Transforming UT
Modernization and Business
Productivity Initiative
TASSCC
March 21, 2014
Proprietary and Confidential
Transforming UT
Societal and Economic Pressures Facing
Higher Education Today
• Affordability
• Accessibility
• Transparency
• Accountability
• Innovation
• Reduced state support
• Protracted Recession
2
Transforming UT
Administrative Initiatives to Improve Agility and
Reduce Costs
• Administrative Systems Modernization
• Shared Services
3
Guiding Principles
• Open and transparent communication
• Involvement of key stakeholders
• Strong governance
• Adoption of best practice business processes
• Customization used only where needed for operational
or competitive advantage
• Opportunities for career development
4
Transforming UT
Administrative Systems Modernization
–Current Environment
–Drivers to Change
–Plan for Change
–Expected Gains
–Anticipated Challenges
5
Administrative Systems Modernization
Current Technical Environment
• 25+ years custom developed administrative systems
– Mainframe – Adabas/Natural
• Upgrades over time to add web capability
• Developers embedded in the business area
• Well-established developer community and training program
• Increasing adoption of third party vendor products for
specific business needs
• Increasing development using other platforms and languages
6
Drivers to Change
• 2004 – Commission of 125
• 2006 – Core Application Strategy for the Enterprise (CASE)
• 2009 – Strategic IT Accountability Board (SITAB) Report
• 2012 – Administrative Systems Master Plan (ASMP)
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Administrative Systems Master Plan (ASMP)
Case for Change
– Desire to take advantage of technological advancements
– Mitigate risks of relying on aging technology toolset (Adabas/Natural are
reaching end of life)
– Integration with third party open standard systems is very difficult and
expensive in the current environment
– Up-to-date standards and best practices are difficult with current toolset
– Difficulty attracting and retaining workforce
8
ASMP Requirements
1. Create business driven systems and data management
2. Modernize the administrative IT infrastructure
3. Strengthen systems development processes
9
Buy vs Build Considerations
• What will it take to re-tool and re-train workforce?
• What is an appropriate strategy for customization?
• What does the market currently offer?
10
Technology Waves – Administrative Systems
SAP, Oracle,
PeopleSoft,
SunGard
Software 2000, SSA
IA, MSA, Integral,
Tesseract
Mainframe
Mini
Client
Server
Salesforce,
Workday, Google
Cloud/SaaS
Workday, Inc. (NYSE symbol: WDAY)
Established in 2005 by PeopleSoft founders Dave Duffield and Aneel Bhusri.
Mobile first, consumer-based design methodology with single code line.
Committed to serving the higher education ERP market.
Human resource, payroll and finance applications are fairly mature. Presently building
student system designed to interact with today’s students (e.g. social media, mobility).
UT Austin is participating as a strategic design partner.
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Workday Customers
Higher Education
Texas
State and Local
Commercial
13
Architecture
2012
ASMP
Administrative Systems
Master Plan
• Create Business Driven
Systems and Data
Management
• Modernize the Administrative
IT Infrastructure
• Strengthen the Systems
Development Processes
2012
ASMP
2014
Administrative Systems
Administrative Systems
Master Plan
Modernization
Program
• Create Business Driven
Systems and Data
Management
• Modernize the Administrative
IT Infrastructure
• Strengthen the Systems
Development Processes
• Implement Workday for
HR/Payroll and Finance.
Student-TBD.
• Transition all other mainframebased systems off mainframe.
• Develop Strategic Reporting
Master Plan and Enhance IQ
• Implement Open Systems
Technical Architecture
(Integration and Development)
• Develop, Test and Deploy
Standards and Methodology
Processes
Administrative Systems Modernization Program
ASMP 2.0
• Workday Implementation
– HR/Payroll/Timekeeping
– Finance
– Integrations
• Student System Replacement
– Document current processes, requirements, stakeholder needs
– Initiate policy changes that will facilitate transition
– Participate as design partner for Workday Student
• Organizational Readiness
– Communication including web presence/branding
– Stakeholder engagement
– Training
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Administrative Systems Modernization Program
ASMP 2.0
• New Technical Architecture
– Open standards technology stack for hosting non-Workday applications,
including custom development
– Development, deployment and execution infrastructure and tools
– Integration environment
• Transition all mainframe-based systems off of mainframe
– Comprehensive inventory
– Develop roadmaps for transition/replacement
• Data Management
– Strategic Reporting
– Business Intelligence
– Data Governance
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Expected Gains
• Front of next wave of technology
• Faster implementation
• Best practice business processes
• Intuitive modern user experience – attract and retain staff
• More robust self-service
• Enhanced mobile capabilities
• Better analytics and access to data for decision-making
• Improved ability to integrate disparate systems
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Anticipated Challenges
• Major change on multiple fronts
• Culture shift – institutional level prioritization of
resources
• Hundreds of integration points
• Scheduled down times with Workday
• Loss of ability to customize
• Scope and scale of effort to transition distributed
systems
