Kuali Financ ial System – Kuali Coeus Research Administration

1. Kuali Financial System – Kuali Coeus Research Administration Pat Burns, VPIT Kathi Delehoy, SAVPRA Allison Dineen, VPF March 18, 2009 Kuali Upgrade Status

2. Themes • Carpe diem • CSU is the ‘low-priced spread,’ but because of the quality of CSU contributions & staff, you can’t tell that ‘it isn’t butter.’ • Change, although difficult at times, is to the long-term benefit of the institution Kuali Upgrade Status

3. Background – Financial Management System (FMS) • Board in Q3 2006 reviewed financial mgmt. software at CSU & CSU-Pueblo • A financial system upgrade was explored, encompassing both campuses • Decision against an integrated system: • CSU-Pueblo’s system is home grown, and finance is integrated; deconstruction infeasible • CSU financial environment much more complex than at CSU-Pueblo, an integrated system is not a good ‘fit’ • Mandate to upgrade CSU FRS by Jan. 1, 2009 Kuali Upgrade Status

4. Research Management System (RMS) • During the same time period, Research Services was exploring strategies for the future of its systems • Current RMS is home grown, with areas of very good processes, but not integrated across functional areas, and difficult to scale to meet future needs • Current system is not sustainable due to growing research volume, need for additional functionality, reporting, auditing, and emerging requirement for CSU PI’s and others to integrate with grants.gov • Solution: a formal Research Mgmt. System Kuali Upgrade Status

5. Perspective • Current finance system - FRS • 17 years old • Only records transactions, little business intelligence or ability to manage our finances • Not interactive • Does not support collaborative research (multi-year, multi-project budgeting & accounting, purchasing, etc.) • We need an FMS that supports and integrates with an RMS • Explore an integrated approach Kuali Upgrade Status

6. FMS Software – All Vendor Products • Three products developed for other markets • Oracle, SAP – private sector • PeopleSoft – purchased by Oracle, higher ed product • Sungard/SCT – “small schools” • All four products have significant gaps • Financial gaps & little or no research functionality • Landscape remains very uncertain • Risks high, especially with Oracle and PeopleSoft • Should we invest in products that are ~End-of-Life? • No vendors have solutions that: • Provide good performance in large-scale, real time environments, • Solve the identity management imbroglio, and • “Throwing” massive consulting in does not work, e.g. CBMS Kuali Upgrade Status

7. Analysis • Now may be the worst time to purchase large administrative software applications • High costs of licensing and inflation • Low functionality, numerous “gaps” • Extraordinary integration efforts required • Managing vendor consultants very labor intensive • Even worse for a “best of breed” approach • High risk, low benefit for vendor software Kuali Upgrade Status

8. The “Landscape” • These factors are ubiquitous in higher education, especially in R1 institutions, and a thriving “community source” movement has emerged, that offers (See It Takes a Community, NACUBO, January 2009) • Lower overall cost • Better functionality • Unconstrained, less complex integration with other systems • Easier implementation • A good risk to accept • By and for higher ed with promise of sustainability Kuali Upgrade Status

9. However, Community Software • Requires local expertise • Functional and technical • Requires local programmers, as we participate in the Kuali Foundation • An opportunity to influence the development so we do not take a step “backwards,” particularly from current research systems • To Collaborate with our partners to assure best practices in meeting federal requirements • As a Resource to implement local business rules Kuali Upgrade Status

10. Kuali Characteristics • Only systems that integrate research & finance • Full-featured functionality in both areas • A modern, modular Service-Oriented Architecture • Positions CSU for the future • Opportunity to influence functionality • Much less expensive than commercial products Kuali Upgrade Status

11. Decisions • Implement community source products • Supported unanimously by a campus committee of 24 with broad representation & discussion • Approval by CSU administration • Process • Kuali Financial System – go live July 1, 2009 • Kuali Research Administration (now Kuali Coeus) – engage in a multi-year development effort, and implementing modules as they become available • Define two functional project teams and Implement jointly, with IS’ support • Include reporting from the beginning Kuali Upgrade Status

12. KFS-KC Project Structure SVP/Provost KC KFS Executive Sponsors A. Dineen, VPF P. Burns, VPIT K. Delehoy, AVPR Executive Directors T. Fluharty, B&FS D. Hesser, IS R. Splittgerber, RS Project Managers J. Hunter, B&FS K. McHenry, IS P. Harrington, OVPR E. Kissam, OVPR Steering Committee Kuali Upgrade Status

13. Reality Triangle – the Constraints Functionality All three” trade off” against each other Time $$$ Kuali Upgrade Status

14. CSU – the ‘Low-priced Spread’ • Staffing in administrative areas much lower than peer institutions • Implementations of administrative systems are far less costly at CSU • No backfill for staffing – ‘day’ and ‘night’ jobs • Calls for new skill sets—challenge/opportunity • Examples of project implementation costs: • CSU SIS - $5.7M; CU SIS - $49M • CSU KFS & KC - ~$3.5M; CU Finance &HR - $50M; UA Finance &HR ~$80M • CU Project Manager – ‘You guys are crazy!’ Kuali Upgrade Status

15. Budget Encompassing Both Projects • Base project budget • KFS - $218k/yr • KC - $338k/yr • Reporting - $90k/yr • Total = $646k/yr. • One-time project budget • KFS - $688k • KC - $655k • Reporting - $90k • Total = $1,433k • Significant departmental investments to complement the project budget above Kuali Upgrade Status

16. What’s Ahead • KFSkick-off April 28, 2009 • KC foreshadowed • Kuali Financial System ‘go live’ July 1, 2009 • Initial alpha training in January 2009 • Formal campus training to begin in late May 2009 • Reporting • Delphi data warehouse to be decommissioned 7/1/09 • Currently in conversation with CAAG and others about a functional replacement • eThority and Oracle Discoverer in place Kuali Upgrade Status

17. Campus Impact • Greatly improved functionality & access • Direct web access • Administrative staff • Faculty/PIs • But, new: cultural & operational changes • FMS – a big change from FRS • Reporting systems – a change from delphi • RMS – a systematic approach to grant submission and management • New learning curves during time when staff and budgets are shrinking, overlaid with year end financial closeout Kuali Upgrade Status

18. Request • KFS: Encourage staff, especially faculty, to attend training • KC: Encourage staff, especially faculty, to participate in development, testing, and training • Understand the cultural changes and stress introduced into our environment • Wholesale change in the financial environment • Support your staff and the new systems as they come on line • Encourage feedback to kuali@colostate.edu and to the project team Kuali Upgrade Status

19. The Project Hype Cycle – for All Large Software Projects Peak of Inflated Expectations Source: Mike Zastrocky, The Gartner Group Negative Hype Positive Hype Plateau of Productivity FRS Functionality Slope of Enlightenment Trough of Disillusionment Technology Trigger Maturity Time Kuali Upgrade Status

20. Questions • Are most welcome! Kuali Upgrade Status