Making the Right Enterprise Information Decisions Dennis Cromwell Associate Vice President...
-
Upload
debra-gray -
Category
Documents
-
view
214 -
download
0
Transcript of Making the Right Enterprise Information Decisions Dennis Cromwell Associate Vice President...
Making the Right Enterprise Information Decisions
Dennis Cromwell Associate Vice President Enterprise Infrastructure
May 24, [email protected]
Copyright Dennis Cromwell, 2007. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the
author.
Session Topics
• Buy vs. Build Decision• Promise and Reality of ERP • Community Source • What’s the answer?
Gartner Group CIO OutlookThoughts of the Corporate
CIO• CIO budgets across all industries will
increase near 3%• Total IT spending will increase near 5%• Recommendation - Create a track
record for creating business value
• Question – How does institutional buying power compare?
Buy vs. BuildConventional Wisdom
• Build – Applications that give you a strategic/competitive advantage
• Buy – Anything else
This is an age old conventional wisdom. What is strategic? What is a business differentiator?
If it is not strategic then the business models that the software supports are also not strategic and are subject to change and commonality.
Build vs Buy
• Unique needs• Control destiny• Cost – In some
cases• Customization• Control pace• Push frontiers• Meet cultures• Maybe better
integration
• Cost – in some cases• New processes• Best practices• Drive change• Complete refresh of
process and/or technology
• Hardened product• Implementation time • Staff – Leveraging
expertise • User communities• Support • Maintenance
Build it Buy it
ERP – A different kind of buy
“But the companies that have the biggest problems – the kind of problems that can lead to disaster – are those that install an ES (enterprise system) without thinking through its full business implications”
• People don’t like to change, and ERP asks them to change how they do their jobs….The software is less important than the changes companies make in the ways that they should do business. “
Davenport – HBR 1998 Koch – 2006
The ERP Promise
• Integrated solutions will unlock data • End-to-end tight integration of business
process• Administrative systems are not
strategic• Refocus central IT staff to important
problems• Save money over the life of the system
(implement vanilla)
The ERP Reality• Lack of data warehouse and reporting makes access
to information worse • Best practice turns out to be difficult to define and
nothing is unique• It takes more IT staff to manage ERP than legacy
system• Upgrades are disruptive and expensive • Total Cost of Ownership is high • Very complex• Security is not a good match – for some• It addresses back office and not outwardly focused• Big Cultural Shift
Looking for a better model
CommunitySourceProjects
PartneringOrganizations
LicensingFees
MaintenanceFees
CommercialCoordination
Closed IP
Bundled IP & Support
StakeholderCoordination
Open IP
Unbundled IP & Support + Commercial Support Options
CreatingSoftware
SustainingSoftware
Source: [ Wheeler,4]
Hey Kids, Let’s Become a Software Developer
Be honest, how many of you have thought of Community Source in this fashion?
Community Source
“Institutional Investmentsfor Institutional Outcomes”
“Community source describes a model for the purposeful coordinating of work in a community. It is based on many of the principles of open source development efforts, but community source efforts rely more explicitly on defined roles, responsibilities, and funded commitments by community members than some open source development models.”
www.sakaiproject.org
Source: [ Wheeler,5]
Community Source The Basics
1. Pooled investments2. Strong board3. Tendered resource to the project4. Strong team and leaders5. Semi-benevolent tech dictator6. Sustainability in organization
Source: [ Wheeler,4]
Community Source Killer Items
1. Licensing issues2. Reduced commitment3. Failed governance
Source: [ Wheeler,4]
Community Source• Functionality of Systems
• integration, standards…innovation
• Cost of Systems • operations, maintenance, timing, evolution
• Time to Deliver
Chandler/Westwood
Source: [ Wheeler,5]
Licensing IssuesBirkenstocks and Wingtips
“Copy Left”– GNU model Open/Open – BSD Model
Source: [Gandel and Wheeler]
Beware of Silver Bullets
• Compilers• CASE • Third generation languages• Objects are nearer than they
appear• ERP• Software as a Service
SOAService Oriented
Architecture What is SOA? • SOA is a programming or deployment
methodology . (SO)• Also, a description of the way an enterprise
addresses its application portfolio (A)• It requires reuse and a reuse discipline (some say
governance)• A governance model would place architecture as
the role of central IT and it requires centralization. • If you cannot resolve what department code to
use in your applications (or building code, etc.) then it will be difficult to be successful with SOA.
What do we do? Staffing
This is a challenge. Location and competition for talent plays comes into play, but some things to consider
Build HE skills for your institution, reward institutional knowledge.
Build generalist who are not afraid to reuse Avoid the not invented here syndrome
Bring some deep technical expertise use consultants sparingly.
What do we do? – Buy
• Clear ROI• Focus and support our business • Demand more from our vendors'
– Cost of upgrades– Support for integration– Not sold here syndrome
What do we do? Build together
Community Source is important – support it
Look for projects that minimize the riskDon’t be afraid to use without
contribution
Copyright Information
Copyright Dennis Cromwell, 2007. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-
commercial, educational purposes, provided that this copyright statement appears on the
reproduced materials and notice is given that the copying is by permission of the author. To
disseminate otherwise or to republish requires written permission from the author.
References1. Gartner Inc. The Gartner Scenario 2006: The Current State and
Future Direction of IT. October 27, 2006 2. Gandel, Paul B. and Wheeler, Bradley C. Of Birkenstocks and
Wingtips: Open Source Licenses. EDUCAUSE Review. January/February 2005. http://www.educause.edu/ir/library/pdf/ERM0517.pdf
3. Davenport, Thomas H. (1998) Putting the Enterprise into the Enterprise System.” Harvard Business Review July-August 1998.
4. Koch, Christopher (2006) The ABCs of ERP . January 10, 2006. http://www.cio.com/research/erp/edit.erpbasics.html
5. Wheeler, Bradley C. (2004) Code, Coordination, and Community. Open Source Summit. Phoenix, AZ. http://wheeler.kelley.indiana.edu/pdfs/Code-Coordination-Community.ppt
6. Hardin, Joseph and Mitra, Amitava (2005) Sakai – The Road Ahead. EDUCAUSE Orlando, FL. www.educause.edu/ir/library/powerpoint/EDU05250.pps.