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ERP Implementation as an Agent of Organizational Change

ERP Implementation as an Agent of Organizational Change. Stephen Lightcap VP Finance & Admin., Cabrini College Michael Scheuermann Sr. Consultant, Drexel University May 2004. Agenda. Project description Drexel implementing Banner at Cabrini Background on each institution

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ERP Implementation as an Agent of Organizational Change

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  1. ERP Implementation as an Agent of Organizational Change Stephen Lightcap VP Finance & Admin., Cabrini College Michael Scheuermann Sr. Consultant, Drexel University May 2004

  2. Agenda • Project description • Drexel implementing Banner at Cabrini • Background on each institution • Foundation for project • initial relationship — IT support • Challenges to implementation project • ERP as organizational change agent • Lessons learned • Future directions S

  3. Project Description • Drexel University in ASP capacity, implementing SCT Banner at Cabrini College • CMDS would no longer be supported • need to change and make significant investment • Cabrini interested in expanding and enhancing administrative and support services to students • on-line registration • financial statements • reviewing transcripts, etc. S

  4. Project Description (cont.) • Maintain niche culture while providing e-services expected by parents and students • Commitment to providing related infrastructure to support access to services—wireless, desktop access, robust and secure network. S

  5. Cabrini College • Liberal arts & sciences—2100 students, religious affiliation, former women’s college, now co-ed, established in 1957 • 68 full-time faculty-150 adjunct faculty-147 staff & admin-48 outsourced personnel—IT staff of 5 • CMDS (Jenzabar)/ ADP / Raiser’s Edge / SIRSI in library • Some home-grown Web tools to access directory, room reservations S

  6. Drexel University • Private institution founded in 1891 • First microcomputer requirement in nation • Begun as Macintosh-only program in ’83 • Platform selection made “open choice” in ’97 • Major wired upgrade from ’98 – ‘00 • Wireless Initiative started in late 1997 • Library and student center were pilot projects • Entire campus by Fall 2000 • Provide I-2 connectivity to other institutions • Provide IT services (ASP) for MCP Hahnemann University & other colleges – DUCOM M&A 7/02

  7. Initial Relationship “Phase I” • Drexel CIO and Cabrini President prior working relationship • Drexel asked to provide temporary IT leadership and assist in strategic plan • Six month relationship • staff changes, • assistance with infrastructure, • introduced WebCT, • solving computer lab issues, • developing policies and documenting procedures • From “Trust” to development of formal, contractual relationship • Reorganize support services, use technology to provide support • Recommendations for future S

  8. Expanded Relationship “Phase II” • Discussion about admin services, business processes, what to do after CMDS • Cabrini—desire to use top tier ERP—cost prohibitive • Discussions with vendor—proposed an ASP model with benefits to all • Developed plan to implement Banner system at Cabrini S

  9. Cabrini Context • Drexel assist in development of RFP to replace core admin. system • Concerns re: partner’s access to strategic information • IT staffing requirements of stand-alone system • Desire to further strategic partnership with Drexel • IT not core function @ Cabrini…why do it ourselves? S

  10. HE Environment - Limits Vendor and Institutional Solutions Number of U.S. Institutions of Higher Education By Segment Public Private Comprehensive Research Universities 93 62 Other 4 year Colleges and Universities 504 1,470 Community Colleges and 2 year institutions 968 440 Trade Schools Total 1,972 1,563

  11. HE Environment –Limits Vendor and Institutional Solutions • Lack of experienced IT Leadership • One year of experience ten times • No developed IT strategy • Technical skills often limited • Dependence on products one knows • Risk not a criteria in product “choice” • Lack of resources • Short life cycle for technology demands continual renewal and cost • Competing institutional priorities • IT Fragility

  12. Small School Context • Limited resources to procure and staff • Limited opportunities for IT staff professional growth • Limited mobility opportunities • Recruitment and retention challenges for IT staff • Supervisory challenges in an Academic-Centered environment • Cultural Myopia • Knuckleheads S

  13. Institutional Challenges • Provide IT solutions to critical business and academic needs 24x7 • Optimize scarce resources to provide • Robust server and network infrastructure • Timely business and academic applications • Professional skills and support structure • Develop & document policies and procedures • Facilitate productivity – utilize Web, email

  14. Vendor Challenge • Optimize “feet on the street” • Leverage investment in current applications • Time is the enemy (3 years is only 6 months in Internet time) • Expand use of applications to other institutions • Reinforce the ASP model as a solution to academic and business challenges • Promote virtual services are a “click” away

