,000 total employees) Michigan values its highly decentralized nature –“Coordinated autonomy”