University
of Rhode Island
PeopleSoft
Executive Steering Committee
Status Report,
July 2000
This report
summarizes the costs, the benefits and the considerable
progress that has been made in implementing the PeopleSoft
Student Administration, Financials, and Human Resources
systems at the University of Rhode Island. All project expenditures and commitments to date are presented along
with estimated total costs of implementation for FY 2001. The Executive Steering Committee recommends
that the project continue and that additional resources
– from the Office of Higher Education and from reallocation
of University funds – be committed to the project so that
the benefits can be realized within a reasonable period
of time.
Why PeopleSoft?
Strategic to Higher Education
PeopleSoft
was originally chosen by the System because it was the only
product offering a suite of integrated software solutions
specifically designed for universities and colleges.
In fact, more than 475 universities and colleges
are under contract to implement these systems to improve
business processes and make daily work easier for their
academic communities. Implementation
of PeopleSoft will provide URI with the next generation
of information software to integrate, support, and enhance
all types of services for students, faculty, alumni and
staff well into the future.
In adopting PeopleSoft systems many research institutions
have found that the process was also an opportunity to establish
structural changes that have increased efficiency and/or
enhanced services.
“Early-adopter”
institutions (such as the University of Michigan, Ohio State
University, University of Minnesota, and Southern Methodist
University) have experienced a transformation of student
services. These
institutions have also discovered that the enhanced financial
and human resource management capabilities of PeopleSoft
represent a significant change in the way these service-units
support the university community. They have become more tightly linked to the
strategic, academic, and economic objectives of the institution. With the integrated information available after
PeopleSoft was implemented, these offices along with faculty,
deans and administrators found that they could place greater
emphasis on higher-value activities, such as student retention,
graduation rates, prospect and enrollment management, resource
management and revenue generation, academic planning, marketing,
and performance assessments.[1]
Benefits
for URI
Implementing
the suite of PeopleSoft systems will transform service to
students and their families, faculty and staff. Over the
past decade the University has struggled under severe financial
constraints to meet ever-increasing demands for its services.
Despite requiring large initial investments, technology
has proven to be the only viable cost-effective means to
cope with these increased service demands. But the technology
we built at URI to meet the needs of the 1970’s can no longer
meet current demands, let alone the demands of this new
century. Without PeopleSoft we would be faced with the
prospect of either dramatically increasing our staffing
levels or reducing our service.
Four
areas where PeopleSoft will be key to our strategic success
are:
1.
Support for new University initiatives and services
Once
implemented, PeopleSoft opens up many more possibilities
for the University community.For
example, paperwork will no longer go from office to office
via sneaker-net. Rather it will be circulated electronically
for review and approval over the campus network. Every
student will have customized web-access via a portal that
contains all of the student’s academic and personal activities.
Online purchase requisitions will be used to execute electronic
procurement. The University currently has very limited
statistical analysis and reporting capabilities. The new
PeopleSoft systems will facilitate setting, monitoring and
achieving management goals such as student recruitment,
retention, and alumni tracking.
PeopleSoft
will facilitate automated admissions, enrollment, and financial
aid decisions, providing instant access to information (depending
on security), from student grades to financial aid awards.
Bill paying will be fully automated and information about
degree progress would be instantly available online.
Student
advising and enrollment services are greatly enhanced under
the PeopleSoft system. PeopleSoft Records and Academic
Advisement provide real-time access to definitive information
about degree progress for faculty, administrators, academic
advisors, and students. The system provides rapid access
to course information, from class size and instructor availability
to detailed course descriptions. Features also include
automatic verifications that enrolling students are eligible
for classes; automated enrollment from waiting lists when
spaces become vacant; multiple-degree planning; course transfers,
exemptions, and substitutions. The current system requiring
paper overrides for admission to graduate courses and those
with prerequisites will be eliminated.
The
PeopleSoft purchasing module and e-procurement software
facilitates electronic processing of purchase requisitions/orders,
invoices, and various other documents that traditionally
bounce from desk-to-desk at URI. Faculty members will be
able to generate online requisitions that are routed electronically
to vendors (in the case of Limited Value Purchase Orders)
or to the appropriate purchasing personnel; accounts will
automatically be checked for sufficient funds to execute
the order. We understand that use of Web and e-procurement
applications are being considered as enhancements to State
procurement process.
2.
Elimination of organizational barriers
The
University of Rhode Island has been wrestling with transformative
changes that will break down barriers and encourage greater
cooperation. For example, the Green Hall Gateway Project
has been the impetus for a redesign of Student Services,
which involved the combining of the previously separate
offices of admissions, bursar, registrar and financial aid
into one unit, now called Enrollment Services.
