Phase IV Make/Buy Analysis Deliverables

1
Phase IV Make/Buy Analysis Deliverables

• Florida Community College Software Consortium
  (FCCSC)
• ERP System Strategic Planning

Presented April 26,2006 Revised June 15, 2006

• Exeter Team
• Chris Simo
• Phil Cifarelli

2
Purpose of This Document

• To present the Phase IV Make/Buy Analysis
  deliverables to the Executive Committee of the
  consortium for their consideration and feedback
  before delivering the Phase VI Evaluation
  Recommendation.

Executive Committee
3
Objectives of Phase IV (Excerpt From Statement of
Work)

• The objective of Phase 4 will be to define and
  compare a set of three (3) solution options 1)
  Make, 2) Buy and 3) Make-Buy. Analyses of
  functional and technical fit to the defined
  requirements, potential risk, as well as
  estimates of the potential costs and benefits of
  each solution option will be presented in the
  form of a preliminary recommendation which the
  FCCSC can use in its decision.
• For the Make/Buy Analysis, Exeter will separately
  analyze the Make, Buy and Make-Buy solution
  options, providing a framework and summary data
  upon which the FCCSC can make a decision
  regarding the option to pursue.
• For the Make analysis, Exeter will examine the
  estimated costs, resources required and potential
  benefits gained in rewriting the existing
  software in the following scenarios
• Continuing FCCSCs existing relationship with
  SAG, modifying the Integrow software to meet
  current requirements
• Rewriting the solution in a current mainstream
  industry supported, web/standards-based language
  and environment. Exeter will work with FCCSCto
  identify a technical architecture that meets
  FCCSCs open development requirements, including
  consistency with Open Source initiatives where
  possible.
• For the Buy analysis, Exeter will survey vendor
  ERP packages that would be suitable to the needs
  of the FCCSC and determine their potential fit at
  a high level, as well as the estimated costs and
  implementation efforts. In this analysis
  estimated software licensing, customization,
  training and maintenance costs will be included.
• For the Make-Buy Analysis, Exeter will examine
  the costs, benefits and effort associated with a
  best of breed solution option in which some of
  the core Integrow system functionality is
  preserved and integrated with functionality and
  systems acquired in an ERP vendor package. As
  with the Buy analysis, estimated costs for
  customization, licensing, training and
  maintenance will be assessed. During this
  analysis, Exeter will take into account the
  technology frameworks of each option and the
  associated systems architecture components
  involved. Also, the Florida-specific requirements
  (such as state reporting, FACTS and FASTER
  integration) will be addressed.
• The resulting recommendation from these analyses
  will compare the solution options on the multiple
  bases of estimated Total Cost of Ownership (TCO),
  estimated Return on Investment (ROI), potential
  risks, and overall fit with the requirements and
  strategic goals of the FCCSC. This analysis will
  break out metrics by college where possible and
  applicable.

4
Executive Summary - Primary Observations
Assessments
Future State Solution Options Recommended for
Consideration
Integrow Current State Key Observations
Enhance Current System
Rewrite Current System
Buy ERP
Hybrid

• Consortium provides tremendous value proposition
  for member schools. Any change in direction will
  be more expensive.
• SAG technology stack is strong for transaction
  processing and weak for reporting (especially ad
  hoc).
• Lack of robust reporting capability is the
  largest source of user dissatisfaction across all
  business areas.
• Other technology limitations such as green
  screen" character-based user interface, lack of
  integration with desktop productivity tools, etc.
  also problematic to varying degrees.
• Functional capabilities range from adequate to
  strong critical business functions (except
  reporting) and Florida mandates are reasonably
  well addressed. Note Requirements Fulfilled
  in above graph is a pure numeric measure. No
  weighting of the importance of the individual
  requirements was made.
• Consortium not positioned to add new members and
  at risk for losing membership due to technology
  and reporting imitations.

Note Aggregate cost exhibit to right assumes
high degree of organizational readiness.
5
Executive Summary Strengths, Weaknesses,
Opportunities Threats

• The consortium Integrow provide significant
  value yet have unmet potential

Weaknesses
Strengths

• Non-relational database
• Lack of ad-hoc reporting capability
• Lack of integration with desktop productivity
  tools
• Difficult to integrate with 3rd party products
• Lack of drill-down capability
• Green screen character-based interface
• Certain data elements subject to over-write
• Miami-Dade (MDC) is off baseline (consortium
  solution not fully aligned with MDC needs)
• Finance HR systems adequate but rudimentary
• Lack of committed long term plan
• Uncertainty of direction has caused
  enthusiasm/energy for consortium to wane
• No sales/marketing (more members reduced TCO)

• Strong value proposition very affordable cost
  structure
• Highly effective transaction processing
• High functioning student system
• Leader among peers in meeting Florida
  requirements
• Members serve as a valuable resource to each
  other
• Members have pride of ownership of the solution
• Close working relationships between users and
  developers
• Direct control over product direction
• Ability to backport local development into
  baseline
• Ability to react directly to new mandates such as
  positioning system to address assessment and
  institutional effectiveness functions

Threats
Opportunities

• MDC leaves consortium (1/3 of funding)
• Inability to attract new members
• Consortium unable to meet member schools needs if
  funding reduced due to member defections
• Central office key staff departure
• Member schools unable to fill Natural/ADABAS
  developer positions

