Prof Jeff Haywood & Simon Marsden Information Services
University of Edinburgh
[email protected] [email protected]
Enterprise Systems: Sound Investment or Necessary Evil?
1 U21 Annual Network Meeting 11-05-12
“Why do corporate IT systems cost so much and yet
sometimes appear to deliver so little for the
investment?”
Structure of the session:
1. How are U21 partners approaching enterprise IT?
2. Why is enterprise IT so often problematic?
3. How do we find good solutions?
4. Where next?
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How are U21 partners approaching enterprise IT?
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Enterprise IT - 1
U21 Systems Survey
• We asked 3 questions – How was the software you use developed – How do you deliver the service – Who are your suppliers
• For each of 8 major functions – Finance - CRM – HR - Virtual Learning Environment – Payroll - Email & Diary – Student Records - Library Management System
• 18 institutions responded – 80%
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What we found
• On average we run more than one system for each function • Commercial package software is a strong preference - 83% of
systems • Hosted solutions account for 13% of our systems • Oracle and Microsoft are our two biggest suppliers • ERP approach in 45% of institutions
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No of systems per institution
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0
0.5
1
1.5
Finance HR Payroll StudentRecord
CRM VLE E-mail LibraryMS
Development method
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83%
10%
6%
1%
All Functions
Commercial In HouseOpen source Bespoke
54%
14%
32%
0%
Virtual Learning Environment
69%
26%
0%
5%
Student Record
Delivery - In house v Hosted
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86%
14%
All Functions
In house Hosted
64%
36%
CRM
59%
41%
Suppliers
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All Functions
Oracle
Microsoft
Blackboard
Ex Libris
Moodle
Millenium
Other
Suppliers by Functions
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Microsoft
Other
Blackboard Moodle
Other
Virtual Learning Environment
Ex Libris Millenium
Other
Library Management System
Oracle
Microsoft
Other
"Corporate"
Enterprise Resource Planning
• Using integrated systems from the same vendor for multiple functions:
>2 functions = Enterprise Resource Planning (ERP)
– 44%, 8 institutions implemented ERP – 5 use Oracle, 1 SAP, 1 Elucian (Banner), 1 in house – UK survey of 150 CIOs,
• 60% adopted ERP and of these • 63% reported less duplication with better cross departmental
process alignment • 75% improved business intelligence
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How much IT spend is enough?
• How much should my university spend on corporate IT? – probably “more not less”
• How much do others spend? – Very difficult to know – Gartner shows
• financial services: 12% turnover • Pharmaceuticals: 8% • Education: 2.5%
– UK survey of research intensive U’s (Russell Gp) suggests in region of 3-6% of turnover (4.5% +/- 33% !)
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Questions for discussion:
• Do these data accord with your expectations?
• How generally satisfied are you with your enterprise IT?
• If dissatisfied, what are you main areas of unhappiness?
Why is enterprise IT so often problematic?
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Enterprise IT - 2
Where to invest?
IT as an investment
‘better business’
Should lead to…
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Balancing your IT investment
• Run – Reduce costs no increase in revenue
• Grow – Increase revenue from existing products
• Transform – New products, new markets
IT Strategy Awayday September 2011 16
60% ‘run’ 20% ‘grow’ 20% ‘transform’
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University of Edinburgh Strategic Plan 08-12
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IT contributions to UoE SP Strategic Goals
VLE & e-learning systems / e-assessment Classroom technologies
Microlabs & software Student application & self-service systems
Accommodation services IT +?
High Performance Computing Digital research data management
Open access research publications/PURE Research software
+?
‘directory of experts’ Open access research outputs
Online CPD tools Managing IPR/patents etc
+?
Challenges for strategic ICT
JISC / HE Leadership Foundation – Strategic ICT Toolkit ‘Are the foundations on which ICT are delivered sufficient to facilitate the level of ICT that will meet corporate objectives?’ Strategic ICT needs to address these challenges for the
university: – Lack of IT agility – Lack of IT integration – Duplication of IT facilities & services – Data held in sealed silos – Lack of useful Management Information – Senior managers cannot identify if what is delivered is vfm
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A return on your investment
Is $50M too much for a new X system? NO, if the Total Cost of Ownership < Return on Investment
DIRECT COSTS
(all staff+ all stuff + all services) during lifetime of
system - calculate/estimate OPPORTUNITY COSTS
Could have done something more productive
QUANTITATIVE JISC Impact Calculator
(eg 5 days pa, 1000 staff , 5 years = £1.5M-£5M)
Compare to Do-Nothing Option QUALITATIVE
Sweat the assets Drive data quality up
Streamline processes (eg LEAN) Reputation
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Questions for discussion: • Do you routinely require TCO and ROI estimates for large IT
projects?
