What is an ERP, and why does the university need a new one?
ERP stands for Enterprise Resource Planning, which refers to the suite of software needed to run the university, including finance and human resources systems. Most business processes and data at the university are dependent on the ERP and related systems. OHIO’s current finance and human resources ERP system is Oracle E-Business Suite, and related systems include MyHR, BobcatBuy, Concur, and Workforce.
Some of the current systems have been in place for more than 20 years. Years of customizations and rapidly evolving technology will make these systems increasingly inefficient and costly to operate over time. Proactively investing in new systems now allows time to not only replace the technology but also improve the processes associated with them. This will enable the university to respond more quickly to new needs and opportunities; offer a better user experience; foster more data-driven decision-making; and ensure continued data security.
What systems or processes will this ERP replace or improve?
Oracle E-Business Suite is the main tool supporting human resources and finance at Ohio University that will be replaced during the implementation. Most business processes and data at the university are dependent on the ERP systems, with more than 100 connected applications. Some examples of these systems include MyHR, Bobcat Buy, Concur, and Workforce. Some of the key processes that may be improved include processing payroll, hiring and onboarding staff, managing research funds, purchasing, and expense accounting.
How much will this project cost, and how will it be funded?
The first phase is expected to cost $44 million, which includes a 20% contingency for unexpected costs. The approved funding includes $35 million from IT reserves earmarked for this initiative. The remaining $9 million will be funded through $3 million in the University’s annual budget designated for future ERP replacement in fiscal years 2026, 2027, and 2028.
How much will the new system save us in terms of cost and efficiency over time?
The primary area of savings is known as “soft dollar savings” which come from the reduced support costs when moving from aging, on-premises software to modern cloud-based systems and the ability of IT support employees to focus on other priorities. This soft dollar savings is estimated to be $10.4 million over the first five years of the implementation. Additional savings will be found through increased efficiency in business and administrative offices, allowing the employees who work closely with these systems to invest more time in work that advances the university’s core mission.
How will OHIO faculty and staff be involved during this process?
OHIO faculty and staff are the core users of these systems, and your feedback is essential to the success of the project. More than 300 faculty and staff already provided input during the assessment phase of the project to understand the current and future needs of these systems and related processes. The governance structure and implementation team will include leaders from across campus. Faculty and staff will be invited to provide feedback after vendor demonstrations and at key points during the initiative.
How will this project affect faculty and staff?
The initiative will eventually impact every faculty and staff member at OHIO by providing more modern, intuitive tools that simplify tasks such as managing research funds, submitting expenses, and processing payroll. Faculty and staff will have opportunities to provide feedback throughout the process, and comprehensive training will be available prior to the launch of any new system.
Will this project lead to job cuts or significant changes in roles?
This project is not expected to lead to job cuts, but it may lead to changes in the types of tasks that employees are able to complete. Modern ERP systems and business processes reduce manual processing and technology support needs, which will allow staff to focus on higher-level tasks, respond to new opportunities as they arise, and spend more time advancing the core mission of the university.
How will training be handled for those who need to use the new system?
Comprehensive training and support resources will be available prior to the launch of the new system, including live sessions and online resources available for use at any time. Modern systems are designed to be intuitive and should not require significant training for those performing individual tasks such as submitting expenses or viewing payroll information.
How will the project team ensure minimal disruption to daily operations?
The ability to conduct careful planning prior to the implementation is one benefit of making an investment in the ERP systems now, while the existing systems are still operational. The project timeline includes a full year to complete readiness projects that are designed to ensure minimal disruption to daily operations. These projects include developing a governance structure, assembling a core project team, creating change management strategies, and identifying capacity and skill gaps that can be filled through strategic hiring and training.
How will the new ERP system and processes support the university’s mission, vision, and strategic goals?
The ERP initiative supports the University mission, vision and strategic goals by enabling faculty and staff to spend less time on routine tasks and more time on the core missions of teaching, learning, and research. Modern systems and processes are designed to be intuitive for all users, streamlining access, and reducing the frustration of conducting required administrative tasks.
What risks are associated with the project, and how will they be managed?
The ability to conduct careful planning prior to the implementation is one benefit of making an investment in the ERP systems now, while the existing systems are still operational. The initiative represents a major financial investment over a period of several years which creates risks of unforeseen costs, staff turnover, and rapidly evolving technology. The readiness projects allow time to create contingency plans and policies in anticipation of staff turnover and other unforeseen issues. The project will also be completed in collaboration with a consulting partner known as a system integrator, who will help identify risks and provide expertise in mitigation strategies based on experience at peer institutions.
While there are risks associated with this initiative, there are also risks of delaying an ERP replacement. As technology evolves, the existing outdated ERP technology makes it more difficult to keep up with demands of modern employees, and it limits our ability to take advantage of new innovations in automation and AI. The ERP systems must be replaced before they are no longer supported, pose security risks, or incur significantly higher maintenance costs. Being proactive allows for optimal planning and risk mitigation, along with the greatest opportunity for process improvements.
How will the project’s success be measured?
The overall success of the project will be measured by completing the implementation on time and within budget. More specific key performance indicators will be identified during the preparation for implementation. These indicators may include a reduction in the time required to complete key business processes, fewer errors in key processes as a result of improved automation, and an increase in employee satisfaction related to core processes.