Kuali Financial Systems Update Kuali Board of Directors

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

Kuali Suite Rosen Centre Salon 5

Indiana University Barry Walsh

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

Indiana: Enterprise Systems…today Vended Home grown • Student (PSFT) • HR/Payroll (PSFT) • Room Sched (Ad Astra) • Physical Plant (MMS) • Imaging (On. Base) • • • 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) It’s not about religion. Community Source • E-Portfolio (OSP) • Course Management (Sakai) • Financials (Kuali) • Research (Kuali) • Workflow (Kuali) • Portal (u-Portal) • Decision Support? • Imaging? (Fedora)

Future? Today’s Integrated Financial Suite General Ledger Chart of Accounts Standards Based Grants Management Core Technologies Accounts Receivable Purchasing/AP Modular Capital Assets SOA Workflow Budget Construction

Software Sourcing Options… Build 1970 -80 s • ? ? ? Build or Buy 1990 Build, Buy, or “Borrow” 2000 • Control of destiny • Leverage of $$ • Ecology of innovation • By, For and Of HE Risks Benefits 2010

University of Hawaii David Lassner

Kuali @ Hawaii David Lassner Chief Information Officer University of Hawaii david@hawaii. edu

Current Financial Management Information System (FMIS) • Vintage 90 s System – Mainframe / Adabas / Natural product orphaned by vendor – Substantial experience at self-maintenance including Y 2 K, 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 – – Y 2 K 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”…

Risk is Relative 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 Y 2 K insurance? 5) Y 2 K? 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.

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 - $500 K 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® Why Kuali Makes Sense For Us EDUCAUSE 2005 Charles Ingram Assistant Vice President, Financial Services

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

Workflow § 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 - $1 M 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 § 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 Return 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 $20 M 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 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 Joanne De. Stefano, VP Financial Affairs Cornell 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 People. Soft interfaces Community source consistent with higher education culture