ERPStrategyBusinessEngagement:KeyFindingsandRecommendations

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BrianMacKayChiefInformationOfficer,ThompsonRiversUniversity

BCNETITConferenceApril25,2017

JagMadanChiefInformationOfficer,

LangaraCollege

TrevorHurstChiefInformationOfficer,

MinistryofAdvancedEducation

PurposeofToday

• ProvideanoverviewofthekeyfindingsandrecommendationsoftheEnterpriseResourcePlanning(ERP)BusinessEngagementphase.

• Obtainyourinputandfeedbackonthekeyfindingsandrecommendations.

• IncreaseengagementandsupportforERPrenewalamongthesector.

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ERPStrategyBackground

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Overview

201720162015

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AugustERPStrategy

ProjectInitiated

MarchERPSectorStrategyDelivered

AugustBusiness

EngagementPhaseInitiated

MarchBusiness

EngagementReport

Delivered

ContinuousSectorEngagement

ü TheERPinitiativeispartofthebroaderASDTcollaborativeinitiativeü TheERPinitiativeisguidedbyasectorWorkingGroupandalsoworks

incloseconjunctionwithBCNETü WillsupportERPinvestmentdecisionmakingfornext10-15years

PartnershipForumPartnershipForum ERPForum

••TotalCostofOwnershipprojectedover5years:••Closeto$300M

CostContainment/RiskMitigation

••Modernintuitiveuserinterfaceandmobileaccess

••institutionshavereportedrequirementsgaps

Student/FacultyExpectations

••Vendorsmovingtowardsanewdeliverymodel

••Disparatesystemsresultingfromautonomousinvestmentdecisions

ERPServiceDelivery

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ERPStrategyDrivers

ERPRenewal

ERPSectorStrategy(A)MultipleERPplatformswithseparateinstances,somecommoninfrastructure

(B)CombinationofSaaSandtraditionalERPplatforms

Other…

.

Colleague

Banner

PeopleSoft

ResourceSharingSomeBusiness

PracticeConsistencySeparateInstances&

ConfigurationCloud/SaaSERPPlatform

(s)

TraditionalERPPlatform

(s)

Current Beyond5years

Cloud/SaaSplusIn-house/CommonInfrastructure

SomeCommonInfrastructure(e.g.,BCNET’sEduCloud)ResourceSharingSomeBusiness

PracticeConsistency

(C)Goal:Arationalized‘optimal’numberofERPplatformswithsharedbusinessprocessesandsharedwebservices

CloudComputingwithSaaS

ResourceSharingSharedBusiness

Process(wherepossible)SharedWebServices

(wherepossible)

ERPService#1

ERPService#2

ERPService#N

Within5years

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StrategyVisionIncreasealignmentandintegrationofsectorERPsolutionstoenhanceservicedeliverytostudentpopulations,improvecostmanagementandreduceoverallrisk.

BusinessEngagementResults

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StakeholderEngagement

• 8ERPWorkingGroupmeetings(2fullday)

• 16CoreTeammeetings• 25CIO/CFOmeetings• 30+individualSMEmeetings

• 10+sectorsessions• 2sectorforums• 3jurisdictionlessonslearnedsessions

• 3vendorsessions

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Phase3sectorstakeholderengagementnumbers:

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WORKSTREAM KEYRESULTS/FINDINGS1.VendorLandscape Confirmsthatvendorsareofferingcloud/SaaSsolutionswithCanadian

dataresidency.2.ERPPlatform Reinforcestheproposedstrategytomovetowardscloud/SaaSsolutions.3.ERPRoadmap Identifiesthecurrentprojectedtotalcostofownership(TCO)forthe

nextfiveyearsisinexcessof$290mandhighlightsthefactthatmanyinstitutionsareusingdisparateon-premise solutionsandareatthecuspofmakingsignificantinvestmentdecisionsforERPreplacementsorextensiveupgrades.

4.BusinessModelFramework

ProvidesanoverviewofthebusinessfunctionsrequiredtodeliverERPservicesandcautionsthatfortheStudentfunctions,asuiteofadditionalmoduleswillcontinuetoberequiredtodeliverthedesiredservice.

5.StrategicAlignment ConfirmsthatacriticalsuccessfactorforERPStrategyimplementationwillbecontinuedandincreasedalignmentwithkeystrategicinitiativesandorganizations(e.g.,EducationPlannerBC).

6.InvestmentGuide Highlightsthatinvestmentswillberequiredtomovetoacloud/SaaSsolutionsandthatthereisthepotentialforcostcontainmentthroughcollaborationandsharedsolutions.

[1] ThefiveyearTCOof$290mincludesoperatingcostsandone-timeinvestments[2] ThisisconsistentwithGartner’svisionofa“post-modernERP.”[3] Estimatesrangefrom$3m- $25mandwilldependoncollaborationandstartingpoint(e.g.,levelofcustomization).

Phase3KeyFindings

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MarketDirection“CloudERPhasgainedtractioninhighereducation,andthetippingpointhasbeen

reached,wheretheconversationhasmovedfrom‘if’to‘when’theywillgotothecloud.”

- Gartner

ExistingVendorsShiftingtoCloud/SaaS

CanadianData

Residency

HighlyConfigurable

NewCloud/SaaSVendors

Cloud/SaaSAdvantagesandConsiderations

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Budget

Changesthefocusfromcapitaltooperating

expenditures.

