Transforming the University of Cincinnati
with the mySAP Business Suite –
Lessons Learned
Mr. Dennis Yockey (UC), Mr. Jim Lewis (UC),
Mr. Danny Trudgett (IBM)
www.uc.edu/ucflex
1
Agenda
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Preparing for New Business Systems
Implementing mySAP for Financials
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Mission, Scope and Approach
Architecting and Building the Technical Infrastructure
Creating a High-Performing Project Team
Project Governance – Balancing Consensus with Speed
Defining the Enterprise – UC Flex
– Adding HR/Payroll and COEUS
– Creating the UC Flex Program Management Office
– UC|21 – Supporting the University’s Strategic Plan
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•
Lessons Learned
Questions
www.uc.edu/ucflex
2
Preparing for New Business Systems
•
The Case for Change
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Core Systems Review identified that the Financials and HR legacy
systems needed to be replaced
Information Management Technology Committee set priority –
Financials then HR
Project Sponsors and Selection Committee Established
Business Case and Project Charter Developed
Selecting the Financials Solution
1.
Software RFP Process for Financials selected SAP
•
2.
RFP  Shortlist  References  Site Visits  Demonstrations 
Negotiations
Implementation Partner RFP process for Financials selected IBM
•
RFP  Shortlist  References  Presentations  Scoping 
Statement of Work  Negotiations
www.uc.edu/ucflex
3
Agenda
•
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Preparing for New Business Systems
Implementing mySAP for Financials
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Mission, Scope and Approach
Architecting and Building the Technical Infrastructure
Creating a High-Performing Project Team
Project Governance – Balancing Consensus with Speed
Defining the Enterprise – UC Flex
– Adding HR/Payroll, COEUS & Other Initiatives
– Creating the UC Flex Program Management Office
– UC|21 – Supporting the University’s Strategic Plan
•
•
Lessons Learned
Questions
www.uc.edu/ucflex
4
Objectives & Benefits
•
Key Objectives
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Relate to UC’s needs as a 21st century public university
Flexibility and information access improvements
Ability to use UC information to manage resource strategies
Efficient UC operations and accurate information
Anticipated Benefits
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Support a flexible, evolving & responsive business environment
Eliminate non-value adding activities, such as data entry duplication
Adopt best practices where possible
Improve ability to service customers
Integrate multiple functional areas within UC
Reduce reliance on ancillary systems
Streamline business processes and reduce inefficiencies
Support information sharing and access
www.uc.edu/ucflex
5
Project Mission
• Deliver a mySAP solution to enhance the
University’s financial management operations,
supporting the following objectives:
– Delivered on-time and on-budget
– Utilize an integrated approach to design and build the
system
– Provide for common business processes and data at all
levels within the University
– Eliminate shadow systems wherever possible
– Provide an integrated core solution that improves current
operations and allows for future enhancement (e.g.
HR/Payroll, e-procurement)
www.uc.edu/ucflex
6
Geographic & Organizational Scope
• University of Cincinnati
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A Public Doctoral/Research University-Extensive
Three Campuses + Three Remote Locations
34,000 Students
14,000 Total Staff (4,100 Administrative Staff)
Annual Budget $780m
Endowment $1Bn
• 1,000 SAP users (Financials)
www.uc.edu/ucflex
7
Functional Scope – Financials
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General Ledger
Accounts Receivable / Revenue Mgt
Accounts Payable
Managerial Accounting
Purchasing & Procurement
Asset Accounting
Project Accounting / Capital Finance
Grants Management
Budget (inc. Position Budgeting)
Funds Management
Endowment / Investment Accounting*
Reporting
mySAP components:
– R/3 Enterprise 4.7 (EAPS 2.0)
– Strategic Enterprise
Management (SEM)
– Business Warehouse
(BW)
– Enterprise Portal
* UC Customer Enhancement
www.uc.edu/ucflex
8
University Specific Challenges
• Grants Management
– Indirect Costs
• Budget Preparation
• Substitution rule for revenue distribution
– Multi-year budgeting in FM
• Project Accounting
– Funding structures
• Position Management
– Process integrates across HR/Payroll
• Endowments Management
– Custom Development
www.uc.edu/ucflex
9
Endowments Management
•
The UC Endowments Management solution will be used by the
treasurer’s office to:
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Manage the pooled endowment funds
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Manage the Temporary Investment Pool (TIP)
