0 CUMREC 2005 Leveraging Enterprise Technologies Copyright Billy T. Herndon 2005. This work is the intellectual property of the author. Permission is granted.

1CUMREC 2005 Leveraging Enterprise Technologies

Copyright Billy T. Herndon 2005. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.


Leveraging Enterprise Technologies to Meet the Business Needs of a Major

Research University


Billy T. Herndon~~~~~~~~~~

Assistant Vice President for

Enterprise Information Systems & Services

Office of Information Technology

Duke University


TOPICS• Overview

• Governance and Organizational Structure

• Business Functions: – Implementation– Expansion

• Systems and Infrastructure

• Staffing

• Summary

• Future Plans


• Overview




• Staffing

• Summary

• Future Plans


Duke University Overview

• University & Health System– $2.8 Billion Operating Budget – $3.1 Billion Endowment – 37,000 Employees– 15,300 Students

• 7,900 Undergraduate• 7,400 Graduate & Professional


Duke Health System

• 3 Hospitals – Duke– Durham Regional– Raleigh Community

• Physician Practices • Hospice• Other related entities


Duke’s Administrative Systems• SAP/R3

– Financials

– Procurement

– HR/Payroll

– Business Warehouse

– Managers’ Self Service

• PeopleSoft SA

– Student Information System

• BSR Advance

– Alumni Development

• Blackboard

– Learning System


Duke’s SAP Systems

1999 - R/3 Financials

1999 - R/3 Procurement

2002 - R/3 HR/Payroll

2003 - Business Warehouse

2005 - Managers’ Self Service


• Overview


• Business Functions: – Implementation

– Expansion


• Staffing

• Summary

• Future Plans


Governance Structure

SAP Sponsors

Financial

Steering Committee

Procurement

Steering Committee

HR/Payroll

Steering Committee

Administrative Systems

Management



SAP Sponsors

Financial

Steering Committee

Procurement

Steering Committee

HR/Payroll

Steering Committee


Management


Governance StructureSAP Sponsors

University Health System

Executive Vice President Vice President - Financial ServicesVice President – Info Technology / CIO Executive Vice Provost for FinanceVice President – Human Resources

Executive Vice President Senior Vice President/CFO & TreasurerVice President & CIO Vice Chancellor, Medical Center



SAP Sponsors

Financial Steering

Committee

Procurement

Steering Committee

HR/Payroll

Steering Committee


Management


Governance StructureFinancial Steering Committee

University Health System

Vice President, Financial Services

Assistant Vice President & Controller

Assistant Vice President, Budget

Assistant Vice President, Cost & Reimbursement Accounting

Director, Academic Fin Services/Systems

Assistant Vice President, Administrative Systems Management

Assistant Vice President, Enterprise Information Systems & Services

Associate VP, Finance

Associate Vice Dean, Finance and Resource Planning



SAP Sponsors

Financial Steering

Committee

Procurement

Steering Committee

HR/Payroll

Steering Committee


Management



Procurement Steering Committee

Assistant Vice President, Procurement

Material Services - Health System





SAP Sponsors

Financial Steering

Committee

Procurement

Steering Committee

HR/Payroll

Steering Committee


Management


Governance StructureHR/Payroll Steering Committee

Vice President, Human Resources

Vice President, Financial Services

Director of Payroll

Assistant Vice President, Recruitment

Assistant Vice President, Compensation




Organizational Structure


Management

Office of Information

Technology

Executive

Vice-President, CFO

Vice-President for

Finance

Vice-President,

Information Technology

CIO


Organizational Structure Administrative Systems

Management

HR/Payroll

4 FTE

Financial

3 FTE

Procurement

2 FTE

Training & Change

Management

3 FTE


Organizational Structure VPIT / CIO

Assistant Vice President,

Enterprise Information Systems and Services

Application & Database

Services

Centralized Desktop &

Server Support

SAP, BW, EDI, DBA

( 16 FTE )

Communications and Systems

Infrastructure

OS, Backup, Storage

( 2FTE )

Second Level Support

( 2 FTE )

Help Desk

Call Center

( 1 FTE )


Organizational Structure Application & Database Services

( 16 FTE )

•Basis Administration ( 3 FTE )

•ABAP Programmers ( 8 FTE )

•EDI ( 2 FTE )

•Database Administration ( 2 FTE )

•Business Warehouse ( 1 FTE )


• Overview




• Staffing

• Summary

• Future Plans


SAP R/3 Financials

1999 2000 2001 2002 2003 2004 2005

Business Functions / Applications


SAP R/3 Financials at Duke…• Financials 4.0 – 1999

– FI, CO, PS, FM– Extended to Durham Regional and Raleigh Hospitals– Upgraded to 4.5b

