Transforming the University of Cincinnati with the mySAP Business Suite – Lessons Learned

1. Transforming the University of Cincinnati with the mySAP Business Suite – Lessons Learned Mr. Dennis Yockey (UC), Mr. Jim Lewis (UC), Mr. Danny Trudgett (IBM)

2. Agenda • Preparing for New Business Systems • Implementing mySAP for Financials • Mission, Scope and Approach • Architecting and Building the Technical Infrastructure • Creating a High-Performing Project Team • Project Governance – Balancing Consensus with Speed • Defining the Enterprise – UC Flex • Adding HR/Payroll and COEUS • Creating the UC Flex Program Management Office • UC|21 – Supporting the University’s Strategic Plan • Lessons Learned • Questions

3. Preparing for New Business Systems • The Case for Change • Core Systems Review identified that the Financials and HR legacy systems needed to be replaced • Information Management Technology Committee set priority –Financials then HR • Project Sponsors and Selection Committee Established • Business Case and Project Charter Developed • Selecting the Financials Solution • Software RFP Process for Financials selected SAP • RFP  Shortlist  References  Site Visits  Demonstrations  Negotiations • Implementation Partner RFP process for Financials selected IBM • RFP  Shortlist  References  Presentations  Scoping  Statement of Work  Negotiations

4. Agenda • Preparing for New Business Systems • Implementing mySAP for Financials • Mission, Scope and Approach • Architecting and Building the Technical Infrastructure • Creating a High-Performing Project Team • Project Governance – Balancing Consensus with Speed • Defining the Enterprise – UC Flex • Adding HR/Payroll, COEUS & Other Initiatives • Creating the UC Flex Program Management Office • UC|21 – Supporting the University’s Strategic Plan • Lessons Learned • Questions

5. Objectives & Benefits • Key Objectives • Relate to UC’s needs as a 21st century public university • Flexibility and information access improvements • Ability to use UC information to manage resource strategies • Efficient UC operations and accurate information • Anticipated Benefits • Support a flexible, evolving & responsive business environment • Eliminate non-value adding activities, such as data entry duplication • Adopt best practices where possible • Improve ability to service customers • Integrate multiple functional areas within UC • Reduce reliance on ancillary systems • Streamline business processes and reduce inefficiencies • Support information sharing and access

6. Project Mission • Deliver a mySAP solution to enhance the University’s financial management operations, supporting the following objectives: • Delivered on-time and on-budget • Utilize an integrated approach to design and build the system • Provide for common business processes and data at all levels within the University • Eliminate shadow systems wherever possible • Provide an integrated core solution that improves current operations and allows for future enhancement (e.g. HR/Payroll, e-procurement)

7. Geographic & Organizational Scope • University of Cincinnati • A Public Doctoral/Research University-Extensive • Three Campuses + Three Remote Locations • 34,000 Students • 14,000 Total Staff (4,100 Administrative Staff) • Annual Budget $780m • Endowment $1Bn • 1,000 SAP users (Financials)

8. Functional Scope – Financials • General Ledger • Accounts Receivable / Revenue Mgt • Accounts Payable • Managerial Accounting • Purchasing & Procurement • Asset Accounting • Project Accounting / Capital Finance • Grants Management • Budget (inc. Position Budgeting) • Funds Management • Endowment / Investment Accounting* • Reporting mySAP components: • R/3 Enterprise 4.7 (EA-PS 2.0) • Strategic Enterprise Management (SEM) • Business Warehouse (BW) • Enterprise Portal * UC Customer Enhancement

9. University Specific Challenges • Grants Management • Indirect Costs • Budget Preparation • Substitution rule for revenue distribution • Multi-year budgeting in FM • Project Accounting • Funding structures • Position Management • Process integrates across HR/Payroll • Endowments Management • Custom Development

10. Endowments Management • The UC Endowments Management solution will be used by the treasurer’s office to: • Manage the pooled endowment funds • Purchase and sale of shares • Distribution of income and assessment of fees • Manage the Temporary Investment Pool (TIP) • Tracking of average daily cash balances • Distribution of income and overdraft assessment • Provide detailed reports to departments of pooled investment activities • Actual and projected income and expenses • Market value and costs of pooled endowment holdings • Record monthly investment activity • Key Design Points include: • Use of SAP Corporate Finance Management (CFM) for creation of stocks • Custom tables and programs for all other pool management activities

