Kuali Financial Systems Update Kuali Board of Directors 10/19/05.

Kuali Financial Systems Update

Kuali Board of Directors

10/19/05

Kuali Suite

Rosen Centre Salon 5

Indiana University

Barry Walsh

“Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.”

…. from www.sakaiproject.org

Community Source Projects

“Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.”

…. from www.sakaiproject.org

Community Source Projects

Indiana: Enterprise Systems…today

Vended

• Student (PSFT)• HR/Payroll (PSFT)• Room Sched (Ad

Astra)• Physical Plant

(MMS)• Imaging (OnBase)

Home grown

• Course Management

• Financials• Portal• Workflow• Decision Support• Research Admin

Enterprise Systems…future

Vended• Student (PSFT)• HR/Payroll (PSFT)• Room Sched (Ad

Astra)• Physical Plant

(MMS)

Community Source• E-Portfolio (OSP)• Course Management

(Sakai)• Financials (Kuali)• Research (Kuali)• Workflow (Kuali)• Portal (u-Portal)• Decision Support?• Imaging? (Fedora)

It’s not about religion.

Future?

General Ledger

Chart of AccountsGrants Management

Accounts ReceivablePurchasing/AP

Capital Assets

WorkflowBudget Construction

Today’s Integrated Financial Suite

Standards BasedCore Technologies

Modular

SOA

Software Sourcing Options…

Risks

Benefits

•Control of destiny•Leverage of $$•Ecology of innovation•By, For and Of HE •???

1970-80s 1990 2000

Build Build orBuy

Build,Buy, or

2010

“Borrow”

University of Hawaii

David Lassner

Kuali @ Hawaii

David LassnerChief Information Officer

University of [email protected]

Current Financial Management Information System (FMIS)

• Vintage 90s System– Mainframe / Adabas / Natural product orphaned by vendor– Substantial experience at self-maintenance including Y2K,

GASB & web enablement– IBM dropped software support for our 1999 server

• Business Process Council tasked to recommend future of FMIS– Commercial options not favored

• Too expensive, too risky, too painful, won’t meet our needs, will spend all our effort implementing rather than on customers…

– Community/open source identified as desired future– So: hang in with FMIS on new mainframe

• Recommendation accepted by Administration and Board

Readiness for Kuali @ Hawaii

• Years of experience maintaining our current FMIS– Y2K– GASB– Web-enablement– Financial Datamart

• Early embrace of Java for administrative system development

• Tradition of adopting standards rather than products• Institutional experience that vendors are

not always “the answer”…

Hawaii experiences with administrative system vendors:1) We don’t support that product anymore; Buy our new one.2) We don’t do that any more; We’re in another business.3) We don’t do that any more; We’re in another business.4) Oh, that promise? Maybe later.5) New contract time; Let’s raise your maintenance fee 90%.

P.S. want Y2K insurance?5) Y2K? That’ll be half a million. Why? Because you’re our

last customer and we can make your system stop.6) We share your vision, Let’s partner. Dot.Bomb.7) We don’t like your contract any more; Let’s raise your

license fee 400% this year.

Risk is Relative

With Kuali, we promise to find new problems.

San Joaquin Delta College

Lee Belarmino

San Joaquin Delta College

• Large California Community College• Located in Stockton California• Agriculture area and Bedroom community for

Silicon Valley and Bay Area• Diverse students• Mix of vocational and transfer students• Silicon Valley Burnout

Delta College - Current Systems

Student Information System•System 2000•Developed In-house•Object Oriented - Smalltalk•Oracle Database•Client Server•11 Years old

Financial System•Oracle Financial•8 Years Old•Clunky

Human Resources and Payroll•System 2000•Home Grown

How Delta Became Involved with Kuali • New Leadership• Delta needs system security• Open source conference• Development reputation• Mutual interviews• Ability to make commitment - $500K• Decisive Leadership