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Tracking of average daily cash balances
Distribution of income and overdraft assessment
Provide detailed reports to departments of pooled investment activities
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Purchase and sale of shares
Distribution of income and assessment of fees
Actual and projected income and expenses
Market value and costs of pooled endowment holdings
Record monthly investment activity
Key Design Points include:
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Use of SAP Corporate Finance Management (CFM) for creation of stocks
Custom tables and programs for all other pool management activities
www.uc.edu/ucflex
10
System Infrastructure Scope
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Architected, sized and built from a clean-sheet to provide a robust,
flexible and scalable mySAP infrastructure. Components include:
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Sandbox, Development, QA, Training and Production environments for:
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SAP R/3 Enterprise Release 4.7 / Web Application Server 6.2
BW 3.5 / WAS 6.40 Kernel
Enterprise Portal 6.0 SP9 / WAS 6.40 Kernel
System Landscapes for:
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IBM P-series Hardware - p670/p570 + AIX 5.0 with virtualization
Windows 2003 SQL Server Cluster for Enterprise Portal
EMC CX700, STK SL8500
Solution Manager 3.1 (for Operations)
AscendantTM SAP Toolset
Other components:
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Novell e-Directory LDAP
In Future: Linux and Big IP Version 9
www.uc.edu/ucflex
11
System Infrastructure Diagram
SAP Support
LPARs
Internet
LPARs
QA
R/3 - (RQ1)
SAP Router
DB2
Development
BW - (BD1)
DB2
R/3 - (RD1)
DB2
Pwr5
AIX
5.3
1P, 2GB
Pwr4+
AIX
5.3
LDAP Directory
QA
BW - (BQ1)
DB2
Development
1P, 6GB
2P, 4GB
2P, 9GB
Pwr5
AIX
5.3
LDAP Sandbox Server
Pwr4+
AIX
5.3
(platform undecided)
LDAP Directory
Training
R/3 - (RT1)
DB2
1P, 2GB
Pwr5
AIX
5.3
WGate - Prod, Train
Windows 2003
Hardware Load Balancer
(Big IP)
Training
BW - (BT1)
DB2
1P, 2GB
Pwr5
AIX
5.3
.5P, 1GB
DS
Service
Processor
Web Server (Prod, Train)
Windows 2003 32 Bit
IIS 6.0
IGS Server (Prod, Training)
p670
12-way, 32 Gb memory
Serial Connection
Hypervisor
attach to 10.x.x.x Network
p570
Solutions
Manager (SM2)
16-way, 64 GB memory
Production
(AI) for R/3
Enterprise
Pwr4+
AIX
5.3
4P, 10GB
Technical
Sandbox
R/3 - (RS2)
1P, 1GB
Technical
Sandbox
BW - (BS2)
DB2
Production
R/3 Enterprise (RP1) (CI)
1P, 2GB
Pwr5
AIX
5.3
1P, 2GB
Production
DB2
(for BW)
DB2
Pwr5
AIX
5.3
Production
(AI) for R/3
Enterprise
Web Server (Prod, Train)
Windows 2003 32 Bit
IIS 6.0
AGate - Prod, Train
switchover
Pwr5
AIX
5.3
6P, 13GB
Pwr5
AIX
5.3
1P, 2GB
Pwr4+
AIX
5.3
1P, 1GB
Production
BW - (BP1)
Central Instance
Windows 2003
Pwr4+
AIX
5.3
1P, 2GB
Technical
Sandbox
switchover
Web/Portal APP Server (SBX, DEV, QA)
.5P, 1GB
Windows 2003 32 Bit
IIS 6.0
SAP J2EE Engine 6.20 (1:n)
Dispatcher
WGate/AGate - Dev, SBX, QA
IGS Server - Dev, SBX, QA
Pwr4+
AIX
5.3
Portal APP Server (Prod, Train)
Windows 2003 32 Bit
SAP J2EE Engine 6.20 (1:n)
Dispatcher
2P, 5GB
Pwr4+
AIX
5.3
Pwr5
AIX
5.3
switchover
Service
Processor
Production
DB2
(fR/3)
Pwr5
AIX
5.3
2P, 4GB
Pwr5
AIX
5.3
SQL Server Cluster (Portal)
Windows 2003 32 Bit
SQL Server 2000
SandBox, DEV, QA
failover
www.uc.edu/ucflex
Windows 2003 32 Bit
SQL Server 2000
Training, Prod
12
Internal Network, Virtual Ethernet
SD
Implementation Strategy – Financials
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A multi-wave implementation timeline that supports a big-bang go-live in July, 05 for
SAP R/3 with the Budget Planning system available Apr, 05
An integrated project team that is a comprised of high-caliber UC staff and
consultants in co-leadership roles. The team includes Team Members, Subject
Matter Experts and Business Process Owners with functional responsibilities
A proven methodology – AscendantTM SAP – which provides the guidance,
framework, and process checkpoints that constitute a successful implementation
A comprehensive set of tools and accelerators, including RWD Info Pak and the
AscendantTM SAP Toolset which provides a web-enabled project support system
and central repository that aids in managing the project and maintaining project
documentation and deliverables, including:
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Project Management & Communication – Issues, Calendars, Email workflow, etc
AscendantTM SAP Method – based on Accelerated SAP with WBS, Accelerators, etc
Document Library – Requirements, Plans, Presentations, Minutes, etc
SAP Reference Model
Customer Reference Model – The “In Scope” model with process documents (e.g. BPP’s)
attached to nodes in the tree
www.uc.edu/ucflex
13
Implementation Timeline – Financials
Wave
2004
2003
2005
S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Project Prep.