• Develop a supported strategy to increase
  functionality and value of the solution that will
  attract additional member funding and energize
  current members
• Reinvigorate consortium networking activity to
  increase benefits of members schools working
  together
• Address reporting weakness
• Leverage existing data warehousing activities at
  member schools
• Enhance Finance and HR functionality
• Reduced costs through shared infrastructure

6
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
HR / Payroll
Hybrid
FCCSC Phase IV Make-Buy Analysis
Technology / Web Function
7
Project Objectives

• The core objectives of this project are to
• 1) evaluate the FCCSCs current ERP system, and
• 2) make recommendations related to a make or buy
  decision for a future system (or some combination
  thereof).
• Exeter has achieved the following milestones
  toward these objectives
• Documented of the current state of the FCCSCs
  ERP technology and functions
• Analyzed the options for enhancing the FCCSCs
  ERP system
• Assessed the risk involved with pursuing these
  options versus maintaining the status quo
• Provision of preliminary fact-based
  recommendations to the FCCSC

8
Project Timeline

• Fact gathering/analytics performed in each phase.
• FCCSC provided demos and pertinent literature as
  foundation.
• Face-to-face sessions provided an understanding
  of the schools organization and business
  processes. Approximately 450 mid-level
  requirements were generated as a result of these
  sessions.
• Conference calls were conducted to validate the
  requirements, and the manner in which the
  requirements are being fulfilled by the current
  solution.
• Periodic executive level update/feedback sessions

9
School Requirement Gathering

• Member schools were surveyed to determine the
  extent Integrow, 3rd party systems, and
  school-specific customizations meet requirements

10
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
HR / Payroll
Hybrid
FCCSC Phase IV Make-Buy Analysis
Technology / Web Function
11
FCCSC Mission, Objectives Vision (Excerpt from
FCCSC Web Site)

• FCCSC Mission
• To provide technology leadership and
  cost-effective management of resources allocated
  by the FCCSC members for the greater good of all
  participating institutions. This is achieved with
  solid project plans, effective contract
  management, delivery of world-class ERP
  functionality, maintaining a leading position
  with higher-education technology, and a high
  degree of responsiveness to member institutional
  needs.
• FCCSC Objectives
• Provide a Technologically Sound, Functionally
  Rich, quality software Package
• Increase Consortium membership by one member per
  year annually
• Increase consumer satisfaction annually
• Increase institutional capabilities annually
• FCCSC Vision
• The FCCSC strives to be the premier
  higher-education technology consortium, a place
  where professional excellence and public service
  thrive. Superior project management, quality
  assurance, and system implementation the highest
  ethical and professional standards teamwork
  commitment to collaboration and a devotion to
  open source solutions will make the FCCSC the
  higher-education technology consortium of
  choice.

12
FCCSC Function

• Functions as the de facto ERP vendor of the
  Integrow product for the member schools.
• The central office supports and enhances the
  Integrow product for the member schools.
• Integrow enhancements are prioritized through an
  annual process
• Each college prioritizes enhancement requests,
  and consensus top items are addressed

13
FCCSC Staff Profile Budget

• FCCSC is governed by a Board of Directors
  comprised of member school Presidents or their
  designees (typically the CFO or CIO)
• FCCSC staff is led by Michael Bussell, Executive
  Director
• In addition to the Executive Director, FCCSC
  annual budget supports a staff of 4 analyst
  positions, 9 technical positions, and 1
  administrative assistant (15 FTEs) and central
  office expenses
• Fiscal 2006 annual budget totals 1.75 million
• Four-year budget history as follows

14
FCCSC Funding

• Annual assessment to member schools is based on
  an student FTE weighted formula.
• Florida member school assessments serve as the
  primary funding source for the operating budget.

• Associate member schools are assessed royalties.
  These funds are fully discretionary, and are
  generally set aside for special purposes.

15
FCCSC Membership Profile
16
Integrow Technology Functional Overview

• Integrow is built on Software AGs technology
  stack featuring the Natural programming language
  and the ADABAS database
• Integrow provides core Student, Finance and Human
  Resource functionality except for
• Financial Aid (3rd party products used FCCSC
  supports integration to Wolffpack Financier)
• Fixed Assets (3rd party products used FCCSC
  supports integration to DHS)
• Integrow addresses Florida-specific functional
  and reporting mandates such as
• Florida personnel and student database
  submissions
• Room space, capacity, and utilization reporting
• Student exit point tracking
• Testing exemptions
• Transcript generation
• Repeat course charges
• Support Florida pre-paid college plans
• Dual-enrollment high school program tracking
• While initially built for Florida community
  colleges, Integrow baseline functionality is
  suitable for out-of-state colleges (with
  reasonable customizations to meet local
  jurisdictional mandates)

17
Integrow Web-based Self Service Overview

• Student web functionality is very strong relative
  to the ERP market
• HR and financials web function is more limited
  relative to the ERP market
• The Self-service component is not required to
  deploy Integrow - schools have chosen to use it
  to varying degrees
• Examples of online web self-service functionality
  include

18
Integrow Baseline Functionality In Use

• Levels of baseline/off-baseline functionality
  (excluding localizations for associate members)
  vary among schools
• MDC is significantly off-baseline, particularly
  in HR, and has made many custom additions and
  extensions to their Integrow installation
• All other schools are significantly within
  baseline (roughly 80 or greater) in every area
  and have limited customizations and 3rd party
  extensions

19
Integrow Perceived Satisfaction Ratings

• Integrows perceived general satisfaction levels
  are high among frequent administrative users, but
  low among executives/directors and infrequent
  administrative users

20
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
21
Student System Functional Requirements
Fulfillment Assessment

• Highly functional system with correspondingly
  perceived high satisfaction level

Among frequent administrative users
22
Student System Functional Requirements Status

• High percentage of functionality in all business
  areas in production.

