Kuali Financial System Kuali Coeus Research Administration

Kuali Financial System – Kuali Coeus Research Administration Pat Burns, VPIT Kathi Delehoy, SAVPRA Allison Dineen, VPF March 18, 2009 Kuali Upgrade Status 1

Themes n Carpe diem n CSU is the ‘low-priced spread, ’ but because of the quality of CSU contributions & staff, you can’t tell that ‘it isn’t butter. ’ n Change, although difficult at times, is to the long-term benefit of the institution March 18, 2009 Kuali Upgrade Status 2

Background – Financial Management System (FMS) n Board in Q 3 2006 reviewed financial mgmt. software at CSU & CSU-Pueblo q q A financial system upgrade was explored, encompassing both campuses Decision against an integrated system: n n q CSU-Pueblo’s system is home grown, and finance is integrated; deconstruction infeasible CSU financial environment much more complex than at CSU-Pueblo, an integrated system is not a good ‘fit’ Mandate to upgrade CSU FRS by Jan. 1, 2009 March 18, 2009 Kuali Upgrade Status 3

Research Management System (RMS) n n During the same time period, Research Services was exploring strategies for the future of its systems q Current RMS is home grown, with areas of very good processes, but not integrated across functional areas, and difficult to scale to meet future needs q Current system is not sustainable due to growing research volume, need for additional functionality, reporting, auditing, and emerging requirement for CSU PI’s and others to integrate with grants. gov Solution: a formal Research Mgmt. System March 18, 2009 Kuali Upgrade Status 4

Perspective n n Current finance system - FRS q 17 years old q Only records transactions, little business intelligence or ability to manage our finances q Not interactive q Does not support collaborative research (multi-year, multi-project budgeting & accounting, purchasing, etc. ) q We need an FMS that supports and integrates with an RMS Explore an integrated approach March 18, 2009 Kuali Upgrade Status 5

FMS Software – All Vendor Products n n Three products developed for other markets q Oracle, SAP – private sector q People. Soft – purchased by Oracle, higher ed product q Sungard/SCT – “small schools” All four products have significant gaps q Financial gaps & little or no research functionality Landscape remains very uncertain q Risks high, especially with Oracle and People. Soft q Should we invest in products that are ~End-of-Life? No vendors have solutions that: q Provide good performance in large-scale, real time environments, q Solve the identity management imbroglio, and q “Throwing” massive consulting in does not work, e. g. CBMS March 18, 2009 Kuali Upgrade Status 6

Analysis n Now may be the worst time to purchase large administrative software applications q q n n High costs of licensing and inflation Low functionality, numerous “gaps” Extraordinary integration efforts required Managing vendor consultants very labor intensive Even worse for a “best of breed” approach High risk, low benefit for vendor software March 18, 2009 Kuali Upgrade Status 7

The “Landscape” n These factors are ubiquitous in higher education, especially in R 1 institutions, and a thriving “community source” movement has emerged, that offers (See It Takes a Community, NACUBO, January 2009) q Lower overall cost q Better functionality q Unconstrained, less complex integration with other systems q Easier implementation q A good risk to accept q By and for higher ed with promise of sustainability March 18, 2009 Kuali Upgrade Status 8

However, Community Software n n Requires local expertise q Functional and technical Requires local programmers, as we participate in the Kuali Foundation q q q An opportunity to influence the development so we do not take a step “backwards, ” particularly from current research systems To Collaborate with our partners to assure best practices in meeting federal requirements As a Resource to implement local business rules March 18, 2009 Kuali Upgrade Status 9

Kuali Characteristics n n n Only systems that integrate research & finance Full-featured functionality in both areas A modern, modular Service-Oriented Architecture q n n Positions CSU for the future Opportunity to influence functionality Much less expensive than commercial products March 18, 2009 Kuali Upgrade Status 10

Decisions n Implement community source products q q n Process q q n n Supported unanimously by a campus committee of 24 with broad representation & discussion Approval by CSU administration Kuali Financial System – go live July 1, 2009 Kuali Research Administration (now Kuali Coeus) – engage in a multi-year development effort, and implementing modules as they become available Define two functional project teams and Implement jointly, with IS’ support Include reporting from the beginning March 18, 2009 Kuali Upgrade Status 11

KFS-KC Project Structure SVP/Provost KFS KC A. Dineen, VPF P. Burns, VPIT K. Delehoy, AVPR T. Fluharty, B&FS D. Hesser, IS R. Splittgerber, RS J. Hunter, B&FS K. Mc. Henry, IS P. Harrington, OVPR E. Kissam, OVPR Executive Sponsors Executive Directors Project Managers Steering Committee March 18, 2009 Kuali Upgrade Status 12

Reality Triangle – the Constraints Functionality All three” trade off” against each other Time March 18, 2009 $$$ Kuali Upgrade Status 13

CSU – the ‘Low-priced Spread’ n n Staffing in administrative areas much lower than peer institutions Implementations of administrative systems are far less costly at CSU q No backfill for staffing – ‘day’ and ‘night’ jobs n q Calls for new skill sets—challenge/opportunity Examples of project implementation costs: n n n March 18, 2009 CSU SIS - $5. 7 M; CU SIS - $49 M CSU KFS & KC - ~$3. 5 M; CU Finance &HR - $50 M; UA Finance &HR ~$80 M CU Project Manager – ‘You guys are crazy!’ Kuali Upgrade Status 14

Budget Encompassing Both Projects n Base project budget q q n One-time project budget q q n KFS - $218 k/yr KC - $338 k/yr Reporting - $90 k/yr Total = $646 k/yr. KFS - $688 k KC - $655 k Reporting - $90 k Total = $1, 433 k Significant departmental investments to complement the project budget above March 18, 2009 Kuali Upgrade Status 15

What’s Ahead n KFS kick-off April 28, 2009 q n Kuali Financial System ‘go live’ July 1, 2009 q q n KC foreshadowed Initial alpha training in January 2009 Formal campus training to begin in late May 2009 Reporting q q Delphi data warehouse to be decommissioned 7/1/09 Currently in conversation with CAAG and others about a functional replacement n e. Thority and Oracle Discoverer in place March 18, 2009 Kuali Upgrade Status 16

Campus Impact n n n Greatly improved functionality & access q Direct web access n Administrative staff n Faculty/PIs But, new: cultural & operational changes q FMS – a big change from FRS q Reporting systems – a change from delphi q RMS – a systematic approach to grant submission and management New learning curves during time when staff and budgets are shrinking, overlaid with year end financial closeout March 18, 2009 Kuali Upgrade Status 17

Request n n n KFS: Encourage staff, especially faculty, to attend training KC: Encourage staff, especially faculty, to participate in development, testing, and training Understand the cultural changes and stress introduced into our environment q Wholesale change in the financial environment Support your staff and the new systems as they come on line Encourage feedback to kuali@colostate. edu and to the project team March 18, 2009 Kuali Upgrade Status 18

The Project Hype Cycle – for All Large Software Projects Peak of Inflated Expectations Positive Hype Negative Source: Mike Zastrocky, The Gartner Group Hype Plateau of Productivity FRS Trough of Disillusionment Slope of Enlightenment Technology Trigger Functionality Maturity Time March 18, 2009 Kuali Upgrade Status 19

Questions n Are most welcome! March 18, 2009 Kuali Upgrade Status 20