1. 1 Performing Procurement Due Diligence with an Open Source ERP?

2. 2 Introductions Jennifer Foutty –Background in finance, IT and purchasing –Currently a buyer –Recently implemented a home-grown procurement system at IU Bob Ricci –25 years in all levels of education –K-12 –Higher Ed –Background in finance –Experience in both Vended and Open Source applications

3. 3 Agenda What is ‘Open Source’? Current Kuali project The open source model as it relates to procurement Possible issues and concerns Questions and Answers

4. 4 What is Open Source? Community Source? Open source is a set of principles and practices on how to write software, –Source Code –Free Redistribution –Derivative Works Colleges and universities have used the term Community Source to refer to a type of community coordination mechanism that builds on the practices of open source communities. –Copyright for the software is often held by an independent foundation Examples of this include Sakai Project, Open Source Portfolio and Kuali Foundation We’ll examine Community Source by focusing on Kuali BR

5. 5 What is Kuali? Kuali is: –a community source initiative –an evolving comprehensive administrative suite –designed to serve the needs of all Carnegie Class colleges and universities O-1

6. 6 Kuali Community O-1

7. 7 Current Participants 7 O-1

8. 8 How is a Community Source product developed? Funding Model Prioritization Functional Specifications Technical Infrastructure Resource Assignments QA and testing Documentation and Implementation JF

9. 9 Organization of Kuali JF

10. 10 Organization Roles Project Board –Voting member from each Institution –Corporate affiliates –Chair is appointed Project Manager –Oversees developers from each Institution Functional Council –Members from each Institution –Subcommittees with SMEs

11. 11 Funding Model Each partner makes a dollar commitment to join Each partner makes a resource commitment

12. 12 Prioritization Functional councils on each project “Bubble-up” of requests Resources are assigned by the Project Manager

13. 13 Infrastructure and Testing “Rice” Evolves through projects’ requirements and specifications Central “kuality assurance” body

14. 14 Can Community Source compete? We have one model we can discuss…. JF

15. 15 Kuali Financial System Release Schedule

16. 16 Kuali Functionality “When we say free, think free puppy not free beer.” - Brad Wheeler, Indiana University JF

17. 17 The Question of Sustainability Some principles that apply to software –Dealing transparently and systemically with risk and uncertainty. –A commitment to best practice. –The principle of continuous improvement. –The need for good governance. BR

18. 18 How does Kuali measure up? …Risk and uncertainty … –very transparent organization. –Open membership. –‘Customers’ are designers and developers …Commitment to best practices … –SOA – Rice anticipates integration of legacy or best of breed applications

19. 19 How does Kuali measure up? …Continuous improvement … –Open Source model facilitates modifications and improvements –Commercial Support model promotes free market competition for services and support …Good Governance … –Community involvement in structured Foundation ensures a solid ‘business’ approach to Kuali

20. 20 How do you “buy” a Community Source product? BR

21. 21 Traditional Roles Identify –Needs –Possible Solutions –Build or Buy Evaluate –Function –Fit Implement Support The Institution

22. 22 Traditional Roles Development Sales Consulting and Training Technical and Functional Support The Vendor

23. 23 Traditional Relationships Development Sales Consulting and Training Technical and Functional Support The Vendor Identify –Needs –Possible Solutions –Build or Buy Evaluate –Function –Fit Implement Support Institution

24. 24 The Changing Paradigm Not dealing with traditional software vendors There is no sales force for Kuali There is no license fee You don’t need to purchase the software to load it You don’t need to rely on vendor responses to RFI’s or RFP’s to understand the product Separate RFP for Services (Implementation and Support) to accommodate Commercial Support model

25. 25 A New Model? Community Kualifier Commercial Support Organization Resources Identify –Needs –Possible Solutions –Build or ‘Buy’ Evaluate –Function –Fit Implement Support Institution

26. 26 How do you implement a Community Source product? Community Source ≠ Community Support –Most schools are not funded or staffed to provide support to other schools Commercial Support is an important element in the Community Source model Dedicated resource to assist schools with –Evaluation –Planning –Implementation –On-going support BR

27. 27 How do you implement a Community Source product? As a Commercial Affiliate rSmart is an active community member rSmart is committed to Open Source in Higher Education –Involved with Kuali since the beginning –Sakai and OSP We understand the changing paradigm that Community Source introduces –Offer a unique Kuali evaluation tool – ‘Kualifier’ BR

28. 28 What is the KUALIFIER? The KUALIFIER is a structured, guided, and supported evaluation of The Kuali Financial System (KFS). The KUALIFIER helps build institutional confidence prior to adoption and organizational readiness prior to implementation.

29. 29 The KUALIFIER consists of services, tools, and dedicated support designed to overcome the technical and functional complexities that can be challenging to an effective financial system evaluation. What is the KUALIFIER?

30. 30 The rSmart Group Supporting Open Source Innovations in Education We are the leading open source application software company serving the education market. It’s our passion and only focus. We package, certify, service, and support a suite of enterprise financial and collaborative learning applications that are powering the Education Enterprise. We have been instrumental in establishing and sustaining some of the most visible open source projects in education. O-1 Open Source Projects

31. 31 Wrap-up and Q&A

32. 32 For more information….. www.Kuali.org jfoutty@indiana.edu www.indiana.edu/~purchase www.rsmart.com bob.ricci@rsmart.com