• Member schools were surveyed to identify whether
  each requirement is currently in production (by
  Integrow or other means), in the implementation
  stage, or desired.
• Each schools of requirements for each business
  area for the three categories were calculated.
  The median and low/high figures are reported.
• of requirements is pure numeric measure. No
  weighting of the importance of the individual
  requirements was made.

23
Student Desired Functional Enhancements

• The following table provides examples of
  functionality desired by the schools.

24
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
25
Finance System Functional Requirements
Fulfillment Assessment

• Functionality rudimentary but adequate fairly
  high perceived satisfaction level
• Primary source of user frustration due to
  technology limitations, not function

Among frequent administrative users
26
Financials System Functional Requirements Status

• Moderate percentage of functionality in
  production.

• Member schools were surveyed to identify whether
  each requirement is currently in production (by
  Integrow or other means), in the implementation
  stage, or desired.
• Each schools of requirements for each business
  area for the three categories were calculated.
  The median and low/high figures are reported.
• of requirements is pure numeric measure. No
  weighting of the importance of the individual
  requirements was made.

27
Financials Desired Functional Enhancements

• The following table provides examples of
  functionality desired by the schools.

28
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
29
Human Resource System Functional Requirements
Fulfillment Assessment

• Overall HR functionality adequate - payroll
  particularly high functioning - moderate
  perceived satisfaction level
• Primary source of user frustration due to
  technology limitations, not function

Among frequent administrative users.
30
Human Resource System Functional Requirements
Status

• Fairly high percentage of functionality in
  production.

• Member schools were surveyed to identify whether
  each requirement is currently in production (by
  Integrow or other means), in the implementation
  stage, or desired.
• Each schools of requirements for each business
  area for the three categories were calculated.
  The median and low/high figures are reported.
• of requirements is pure numeric measure. No
  weighting of the importance of the individual
  requirements was made.

31
Human Resource Desired Functional Enhancements

• The following table provides examples of
  functionality desired by the schools.

32
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
33
Integrow Technology Assessment
Software AGs technology stack has the capability
to support the member schools essential business
needs, if coupled with an operational data store
or data warehouse based on a relational database
to address reporting needs. The platform has
been successfully used to deliver
state-of-the-art functions such as web
self-service and XML web services. While a
less-than-ideal foundation for a higher education
ERP solution, the technology stack is not a
burning platform given the stability of
Software AG.
34
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
35
Range of Future State Options Recommended for
Consideration

• Buy
• Procure/implement 3rd party full ERP solution
  (Finance, HR Student)
• Develop consortium supported customizations to
  the chosen 3rd party solution as necessary to
  fulfill required business processes and state
  mandates

• Enhance
• Maintain Integrow on the Software AG technology
  stack
• Develop a consortium supported data store on a
  relational database to address reporting
  deficiencies
• Continue to add new features to enhance the
  Integrow solution (emphasis on web-based
  services)

• Rewrite
• Re-code Integrow on a new technology stack based
  on a relational database

• Hybrid
• Procure/implement 3rd party ERP Finance HR
  systems and
• 1) enhance, or
• 2) rewrite Integrow Student system on a new
  technology stack based on a relational database
• Develop consortium supported integration between
  the student system and the chosen 3rd party HR
  and Finance solutions

• Hybrid option combining Integrow with single ERP
  solution for Finance and HR is the extent to
  which Exeter is recommending consideration of a
  best-of-breed solution
• Insufficient human capital at the consortium and
  majority of member schools to manage broad
  best-of-breed approach where multiple enterprise
  level applications are combined to forge a
  solution
• Incremental value would not justify incremental
  costs

36
Timeline Considerations
Existing Solution Support Integrow will
necessarily be in production for several years,
regardless of the selected strategic path.
Member schools will minimally require critical
releases (e.g. bug fixes and state/federal
regulatory updates). Transition to any new
solution (Buy, Rewrite, or Hybrid solutions)
would take several years to implement. The
consortium will plan the support services of the
current solution accordingly. Member schools
would have the choice to self-support Integrow,
if and when the consortium ceases support.
Potential Project Timelines Each solution that
introduces new elements to the current solution
(i.e., Buy, Rewrite, or Hybrid) could be
implemented in a 3-5 year time frame. A three
year timeframe is more aggressive, and would
required higher resource levels versus a five
year timeframe. Development of an actual timeline
and project plan will require detailed planning
with the central office and member schools. If
vendor services and/or products are required,
time must be factored in for the procurement
process including selection, negotiation and
contracting.
Phased Approach for Go-Lives Each member
institution will develop individual timelines
based on 1) the availability of the new solution
from the central office and 2) their
academic/administrative cycles. For a typical
ERP implementation, the first module usually goes
live 6-12 months after project kick off. For a
software development project (e.g. rewrite) 12-18
months from project kick-off to go-live is more
likely. The hybrid model combines these two
typical timelines.

