ERP Implementation at University of Nebraska

Description
problems in ASP that SAP is helpful in addressing?, is it a right decision to implement an integrated system for NU, Is there a fit between sap r/3 and NU processes, What are the strengths and weaknesses of sap r/3 for NU?.

THE HISTORY SO FAR…
Municipal University of Ohama became a Association of part American Universities Graduate Education Inception

Kearney State College became a part

1991 1909

1968

1903

Feb 15 1869

MISSION
? To afford the inhabitants of this state with

means of acquiring a through knowledge of various branches of literature, science and arts

A LOOK AT THE GEOGRAPHIC SPREAD

55 mi 131 mi

THE UNIVERSITY IS HUGE
400- Departments 1000 – online information access
150000 – orders/invoices
360000 – electronic transactions
1.1 Bn – Budget for 1998-99

THE PROPOSAL – ANGLE REPORT
? April 1995 – Review of the current administrative process and

the current best practices in the business sector
? Financial System Task Force (FSTF) is formed. ? Solicit proposals to replace the financial management system ? Upgrade the current system to be 2000 compliant

CURRENT SYSTEM DEFICIENCIES
Integration Y2K issue Unresposnive

No openness and operability

unfriendly software platform

Limited Functionality

Disparate Information System

Costly to operate

PUBLIC SECTOR SUBSIDIARY
SAP America launched SAP America Public Sector Inc. on August 4,1997. Tasks to be addressed:? Dedicated consulting, implementation and training services for public sector customers.

Certain key features of the Press Release:? To help Government entities to streamline and improve upon outdated processes. ? SAP Public Sector will provide best business practices to help public sector org to establish log-term planning and update programs. ? Will also address functional and technological demands of public sector organizations.

SAP at University of Nebraska
Consensus from each campus regarding replacement of current financial system software and the HRM system. • The Board of Regents gave approval for purchase of R/3 client –server software for SAP on September 5,1997. • Additional approval was given to have IBM as the implementation provider for the software. Stated Benefits from SAP:• One integrated business system • Faster access, cost effective. • Empower users, facilitate process redesign • Implementation of best business practices

PROJECT ORGANIZATION AND TIMELINE
•Jim Buckler, Controller for University of Nebraska Medical Center named Project Manger.

•The core project team had
•Project Administrator, an Integration Coordinator, 8 project team leaders, 15-20 resources as extended team members. •5 functional and 3 support teams •60 Campus Primary resources, 25 Technical resources, Campus transition teams •Financial System Task Force acted as the steering committee. •Implementation partner for the project- IBM Global Consulting

PROJECT ORGANIZATION AND TIMELINE
Phases of Administrative System Project
Preparation Team Orientation Define Business Requirements Define Project Scope Define current and future business functions and processes R/3 system training for project team members Analysis of end user training and documentation needs Map future business functions and process of R/3 functionality Develop a prototype configuration Identification and design of interfaces, conversion programs and reports Detailed functional configuration Finalizing generation of technical programs and reports Quality assurance testing User training Cutover to production

Analysis

Design

Implementation

PROJECT SCOPE
•Integrating the University operations. •Defined in the preparation phase and modified in the analysis phase. •System development, conversion, and implementation activities necessary for functioning.

FIT BETWEEN SAP R/3 AND NU PROCESSES
Fit- Gap analysis conducted in Design phase reflected Average percentage of fit between University Business Functions and SAP R/3 systems was 60% Budgeting and Funds Management business functions demonstrated least percentage of fir with SAP R/3 systems- 30% 53 specific gaps identified 14 considered critical, to ensure fully configured system

Critical success factor
Require programming changes Impacts

Cost Overruns , Extending Deadlines, Resources, Complex, Training

STRENGTHS AND WEAKNESSES OF SAP R/3
Specific package for public sector

Best Business Practices

Integrated business

Empowers Users

Strengths

Faster access

Cost Effective

Y2K problem

STRENGTHS AND WEAKNESSES OF SAP R/3

Impacting success of project

Weakness
Requiring core programming changes 60% fit

AVAILABILITY OF RESOURCES
? Identifying and obtaining resources
? Requirement – minimum 8 man years effort. ? Concern about stability of consulting resources

FIT-GAP ANALYSIS
? FIT – Extend to which desired business function are

included in the ERP package
? GAP – difference between desired business function

and the functionality provided in the ERP.
? Design phase analysis result

- 53 specific gaps(14 critical) between SAP’s functionality and desired business process.

CRITICAL GAPS
• MULTIPLE ASSIGNMENTS
• MULTIPLE HOURLY RATE

• FEDERAL WORK STUDY
• NON-RESIDENT ALIEN • EEO-6 REPORT • TAX INTERFACE WITH BSI • MULTIPLE FUNDING

CRITICAL GAPS
• PAYROLL SIMULATION
• ANNUAL SALARY UPDATES • POSITION MANAGEMENT • POSITION SALARIES TO WBS ELEMENTS • BALANCED BUSINESS AREAS • INTERNAL SALES MARK UP • EMPLOYEE TRAVEL

IMPACTING THE FUTURE
? MEETING
- DEDICED TO RESOLVE THESE CRITICAL GAPS IN 18

DAYS - PROBLEM – few required programme changes which can only be carried out by SAP - OPTIONS – provided by sap
- To give on-site developers to incorporate desired funtionality(cost

unknown)
- To develop temporary solution(bolt-on programs) - To postponed the implementation activities. - University delays payroll untill phase II

Questions

Q1. What

role does IT play in NU?

? To support a network of 400 departments and 1000 users accessing online

information, IT becomes a vital factor in the functioning.

? 3,60,000 paychecks and 1,50,000 orders/invoices to be released every year.

Manual control in such a detailed process is cumbersome, thus IT again plays an important role.

? To integrate the processes of financial management, budgeting, human

resources, payroll systems and related business activities.

Q2. Problems in ASP that SAP is helpful in addressing?
• Most important is that it will transform the operational business infrastructure of the University into one integrated enterprise solution in the areas of FM, budgeting, HR, payroll systems and related business activities. • The outdated and unfriendly user platform will be removed. • Cost effective as the current multiple shadow systems are costly to operate.

Q2. Is it a right decision to implement an integrated system for NU?

? SAP R/3 was arranged into distinct functional modules, covering the typical

functions in place in an organization. The most widely used modules were FICO, HR, MM , S&D and PP.

? At NU, 3 of these mentioned modules fit suitably and further stress on the

implementation of SAP R/3 as an integrated system. This establishes the

viability of the project.

Q3. Is there a fit between sap r/3 and NU processes?
Fit- Gap analysis conducted in Design phase reflected Average percentage of fit between University Business Functions and SAP R/3 systems was 60% Budgeting and Funds Management business functions demonstrated least percentage of fir with SAP R/3 systems- 30% 53 specific gaps identified 14 considered critical, to ensure fully configured system Critical success factor Require programming changes Impacts

Cost Overruns , Extending Deadlines, Resources, Complex, Training

Q3. What are the strengths and weaknesses of sap r/3 for NU?
Specific package for public sector

Best Business Practices

Integrated business

Empowers Users

Strengths

Faster access

Cost Effective

Y2K problem

Q3. What are the strengths and weaknesses of sap r/3 for NU?

Impacting success of project

Weakness
Requiring core programming changes

60% fit

Q5 : Challenges before and after Y2K
? Before Y2K
? Uncertainties attached to an ERP implementation ? Lack off the university staff to adapt to the new technologies ? Resource constraint and hence problems in timely completion of the

project

Q5 : Challenges before and after Y2K
? After Y2K
? The Y2K bug - Is one of the universities biggest concern.



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