Blueprint
Core Financial
Management
(R/3 Enterprise)
Budget
Planning
(SEM-BPS)
Final
Prep.
Realization
Go Live
Sustain
Core Financial
Blueprint
Blueprint
Project
Strategies &
Standards
Realization
Final
Prep.
Go Live
Sustain
Blueprint Realization Final
Prep.
Financial
Reporting
(BW)
Go Live
Sustain
Blueprint / Realization
Portal
www.uc.edu/ucflex
Go Live
Sustain
14
Project Team
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A single, integrated project team comprised of UC, IBM and SAP
staff, who share:
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A common vision
A single project plan with common milestones and deliverables
A single project governance structure
Shared responsibility for delivering on-time and on-budget
Adopt the “Commercial Off-The-Shelf” Best Business Practices
contained in the mySAP solution (a.k.a. System Based Business
Process Reengineering)
Empowered to resolve issues and make decisions
Transfer knowledge to UC during the implementation to create
self-reliance after the project is finished
UC Team Member’s positions backfilled to support ongoing
operations
www.uc.edu/ucflex
15
Project Team Structure
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Project Managers
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Team Leads
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Most are Full-time
Includes staff from Colleges/Departments
Process Owners
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Four teams: Business Process, System Infrastructure, System Development
and Change Management & Training
Each team has two leads – UC and IBM
Team Members
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UC Business, UC Technical, IBM
One for each Process Area e.g. G/L, Grants, Endowments, etc
Signoff on: Blueprint, Roles, User Training Plans, User Acceptance
Subject Matter Experts
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Participate in Blueprint Workshops and Configuration Confirmation Sessions
www.uc.edu/ucflex
16
Change Management & Training
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Integrated component of the UC Flex Team
UC Flex Leadership with IBM and UC team members
Change Management Scope includes:
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Change Management Strategy
Stakeholder Analysis, Change Readiness Surveys, Communication Plan,
Communication Survey, Townhall meetings, Newsletters, FAQ’s, Listserv
(email), Web site, Road Shows
Training scope includes:
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Project Team Training Plan – Business and Technical
User Assessment, Training Strategy and Plan
Training Standards, Templates and Prototypes
End-User Course Development and Training Delivery
RWD Info Pak
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Content Development, Context-sensitive Help
www.uc.edu/ucflex
17
End User Training
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Role-Based Training Development
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Blueprint  Processes  Roles  Curriculum
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Training Delivery Process
1.
Identify UC Flex Users
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4.