• Key Timeline Issues
• When can consensus be reached on a strategy?
  When can implementation of the strategy commence?
• What is each member schools go-live plans under
  the selected strategy?
• If moving away from Integrow on Software AG
  technology stack, how long will the current
  solution be supported?
• What vendor products and services are required
  for the chosen solution? What time is required
  for selection, negotiation and contracting?

37
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
38
Solution Option Enhance Current System
Key Benefits Risks
Resources
Description
Benefits
Human Resources

• Maintain Integrow on current technology and
  enhance its reporting capability (operational
  data store on relational database) and function.
• Maintain Integrow in its entirety on the Software
  AG technology stack
• Develop a consortium supported data store on a
  relational database to address reporting
  deficiencies
• Continue to add new features to enhance the
  Integrow solution across the modules (emphasis on
  web-based services)

• Existing staff skills and schools tools and
  experience could be leveraged for consortium-wide
  data store
• Additional skilled resources (developers and
  analysts) would be required at the central office
  to build and support the data store
• Member schools should not need to increase staff
  significantly
• Additional effort would be required from member
  school staff during development of the data store
  and its implementation

• Address reporting deficiencies to a significant
  degree
• Lowest cost alternative
• Buys time to see how both open source and
  commercial ERP solutions evolve
• Least amount of change management with this
  solution schools will continue to identify and
  prioritize functionality enhancements

Risks

• Remaining technical limitations such as lack of
  GUI, integration with desktop productivity tools,
  etc. will remain
• Potential loss of member schools
• Current technology makes it difficult to draw new
  members to the consortium

Financial Investment

• 19.1 - 28.4 million in aggregate across 9
  member schools
• Price range is contingent upon high degree of
  organizational readiness

39
Cost Estimate Overview
Solution Option Enhance Current System

• Assumptions
• 4 year project - estimated project cost spread
  equally over 4 years
• 50 of FCCSC current budget is for maintenance
  and support ( 1million / year) and 50 is for
  new development
• Notes
• Costs are expressed in estimate per school based
  upon current allocation percentages. Actual per
  school cost will depend on school
  size/complexity, actual scope, internal versus
  external resource mix and final consortium
  funding model which could differ from current
  model

40
Solution Option Enhance Current System
Cost Estimate Detail

• Assumptions
• Consortium relational datastore was estimated as
  a basic move of all Integrow data to a relational
  database
• Notes
• Relational datastore software costs could be
  reduced with open source (e.g. MySQL). Schools
  may also be able to leverage existing licenses
• Consortium would need to develop an enhancement
  plan to determine scope and a revised budget for
  additional Integrow features

41
Cost Estimate Required On-Going Resources
Solution Option Enhance Current System

• Notes
• The low figure for the FCCSC annual fees is set
  at the current level. The high figure is set to
  a rate to equivalent to an annual 5 increase
  over 5 years. It is presumed that after the data
  store project completion, FCCSC can resume its
  current operational structure.
• Individual schools, based on discretion and
  school preference would incur any additional
  costs for financial aid, fixed assets and
  scheduling system solutions.

Resource Details
42
Solution Option Enhance Current System
Cost Estimate Whats Included?

• Relational Datastore
• Consortium relational datastore was estimated as
  a basic set of scripts and a relational database
  schema to replicate the Integrow data stored in
  ADABAS to a relational database for reporting
  purposes. The timing and frequency of the script
  execution and population of the datastore would
  need to be determined in the design stage though
  a nightly refresh is a reasonable starting place
  for discussion.
• The datastore estimate does not contemplate an
  effort to create a full-fledged data warehouse
  and does not include elements such as advanced
  data transformations, meta data nor point in time
  snapshots.
• Integrow Enhancements
• Consortium would need to develop an enhancement
  plan to determine scope and a revised budget for
  additional Integrow features to be added to the
  current application and technology stack
• Local Effort
• Local analyst / DBA resources would need to set
  up, install and validate the consortium datastore
  product.
• Member institutions will need to augment the
  consortium scripts to include local data elements
  if desired (e.g. from site-specific Integrow
  enhancements / other local systems)
• Local programmer/analyst effort to develop
  queries and reports accessing the datastore will
  be required
• Local effort to deploy enhancements would
  depended upon the scope of the enhancement plan.
  One approach would be to include these
  enhancements in the current port/release cycle.
• Member institutions can access the data store via
  a range of solutions and effort/cost levels
• Low-end (least effort) roll out basic SQL query
  tools and access
• Mid-range (medium effort/more cost) deploy
  desktop reporting solutions such as Microsoft
  Access or Crystal Reports
• High-end (high effort/largest local cost)
  implementation of a full-blown enterprise
  reporting solution such (e.g. Business
  Objects/Crystal Cognos).