11. System Infrastructure Scope • Architected, sized and built from a clean-sheet to provide a robust, flexible and scalable mySAP infrastructure. Components include: • IBM P-series Hardware - p670/p570 + AIX 5.0 with virtualization • Windows 2003 SQL Server Cluster for Enterprise Portal • EMC CX700, STK SL8500 • Sandbox, Development, QA, Training and Production environments for: • SAP R/3 Enterprise Release 4.7 / Web Application Server 6.2 • BW 3.5 / WAS 6.40 Kernel • Enterprise Portal 6.0 SP9 / WAS 6.40 Kernel • System Landscapes for: • Solution Manager 3.1 (for Operations) • AscendantTM SAP Toolset • Other components: • Novell e-Directory LDAP • In Future: Linux and Big IP Version 9

12. System Infrastructure Diagram

13. Implementation Strategy – Financials • A multi-wave implementation timeline that supports a big-bang go-live in July, 05 for SAP R/3 with the Budget Planning system available Apr, 05 • An integrated project team that is a comprised of high-caliber UC staff and consultants in co-leadership roles. The team includes Team Members, Subject Matter Experts and Business Process Owners with functional responsibilities • A proven methodology – AscendantTM SAP – which provides the guidance, framework, and process checkpoints that constitute a successful implementation • A comprehensive set of tools and accelerators, including RWD Info Pak and the AscendantTM SAP Toolset which provides a web-enabled project support system and central repository that aids in managing the project and maintaining project documentation and deliverables, including: • Project Management & Communication – Issues, Calendars, Email workflow, etc • AscendantTM SAP Method – based on Accelerated SAP with WBS, Accelerators, etc • Document Library – Requirements, Plans, Presentations, Minutes, etc • SAP Reference Model • Customer Reference Model – The “In Scope” model with process documents (e.g. BPP’s) attached to nodes in the tree

14. Implementation Timeline – Financials

15. Project Team • A single, integrated project team comprised of UC, IBM and SAP staff, who share: • A common vision • A single project plan with common milestones and deliverables • A single project governance structure • Shared responsibility for delivering on-time and on-budget • Adopt the “Commercial Off-The-Shelf” Best Business Practices contained in the mySAP solution (a.k.a. System Based Business Process Reengineering) • Empowered to resolve issues and make decisions • Transfer knowledge to UC during the implementation to create self-reliance after the project is finished • UC Team Member’s positions backfilled to support ongoing operations

16. Project Team Structure • Project Managers • UC Business, UC Technical, IBM • Team Leads • Four teams: Business Process, System Infrastructure, System Development and Change Management & Training • Each team has two leads – UC and IBM • Team Members • Most are Full-time • Includes staff from Colleges/Departments • Process Owners • One for each Process Area e.g. G/L, Grants, Endowments, etc • Signoff on: Blueprint, Roles, User Training Plans, User Acceptance • Subject Matter Experts • Participate in Blueprint Workshops and Configuration Confirmation Sessions

17. Change Management & Training • Integrated component of the UC Flex Team • UC Flex Leadership with IBM and UC team members • Change Management Scope includes: • Change Management Strategy • Stakeholder Analysis, Change Readiness Surveys, Communication Plan, Communication Survey, Townhall meetings, Newsletters, FAQ’s, Listserv (email), Web site, Road Shows • Training scope includes: • Project Team Training Plan – Business and Technical • User Assessment, Training Strategy and Plan • Training Standards, Templates and Prototypes • End-User Course Development and Training Delivery • RWD Info Pak • Content Development, Context-sensitive Help

18. End User Training • Role-Based Training Development • Blueprint  Processes  Roles  Curriculum • Blueprint identified the system and business processes • SAP Roles (>65) identified and mapped as-is  to-be • Curriculum developed based on the roles users will perform • Training Delivery Process • Identify UC Flex Users • Training Survey identified users and current processes • Map current processes to UC Flex Roles • Train Business Administrators on UC Flex Roles • Validate UC Flex Users with Business Administrators • Create Individual Training Plans • Distribute Individual Training Plans through Business Administrators • Create the Training Schedule • Web-based Training Registration • Track Attendance & Monitor Feedback • End User Training Scope • More than 40 courses and workshops • Over 2,500 hours (total) of training to be delivered

19. Project Governance Project Sponsors VP - Finance VP - CIO Executive Steering Committee Co-Chairs Members Program Decisions Project Management UC Business PM UC Technical PM IBM PM Change Mgmt & Training Business Process System Development System Infrastructure UC & IBM Leads UC & IBM Leads UC & IBM Leads UC & IBM Leads

