Buy or Build (or customize or outsource)? The answer is yes!

1. Buy or Build(or customize or outsource)? The answer is yes! Marianne Colgrove – Reed College Dave Smallen – Hamilton College

2. The resource question:Do we? Buy B Build Outsource A C

3. Déjà vu all over again?

4. Dave’s oversimplified characteristics of web and ERP applications

5. Key Decision Factors High Buy/ Outsource ?? Market Maturity Functionality relative to need Other factors Buy and don’t modify or Build (resource issue) Build Low Low High Strategic Value

6. Other Decision Factors • Resource requirements ($$ and personnel) • Cost of integration (ERP, LDAP) • Time pressure • Institutional standards (e.g. LDAP, SQL) • Personnel talent • Level of risk • Technical complexity(e.g. modular vs. integrative) • Uniqueness of policies & practices

7. Drivers1974 – 2004… Outsource Buy Build Process elimination Integration Functionality Strategic direction Time pressure Competition Predictable costs/ delivery? -Functionality -Time pressure -Resources -Process improvement -Predictable costs/ Delivery?? -Efficiency -Lack of time pressure -Automation -Maturity of technology ?? Resource Scheduling Portal Web site (external focus) Alumni Community CMS (Blackboard) Other Info Systems (Datatel) HR HR/Payroll HR/Payroll ?? Payroll 2002 2003 2004 1990 2000 2001 2005 1974

8. Strategic EffortsAdmissionAlumni / Development

9. Portal Demo

14. Themes1980 – 2005 Outsource Buy Build The Web era Getting data out --> interaction Decentralization --> self service -Integration -Standard database A/D web & datamart Alumni Directory ?? -Computing out of the cellar -Modules from various sources -Customization necessary Admission search web Course Registration Student Information Gateway Web site (external focus) Admin modules Banner (finance, student, A/D) HR Payroll 1980 1992 2002 2003 2004 2000 2001 2005

15. Reed Examples • Build • Student Information Gateway & Course Registration (collaboration with Oxy) • Alumni Directory • Acquire • Banner Web for Alumni/Development • and A/D Datamart

16. Student Gateway • Faculty & registrar priorities • Little convergence with Banner products • No interest in changing practices • Highly modular • Grant-funded • Opportunity to trade with Oxy

19. Alumni Directory (ReedLink) • Bad experience outsourcing survey • Facilitate data update • Not about fund-raising • Highly modular, expandable • Shares some services with Gateway(e.g. Career Services, email forwarding) • Now reconsidering some outsourcing

24. Alumni/Development • Executive reporting for development • Highly ad-hoc queries, on the road • Timeline - “yesterday” • Complex table structure • Highly integrative • Web for Alumni/Development • Alumni/Development datamart

25. Alumni/Development • Two-year implementation • Dedicated new staff line • Server with second Oracle instance • Not necessarily faster, but feels better • Both staff and infrastructure bring other benefits

26. Pros Close match with needs Easier integration Maintain standards Expertise for other projects Cons Vulnerable to staff changes Vulnerable to changes in technology Needed project management Build

27. Pros Community of users Ability to interface with existing systems Big jump in functionality Sustainability Cons Cost Difficulty of customizing Uncertainty of continuing costs (or certainty of increase) Viability of company/product Planning still required Buy

28. Pros Focused expertise Faster implementation Predictable implementation costs Cons Integration with other systems Lack of features Unpredictable continuing costs Collaborative relationship a must Outsource

29. Where are we going?and why are we in this handbasket?

30. "When you come to a fork in the road....take it ” -- Yogi Berra