43
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
44
Solution Option Rewrite Current System
Key Benefits Risks
Resources
Description
Rewrite entire Integrow system on new technology
stack with relational database and implement
across membership.
Human Resources
Benefits

• New technology will address current technical
  limitations such as ad hoc reporting, GUI,
  integration with desktop productivity tools, etc.
• Opportunity to improve architecture and data
  model
• Maintain full control over scope of solution and
  functionality
• Opportunity to improve business processes
• Custom developed projects typically yield high
  user satisfaction
• Increased likelihood of maintaining current
  members and adding new members

• Existing staff skills and knowledge at central
  office and member schools could be leveraged to
  some degree
• Additional skilled resources (developers,
  database/system administrators, analysts) would
  be required at the central office and member
  schools
• Significant additional extra effort would be
  required from member school staff during
  implementation

• .NET or Java are both viable development
  platforms to support a new ERP application
• Relational database would be used (Oracle or SQL
  Server likeliest choices)
• Existing code base could serve as a starting
  point for recoding effort
• Existing membership would provide domain
  expertise to define requirements and
  specifications

Financial Investment
Risks

• 35.2 - 83.9 million in aggregate across 9
  member schools
• Price range is contingent upon high degree of
  organizational readiness

• Large development projects are inherently
  difficult to manage and frequently run
  over-budget and/or deliver less function than
  expected
• Full scale development effort followed by full
  scale implementation might exceed organizational
  capacity

45
Technology Options
Solution Option Rewrite Current System

• There Is No Single Right Choice
• Java vs. .NET
• Exeter does not see a specific technological
  advantage to either platform the decision is
  driven more by existing investments, staffing,
  and desire to integrate with existing systems.
  Each school has a different skill set a viable
  solution could be created on either platform and
  on any major database platform. You could
  successfully operate on either Linux or Windows.
  There is no obvious and ideal choice for the
  consortium.
• Database
• Likely will need to choose and support one across
  the consortium multiple systems/platforms would
  be difficult to manage
• Oracle or SQL Server likeliest choices
• Both provide XML/SOA support by various
  programmatic means
• Open Source (e.g. mySQL) is a possibility,
  although it is a bleeding edge
• Operating System
• Linux
• The consortium seems to be moving towards Linux,
  which is a perfectly viable and supportable
  option. Most commercial users are moving away
  from proprietary Unix platforms for cost reasons.
  Allows for usage of either mainframe or
  x86/commodity hardware platforms.
• Windows
• A viable server platform (many schools also use
  it for web servers).
• Hardware
• Mainframe Options
• Some schools are running Linux on their mainframe
  and may be interested in a continuing investment
• Wintel
• Commodity hardware is much less expensive

46
Cost Estimate Overview
Solution Option Rewrite Current System

• Assumptions
• 4 year project - estimated project cost would be
  spread equally over 4 years
• 50 of FCCSC current budget is for maintenance
  and support ( 1million / year) and 50 is for
  new development
• Notes
• Costs are expressed in estimate per school based
  upon current allocation percentages. Actual per
  school cost will depend on school
  size/complexity, actual scope, internal versus
  external resource mix and final consortium
  funding model which could differ from current
  model.

47
Cost Estimate Detail
Solution Option Rewrite Current System

• Assumptions
• Estimate is for a port of functionality to a new
  technology stack significantly leveraging
  existing functionality, design and data
  structures
• Consortium assumes members schools and central
  office will require resource for re-design of
  functionality
• Estimate assumes implementation costs will be
  will be minimized due to retention of existing
  design and limited business process change
• Notes
• Relational Datastore is not included in this
  solution as ad hoc reporting will be available
  with the move to a relational database

48
Cost Estimate Required On-Going Resources
Solution Option Rewrite Current System

• Notes
• Amount paid to FCCSC is presumed higher than the
  Enhance Integrow model, as greater
  programming/analysis staff is needed for a new
  product with more functions and a likely need to
  manage bugs and fixes. The new budget was set at
  3M for the low figure (50 increase from
  current levels) to 4M for the high figure
  (100 increase from current levels.)
• Individual schools, based on discretion and
  school preference would incur any additional
  costs for financial aid, fixed assets and
  scheduling system solutions.
• There may be potential staff savings by releasing
  resources currently devoted to mainframe/SoftwareA
  G based services.

Resource Details
49
Solution Option Rewrite Current System
Cost Estimate Whats Included?

• Rewrite Integrow in new technology stack
• Integrow would be rewritten in a new technology
  stack (e.g. .NET or Java)
• A relational schema would be developed to hold
  Integrow transactional data in a relational
  database (e.g. Oracle, SQL Server)
• Functions would be rewritten using a graphical,
  web-based front-end and a standards-based (e.g.
  SOA) application tier.
• The consortium assumes that this solution will
  include a review and redesign of function rather
  than a pure technology port
• Local Effort
• Member schools will need to participate in the
  requirements definition, design and validation of
  rewritten application function
• Member schools will need to execute an
  implementation of the new solution including
• Business process review, configuration, testing
  and transition to the new system
• Training of functional and technical staff
• Development of data migration scripts, and local
  interfaces and site-specific enhancements
• The implementation cost will depend on the degree
  of difference (e.g. business change required)
  between current and new functionality These
  design decisions will be under the control of the
  consortium.
• Member institutions can access the database via a
  range of solutions and effort/cost levels
• Low-end (least effort/cost) roll out basic SQL
  query tools and access
• Mid-range (medium effort/more cost) deploy
  desktop reporting solutions such as Microsoft
  Access or Crystal Reports
• High-end (high effort/largest local cost)
  implementation of a full-blown enterprise
  reporting solution such (e.g. Business
  Objects/Crystal Cognos).