• Do you review whether these were achieved afterwards (or just
sigh and move on…)?
Pick the right stuff
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Enterprise IT - 2
Strategic Sourcing for IT Systems
Sourcing options
1. Commercial systems (implemented by vendor or in-
house)
2. Open source systems
3. In-house built systems
‘(re-)design business to fit software’?
‘design software to fit business’?
Implementation options
1. Do-it-alone
2. Shared services
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Questions for discussion: • What are your main reasons for choosing particular suppliers
or sources?
• Do you expect this to change over the next 5 years?
• Few U21 partners use open source even though governments
often ‘promote’ their use. Why is this?
How do we find good solutions?
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Enterprise IT - 3
Major IT projects are ‘change’ projects
Good governance they need
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Is there such a thing as an IT Project?
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If Score 20 or over, then project is a “Strategic” project If Score is 10-19, then project is a “Major” project
Defining Strategic & Major Projects – Edinburgh Toolkit
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Project criteria Score range Features Budget (gross) 1 – 15 <£0.5M - >£25M Impact students & staff 1 - 4 Direct impact across U – local
impacts Complexity 1 - 4 Low - High Reputation 1 - 4 Local – international
For S & M Projects, Governance Board must be established as Project Oversight with Senior Responsible Owner at SMT level for S Projects.
Guiding Strategic Projects and learning from them Edinburgh Toolkit
Visual aids for project governance boards
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0
1
2
3
4
5
6
7
8Vision
Business case
Stakeholder buy-in
Team building
Communications
Governance
Risk & Assurance
Project Management
Implementation
Learning
Measurement
Ongoing Improvement
Capability & Capacity for Strategic & Major IT Projects • Capability for major IT projects = Maturity Model / Strategic ICT
Toolkit / governance toolkits
• Capacity for major IT projects = bubble graph / quadrants
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Technology Hype Cycle or Maturity Assessment 2011
Technology Trigger
Peak of Inflated Expectations
Trough of Disillusionment Slope of Enlightenment Plateau of
Productivity
time
expectations
Years to mainstream adoption: less than 2 years 2 to 5 years 5 to 10 years more than 10 years
obsolete before plateau
As of July 2011
Campus App Store
Bring Your Own Device Strategy
BPO
Student Data Standards
Learning Stack Open-Source SIS
Digital Preservation of Research Data
User-Centric IAM
Social-Learning Platform
Media Tablet
Mobile-Learning on Smartphone
Cloud HPC
E-Textbook
Lecture Capture
Unified Communications
Virtual Worlds
Hosted Virtual Desktops
Global Library Digitization Projects
Open source E-Learning Repositories
Mashups ITIL
SaaS Admin Applications
Cloud IT Infrastructure
Social Media E-Portfolios
Open-Source Portals
SOA
Organization-Centric IAM CRM Enrollment
Federated IAM Open-Source VLEs
Cloud E-Mail
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ICT Initiative Capacity – Edinburgh’s modelling
36 U21 Annual Network Meeting 11-05-12
Research Data Storage
Timetabling
Distance Ed
Research Management
Staff recruitment
Web Site
Cloud e-mail
Learning Tools
Smart Cards
Win 7
Student Administration
Personal Tutors
Business Intelligence
0
2
4
6
8
10
0 2 4 6 8 10
Enga
gem
ent
Strategic Impact
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Questions for discussion: • Do you routinely apply good practice governance processes to
major projects?
• Have they helped, and if not, why not?
• How does/will your SMT gain comfort that it has the internal
capacity and capability to manage major projects?
Where next?
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Enterprise IT - 4
39 U21 Annual Network Meeting 11-05-12
Likely directions of travel for IT (EDUCAUSE) Desirable actions A. Investments that facilitate improved student retention/progression B. Investments that help increase revenues
1. Recruitment students, new formats of teaching, increased research grant success, new research areas, enhancements to fundraising
C. Investments that reduce operating costs 1. Measure costs + manage costs 2. Process efficiency gains 3. Workplace design 4. Shared services
Consequences a) Source commodity IT services differently b) Operate with maximum transparency c) Reinvigorate IT governance d) Develop new competencies in IT organisations
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Sharing experiences
U21 CIO’s Group?
Purposes: • to share good practice in delivering major projects, and
to learn from each other • To seek ways to improve U21 partner support for
collaborative academic and support service activities
• Follow up on the good engagement from the survey • Conduct business electronically • Occasional meetings / ‘conferences’
41
Thank you for listening….
© MSc eLearning
University of Edinburgh
www.education.ed.ac.uk/e-learning/