Our
current legacy systems cannot support these transformative
initiatives because they function as “silos” that are not
integrated. PeopleSoft systems are integrated and will facilitate
the fundamental objectives of cross training and integration
of the initiatives. Most importantly, access to information
via a standard interface will be uniform and seamless to
all users.
3.
Meeting Federal and State Requirements
Our
current systems are constantly being modified to meet changes
in state and federal requirements for processing and reporting
information. Each year this task becomes increasingly difficult,
takes more staff time, and leaves little time for enhancements
or meeting other University needs. Even more problematic
is the fact that there are potential future requirements
that our current systems cannot be modified to meet without
a huge expenditure of funds. For example, our current legacy
system cannot accommodate a new unique student identification
number to replace social security number and we expect future
federal accounting and financial aid requirements to be
equally problematic for our legacy systems. It is expected
that the American Civil Liberties Union and various Rhode
Island Legislators will continue working toward a law that
requires URI to use some other unique identifier as a student
identification number. Since PeopleSoft uses a unique user
identification number, implementation of the new systems
will address this issue.
The
University is required to deliver various personnel data
to the State. Currently, the University Human Resources
Department enters the same information into a State personnel
database and a URI database. The PeopleSoft HR system will
eliminate these redundant processes, resulting data will
be transmitted electronically to the State systems. In
addition, federal COBRA requirements for processing and
extending optional benefits to former employees will be
executed automatically.
4.
Elimination of duplication and greater efficiency
Current
University operations involve numerous “shadow systems”
that support the various business offices, colleges, and
departments. These shadow systems, and a cumbersome business
process, result in data entry steps that must be repeated
over and over by different people in different offices.
PeopleSoft will eliminate these replicate data entry steps
and shadow systems and greatly improve the efficiency of
the business process within the University. For example,
the University of Minnesota has documented that 36 databases
and shadow systems have been consolidated into one data
warehouse under PeopleSoft – these cost savings have not
been quantified but are significant. As a result of PeopleSoft
being implemented at Minnesota enrollment personnel have
been cross-trained in all areas of student services and
the quality of work was refocused on more important activities,
such as recruitment and retention. New building/room scheduling
software associated with PeopleSoft eliminated three positions.
Finally, the most significant area where Minnesota reduced
costs is by providing numerous online opportunities for
self-help as well as access to information and services
for students and faculty, without the intermediation of
administrative staff.[2]At Southern Methodist University,
enhanced data and analysis associated with Financial Aid
decisions have resulted in a savings of approximately $500,000
for the Fall 2000 semester.[3]
Integrated
imaging technology associated with PeopleSoft provides online
access to a wider range of documents (such as student admissions
portfolios, transcripts, graduate statements of purpose,
supporting documents for purchase requisitions, documents
for safety and risk hazardous materials, etc.).
The
PeopleSoft system will reduce overhead and increase productivity
by unifying processes under a single, robust system that
will simplify and shorten tasks, while creating a unified
location for data that can be used and analyzed in very
powerful ways. For example, PeopleSoft allows administrators
to track and manage institutional finances down to the department
level, from their desktops. Likewise, academic advisors
can track student progress toward graduation. Financial
aid officers can execute award decisions more rapidly and
deal with third-party grants and loans, and federal aid
agencies electronically. Human Resources administrators
will be able to define and manage an unlimited number of
benefit offerings, perform nondiscrimination testing, view
benefit detail and summary data for all participants, and
produce management and operational reports, and automated
billing of retirees and benefits. Faculty will have instant
access to academic information, student records, classroom
schedules, etc.
These
are just some of the new and enhanced services that will
be available to URI students, faculty, and staff. The flexibility
and adaptability of PeopleSoft opens an entire range of
new services and options that would be unthinkable under
our old legacy system.
What
is the status of the implementation project?
The
University has been involved in the implementation of PeopleSoft
Student Administration, Financials, and Human Resources
systems for more than a year. Despite receiving less funding
than anticipated or needed, the implementation teams have
met virtually all implementation objectives for FY 2000.
A detailed description of the project progress is summarized
in Appendix A. This progress has been the result of a steam-lined
implementation strategy executed by URI professionals, and
a small number of highly skilled temporary employees and
consultants.
PeopleSoft
implementation is not, by anyone’s measure, an inexpensive
venture. Most research institutions report spending in
the range of $20 to $40 million for implementation of the
PeopleSoft Student, Financials, and Human Resources systems.
