1. June 19-20, 2014 Information Technology Annual Report Gary K. Allen UM Vice President – Information Technology MU Chief Information Officer June 20, 2014 OPEN – GB – INFO 3-1 June 19-20, 2014

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3. What is UMIT?  The Information Technology functions of UM, MU, UMKC, UMSL and S&T acting as one geographically dispersed function, while retaining their individual missions  CIOs  UM/MU – Gary Allen  MUHC – Tiger Institute – Bryan Bliven  Missouri S&T – Greg Smith  UMKC – Mary Lou Fritts  UMSL – Larry Frederick OPEN – GB – INFO 3-3 June 19-20, 2014

4. What do we do? Telecom Network Services Customer Services Users Students, Faculty, Staff, Public Information Security Applications Systems and Operations Research Support Patient Care Teaching and Learning Library Support Services OPEN – GB – INFO 3-4 June 19-20, 2014

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7. MOREnet SE Missouri Proposed Fiber Expansion OPEN – GB – INFO 3-7 June 19-20, 2014

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10. University of Missouri System June 19-20, 2014

11. UM Strategic Plan OPEN – GB – INFO 3-11 June 19-20, 2014

12. UM Strategic Plan – OEI Accountability OPEN – GB – INFO 3-12 June 19-20, 2014

13. Efficiency Strategies and Outcomes Steps Taken to Manage Costs (past 5 years)  Engaged Accenture/Hackett to Benchmark Administrative Cost (2010)  Implemented Operational Excellence Initiative (OEI) Centralized procurement (Show Me shop) Automated Expense Reimbursement (T&E) Automated Personnel Actions (ePAF) Accounts Payable Shared Service  Limited Raises and Instituted Hiring Freezes  System-wide, between 2002 and 2012, student to faculty ratio increased from 17.4 to 19.7  Deferred Plant Maintenance and Renewal Backlog of M&R needs increased $479M between 2008 and 2013 OPEN – GB – INFO 3-13 June 19-20, 2014

14. Opportunities for Continued Improvement Staff and support team cost management effectiveness and efficiencies Automation, process reengineering, sharing of best practices and consolidation Competitive faculty salaries Update Education Plant Manage Total Rewards Cost Through Benefits Task Force Recommendations Managing IT and ERP Costs Sustainably OPEN – GB – INFO 3-14 June 19-20, 2014

15. The Operational Excellence Initiative Portfolio – Development & Management UM Strategies IT Environment Campus Strategies Costs Themes & Levers Human Resources Finance Academic & Student Information Technology Integrated Plan OEI Refine Endorse Champion Executive Team Understand Prioritize Integrate SPMO Consolidate Analyze Recommend Report Communication / Management / Metrics / Resources OPEN – GB – INFO 3-15

16. UM Data Center Consolidation  Subprojects  Security  Network  Infrastructure  Service Catalog  Primary in Columbia, Secondary in KC  Long-term data center strategic plan  Corporate / institutional partnerships? Research platform? OPEN – GB – INFO 3-16 June 19-20, 2014

17. UM Data Center Consolidation - subprojects  Security – Standardize / consolidate and create centers of excellence in varied infosec domains (IDS/IPS, firewalls, log analysis, etc.). Consolidate decentralized IT systems into the new DC structure  Network – Simplify / standardize design towards goal of Redundant Active Data Center  Infrastructure – Define and deploy standards for servers, storage, etc.  Service Catalog – Identify all IT services provided by each campus and reduce the duplication of effort and/or spend OPEN – GB – INFO 3-17 June 19-20, 2014

18. www Benefits Admin eRecruit UMSL/S&T Where we’ve been… Dec, 1997 PS approved by BOC 4 years General Ledger Budget Receivables Billing Asset Management Accounts Payable Purchasing Grants Projects Costing June 19-20, 2014

