Post-Implementation

Evaluation of an ERP/SIS

Jim Barry
Chief Consulting Officer
360 Consulting Group
&
Wayne D. Powel
Associate Academic Vice President
Gonzaga University
 Gonzaga University
• Private regional comprehensive university
• Enrollment ~5,000
• Tuition dependent
• Modest technology investments
• Efficiency in business is key
 The Road to an ERP/SIS
• Recognized value of common shared data
set in the early 1990s
• Worked on home brewed solution for 2
years
• Project unable to gain traction
• Growing awareness of commercial options
 The Road (continued)
• Committee formed and RFP let in 1995
• Vendor chosen
• Two year implementation
• Modules Implemented:
– Student
– Finance
– Human Resources
– University Relations
– Recruitment
 Present Day
• Desire to look back, assess progress,
confirm course
– Actual cost of implementation
– On-going costs
– Comparison to alternatives
– Is this still the best choice for Gonzaga
University?
 Additional Goals of Study
• Determine the current value of the system
from the user perspective
• Evaluate alternatives currently available in
the marketplace
– Other ERP / SIS
– Best-of-Breed
– Hybrid systems
 Additional Goals of Study
• Survey other Jesuit and peers for
– What used and
– Satisfaction with
• Functionality
• Vendor support
• Evaluate other ways of delivering business
applications
– ASP
– Outsource
– Consortium
 Survey of Peers
• Of nine surveyed, 100% used ERP
• 67% used the same ERP as Gonzaga
• No propensity to change
• Support good to adequate
• Human cost of change too high
 Evaluation Methodology
• Rapid Economic Justification (REJ)
– Combines traditional TCO with:
• Effectiveness in supporting business requirements
• Alignment with strategic goals & direction

• 5 step process
 R.E.J. Process
• Determine alignment with business
requirements
• Understands the solutions evaluated
• Understand the cost-benefit equation
• Determine and understand the risks
• Evaluate the financial metrics
 Data Gathering Process
• Internal interviews
– Department heads
– Senior management
• Other CIO’s
• Solution research
 Original ERP Cost
• Hardware $190 k
• Software $ 690 k
• Outside Consulting $ 610 k
• Education $ 243 k
• Staff Investment $ 1.5 m
• Programming $ 292 k
TOTAL $ 3,525,000
 On-Going Support Cost
• Software & Licensing $ 200 k
• Hardware $ 25 k
• Amortization $ 65 k
• Education $ 40 k
• GU Staff $ 360 k
TOTAL $ 690,000
 Value of Current ERP/SIS

• One Integrated v. Disparate Systems

• Single Historical Repository of
Business & Student Data
• Standardization of Business
Processes, Enforced by the Software
 Value of Current ERP/SIS
• “The system revolutionized the use of
data in the University’s environment.”
• “It was critical for Gonzaga to reconcile
and standardize its business processes.
The system did that for us.”
• “We could not be raising the kind of
funds we are today without our system.”
 Value of Current ERP/SIS

• “Implementation of this system was

the single greatest achievement of
the last decade at Gonzaga.”
Business Requirements
• Student Information System
– Admissions
– Registrar
– Housing/residence
– Financial aid
– Certification
– Student accounts
– Student life
Business Requirements
• Finance
– G/L
– Budgeting
– Fixed assets
– A/R
– Procurement – A/P
– Endowment management
Business Requirements
• University Relations (Advancement)
– Alumni relations
– Development
– Major gifts
– Annual/planned giving
– Government relations
Business Requirements
• Human Resources
– HRIS
– Payroll
• Academics
– Degree audit
– Career services
 Other Solutions
• ERP SIS (5)

• Best-of-Breed (8)

• Hybrid (2)
 Cost Comparisons
SOLUTION ACQUISITION ANNUAL

Current None $690,000

ERP #1 $4,850,000 $770,000
ERP #2 $6,625,000 $1,035,000
Hybrid $4,108,000 $904,000
Best-of-Breed $3,778,000 $821,000
 Other Options
• ASP
• Outsource
• Consortium
• Solution Provider
 Summary
• Cost app. $3.5 M in 1995 $$$’s
• Costs app. $700 K annually to support
• ROI was incalculable
• Value to G.U. of current solution
– Met initial expectations
– Data extraction & report writing could be better
– Has been a springboard for growth
 Summary
• Neither Hybrid nor Best of Breed meets
G.U.’s business requirements
• Replacement cost close to that of least
expensive comparative solution
• Support cost close to that of least
expensive comparative solution
 Summary
• Outsourcing, ASP’s and a Consortium
were not palatable to the University
Application “Mid-Life”
 Recommendations
• REVITALIZE THE APPLICATION

• TAKE THE APPLICATION TO THE NEXT LEVEL

• Learn to use features/functions not being utilized

• Add additional needed functionality

 Recommendations
• Stepped up formal education program

• Develop additional tools for data extraction and

manipulation

• Develop a web portal to front-end the ERP/SIS

 Present Day
Still the best choice for Gonzaga
University!