financial system replacement project fall 2009 1

Financial System Replacement Project

Fall 2009

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Topics

• Financial system replacement overview• Project background• Project phases• Next steps

Topics

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Financial System

Replacement Overview

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Financial Systems Replacement Project

• A major effort to replace UW core financial systems• Now in the Needs Assessment phase• Targets three financial systems:

Financial System Replacement Project

FAS BGT PAS

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When our financial systemswere implemented in 1974:

• Pocket calculators appeared

• Offices began using a primitive word processor resembling a typewriter

• UW Research volume was $69M

Financial System Replacement Project

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A lot has changed… but not our core systems.

How Does the UW Compare?

Among the UW’s peer group, only one has financial systems older than the UW’s – Michigan State University.

… And MSU is in process of replacing their financial system.

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UW Financial Systems: Current State

• Can’t support new business models and priorities:– President Emmert’s 2 Years; 2 Decades Initiative– Activity Based Budgeting (ABB)– Self-sustaining business units

• Inefficiencies negatively impact staff productivity

• Manual workarounds create additional work

• Hundreds of redundant shadow systems

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Future Financial System Vision

• Modern, flexible, effective core financial system

• Flexible chart of accounts

• Effective financial and management reports

• No manual workarounds; streamlined business processes

• Timely, consolidated, accurate information

• Integrated system supports management and reporting

• Current/future business needs met; limited system customization

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Looking to the Future

• Status quo is not acceptable

• Replacing our core systems is critical to the UW’s future

• We are moving forward!

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Project Background

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UW Strategic Roadmap• UW Strategic Roadmap (2008)

– Comprehensive strategic plan for future of UW information and administrative systems

– Involved 170 key stakeholders across UW

• Recommendations--Five key initiatives including:– Replace our financial systems – Redesign business processes

•Outcome: – Financial Replacement Project

Project Background

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Project Scope

Project Scope

• Fixed Assets• Purchasing/Receiving• Accounts Payable• Travel/Expense Reporting• Vendor Management• Cost Accounting• Service/Recharge Centers• General Ledger• Grants Management

• Project Accounting• Capital Projects• Budgeting• Budget Activity

Reconciliation• Accounts Receivable• Debt/ILP• Endowment Mgmt. • Bank Reconciliation

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Project Principles

• Transform how we do business

• Changes of this magnitude take time

• Start preparing for change now

• Select vendor package/open source–don’t build

• Minimize customization to reduce risk/cost

• User involvement critical during every phase

• No system will meet 100% of our needs

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Project Approach

A New Approach

• Past efforts focused on incremental enhancements

• Long-term solution is radical: replace our core systems

• Scope and scale are larger and more complex than anything UW has undertaken in this area

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Setting the Stage for Success

• Highest level of institutional support• Executive sponsors:

– Phyllis Wise, Provost– V’Ella Warren, Executive Vice President,

Finance & Facilities• Funding the new approach:

– First project phases have been funded– Executive Sponsors actively working on funding

for new system

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Project Organization Structure

User Work

Groups

Financial Core Team

Project Steering

Committee

Technical Advisory

Group

Project Sponsors:Ann Anderson

Sara GomezGary Quarfoth

Executive Sponsors:V’Ella WarrenPhyllis Wise

Accounting Advisory

Team

FSNA Project Team

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Broad Community Involvement

Project Phases: The Road Ahead

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System Replacement Life Cycle

Project Life Cycle

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Phase 1Needs

Assessment

Phase 2 Alternatives

Analysis

Phase 3Implementation

Planning

Phase 4Design &

Development

Phase 5Final

Preparation

Phase 6Post

Implementation Support

Communication

Business Process Redesign & Change Management

2008-2009 Go-Live 20XX

FundedFunding Strategy Discussions Underway

Major Investment

Funded

2010 2011 – 201?

Phase 1: Needs AssessmentGoal: Define what UW needs in a new financial system

• Interviews: Over 100 users explore issues; document existing business processes

• Focus Groups: 26 focus groups help determine what’s needed in a new chart of accounts

• Retreats: 225 users help define requirements for each functional area

Financial System Replacement Project

Phase 1Needs

Assessment

Phase 2 Alternatives

Analysis

Phase 3Implementation

Planning

Phase 4Design &

Development

Phase 5Final

Preparation

Phase 6Post

Implementation Support

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Phase 1: Needs Assessment…

Activities taking place now:

• Gathering high-level requirements to select system– All financial system users invited

to provide input– Input collected via Web survey

Financial System Replacement Project

Phase 1Needs

Assessment

Phase 2 Alternatives

Analysis

Phase 3Implementation

Planning

Phase 4Design &

Development

Phase 5Final

Preparation

Phase 6Post

Implementation Support 20

Phase 2 – Alternatives Analysis

Goal: Evaluate alternative systems against our needs; identify best fit for UW

• Use feedback collected via the survey to:– Identify priorities for new system– Evaluate options for new system

• Talk with peer institutions that have implemented new financial systems

• Recommend system solution for the UW

Financial System Replacement Project

Phase 1Needs

Assessment

Phase 2 Alternatives

Analysis

Phase 3Implementation

Planning

Phase 4Design &

Development

Phase 5Final

Preparation

Phase 6Post

Implementation Support

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Phase 3 and Beyond

System replacement• Approach will be influenced by the system selected• Activities will include:

– Gap analysis – System pilots– Business process redesign– Testing– Training

Financial System Replacement Project

Phase 1Needs

Assessment

Phase 2 Alternatives

Analysis

Phase 3Implementation

Planning

Phase 4Design &

Development

Phase 5Final

Preparation

Phase 6Post Implementation

Support 22

Next Steps

• Provide your input via Web-based survey by December 4

• Attend a survey information session to learn more

Check out the FSNA site for updates:http://www.washington.edu/provost/oim/SPP/FSNA/

Questions?

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