50
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
51
Solution Option Buy ERP
Key Benefits Risks
Resources
Description
Benefits
Human Resources
Procure/implement 3rd party full ERP solution
(Finance, HR Student)

• New technology addresses current technical
  limitations such as ad hoc reporting, GUI,
  integration with desktop productivity tools, etc.
• Gain increased depth of functionality in
  Financials and HR
• Increased likelihood of maintaining current
  members and adding new members

• Existing staff skills and knowledge at central
  office and member schools could be leveraged to
  some degree
• Additional skilled resources (developers,
  database/system administrators, analysts) would
  be required at the central office and member
  schools
• Significant additional extra effort would be
  required from member school staff during
  implementation

• A packaged solution would be licensed from a
  major application vendor such as Oracle, SunGard
  SCT, SAP, Datatel, etc.
• Schools would implement the chosen system locally
• Consortium would develop/support customizations
  to the chosen solution as necessary to fulfill
  required business processes and state mandates
  (e.g., Florida state-specific and community
  college requirements)
• Exeter estimates that
• - 95/- of Financials
• - 95/- of HR
• - 65 - 80 of Student
• functional requirements will be met using a
  purchased ERP out-of-the-box if schools are
  willing to modify business processes to conform
  to the software
• Institutions would need to decide whether to
  implement ERP Financial Aid or write interfaces
  for current 3rd party solution

Risks

• Large ERP implementation projects are inherently
  difficult to manage due to extensive change
  management and frequently run over-budget and/or
  deliver less function than expected
• Loss of function in Student module likely given
  rich, tailored functionality of legacy system
  resulting is user dissatisfaction
• Undesired business process change possible across
  all business areas
• Increased local operational costs
• Extent of customizations could make for costly
  and complicated upgrades
• Full scale ERP implementation effort coupled with
  necessary customizations might exceed
  organizational capacity

Financial Investment

• 62 - 104 million in aggregate across 9 member
  schools
• Price range is contingent upon high degree of
  organizational readiness

52
ERP Student System High Level Gap Analysis
Solution Option Buy ERP

• ERP Student System would adequately meet
  functional requirements
• Functional gaps and state mandates would need to
  be addressed through customizations
• The following table outlines
• Approximate percentage of requirements that an
  ERP package would satisfy
• Gaps that may occur in specific business areas
  for Integrow requirements
• Requirements that are currently satisfied are
  emphasized
• Analysis is at the mid-level additional gaps
  will emerge at the detailed level.

53
ERP Financials System High Level Gap Analysis
Solution Option Buy ERP

• ERP Financial system would provide a high level
  of functional requirement fulfillment
• Functional gaps and state mandates would need to
  be addressed through customizations
• The following table outlines
• Approximate percentage of requirements that an
  ERP package would satisfy
• Gaps that may occur in specific business areas
  for Integrow requirements
• Requirements that are currently satisfied are
  emphasized
• Analysis is at the mid-level additional gaps
  will emerge at the detailed level.

54
ERP HR System High Level Gap Analysis
Solution Option Buy ERP

• ERP HR system would provide a high level of
  functional requirement fulfillment
• Functional gaps and state mandates would need to
  be addressed through customizations
• The following table outlines
• Approximate percentage of requirements that an
  ERP package would satisfy
• Gaps that may occur in specific business areas
  for Integrow requirements
• Requirements that are currently satisfied are
  emphasized
• Analysis is at the mid-level additional gaps
  will emerge at the detailed level.

55
Cost Estimate Overview
Solution Option Buy ERP

• Assumptions
• 4 year project - estimated project cost spread
  equally over 4 years
• 50 of FCCSC current budget is for maintenance
  and support ( 1million / year) and 50 is for
  new development
• Notes
• Costs are expressed in estimate per school based
  upon current allocation percentages. Actual per
  school cost will depend on school
  size/complexity, actual scope, internal versus
  external resource mix and final consortium
  funding model which could differ from current
  model.

56
Cost Estimate Detail
Solution Option Buy ERP

• Notes
• Relational datastore is NOT included in this
  solution as ad hoc reporting will be available
  with the move to a relational database

57
Cost Estimate Required On-Going Resources
Solution Option Buy ERP

• Notes
• Annual fees paid to FCCSC would permit on-going
  required customizations for State of Florida and
  other governing bodies only. This has been
  estimated at 50 - 100 of the current new
  development expenditures, currently estimated at
  about 1 million.
• It is presumed that the ERP solutions for
  financial aid and fixed assets will be in use.
  Individual schools, based on discretion and
  school preference would incur any additional
  costs for financial aid, fixed assets and
  scheduling system solutions.
• The resource need will be greater than the
  Rewrite Integrow solution, which will be
  purpose-built for the member schools and thus
  would provide built-in business process alignment
  in most cases.
• There may be potential savings by releasing
  resources currently devoted to mainframe/SoftwareA
  G based services.

Resource Details
58
Solution Option Buy ERP
Cost Estimate Whats Included?