• Internal Orders – 2002• Employee Travel - 2003 • Financials Rolled out to University Depts – 2003• Upgrade to 4.7 – 2004• 2200+ R/3 Financials users


SAP R/3 Procurement

SAP R/3 Financials

1999 2000 2001 2002 2003 2004 2005



SAP R/3 Procurement at Duke…• Materials Management 4.0 – 1999

– Single point of entry for Hospital materials ordering– EDI transactions with major suppliers– Fully automated replenishment model– Online requisitioning and approvals– Extended to Durham Regional and Raleigh Hospitals

• Upgraded to 4.5b – 1999• Upgrade to 4.7 – 2004• Integration with Patient billing system, 2005• 2100+ R/3 Procurement users


SAP R/3 Procurement

SAP R/3 Financials

SAP R/3 HR/Payroll

1999 2000 2001 2002 2003 2004 2005



SAP R/3 HR/Payroll at Duke…• Go-Live August, 2002 on 4.5b

– Replaced 20+ year old legacy system– Worked with SAP to incorporate functionality into core R/3:

• 403b / Multiple 403b vendors• Secondary positions• Effort and activity reporting for Sponsored Research

– Biweekly, monthly, and non-compensatory payrolls– 37,000 employees– Direct deposit, checks and vouchers– Numerous systems interfaces

• Upgraded to 4.7 in 2004


SAP R/3 Procurement

SAP R/3 Financials

SAP R/3 HR/Payroll

SAP BW - Procurement

1999 2000 2001 2002 2003 2004 2005



BW Implementation Plan - Scope

• Phase I – Implementation of BW System with limited Procurement and Financial Functions

• Phase II – Complete development of Procurement and Financial functions

• Phase III – Implementation of HR/Payroll functions

• Phase IV – Addition of non-R/3 data


BW Procurement

• Material Master Data Analysis• Vendor Master Data Analysis• Material Usage and Trend Analysis• Vendor Spend Analysis by Cost Object and Cost Element• Pricing Trends for Material Master Items• Purchasing Activity Analysis by Vendor, Material,

Purchasing Groups• Inventory Stock Values and Goods Movement Activity• Vendor Payment History and Balances • Vendor Transaction Line Item Summary

Business Functionality


Procurement Solutions

• 10 InfoCubes• Material Usage

• Vendor Spend

• Pricing Trends

• Purchasing Activity

• Purchasing Groups

• Material Stock/Movements

• Slow-Moving Items (Multi)

• Accounts Payable Line Items

• Accounts Payable Transaction Data (Monthly balances)*

• Vendor Activity* (Multi)


SAP R/3 Procurement

SAP R/3 Financials

SAP R/3 HR Payroll

SAP BW- Procurement

SAP BW-Financials

1999 2000 2001 2002 2003 2004 2005



BW Financials

• Controlling Activity (Cost Centers and Projects)• Fund Trial Balance• General Ledger Activity• Historical Fund Activity from Legacy System• Profit Center Activity (Plan vs. Actual)• Funds Management/Controlling/Profit Center Accounting Variances -

to ensure FM, CO, and PCA balance in R/3.• Financial and Controlling Line Item Detail• School of Medicine Programmatic Reports - provides business

managers with line-of-business (i.e. programmatic) reporting via Excel front-end. Lines of business include education, research, auxiliaries, etc. Allows drilldown to line item detail.

• Faculty Web Reporting - provides faculty with inception-to-date reporting for sponsored projects via web browser. Allows drilldown to line item detail.

Business Functionality


Financials Solutions11 InfoCubes• Costs and Allocations• Funds Management• G/L Monthly Balances• DAFT Funds Management• Profit Center Accounting• Project System Controlling• Project System Dates• Cost and Allocations/Profit Center

Accounting (Multi)• Funds

Management/Controlling/Profit Center Accounting (Multi)

• Financial/Controlling Line Items (Multi)

• Project System Controlling/Dates (Multi)


Faculty Grant Information

• Some faculty members wanted to look view their financial status of their grants on-line

• Faculty didn’t want to use SAP R/3– Too complicated– Required training

• Administration didn’t want faculty members in SAP R/3


Solution – Simple Web Access to BW

• BW is reporting tool – already loaded with data needed for faculty members

• BW queries can be presented over the web

• Quick response to problem


Challenges with Faculty Access• Faculty didn’t want to understand debits and credits

– “how much money do I have left”

– Over budget displayed in RED

• Zero training required– “I didn’t need any training to do on-line banking”

– Only thing faculty member needs to enter is the month (calendar month) and year

• Must address multiple needs– “By the way, my business manager needs to use this as

well”

– Provided business manager views


Summary Award Statement for a PI


SAP R/3 Procurement

SAP R/3 Financials

SAP R/3 HR/Payroll

SAP BW-Procurement

SAP BW-Financials

EP-MSS

1999 2000 2001 2002 2003 2004 2005



SAP Managers’ Self Service• 2004 – H/R Process Re-Design Project

– Focused on HR business processes:• Position Management

– Create, Re-class, Delimit, Create Vacancy• Recruiting

– Job Requisitions– Candidate Entry– Sourcing/Screening

• Employee Lifecycle Management– Hire– Staff Changes– Terminations

• 2005 – Implementation of SAP MSS (Managers’ Self Service) via Enterprise Portal and R/3 4.7


Moving from manual, paper intensive processes.