19. Shared Services Benchmark ERP enhancements, 2008 - present Housing / Judicial SA PT v8.5 SS 1098T Advance v9.5 HR/SA Interfaces u.select SSN Vault SA Auth. Access Advance v9.8 Financials / SCM V8.8  v.9.0 SA v8.9  9.0 PT v8.52 T & L Inventory / ePro MUHC Time Clocks T & L MUHC eRecruit KC/MU/UM HR v8.9  v9.1 PS  Hyperion Interface Strategic Budget (LRP) Budget Plan. - position (HCP) Operational Excellence Initiative UMSL Go-Live SSN Vault HR & FIN ePAF CRI T&ESPMOOTPVPA Budget Mgt. - position (HCP/EDW) Budget Plan. (FIN) Budget Mgt. (FIN/EDW) COMPASS OPEN – GB – INFO 3-19 June 19-20, 2014

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24. Modifications (mods) we have made to “as distributed” software * * There are mods required to make the software operational Finance ModulesFIN Mods % Total PS Solution % of Total (All Apps) Total838100%48% Payables14217%8% GL14117%8% Grants13816%8% PO11414%6% PSExpenses799%5% ePro516%3% Receivable415%2% Budgets304%2% Uncategorized283%2% Billing233%1% Inventory223%1% Ast. Mngmt142%1% Purchasing101% NA30% HR10% Payroll10% Sub-system# of Mod’s Finance838 Human Resources/Payroll301 Campus Solutions550 June 19-20, 2014

25. Central Administrative Systems Budget (ASB) Expenditures Cost to campuses Total cost OPEN – GB – INFO 3-25 June 19-20, 2014

26. Central Administrative Systems Budget (ASB) Expenditures ~14% Growth annually FY15 – $ 19.4 M FY16 – $ 22.1 M FY17 – $ 25.2 M FY18 – $ 28.7 M FY19 – $ 32.7 M FY20 – $ 37.3 M ? June 19-20, 2014

27. Alternatives  Status quo – not an option  Reimplementation of selected services  Software as a Service (SaaS) – Cloud  Open Source  Business Process Outsourcing  “Next-generation” ERP – core system of record  Some combination of the above OPEN – GB – INFO 3-27 June 19-20, 2014

28. Our administrative systems approach  Governance is key – need to articulate policies, principles, and expectations that everyone supports and promulgates throughout the organization  Free up resources from processes that are “required but not strategic” to reallocate them to fund strategic initiatives  Effectiveness and efficiency comes from working together towards common goals. The concept of “we not me”  Accept effective/efficient practices built into administrative systems  Standardize and eliminate exceptions as much as possible  Avoid unnecessary local optimization; bring IT and business process-related decisions to the appropriate leadership groups for discussion and direction OPEN – GB – INFO 3-28 June 19-20, 2014

29. PhasesKey TasksKey Deliverables Phase 1: Define / Validate Current State & Identify Opportunities for Integration and Shared Capabilities  Conduct project kickoff and finalize expectations, objectives, scope, approach, schedule, stakeholders, participants, benchmarking peer group and data needs  Conduct key stakeholder interviews (UMS President, Chancellors, UMS VP’s, CIO’s, selected DoIT Directors & Managers, Functional Area Leads, Campus Representatives, Faculty & Staff, Students, OEI Chair and OEI members)  Review / validate the functional areas’ strategic and operating plans, infrastructure and operating model  Inventory enterprise and campus specific systems  Document high-level current process workflows and identify opportunities for improvement, integration and shared capabilities (for Human Resources, Finance and Student)  Conduct deep dive analysis on up to 7 processes (e.g., 4 Student, 1 Human Resources, 1 Finance, 1 Development) enabled by different campus specific systems and identify opportunities for streamlining and shared capabilities leading towards de-customization recommendations  Identify peer group Universities and conduct discussions to understand their ERP deployments, issues and future direction (Student only)  Define / validate total current ERP cost of ownership (including related campus solutions)  Enterprise and campus specific systems inventory  High-level current state process maps (see example in Appendix)  Opportunities for improvement, integration and shared capabilities and de-customization analysis  Current ERP cost of ownership Approach and Outcomes * Time will be allocated accordingly to the various functions/processes within Student, Human Resources and Finance based on agreed upon priorities and relative complexity. OPEN – GB – INFO 3-29 June 19-20, 2014