• Local Effort ERP Implementation
• Member schools will need to participate in the
  requirements definition and detailed gap-analysis
  against selected ERP functionality
• Member schools will need to execute an
  implementation of the chosen ERP system
  including
• Business process review, configuration, testing
  and transition to the new system
• Development of data migration scripts, and local
  interfaces and site-specific enhancements
• Training of functional and technical staff
• The implementation cost estimates contemplate a
  basic level of customization to meet required
  business needs. Implementation and on-going
  costs can rise quickly when implementations
  choose to modify the software on an elective
  basis.
• Member institutions can access the relational
  database via a range of solutions and effort/cost
  levels
• Low-end (least effort/cost) roll out basic SQL
  query tools and database access
• Mid-range (medium effort/more cost) deploy
  desktop reporting solutions such as Microsoft
  Access or Crystal Reports
• High-end (high effort/largest local cost)
  implementation of a full-blown enterprise
  reporting solution such (e.g. Business
  Objects/Crystal Cognos).

59
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
60
Solution Option Hybrid
Key Benefits Risks
Resources
Description
Benefits

• Procure/implement 3rd party ERP Finance HR
  systems and 1) enhance or 2) rewrite Integrow
  Student system
• Packaged Financials HR solution would be
  licensed from a major application vendor such as
  Oracle, SunGard SCT, SAP, Datatel, etc. and
  Schools would implement the chosen system locally
• Consortium would develop/support customizations
  to the chosen solution as necessary to fulfill
  required business processes and state mandates
  (e.g., Florida state-specific and community
  college requirements)
• Consortium would enhance Integrow Student on the
  Software AG technology stack (including
  development/implementation of a consortium
  supported data store on a relational database to
  address reporting deficiencies)
• or
• rewrite Integrow Student on new technology stack
  with relational database and implement across
  membership.

Human Resources

• New technology addresses current technical
  limitations such as ad hoc reporting, GUI,
  integration with desktop productivity tools, etc.
  Note Partially if Student maintained on
  Software AG completely if Student rewritten
• Gain increased depth of functionality in
  Financials and HR
• Maintains high functioning legacy Student
  functionality
• Increased likelihood of maintaining current
  members and adding new members

• Existing staff skills and knowledge at central
  office and member schools could be leveraged to
  some degree
• Additional skilled resources (developers,
  database/system administrators, analysts) would
  be required at the central office and member
  schools
• Significant additional extra effort would be
  required from member school staff during
  implementation

Solution Design
Risks

• Large ERP implementation/development projects
  are inherently difficult to manage due to
  extensive change management and frequently run
  over-budget and/or deliver less function than
  expected
• Undesired business process change possible in
  Financials HR business areas
• Increased local operational costs
• Extent of customizations in Financials HR could
  make for costly and complicated upgrades
• Full scale ERP implementation effort coupled with
  necessary customizations and enhancement rewrite
  or of Student might exceed organizational
  capacity

Financial Investment

• 34.9 - 125.9 million in aggregate across 9
  member schools
• Price range is contingent upon high degree of
  organizational readiness

61
Cost Estimate
Solution Option Hybrid

• Assumptions
• 4 year project - estimated project cost spread
  equally over 4 years
• 50 of FCCSC current budget is for maintenance
  and support ( 1million / year) and 50 is for
  new development
• Notes
• Costs are expressed in estimate per school based
  upon current allocation percentages. Actual per
  school cost will depend on school
  size/complexity, actual scope, internal versus
  external resource mix and final consortium
  funding model which could differ from current
  model.

62
Cost Estimate Detail
Solution Option Hybrid

• Notes
• Rewrite estimate is for a port of functionality
  to a new technology stack using existing
  functionality, design and data structures Notes
• Relational Datastore is included in this solution
  as ad hoc reporting will be available with the
  move to a relational database

63
Cost Estimate Required On-Going Resources
Solution Option Hybrid

• Notes
• The above chart refers to the Enhance Integrow
  option of the solution only.
• Annual fees paid to FCCSC would be needed to
  maintain the student module and provide on-going
  required customizations for State of Florida and
  other governing bodies for ERP HR and finance.
  This has been estimated at 50 - 75 of the
  current budget, or 1M 1.5M.
• It is presumed that the ERP solution for fixed
  assets would be in use by the schools.
  Individual schools, based on discretion and
  individual preference would incur any additional
  costs for financial aid and scheduling system
  solutions.
• Resources currently devoted to mainframe/SoftwareA
  G based services must be maintained.

Resource Details
64
Cost Estimate Required On-Going Resources
Solution Option Hybrid

• Notes
• The above chart refers to the Rewrite Integrow
  option of the solution only.
• Annual fees paid to FCCSC is assumed to be 50 to
  100 greater than the Hybrid/Enhance Integrow
  solution to accommodate for additional resources
  to maintain a system with more functions and
  potential for bugs/fixes need.
• It is presumed that the ERP solution for fixed
  assets would be in use by the schools. The
  schools, based on discretion and individual
  preference would incur any additional costs for
  financial aid and scheduling system solutions.
• There may be potential savings by releasing
  resources currently devoted to mainframe/SoftwareA
  G based services.

Resource Details
65
Solution Option Hybrid
Cost Estimate Whats Included?