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Blueprint identified the system and business processes
SAP Roles (>65) identified and mapped as-is  to-be
Curriculum developed based on the roles users will perform
Training Survey identified users and current processes
Map current processes to UC Flex Roles
Train Business Administrators on UC Flex Roles
Validate UC Flex Users with Business Administrators
Create Individual Training Plans
Distribute Individual Training Plans through Business Administrators
Create the Training Schedule
Web-based Training Registration
Track Attendance & Monitor Feedback
End User Training Scope
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More than 40 courses and workshops
Over 2,500 hours (total) of training to be delivered
www.uc.edu/ucflex
18
Project Governance
Project Sponsors
VP - Finance
VP - CIO
Executive Steering Committee
Co-Chairs
Members
Program
Decisions
Project Management
UC Business PM
UC Technical PM
IBM PM
Change Mgmt & Training
Business Process
System Development
System Infrastructure
UC & IBM Leads
UC & IBM Leads
UC & IBM Leads
UC & IBM Leads
www.uc.edu/ucflex
19
Agenda
•
•
Preparing for New Business Systems
Implementing mySAP for Financials
–
–
–
–
•
Mission, Scope and Approach
Architecting and Building the Technical Infrastructure
Creating a High-Performing Project Team
Project Governance – Balancing Consensus with Speed
Defining the Enterprise – UC Flex
– Adding HR/Payroll and COEUS
– Creating the UC Flex Program Management Office
– UC|21 – Supporting the University’s Strategic Plan
•
•
Lessons Learned
Questions
www.uc.edu/ucflex
20
UC Flex is…
• Transforming Business
• Transforming Information Systems – using technology as
an enabler
• A High Priority
• Still Evolving – adding new initiatives
• Made up of:
– UC Flex Financials  mySAP Financials
– UC Flex HR  mySAP HR + PeopleAdmin
– UC Flex Grants Management  COEUS + SAP Grants
Management Module
• Supported by a single Program Management Office
www.uc.edu/ucflex
21
Program Management Office
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To ensure an integrated and cost-effective enterprise-wide solution, UC
established a Program Management Office (PMO) with the charter to:
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Support and Control UC Flex related Projects
Provide Management Visibility
Institutionalize Project Management
The UC Flex PMO responsibilities include:
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Establish Project Standards
Provide Project Management Support
Collect, analyze and report information on projects
Monitor projects for conformance to standards
Monitor scope, issue, risk, and performance
Improve the skill level and capabilities of project managers within the
organization
Acquire and Implement project management processes, tools, techniques and
capabilities
www.uc.edu/ucflex
22
New Initiatives
• New Projects
– Replacing the legacy HR/Payroll with SAP
– Implementing COEUS
• Impacts on the UC Flex Program
– Updated Project Charter
– Updated Governance Model
• Added Sponsors for HR & Grants Management
• Added Steering Committee members for HR & Grants
Management
• Created HR Process Change Leadership Group
– Created HR Team
– Created Integration Roles
www.uc.edu/ucflex
23
UC Flex HR Scope
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Organization and Position Management
Personnel Administration
Time Management
Benefits Administration
Compensation Administration
Payroll Processing and Payroll Accounting
Self Services – Manager and Employee
Talent Management – Training, Qualifications,
Career Development
www.uc.edu/ucflex
24
UC Flex HR Benefits
• Anticipated Benefits:
– A standard (SAP-centric) platform allowing a truly
integrated system
– Streamlined business processes using the SAP system
to provide faster, more convenient service to the
University community
– Increased automation allowing the University to shift
effort from centralized administrative activities to
employee/manager services and programs
– Electronic Workflow approvals
www.uc.edu/ucflex
25
UC Flex Financials + HR Timeline
‘03
Wave
2004
2005
Oct Jan Apr Jul Oct Jan
Dec Mar Jun Sep Dec Mar
Apr Jul Oct
Jun Sep Dec
2006
2007
Jan Apr Jul Oct Jan Apr Jul Oct
Mar Jun Sep Dec Mar Jun Sep Dec
Core Financial
Management
Budget
Planning
Position
Management
Reporting
HR
Administration
Self Services
Talent
Management
Payroll, Employee Information,
Compensation, Benefits,
Time Keeping, Org Mgt, etc.
Manager Self Services - ePAF
Employee Self Services,
Benefits Enrollment
Training Management
Career Planning
www.uc.edu/ucflex
26
UC Flex – COEUS
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Mission
– Implement a research administration system which will meet the
needs of UC’s research units and central administration
– Integrate components of SAP Grants Module with COEUS to deliver
significant pre and post award functionality to the desktop
•
Benefits
– Assist the Office of Sponsored Programs with pre and post award
management of sponsored activity.
