ERP Customization: Is it Always a Bad Thing? CUMREC 2005 Dan McDevitt Barry Walsh Indiana University Copyright Dan McDevitt and Barry Walsh, 2005. This.

ERP Customization: Is it ERP Customization: Is it Always a Bad Thing?Always a Bad Thing?

CUMREC 2005

Dan McDevittBarry Walsh

Indiana University

Copyright Dan McDevitt and Barry Walsh, 2005. This work is the intellectual property of the authors. 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 authors. To disseminate otherwise or to republish requires written permission from the authors.

CUMREC 2005, Keystone

Build/Buy DilemmaBuild/Buy Dilemma

Are These the Only Choices?

Buy

Build

“Borrow”

CUMREC 2005, Keystone

Build/Buy DilemmaBuild/Buy Dilemma

Ideal? Vendor product that meets needs?

Next best may be ‘Build’

Many say the worst option is Buy and Customize You lose both sides of the game

Where is the line? Is there a line?

CUMREC 2005, Keystone

Our PremiseOur Premise

There is a valid place for buy and customize There are caveats There are choices to be made There are “Do’s” and “Don'ts” Not an “Eyes Wide Shut©” situation

There can be great payoffs if done correctly

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Indiana University Electronic Documents Indiana University Electronic Documents

Indiana University overview Objectives of HR Electronic Documents Demonstration Issues encountered Integration with PeopleSoft Wrap up – questions/answers

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Indiana UniversityIndiana University

• 8 Campuses• Annual budget $2.2 billion• 40,000 active employees• 47,000+ 2003 W-2s issued • 58,000+ active job records• 99,000 students

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Indiana University – Environment Indiana University – Environment

Complex environment with: Eight geographically dispersed campuses Each campus has independent campus HR, Academic,

Payroll offices Academic HR, Staff HR and Payroll oversight

administered separately Hundreds of departmental units process HR transactions Approval/review process includes multiple steps that vary

by personnel group, department, campus, etc. Many employees with multiple (concurrent jobs)

CUMREC 2005, Keystone

Indiana University – HRMS Project Indiana University – HRMS Project

HRMS Project -Live since December, 2002 PeopleSoft version 8.0 SP1 - Components

Base HR Payroll Process Benefits Administration Customized accounting/funding model – (not using PS

financials) HRMS Data Warehouse Time Keeping HRMS Electronic Documents

PeopleSoft SIS implemented in December 2004

CUMREC 2005, Keystone

Objectives of IU Electronic Documents Objectives of IU Electronic Documents

Replace paper forms with electronic documents, including workflow

Provide 1200+ departmental users with friendly interface to conduct Human Resource business activities

Provide alternative to distributing robust “native” PeopleSoft pages to departmental users

Documents must stay in “pending” state until final approval

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IU Electronic Document Design PrinciplesIU Electronic Document Design Principles

Documents intended to facilitate initiation close to the source

Present only necessary data attributes required to complete selected document type

Indicate fields that must be updated Enforce policy & accuracy by providing filter

valid values based on pre-selected attributes

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Types of Electronic DocumentsTypes of Electronic Documents

22 Document Types

Grouped by four categories

Additional Pay Create Additional Pay Maintain Additional Pay

Employee Activities - 16 Hire Maintain Job Data Transfer Maintain Funding Administrative Posts

Person Add New Person Maintain Person

Position Management

•Create Position

•Maintain Position

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Electronic Document Architecture/Dependent ComponentsElectronic Document Architecture/Dependent Components

HRMS (PeopleSoft) Extract data upon document initiation Documents made official or “saved to PS” upon

final approval IU’s OneStart Portal IU’s OneStart Workflow© HRMS Electronic Documents

Considered “pending” transaction until final approval

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OneStart Portal Key FeaturesOneStart Portal Key Features

Standard Portal Features Central Authentication Role-Based Access Personalization Information and Application Service Delivery

OneStart’s Distinguishing Features Persistent Navigation Built-in Enterprise Workflow Engine

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Workflow: Automated Routing of E-docsWorkflow: Automated Routing of E-docs

True workflow…routing E-docs from initiation to completion resulting in a business transaction

A single place for all IU action requests Assignable routing paths with status tracking Automates IU’s business rules Digital signatures on transactions “Stop the paper/email insanity” The E-Doc and its routing history are retained as a permanent

auditable record indefinitely.

CUMREC 2005, Keystone

IU HR Electronic Document Workflow/User RolesIU HR Electronic Document Workflow/User Roles

Document Initiators – 1200 + Three level of approvals

1. Required approval – 300+ Based on specific roles assigned to each department

2. Optional approval/reviews Rules based Document Type, Employee Type Individuals or Workgroups

3. Campus office level “final” approval – 40+ FYI notices

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Electronic Document Features Electronic Document Features

Individual document bridges multiple PeopleSoft Components, i.e.; Job data & Administrative Post Job data & Additional Pay Position & Job Data (update incumbent)

Workflow path for each document is logged and available for inquiry

Ability for users to add and view notes at each routing stop

Changes are logged as document is routed

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Demonstration Demonstration

Initiation Approval Process

Action List Final Approval – “Save to PS”

One document updating multiple PS components Document Search

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Overcoming Electronic Document IssuesOvercoming Electronic Document Issues

Subject & Document locking ensures data integrity by limiting updates on same

person/job/position by two documents Open validation

validates “pending” document data against matching PeopleSoft data each time document is open

Security Careful to eliminate sensitive data attributes Rely on workflow

Adding new people – decentralizing Search Match?

CUMREC 2005, Keystone

PeopleSoft Integration Plan/IssuesPeopleSoft Integration Plan/Issues

Plan Collect data using custom written application in

Java Data collected may cross multiple PeopleSoft

Components Data saved to PeopleSoft using Component

Interface (CI) API for Java Issues

Discovered CI’s work well with simple components Encountered issues when using CI’s with

complex components requiring a change to customized approach

CUMREC 2005, Keystone

Plan Revision Pros & ConsPlan Revision Pros & Cons

Positives of custom approach We are in control, not dependent on PS Fixes PeopleSoft business logic executed User can see PS errors and correct easily It works

Negatives of custom approach Customizations to maintain Multiple steps for end user User can change data during the save

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Electronic Document Statistics Electronic Document Statistics

Avg. 11,000 docs per month Highest number of transactions:

Hire Terminate Maintain Pay Rate Maintain Funding Create Additional Pay

3.5 days = Avg. timeline from initiation to final 3 stops = Avg. number of routing stops

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Operational IssuesOperational Issues

Training/Support - power users versus infrequent users

Disapprovals/Corrections Pairing up supporting documents

Transmittal sheet Workflow troubleshooting Managing expectations

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Requested (future) EnhancementsRequested (future) Enhancements

Updating multiple employee records via one document/transaction

Improving usability – primarily related to approvals

Ad Hoc Routing Electronic Document Reporting

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Summary Summary

Elimination of duplicate efforts – one point of entry

Improved data integrity Optimal turnaround time – automated routing

path User access to transactions at any point in time –

electronic file cabinet Transaction prioritization – ability to organize

work list

CUMREC 2005, Keystone

Questions?