30. Approach and Outcomes PhasesKey TasksKey Deliverables Phase 2: Define Future State Processes  Conduct future state workshops with selected functional and IT representatives  Define desired future state processes enabled through optimization of the ERP system  Define preliminary ERP business and functional requirements to support desired future state processes  Future state process maps  ERP business and functional requirements Phase 3: Develop ERP Optimization Strategy and Action Plan  Develop recommended ERP optimization strategy and action plan to include:  Key initiatives  Timeline  Business Case / Budget  Resourcing and training needs  ERP/IT governance structure  Draft ERP optimization strategy  ERP/IT governance structure Phase 4: Finalize and Gain Agreement on ERP Optimization Strategy and Action Plan  Validate / gain feedback on the ERP optimization strategy and action plan, timeline and budget with all appropriate UM System, Campus and DoIT stakeholders  Finalize the action plan, timeline and business case and budget  Finalize the ERP/IT governance structure  ERP optimization strategy  ERP/IT governance structure * Time will be allocated accordingly to the various functions/processes within Student, Human Resources and Finance based on agreed upon priorities and relative complexity. OPEN – GB – INFO 3-30 June 19-20, 2014

31. PhasesMayJuneJulyAugSeptOctNovDec Phase 1: Define / Validate Current State & Identify Opportunities for Integration and Shared Capabilities Phase 2: Define Future State Processes Phase 3: Develop ERP Optimization Strategy and Action Plan Phase 4: Finalize and Gain Agreement on ERP Optimization Strategy and Action Plan ERP Optimization Project Timing * Project timing is dependent on UM System and Campus resource availability and the time required for validation and building system wide support/agreement. Kick-off Target Completion Contingency OPEN – GB – INFO 3-31 June 19-20, 2014

32. HR approach  Process unification – to increase agility and to move towards true Talent Management (pre-hire recruit through retirement)  Full utilization of system functionality — move to best HR practices; less focus on transactions  ePAF has reduced transactional work; they continue to aggressively pursue new capabilities  Completed Global Grading Study allows focus on career paths and succession planning  Compensation and Performance Management (unused or underused functionality) are other areas to add value OPEN – GB – INFO 3-32 June 19-20, 2014

33. Finance Approach  Decrease costs and support of technology through modification reduction (“Zero-Mod” Approach)  Leverage new functionality to support shared services and streamline administrative processes  Review system architecture and develop a long- term plan for Finance applications  Develop a new governance model for managing Finance applications OPEN – GB – INFO 3-33 June 19-20, 2014

34. Campus Solutions Analysis Approach Recommended Approach Conduct a feasibility analysis of moving to one instance of Oracle Campus Solutions (PeopleSoft) from the four instances today Benefits Focus on proving out potential future state Identification of opportunities, impact and costs/benefits Demonstration of Oracle multi-institution capabilities Modification and key process review within context of one optimized instance Key Activities  Review the business reasons that drove the original decision to utilize four instances  Document the current high-level processes workflows and key functional requirements/scripts to identify future state optimization opportunities  Explore impact of adopting unused PeopleSoft functionality and reducing selected manual processes  Collaborate with Oracle on scripted demonstrations of the multi- institution capabilities utilizing the functional requirements/scripts  Identify changes to key business processes and policies that would be impacted by the change  Develop a cost/benefit analysis of one versus four instances OPEN – GB – INFO 3-34 June 19-20, 2014

35. Highlights of current portfolio  Finance  Hyperion Budget Upgrade, PeopleSoft Finance 9.2 Upgrade, Strategic Reporting Data Warehouse  UMIT  Data Center Consolidation, ERP Study, PPM Tools Upgrade, Upgrade Telepresence, Faculty/Staff Email Strategy  Academic/Student  Starfish, Schedule Builder, Academic Mapper/Planner, Missouri Reverse Transfer, Degree Audit, myVITA OPEN – GB – INFO 3-35 June 19-20, 2014

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