We estimated that in accordance with the KPMG recommendations
implementation would have cost $43.9 million. Our peers
are using two basic implementation strategies. One approach
relies heavily on the use of outside consultants commonly
known as “implementation partners.” The University explored
this option with KPMG and decided last year to use a different
approach. Our strategy seeks to control costs by minimizing
the use of high-priced consulting firms and expensive customization
of the PeopleSoft basic systems. Because the implementation
teams work closely with selective consultants who are experts
in each of the functional areas, they are becoming experts
in their own right and will be better able to support the
University as time goes on.
How
much has been spent?
The
following tables summarize all expenditures and commitments
attributable to the University’s implementation of PeopleSoft.
This data includes funding provided through the Rhode Island
Office of Higher Education, $745,922 in FY 2000, and $820,922
in FY 2001. The expenditures for URI personnel reflect a
percentage of salaries and benefits for individuals who
are working on the implementation. Approximately $1.14
million in personnel costs (in-kind) were contributed to
the implementation in FY 2000. In addition, significant
investments in servers, disk storage, and other hardware
have been made through the Higher Education Technology Initiative
bond funds.
FY 1999-2000 Expenditures on PeopleSoft
| OHE
Funding (temp. employees, KPMG, consultants, etc.)
760098 |
$745,922 |
| Oracle
DBMS 125 Seats – Tech Bond Funds FY99 |
$186,000 |
| 3
Development Labs – MIS 216027 |
$90,000 |
| Development
Server – Tech Bond Funds |
$56,000 |
| Training
Lab PCs – Tech Bond & MIS 216027 |
$55,000 |
| Training
Lab, elec/cabling and furniture – Tech Bond &
MIS 216027 |
$10,000 |
| PCs
for Enrollment Services (Financial Aid Office) |
$60,000 |
| Digitera
Consultant -- TOPS 211236 |
$29,000 |
|
URI
Personnel (Est. Salaries & Benefits) – In-kind |
$1,140,000 |
|
TOTAL
Expenditures FY 1999-2000, OHE and URI in-kind |
$2,371,922 |
FY 2001 Partially Committed/Estimated Expenditures
on PeopleSoft
| Expected
OHE Funding (temp. employees, KPMG, consultants, etc.)
760098 |
$820,922 |
| PCs
and Printers for Admissions - Tech Bond Funds |
$45,000 |
| IBM
SP Processor - Prod. Environment - Tech Bond Funds |
$270,408 |
| EMC
Storage – Prod. Environment – Tech Bond Funds |
$522,500 |
| Oracle
DBMS expanded - (first payment of $1.15 million contract
over 5 years) -- MIS 216027 |
$120,000 |
|
URI
Personnel (Est. Salaries & Benefits) – In-kind |
$1,174,200 |
|
TOTAL
Expenditures FY 1999-2000, OHE and URI in-kind |
$2,953,030 |
How
much funding is needed in FY 2001?
The
following table provides data on the budgets for maintaining
the projects through FY 2001. These scenarios show a revised
budget designed to fit the $820,000 approved funding from the Office of
Higher Education (OHE). This budget reflects a case where
most of the annual funding from OHE is directed to backfill,[4]
and consultants or temporary employees hired to assist with
the Student system. OHE funding is also reserved, in part,
to help keep the Financials and Human Resources projects
moving forward – though more slowly than we would like.
Recently, we considered suspending work on Financials and
Human Resources altogether to keep the Student system on
schedule. In re-examining the progress, available resources,
and the implications of not having fully integrated applications,
it was decided to extend work on all three projects. As
a result, the expected completion dates have been pushed
back to compensate for insufficient funding.
Full funding for implementation was estimated to be $2.078 million
in FY 2001 – a level that would have allowed the University
to make significant progress in implementing the suite of
PeopleSoft systems and to achieve the original project deadlines.
The fully funded project would have included additional
consulting, technical services, a packaged end-user training
program with a training/communications coordinator, funding
for imaging hardware/software, and funding for other integrated
products that would greatly enhance our finished systems.
