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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

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Page 1: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

Page 2: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

“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?

U21 Annual Network Meeting 11-05-12 2

Page 3: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

How are U21 partners approaching enterprise IT?

U21 Annual Network Meeting 11-05-12 3

Enterprise IT - 1

Page 4: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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%

U21 Annual Network Meeting 11-05-12 4

Page 5: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 5

Page 6: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

No of systems per institution

U21 Annual Network Meeting 11-05-12 6

0

0.5

1

1.5

Finance HR Payroll StudentRecord

CRM VLE E-mail LibraryMS

Page 7: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Development method

U21 Annual Network Meeting 11-05-12 7

83%

10%

6%

1%

All Functions

Commercial In HouseOpen source Bespoke

54%

14%

32%

0%

Virtual Learning Environment

69%

26%

0%

5%

Student Record

Page 8: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Delivery - In house v Hosted

U21 Annual Network Meeting 11-05-12 8

86%

14%

All Functions

In house Hosted

64%

36%

CRM

59%

41%

E-mail

Page 9: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Suppliers

U21 Annual Network Meeting 11-05-12 9

All Functions

Oracle

Microsoft

Blackboard

Ex Libris

Google

Moodle

Millenium

Other

Page 10: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Suppliers by Functions

U21 Annual Network Meeting 11-05-12 10

Microsoft

Google

Other

E-mail

Blackboard Moodle

Other

Virtual Learning Environment

Ex Libris Millenium

Other

Library Management System

Oracle

Microsoft

Other

"Corporate"

Page 11: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 11

Page 12: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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% !)

U21 Annual Network Meeting 11-05-12 12

Page 13: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

U21 Annual Network Meeting 11-05-12 13

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?

Page 14: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Why is enterprise IT so often problematic?

U21 Annual Network Meeting 11-05-12 14

Enterprise IT - 2

Page 15: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Where to invest?

IT as an investment

‘better business’

Should lead to…

U21 Annual Network Meeting 11-05-12 15

Page 16: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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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17 U21 Annual Network Meeting 11-05-12

University of Edinburgh Strategic Plan 08-12

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18 U21 Annual Network Meeting 11-05-12

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

+?

Page 19: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 19

Page 20: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 20

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U21 Annual Network Meeting 11-05-12 21

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U21 Annual Network Meeting 11-05-12 22

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…)?

Page 23: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Pick the right stuff

U21 Annual Network Meeting 11-05-12 23

Enterprise IT - 2

Page 24: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 24

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U21 Annual Network Meeting 11-05-12 25

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U21 Annual Network Meeting 11-05-12 26

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?

Page 27: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

How do we find good solutions?

U21 Annual Network Meeting 11-05-12 27

Enterprise IT - 3

Page 28: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Major IT projects are ‘change’ projects

Good governance they need

U21 Annual Network Meeting 11-05-12 28

Is there such a thing as an IT Project?

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U21 Annual Network Meeting 11-05-12 29

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U21 Annual Network Meeting 11-05-12 30

Page 31: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 31

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.

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Guiding Strategic Projects and learning from them Edinburgh Toolkit

Visual aids for project governance boards

U21 Annual Network Meeting 11-05-12 32

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

Page 33: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 33

Page 34: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

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

U21 Annual Network Meeting 11-05-12 34

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U21 Annual Network Meeting 11-05-12 35

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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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U21 Annual Network Meeting 11-05-12 37

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?

Page 38: Enterprise Systems: Sound Investment or Necessary Evil?homepages.ed.ac.uk/jhaywood/presentations/U21 IT Systems FINAL sm.pdf · Enterprise Systems: Sound Investment or Necessary Evil?

Where next?

U21 Annual Network Meeting 11-05-12 38

Enterprise IT - 4

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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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U21 Annual Network Meeting 11-05-12 40

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’

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Thank you for listening….

© MSc eLearning

University of Edinburgh

www.education.ed.ac.uk/e-learning/