Buy or Build (or customize or outsource)? The answer is yes! Marianne Colgrove – Reed College Dave Smallen – Hamilton College
The resource question: Do we? B Buy A Build C Outsource
Déjà vu all over again?
Dave’s oversimplified characteristics of web and ERP applications Web ERP Form Function Presentation (reporting) Transaction processing Integration Data integrity/ security Single institutional image Non-redundancy Universal interface Proprietary Process elimination Process automation
Key Decision Factors High Buy/ Outsource Market Maturity ? ? Other factors Functionality relative to need Buy and don’t modify or Build (resource issue) Low Strategic Value High
Other Decision Factors n n n n Resource requirements ($$ and personnel) Cost of integration (ERP, LDAP) Time pressure Institutional standards (e. g. LDAP, SQL) Personnel talent Level of risk Technical complexity (e. g. modular vs. integrative) Uniqueness of policies & practices
Drivers 1974 – 2004… -Efficiency -Lack of time pressure -Automation -Maturity of technology -Functionality -Time pressure -Resources -Process improvement -Predictable costs/ Delivery? ? Outsource Buy Build Process elimination Integration Functionality Strategic direction Time pressure Competition Predictable costs/ delivery? Resource Scheduling ? ? Portal Web site (external focus) Alumni Community CMS (Blackboard) Other Info Systems (Datatel) HR HR/Payroll ? ? Payroll 1974 1990 2001 2002 2003 2004 2005
Strategic Efforts Admission Alumni / Development
Portal Demo
Themes 1980 – 2005 -Integration -Standard database -Computing out of the cellar -Modules from various sources -Customization necessary Admin modules Outsource Build The Web era Getting data out --> interaction Decentralization --> self service A/D web & datamart Alumni Directory ? ? Admission search web Course Registration Student Information Gateway Web site (external focus) Banner (finance, student, A/D) HR Payroll 1980 Buy 1992 2000 2001 2002 2003 2004 2005
Reed Examples n Build – Student Information Gateway & Course Registration (collaboration with Oxy) – Alumni Directory n Acquire – – Banner Web for Alumni/Development and A/D Datamart
Student Gateway n n n Faculty & registrar priorities Little convergence with Banner products No interest in changing practices Highly modular Grant-funded Opportunity to trade with Oxy
Alumni Directory (Reed. Link) n n n Bad experience outsourcing survey Facilitate data update Not about fund-raising Highly modular, expandable Shares some services with Gateway (e. g. Career Services, email forwarding) Now reconsidering some outsourcing
Alumni/Development n n n n Executive reporting for development Highly ad-hoc queries, on the road Timeline - “yesterday” Complex table structure Highly integrative Web for Alumni/Development datamart
Alumni/Development n n n Two-year implementation Dedicated new staff line Server with second Oracle instance Not necessarily faster, but feels better Both staff and infrastructure bring other benefits
Build n Pros – Close match with needs – Easier integration – Maintain standards – Expertise for other projects n Cons – Vulnerable to staff changes – Vulnerable to changes in technology – Needed project management
Buy n Pros – Community of users – Ability to interface with existing systems – Big jump in functionality – Sustainability n Cons – Cost – Difficulty of customizing – Uncertainty of continuing costs (or certainty of increase) – Viability of company/product – Planning still required
Outsource n Pros – Focused expertise Faster implementation – Predictable implementation costs n Cons – Integration with other systems – Lack of features – Unpredictable continuing costs – Collaborative relationship a must
W e ar her ing? e go ew hy a and w n this e we i r sket? andba h
"When you come to a fork in the road. . take it ” -- Yogi Berra
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