Terminations for faculty/staff/non-exemptNon-compensatory workforce excluded.

Terminations

Payr

oll

Dept

App

rove

rHR

IC/D

RH/

DHRH

Bene

fits

Staf

f & L

abor

Re

latio

nsDe

pt Termination Form

Completed

Review of Forms - Sec.

Pos. etc.

Dept Review

Form Correction

Review/Batching/Input Prep

Errors

TerminationConfirmed

Finalization

Approved

No

Payroll Data Entry

Error Resolution

from Payroll

Yes

No

Errors

Yes

END

No

NoReviews

WorkersComp/ Disability

Issues

Review Terms with

Cause

WC ClaimOpen ?

TerminateDisabled

No

Yes

Yes

Yes


To simple automated processes

Termination – Discharge

Termination not recommended for Rehire – Discharge

Wor

kflo

wD

ept/M

C

Appr

over

Wor

kers

Com

p an

d Be

nefit

s

Staf

f & L

abor

R

elat

ions

and

U

nem

ploy

men

tD

ept

Dept. completes Termination iForm – reasons as stated above

Rejected

Send Back with comments to Initiator

PeriodicReport

Hold for Review

Send Back with Comments to Initiator

Rejected

TerminationAction

Completed in Background

SAP Updated


MSS supported our vision for the business process

• Simple intuitive interface• Secure access to people, positions, and applicants • Update employee and position data • Electronic routing and workflow • Simple approval process• Status tracking at each step of the process


View Employee Data over the Web


On-Line HR/Payroll Transactions


• Overview




• Staffing

• Summary

• Future Plans


Systems / Infrastructure

1999 2000 2001 2002 2003 2004 2005

AIX / SP2 (13)

AIX / RS6000 (12)

AIX / RS6000 (13)

R/3 4.0 R/3 4.5b R/3 4.7

BW 3.0

EMC Symmetrix 6/3 tb

EMC Symmetrix 14/6.6 tb

BW 3.1

EP 6.0

Linux (8)

SAP Products / Systems

Storage

(Raw/Usable)

Platforms / Servers


Production Environment

R/3Database

Server

AppServer

AppServer

AppServer

App Server

AppServer

BW Database& App Server

PortalDatabase

Server

PortalServer

PortalServer

R/3 BW Portal


• Overview




• Staffing

• Summary

• Future Plans


Technical Staffing1999 2000 2001 2002 2003 2004 2005

Basis (3 FTE)

Help Desk (1 FTE)

OS/DBA/EDI (6 FTE)

ABAP (8 FTE)

BW (1 FTE)

Second Level Support (2 FTE)


Functional Staffing1999 2000 2001 2002 2003 2004 2005

Financials (3 FTE)

Procurement (3 FTE)

HR/Payroll (3 FTE)HR/Payroll (4 FTE)

Training & Change Management (3 FTE)


Combined Staffing1999 2000 2001 2002 2003 2004 2005

32 FTE33

FTE34 FTE


• Overview




• Staffing

• Summary

• Future Plans


R/3 ProcurementR/3Financials

R/3HR/ PayrollBW-Procurement

BW-FinancialsEP-MSS

1999 2000 2001 2002 2003 2004 2005

32 FTE 33 FTE 34 FTE

6/3 tb 14 / 6.6 TB

R/3BW

EP

Business Applications

Staffing

Disk Storage

& Servers

SAP Products / Systems

Summary View

13 servers 14 servers20 servers

Users1200 1400

3000290028002000 2400


• Overview


• Business Functions: – Implementation and Expansion


• Staffing

• Summary – Expansion and Integration

• Future Plans


Future Directions• Financials

– Cash Management, Treasury, JV workflow

• HR/Payroll• Time Entry, Time Evaluation

• Additional HR processes, forms

• Employee Self Service

• Additional web access to R/3 and BW

• Archiving


QUESTIONS?


For more information please contact:

Billy Herndon Assistant Vice President forEnterprise Information Systems & [email protected]

0 CUMREC 2005 Leveraging Enterprise Technologies Copyright Billy T. Herndon 2005. This work is the intellectual property of the author. Permission is granted.

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