  15. Institutional Choices • Self develop • Best of breed • Single vendor • Outsource staffing of in-house facilities • Consortium – Just doesn't work! • Managed service provider / Co-location • Application Service Provider (ASP)

  16. Implementation Plan and Schedule • Readiness meetings—demo Banner, promote idea at Cabrini, get buy-in at all levels— • Chance for Cabrini to differentiate itself from peer schools. • Attract new markets—quality students • Operate more effectively and efficiently • Manage operations with sound reliable information basis S

  17. Implementation Plan and Schedule (cont.) • Student system—undergraduate admissions • Finance • HR • Financial Aid • Training, mentoring and support plan S

  18. Implementation Plan and Schedule (cont.) • Billing processes and workflow • Chart of Accounts • Financial Aid distribution • Managing variety of admissions schedules S

  19. Non-Technical Issues • Work related communication and collaboration among functional staff • No regular “work” meetings • Staff used to ad hoc ways of recording transactions • Skill deficiencies among some revealed when tasked with using the system • Transition / turnover S

  20. Challenges to Drexel • Get more involved to make it work or follow plan and risk project failure (not an option) • Time commitment • Doing the work—rather than teaching and supporting which was the plan • Cost of support • D.U. task orientation • Business continuity plan

  21. Challenges to Cabrini • Rationalize outsourced staff • Fear of losing control • Cultural differences – Small vs. Large • Communication styles – written/spoken vs. e-mail • CC process orientation • Change management • Business Process Reengineering • Managing Expectations (failure not an option) • Human Resources S

  22. Application Service Providers • ASPs are simply companies that provide access to applications over the Internet • Outsourcing switches from assets to access. By 2010, the market share of IT utility providers will be within 29% of the total IT services market – (Gartner Group) • Companies will in the future buy their information technologies as services provided over the Internet rather than owning their own hardware and software – (Your Next IT Strategy; Hagel and Brown; HBR 10/01)

  23. Why Drexel as a Provider? • Trusted technology provider in HE market • Higher Education “full service” ASP today • First to market – regional flagship focus • Four years of proven success • Other schools participating – concept works • Leadership and skills • Entrepreneurial environment • Infrastructure in place • Vendor relationships • Proximity

  24. Example: Phase I Progress at Cabrini • IT leadership and staffing in place • Advisory structure in place • Help desk in place • Email and Web-mail in place • Virus protection standardized and controlled • 100 MB mail per mail box S

  25. Services Improved • Course development in WebCT in place ― 40 courses developed in 6 months • Connection to internet quadrupled • Wireless operational throughout campus • Web site hosting available • CabriniOne ~ portal • Server elimination begun • Proxy Server in place for off-campus library access

  26. Totally Replaced ERP System • IT policies, procedures, documentation and standards dramatically improved • Substantial savings on new PC purchases • Transition to SCT Banner administrative applications • 8 month time period • July 2003 implementation • Hosted at Drexel S

  27. Schools are Leveraging Drexel Assets • IT staffing • Operational staffing • Software and business applications • Hardware and network • Via: • specialists • internal consultants / shadowing • ASP services • External relationships • Lowering IT costs

  28. “We don’t do things that way”- Business Process Re-engineering - • How to know what to change and why • Does the software drive the organization? • How to improve business practices without compromising “culture” • Top level support key to success S

  29. Schools are Also Receiving Unintended Benefits • Business process changes – best practices • Cultural changes • Increased accountability • Cost avoidance (avoiding bad decisions) • Increased sense of urgency • Improved competitiveness • Strategic cooperation vs. “vendor relationship” S

  30. Lessons Learned • Don’t discount cultural differences between institutions • Turnover must be expected and creates opportunities • Communicate clearly and regularly with the affected community • Consider project management tools • Understand process orientation and leverage to maximize linear implementation schedule S

  31. Schools are Developing New Metrics • Importance of quality and effectiveness of service • Evaluating performance vs. peers rather than internal performance • Recognizing the capability of access vs. owning assets • Refocusing on academic core mission

  32. Current Status and Phase II • Banner basic functionality fully implemented • BPR ongoing • Adopt standard administrative processes/ forms/etc. of ASP provider • Retain academic autonomy • Mentoring CC staff by Drexel functional users • C-BUG • Best practices cuts both ways S

  33. New Directions for Each Institution • Drexel—new partners, new initiatives • Cabrini – Phase III: • Collaborative purchasing beyond IT & ASP • Best practices • Leverage Banner capabilities as users gain experience • Share experiences with others

  34. Questions?

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