– Manage awards from cradle to grave
– Proposal development opportunities for the future including electronic
submission of proposals
www.uc.edu/ucflex
27
COEUS Timeline
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Phase 1 (November, 2005)
– Proposal module – store completed proposals
– Award module – maintain detailed information on awards and subawards
– Subcontract module – maintain detailed information on subrecipients
– Person module – repository for information on employees
associated with proposals and awards
•
Phase 2 (Fall, 2006)
– Conflict of Interest module – maintain all conflict of interest and
financial interest disclosures that may compromise professional
judgment in carrying out research work
– Negotiation module – track negotiations for individual proposals
www.uc.edu/ucflex
28
UC|21 – UC’s Strategic Plan
Six Goals:
• Place Students at the Center
• Grow Our Research Excellence
• Achieve Academic Excellence
• Forge Key Relationships &
Partnerships
• Establish a Sense of “Place”
• Create Opportunity
www.uc.edu/ucflex
29
Agenda
•
•
Preparing for New Business Systems
Implementing mySAP for Financials
–
–
–
–
•
Mission, Scope and Approach
Architecting and Building the Technical Infrastructure
Creating a High-Performing Project Team
Project Governance – Balancing Consensus with Speed
Defining the Enterprise – UC Flex
– Adding HR/Payroll and COEUS
– Creating the UC Flex Program Management Office
– UC|21 – Supporting the University’s Strategic Plan
•
•
Lessons Learned
Questions
www.uc.edu/ucflex
30
Project Governance
Lesson Learned
Project Impact
Dual Program Sponsorship
• CFO and CIO as sponsors ensures that the
project is “Business Driven” and “IT
enabled”
Steering Committee CoChairs
• Co-chairs represent business areas and IT
• Provides a mechanism for decision making
without having to wait for a meeting
Steering Committee
Meeting Every 2 Weeks
• SC stays current on the project and can
support change management through their
role as change champions
Project Management
incorporates business
process, methodology and
technology
• Decisions are made in a timely manner at
the project team level
• Decision making is built on consensus and
decisions are durable
www.uc.edu/ucflex
31
Project Execution
Lesson Learned
Project Impact
Staff the project with
sufficient, high-quality
resources
• A lack of skilled, available resources can
diminish both project quality and scope
Manage the change with a
team that includes
experienced University staff
• A change management effort not
customized for the University’s culture
jeopardizes acceptance
Engage University staff
early in the project
• Identify team skill gaps and training needs
well before project preparation begins
Train the project team
• Be prepared to adjust the training plan
during/after Blueprint
• Pre-select technical team members for
specific areas
• Cross-train to facilitate integration
www.uc.edu/ucflex
32
Project Execution
Lesson Learned
Project Impact
Prepare and Execute a
Knowledge Transfer Plan
• University needs to understand the new
system and be able to support it
• Prepare a contingency plan
Risk Management should
be iterative, top-down and
bottom-up
• Risks identified early can be prevented
before they occur
• Comprehensive risk management creates
integration between teams and builds trust
with Sponsors
Plan for the Competency
Center (the other project)
early in the implementation
• The right time for sustainment planning is
not when the implementation is busiest
• The Competency Center needs separate
funding and resources from the
implementation project
www.uc.edu/ucflex
33
Project Execution
Lesson Learned
Project Impact
Plan for a shorter Blueprint
phase to drive decisions
• As-is sessions can take a lot of time
• Focus the team on the to-be
Build Partnerships
• SAP is a long-term commitment that will
evolve over time at the University
Create a Document
Repository from project
inception
• Capture “as-is” and other valuable
documentation generated before the
implementation project begins
Negotiate contracts well
before they are needed
• Allow time to agree on Terms & Conditions,
including Service Level Agreements
www.uc.edu/ucflex
34
Functional Design
Lesson Learned
Project Impact
Prioritize the functional
scope to maximize benefits
with the resources invested
• “Nice to Have” functions can cost a lot to
implement and deliver little benefit
• The 80/20 rule applies to scope
Allow for a second
implementation phase
• Eliminates the perception that it is now or
never for the “nice to have” functions and
plan for a “phase 2”
Plan for an upgrade
• Don’t build it now if it’s coming in the next
release and you plan to upgrade
Involving key stakeholders
in the development of SAP
roles
• Community understands how SAP will be a
part of their work life before user training
• Community involved in decisions on staff
roles, individual training plans and security
profiles which increases system acceptance
www.uc.edu/ucflex
35
Technical Infrastructure
Lesson Learned
Project Impact
Architect the solution
thoroughly
• Large SAP environments are a complex and
evolving architecture – hardware and
software
• Set simple, achievable goals up front and
stick to them
Use multiple sources for
sizing
• Different sources (Quicksizer, references,
interviews, etc) give different answers
Architect for Flexibility
• New technologies or versions can deliver
compelling business benefits
Architect for Scalability
• SAP is a long-term platform with rich
functionality that should be able to grow as
the business needs
www.uc.edu/ucflex
36
Agenda
•
•
Preparing for New Business Systems
Implementing mySAP for Financials
–
–
–
–
•
Mission, Scope and Approach
Architecting and Building the Technical Infrastructure
Creating a High-Performing Project Team
Project Governance – Balancing Consensus with Speed
Defining the Enterprise – UC Flex
– Adding HR/Payroll and COEUS
– Creating the UC Flex Program Management Office
– UC|21 – Supporting the University’s Strategic Plan
•
•
Lessons Learned
Questions
www.uc.edu/ucflex
37