FY
2001 Budget Scenarios: URI – PeopleSoft Implementation
|
|
Scenario #1Approved Funding |
Scenario #2Requested/Full Funding |
| Temporary
Employees & Consultants
¨
PeopleSoft Student
¨
PeopleSoft HR
¨
PeopleSoft Financials |
$457,000$92,000$150,000 |
$570,000$200,000$180,000 |
| Internal
Staffing and Position Backfill
¨
Student Areas
¨
HR/Payroll Areas
¨
Financials Areas |
$22,500$0$0 |
$120,000$60,000$60,000 |
| Training
costs implementation team |
$40,000 |
$98,000 |
| Training
costs end-user training (*1 FTE & EUT kits) |
$0 |
$300,000* |
| Technical/Upgrade
Consultants |
$57,500 |
$150,000 |
| Integrated
Imaging/Scanning |
$0 |
$140,000 |
|
Third-party
products |
$0 |
$200,000 |
|
Total
Implementation Funding Appeal to OHE |
$820,000 |
$2,078,000 |
| 1999
Unfunded Request for 3 FTE in MIS (Salaries &
Benefits) |
$200,000 |
$200,000 |
One
of the central problems with the implementation has been
the reliance on expensive consultants to fill the void created
by inadequate MIS staffing. These specialized external
personnel were hired to execute specific tasks that could
not be done by URI personnel. For example, our consultants
are hired to assist the development teams in building the
new URI systems. Periodically the consultants are diverted
to handle difficult technical questions (e.g. PeopleSoft
data conversion questions) that could otherwise have been
done by URI MIS professionals – if sufficient MIS staff
were in place. One element of the funding listed above
is the request from the University Office of Information
Services for three new MIS positions. The decision to go
with PeopleSoft was not the impetus for that FY 1999 request
for additional programmers. The positions are needed to
relieve a staffing shortage in MIS and would be considered
critical even if URI decided to pull the plug on the PeopleSoft
project tomorrow. Thus, if the MIS staff were augmented,
we would have our consultants focused entirely on the tasks
for which they were hired.
The
possibility of suspending the entire implementation of PeopleSoft
is a more complex question than it might seem. It could
lead to some short-term cost savings. However, in the long-term,
the potential to save money and provide an acceptable level
of customer service must be considered. If we were to suspend
the PeopleSoft implementation now, we still would face major
commitments of personnel and dollars to continue using our
legacy software or to acquire and implement alternate systems.
In addition, the University and the Public System of Higher
Education committed major investments ($8.5 million for
PeopleSoft software, $1.15 million to Oracle for the Database,
etc.) that would be lost if implementation were suspended.
The fact is, one can patch, repair, and augment 20-year-old
systems only for so long – like other major infrastructure
projects, eventually there is no other choice but to replace
the systems.
In
addition, the potential retirement of key programming personnel
within MIS and the consequent loss of institutional memory
of our legacy systems could be problematic. Failure to
switch to the next generation of administrative systems
will also put URI in a position of being invested in old
software that will no longer be supported or upgraded.
Finally, the inability of our current systems to integrate
and provide the service expected by our customers will put
URI at a competitive disadvantage at a time when higher
education as an industry is becoming increasingly competitive.
Students are continually demanding rapid and improved services
– our legacy systems can no longer meet this challenge.
For all of these reasons the Steering Committee does not
recommend suspending the PeopleSoft implementation.
When
will the implementation be finished?
The
Executive Steering Committee is reviewing the postponement
of “go-live” dates due to lack of funding—both institutional
and from OHE. The PeopleSoft implementation paradigm relies
heavily on user staff developing rules, evaluating business
processes, and designing workflow to fit our institution.
The projects have been constrained, in part, due to a few
administrative units within URI that have not been able
to commit sufficient time of their skilled personnel to
assist in the development of new systems. The University
MIS staff has been maintaining legacy systems while working
on the implementation of PeopleSoft with no additional staff
or ongoing technical consulting support. If additional
internal resources cannot be committed to the project, the
go-live targets need to be pushed back by at least a year.
No benefits of the large investment will be realized until
the end of this administration and staff attrition will
be challenges down the road.
The
following list summarizes what the PeopleSoft Executive
Steering Committee expects as the most likely “go live”
dates for the Student modules and the Financials and HR
systems, specific to the budget scenarios.
|
|
Expected “Go Live” Dates: Scenario #1Approved Funding$820,000
OHE |
Expected “Go Live” Dates: Scenario #2Requested/Full Funding$2,078,000
OHE & URI, and
$200,000 3 FTE MIS |
|
Undergraduate
Admissions |
October,
2000 |
October,
2000 |
|
Graduate
Admissions |
October,
2001 |
October,
2000 |
|
Human
Resources |
October,
2001 |
July,
2001 |
|
Create
Instructors/Advisors |
February,
2002 |
February,
2001 |
|
Issue
Student ID Cards |
March
2002 |
March
2001 |
|
Financial
Aid |
March,
2002 |
March,
2001 |
|
Student
Records |
March
2002 |
March
2001 |
|
Student
Financials |
June,
2002 |
June,
2001 |
|
Financials |
July,
2002 |
July,
2002 |
It
is worth noting, however, that the implementation teams
are working diligently to accelerate implementation and
bring modules into production prior to the aforementioned
dates.