• Local Effort
• The hybrid solution requires local effort that is
  a combination of
• ERP Implementation of HR and Finance (as
  described in Buy ERP Solution)
• AND Rewrite of Integrow Student (as described in
  Rewrite Solution)
• OR Enhancment of Integrow Student (described in
  Enhance Current Solution)

66
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
67
Future Role and Organization of the Consortium

• Exeter is not recommending any changes to the
  role or organization of the consortium
• The consortium can add value regardless of
  solution chosen
• Members derive significant value by working
  together
• The whole is greater that the sum of the parts as
  members learn, share and work with each other
• The role of the central office could change
  significantly depending on the option selected
• Any of the future options will require additional
  central office resources

Enhance Current System
Rewrite Current System
Buy ERP
Hybrid
68
Additional Consideration - Consortium As A
Service Provider

• Converting the Consortium to an ASP (Application
  Service Provider) model is a potentially logical
  step to reducing costs
• One central location would host hardware,
  networking, database, and operations with staff
• Interfaces at individual schools with other
  systems would connect to central instance
• A Consortium ASP model could potentially create
  significant cost savings, particularly for the
  ERP and Rewrite solutions Further study is
  required.

Note Sharing infrastructure only makes sense in
a solution requiring new infrastructure.
Transition costs involved in the transition
negate much of the value of the current scenario
due to significant existing investments.
69
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
70
What You Would Have to Believe to Choose

• Enhance
• Member schools will be able to continue to staff
  IT professionals with ADABAS skills
• Software AG will continue to offer support for
  the life of the Integrow solution (5-10 years)
• The Integrow platform can provide the necessary
  web and web services capabilities to support
  member schools business needs
• Reporting deficiencies will be address by
  consortium supported operational data store
• Remaining technical limitations (e.g. inability
  to interface with desktop tools) are tolerable
• Current functional deficiencies will be addressed
• Consortium will be able to maintain membership
  and increase satisfaction level

• Buy
• The cost and operational impact of implementing
  an ERP are justified by gains in additional
  technical and functional capabilities
• Schools would be willing to conform their
  business processes to the ERP suite functionality
  where required
• Schools can attract and fund the resources
  necessary for an ERP implementation
• Florida and community college-specific functions
  can be addressed through customization or
  complementary solution
• Consortium will be able to maintain membership
  and increase satisfaction level

• Rewrite
• The cost and operational impact of rewriting
  Integrow is justified by gains in additional
  technical and functional capabilities
• Adequate central and local resources can be made
  available to completely rewrite the Integrow
  application
• FCCSC can support the current system while
  simultaneously managing a full-scale development
  effort
• Key operational/administrative staff at member
  schools can maintain current business operations
  while simultaneously participating in
  requirements gathering, specification generation,
  testing, and training efforts for the new product
• Consortium will be able to maintain membership
  and increase satisfaction level

• Hybrid
• The cost and operational impact of implementing
  an ERP are justified by gains in additional
  technical and functional capabilities
• Commercial HR/Finance ERP solutions exceed the
  current functionality of Integrow
• Schools would be willing to conform their
  business processes to the ERP suite for HR and
  Finance needs or the consortium is able to
  provide customizations where required to meet the
  schools requirements
• FCCSC can successfully develop and support the
  integration between an ERP HR/Finance solution
  with the FCCSC student solution
• Consortium will be able to maintain membership
  and increase satisfaction level

71
Document Roadmap
Summary
Operational and Organizational Structure
Solution Analysis
Current State Analysis
Introduction
Appendix
Enhance Current System
Overview
Student
Rewrite Current System
Finance
Buy ERP
Phase IV Make-Buy Analysis
HR / Payroll
Hybrid
Technology / Web Function
72
Appendix A School-by-School Response Summaries

• The following slides summarize responses from the
  Member Schools in terms of Integrow and
  associated software requirement status
• As of the writing of this document, all school
  have provided feedback except LSUS which did not
  participate in this project.
• All statuses with a functional response of N
  have been filtered out for the following slides
  as a status of N indicates that a feature is
  not desired by a school
• Some anomalies were encountered in responses
• Hybrid or non-standard statuses (i.e. 3/B/O) were
  normalized where possible and noted
• Some blanks, particularly on new requirements,
  were encountered
• Some combinations of statuses were submitted that
  were incompatible, i.e. N for functional status
  and B for technical status
• All situations with anomalies were submitted back
  to schools for further comments and amendments if
  necessary

73
Appendix A - School by School Response Summaries,
Continued

• Definitions of Statuses
• Functional possible responses are
• In Production The requirement is in production
  at the school, although the requirement may be
  technically Baseline, Off-Baseline, or 3rd Party
• In Process of Implementation The requirement is
  in the process of being implemented. Technically,
  the requirement may be Baseline, Off-Baseline, or
  3rd Party.
• Future The requirement is not currently in use,
  but the school wishes to deploy it at some point
  in the future. Technically the requirement must
  be Not Implemented.
• Not Desired/Not Applicable The requirement is
  either not desired by the school or irrelevant
  (i.e. Florida-specific items for MCCC)
• Blank Blank responses were excluded from status
  calculations of percentages
• Technical possible responses are
• Baseline The school is using functionality
  included in the baseline Integrow product