Comprehensiveandcompletecontractsrequired

HumanResources

ITstaffabletofocusonstrategic,

innovativeandhigh-valueinitiatives.

SomeITstaffarestillrequiredtoperformhigherlevelfunctions

DataCentre

Overheads

Costsavingsasnohardwareand

hardwaremaintenancerequired.

Morereliantonlong-haulcommercialInternet

connectivity

Scalability

Canbescaleduptomeetdemand

Integrationrequiresvendor-suppliedAPIs.

Security

Securitypatchesappliedina

timelyfashion.

Mayrequireusingonlytoptiercommercialgradecloudservices.

SoftwareUpdates

Upgradesareapplieduniformly

resultinginalltenantsbeingon

thesame“version.”

Only“configurable”cloudservicesshouldbeutilized.

Topic

Advantages

Considerations

ExamplesofERPChanges

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JointERPRFPselectioninprogress WorkdaycontractsignedforFinanceandHR

ERPreplacementRFP

WorkdayFinanceimplemented/HRstarting

PeopleSoftCampusselectedforFinance,HR,Student

23campusesonPeopleSoftforFinance,HR,Student,AlumniDevelopment;hostedonsecureprivatecloud

34collegesonPeopleSoftforFinance,HR,Student,hosted

onvendorprivatecloud

WorkdayFinancialManagementandHumanCapitalManagement

10collegesonPeopleSoftforFinance,HR,Student

WorkdayforFinancialManagementandHumanCapitalManagement

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CostProjections(Conceptual)MediumSizeInstitution

1.0m

1.5m

2.0m

2.5m

3.0m

3.5m

$5.0m

1 2 3 4 5 6 7 8 9 10

Retainingcurrentsystemwithassumed5-10%annualincrease.Risk,opportunitycostandrequirementgapcostnotaccountedfor.

Commercialcloudservicewitha3yrsubscriptionperiodinitiallyassumedtobe15%ofprojectcosts

Acommercialcloudserviceofferingmanagedbyasector--ledServiceProviderwithmultipleBCtenants-assumesapossible15%saving

Years

Projectcostsforaninstitutionmovingtowardsacloud/SaaSsolution–assumed~$14/15mover3years

Possibleprojectcostsavingsforinstitutionswillingtocollaborateinmovetowardsacloud/SaaSsolution

ERPRenewalPath

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ProposedERPOffice

SupportingERPCollaborative

Delivery

DefiningandEstablishingService

Offerings

ERPOfficeServiceExamples:• ProjectManagementandPlanning• Engagement/Communications• WorkingGroupSupport• StrategyAlignment• SupportPSIBusinessCasework• SupportPSIBusinessTransformationwork• PromoteResourceSharing• PromotePracticeStandardization• AssessERPsolutionsforPotentialLeverage• RFx Preparation• SupportCollaborativeActivities• ProvidePM/CM/BAServices

BCNETERPOffice

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ProposedServiceOfferingModel

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ServiceOffering1ParticipatingSectorInstitutions

SectorServiceProvider(BCNET)

Cloud/SaaSService(CoreERP)

ServiceOffering2

ServiceOffering3

EduCloudService• Network/DRP/BusinessContinuitymanagedbyBCNET• Institutionsmanageapplicationsupport+upgrades

• Network/applicationsupport/upgrades/securitymanagedbyvendor• SectorServiceProvidermanagescontract/SLA

•MultiplevendorsprovidingERP-relatedCloudservices(e.g.,CRM)• SectorServiceProvidermanagescontract/SLA

TheseServiceOfferingsarenotmutuallyexclusive

Cloud/SaaSService(ERPrelated)

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SummaryofRecommendations

SectorERPValueProposition

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••SupportsERPinvestmentdecisionmakingforthenext10to15years

••Cloud/SaaSERPsolutionsareinevitable– let’sbeprepared!

MarketAlignment

••Providesbenefitssuchaseconomiesofscale,achievementofefficiencies,strongernegotiatingpositions,andstreamlinedorcommonbusinessprocesses

••Provideinstitutionschoiceregardingserviceuseandtimingofserviceimplementation

Shared ServicesModel

••Bettersupportfacultyandstudentsinworld-classteachingandlearning

••BettersupportadministrativestaffinFinance,HRandRegistration

••Modernizecorebusinesssystemstoremaincompetitivetothenationalandinternationalmarketplaces

EnhancedServiceDelivery

ProposedFive-YearPlan

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2017- 2018 2018- 2019 2019- 2020

EstablishERPOffice

Supportcollaborativeinitiatives

EduCloudon-boarding

EstablishCloudServiceOffering(s)(procure)

EduCloudServiceProvision

DesignServiceOfferings

CompileBodyof

Knowledge

2020- 2021 2021- 2022

ProvideServiceOfferingandsupporton-boarding

ServiceOffe

ringDe

sign

Educloud

Ope

ratio

nalize

Clou

dService ERPOfficegovernancetransitionedtoSectorServiceProvider

NextSteps• IncludesectorfeedbackintoBusinessEngagementReport

• Determinenextphaseactivities• ObtainapprovalfromASDTSteeringCommitteeonthereportandnextphaseactivities

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Forfurtherinformation,contact:AVED.ASDTOffice@gov.bc.ca

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