Why Kuali is Right for Delta College• Uses our development expertise• Control our own destiny• Ability to integrate with other systems• On a modern development platform• Equal partner in all facets• Elegant solution• Security = vendor independence• Chance to give to other Community

Colleges

Delta College - Future Systems

Student Information System•Community Source

Financial System•Kuali - Community Source

Human Resources and Payroll•Commercial Package

University of Arizona

Charles Ingram

The University of Arizona®

EDUCAUSE 2005

Charles IngramAssistant Vice President, Financial Services

Why Kuali Makes Sense For UsWhy Kuali Makes Sense For Us

Our ERP Situation Our ERP Situation In process of replacing our student system 30 Year old HR/Payroll system Our financial system was purchased in the 80’s

– It was “Quite the System”– State of the Art– Real time data – even if the next day we were flying– No longer relying on microfiche

Now we have an aging financial system and a replacement is at least 10 years away– Trying to compensate with writing front ends – Not taking advantage of all the new technology – Demands for improvements are increasing

WorkflowWorkflow

Our campus business officers identified workflow as their priority #1 to alleviate the most issues.

We analyzed the options to address workflow needs: – Buy it Off the Shelf - $1M plus– Build it ourselves – time, resources and fiscal

concerns made this unattractive

Budget constraints require us to be more efficient with business practices

A New Way A New Way

Today, in the higher education industry, we collectively put an enormous stream of money into software through:– Solo investments (we build it) – Commercial vendors creating products to license (we

buy it)– Combination of both (development partnerships)

The University of Arizona has done it all – it’s been painful

Definition of insanity: Doing the same thing and expecting different results

High Potential ReturnHigh Potential Return Minimal Upfront Risk Minimal Upfront Risk

No immediate large $$$ or personnel commitment to implementation

Small investment for access to a complete system - price tag on a financial system replacement was likely over $20M

We are not reinventing the wheel Knowledge transfer/best practices to working team For higher ed, written by higher ed – we know our

business Opportunity for input to the system

Proven Software and MethodsProven Software and Methods

We are not reinventing the wheel - FIS has been in use for over 10 years at Indiana University

Indiana University is regarded as a leader in fiscal administration

Strong project structure– Business model partnership (SAKAI)– Project Manager– Functional Council– Architecture Council

We were concerned about consensus amongst schools could be reached

Key Issues were agreed upon early – scope control, project structure and management

Michigan State University

Bruce Alexander

MSU FIS/HRIS Project

• FIS/HRIS Project– Replacing a “legacy patchwork” of financial and

human resources systems

• MSU’s Architectural Direction:– Avoid monolithic ERP software– “Component Approach” to applications

• Blending components that offer best overall fit to MSU

– Integrate with middleware– Base on common Identity Management,

Authentication, and Security services

Why is MSU Interested in Kuali?

• Development in a Community Process– “Of, By and For Higher Ed”

• Based on a proven functional model• Transparency in development practices

– Data model and architecture– Coding and testing

• “Plays well with others” – built with integration in mind

• More predictable cost of ownership

October 19, 2005 October 19, 2005

Joanne DeStefano, VP Financial AffairsJoanne DeStefano, VP Financial Affairs

Cornell UniversityCornell University

Unique Private University

NYS land grant institution Seven endowed colleges Medical college in NYC and Qatar Four colleges managed under contract

with the State University of New York One experiment station Eight subsidiaries

Community Source?

How in the world can six schools agree on a system design?

Can a private university participate with a group of public schools?

Who makes decisions? Are we crazy?

Why Kuali for Cornell?

Flexible chart-of-accounts Labor distribution adjustment process Budget and accounting data

integrated Designed for distributed access Enables “soft” commitments All based on sophisticated workflow

tool

Benefits to Cornell

Workflow: an enterprise solution Learning how to do business

differently Campus is ready for a non-ERP

solution IU system designed with

PeopleSoft interfaces Community source consistent with

higher education culture