20. Agenda • Preparing for New Business Systems • Implementing mySAP for Financials • Mission, Scope and Approach • Architecting and Building the Technical Infrastructure • Creating a High-Performing Project Team • Project Governance – Balancing Consensus with Speed • Defining the Enterprise – UC Flex • Adding HR/Payroll and COEUS • Creating the UC Flex Program Management Office • UC|21 – Supporting the University’s Strategic Plan • Lessons Learned • Questions

21. UC Flex is… • Transforming Business • Transforming Information Systems – using technology as an enabler • A High Priority • Still Evolving – adding new initiatives • Made up of: • UC Flex Financials  mySAP Financials • UC Flex HR  mySAP HR + PeopleAdmin • UC Flex Grants Management  COEUS + SAP Grants Management Module • Supported by a single Program Management Office

22. Program Management Office • To ensure an integrated and cost-effective enterprise-wide solution, UC established a Program Management Office (PMO) with the charter to: • Support and Control UC Flex related Projects • Provide Management Visibility • Institutionalize Project Management • The UC Flex PMO responsibilities include: • Establish Project Standards • Provide Project Management Support • Collect, analyze and report information on projects • Monitor projects for conformance to standards • Monitor scope, issue, risk, and performance • Improve the skill level and capabilities of project managers within the organization • Acquire and Implement project management processes, tools, techniques and capabilities

23. New Initiatives • New Projects • Replacing the legacy HR/Payroll with SAP • Implementing COEUS • Impacts on the UC Flex Program • Updated Project Charter • Updated Governance Model • Added Sponsors for HR & Grants Management • Added Steering Committee members for HR & Grants Management • Created HR Process Change Leadership Group • Created HR Team • Created Integration Roles

24. UC Flex HR Scope • Organization and Position Management • Personnel Administration • Time Management • Benefits Administration • Compensation Administration • Payroll Processing and Payroll Accounting • Self Services – Manager and Employee • Talent Management – Training, Qualifications, Career Development

25. UC Flex HR Benefits • Anticipated Benefits: • A standard (SAP-centric) platform allowing a truly integrated system • Streamlined business processes using the SAP system to provide faster, more convenient service to the University community • Increased automation allowing the University to shift effort from centralized administrative activities to employee/manager services and programs • Electronic Workflow approvals

26. UC Flex Financials + HR Timeline

27. UC Flex – COEUS • Mission • Implement a research administration system which will meet the needs of UC’s research units and central administration • Integrate components of SAP Grants Module with COEUS to deliver significant pre and post award functionality to the desktop • Benefits • Assist the Office of Sponsored Programs with pre and post award management of sponsored activity. • Manage awards from cradle to grave • Proposal development opportunities for the future including electronic submission of proposals

28. COEUS Timeline • Phase 1 (November, 2005) • Proposal module – store completed proposals • Award module – maintain detailed information on awards and sub-awards • Subcontract module – maintain detailed information on sub-recipients • Person module – repository for information on employees associated with proposals and awards • Phase 2 (Fall, 2006) • Conflict of Interest module – maintain all conflict of interest and financial interest disclosures that may compromise professional judgment in carrying out research work • Negotiation module – track negotiations for individual proposals

29. UC|21 – UC’s Strategic Plan Six Goals: • Place Students at the Center • Grow Our Research Excellence • Achieve Academic Excellence • Forge Key Relationships & Partnerships • Establish a Sense of “Place” • Create Opportunity

30. Agenda • Preparing for New Business Systems • Implementing mySAP for Financials • Mission, Scope and Approach • Architecting and Building the Technical Infrastructure • Creating a High-Performing Project Team • Project Governance – Balancing Consensus with Speed • Defining the Enterprise – UC Flex • Adding HR/Payroll and COEUS • Creating the UC Flex Program Management Office • UC|21 – Supporting the University’s Strategic Plan • Lessons Learned • Questions

31. Project Governance

32. Project Execution

33. Project Execution

34. Project Execution

35. Functional Design

36. Technical Infrastructure

37. Agenda • Preparing for New Business Systems • Implementing mySAP for Financials • Mission, Scope and Approach • Architecting and Building the Technical Infrastructure • Creating a High-Performing Project Team • Project Governance – Balancing Consensus with Speed • Defining the Enterprise – UC Flex • Adding HR/Payroll and COEUS • Creating the UC Flex Program Management Office • UC|21 – Supporting the University’s Strategic Plan • Lessons Learned • Questions