• Workforce impacts
• Financing
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Transforming UT
Shared Services
–Drivers to Change
–Current Environment
–Plan for Change
–Moving Forward
–Financial Strategy
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Drivers to Change
Steadily declining state support (general revenue)
• Percentage of University’s budget
– 1984-85: 47%
– Today: 13%
– Undergraduate tuition remains low, ranking second lowest in 2012-13 out of a 12-institution national
comparison group
• Cost to operate has risen (principally due to inflation)
–
–
–
–
Forced to limit salary merit increases
Funding for merit derived from closing unoccupied positions or laying off staff
Remaining staff left with an increased workload
Declining ability to attract and retain the best talent
• Revenues to fund general operations are expected to remain flat or in decline for the
foreseeable future
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Drivers to Change
2013
Committee on Business Productivity Report
Smarter Systems for a Greater UT
– 13 Distinguished Leaders in Business
– Advice on aspects of the University’s business operations and
processes that could be improved, streamlined, and leveraged to
better effect
– Recommendations on asset utilization, technology
commercialization, and administrative service transformation
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Current Business Environment
• Administrative workforce*:
– Total of ~12,000 staff and students (~8,500 Full-time Equivalents**(FTEs))
– Total administrative headcount supporting HR, Finance, Procurement, IT = 4,500 staff (~2,500 FTEs)
• Administrative activities are:
– Highly decentralized operations with manual processes
– Supported by administrative systems at end-of-life
• Annual attrition:
– Historical attrition trends for UT Austin staff supporting HR, Finance, Procurement, IT ranges from 500600 people per year
– Across all administrative staff, recent turnover attributed to layoffs ranges from 150-200 people
annually per year
• Limited shared services exists on campus today including:
–
–
–
–
McCombs School of Business (McCombs)
College of Liberal Arts (CoLA)
Central Business Office (CBO)
Information Technology Services Customer Support Services (ITS CSS)
* Administrative workforce refers to non-faculty employees at UT Austin. Total administrative headcount and attrition ranges for HR, Finance,
Procurement, and IT are estimates for initial planning purposes and will be updated over time.
** FTE = Full-time Equivalent and NOT Full-time Employee.
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Plan for Change
Apr May
Key Milestones
Shared Service Plan Phase
Jun
Jul
Aug
Plan Phase
Begin
Sep
Oct
FY 13-14
Nov Dec
Draft Plan
Release
Jan
Feb
Report to
President
Plan Phase
Campus Dialogue
Campus Dialogue
Plan Phase activities included:
•
•
Number of participants across campus: more than 250
Number of workshops, interviews, and group meetings: more than 100
Additional Campus Dialogue activities included:
•
•
Number participants across campus: hundreds
Number of sessions across campus: about 40
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Campus Dialogue Feedback Summary
Five key themes emerged from Campus Dialogue that have changed the proposed
Shared Services Implementation Plan.
Feedback
Response
1. Look at what UT Austin is already
doing in shared services
1. Build around a core of existing
shared services
2. Be thoughtful and diligent in the
approach to shared services
2. Take more time and pilot with
volunteers to collect UT Austin
specific data on shared services
3. Include campus input into
decision-making
3. Establish ongoing governance
framework and expand
communication
4. Be transparent and track
progress of shared services
4. Transparently track and report
existing and future progress of
shared services
5. Be sensitive to the impacts the
proposed changes will have on
the UT Austin community
5. Tailor workforce transition
approach to UT Austin culture
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Proposed Implementation Plan and Timeline for Pilots
Jan
Feb
Mar
FY 13 - 14
Apr May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
FY 14 - 15
Jan Feb
Mar
Apr May
Jun
Key Milestones
Pilot
Approval
Pilot
Review
Pilot
Review
Pilot
Review
Shared Services
Decisions
Governance
Establish
Administrative Pilots
(HR, Finance, Procurement)
Govern Pilots
Plan & Prepare
Transition Volunteers
Operate Pilots
IT Pilots
(End User Service, Infrastructure as
a Service, Network, Data Center)
Plan & Prepare
Transition Volunteers
Operate Pilots
Service Infrastructure
(Tools, Processes, Skills, Technical
and Physical infrastructure)
Plan & Prepare
Implement Improvements
Deploy to Pilots
Assessment of Pilots
(Service Delivery Quality, Staff
Opportunities, Savings)
Prepare
Track Benefits
Assess
Assess
Assess
Assess
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Financials: Investment and Savings for Proposed Plan
Based on input from Campus Dialogue, the pilots have lengthened the implementation
timetable and the investment is now expected to pay back in Year 8.
Expected perpetual annual benefits remain $30-40M.
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Bringing It All Together
• ASMP 2.0 initiatives will have significant cost ~ $100M
• Modernized systems will help Shared Services to realize
maximum efficiencies and cost savings
• Savings from Shared Services used to pay back cost of
ASMP 2.0
• Future savings re-invested in core mission
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Questions?
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Transforming UT