Buy or BuildBuy or Build(or customize or (or customize or

outsource)? outsource)? The answer is yes!The answer is yes!

Marianne Colgrove – Reed Marianne Colgrove – Reed CollegeCollegeDave Smallen – Hamilton Dave Smallen – Hamilton CollegeCollege

The resource question:The resource question: Do we?Do we?

Buy

Build Outsource

A

B

C

Déjà vu all over again?Déjà vu all over again?

Dave’s oversimplified Dave’s oversimplified characteristics of web and characteristics of web and

ERP applicationsERP applicationsWebWeb ERPERP

FormForm FunctionFunctionPresentation Presentation (reporting)(reporting)

Transaction processingTransaction processing

IntegrationIntegration Data integrity/ securityData integrity/ securitySingle institutional Single institutional imageimage

Non-redundancyNon-redundancy

Universal interfaceUniversal interface ProprietaryProprietaryProcess eliminationProcess elimination Process automationProcess automation

Strategic Value

Market MaturityFunctionality

relative to need

Low

High

Low High

Buy/Outsource

BuildBuy and

don’t modify or Build

(resource issue)

??Other factors

Key Decision FactorsKey Decision Factors

Other Decision FactorsOther Decision Factors Resource requirements Resource requirements ($$ and personnel)($$ and personnel) Cost of integration Cost of integration (ERP, LDAP)(ERP, LDAP) Time pressure Time pressure Institutional standards Institutional standards (e.g. LDAP, SQL)(e.g. LDAP, SQL) Personnel talentPersonnel talent Level of riskLevel of risk Technical complexityTechnical complexity (e.g. modular vs. integrative)(e.g. modular vs. integrative) Uniqueness of policies & practicesUniqueness of policies & practices

DriversDrivers1974 – 2004…1974 – 2004…

1974 1990

HR/Payroll

Outsource Buy Build

-Efficiency-Lack of time pressure-Automation-Maturity of technology

Other Info Systems

2000 2004

(Datatel)

Alumni Community

Process elimination IntegrationFunctionality Strategic directionTime pressure CompetitionPredictable costs/ delivery?

??

-Functionality-Time pressure-Resources-Process improvement-Predictable costs/Delivery??

CMS (Blackboard)

Web site (external focus)

Portal

Resource Scheduling??

2001 2002 2003 2005

HR

Payroll

HR/Payroll

Strategic EffortsStrategic Efforts

AdmissionAdmission

Alumni / DevelopmentAlumni / Development

Portal DemoPortal Demo

ThemesThemes1980 – 20051980 – 2005

1980 1992

Payroll

Outsource Buy Build

-Computing out of the cellar-Modules from various sources-Customization necessary

Admin modules

2000 2004

Banner (finance, student, A/D)

Alumni Directory

The Web era Getting data out --> interaction Decentralization --> self service

-Integration-Standard database

Web site (external focus)

??

2001 2002 2003 2005

Student Information Gateway

HR

Course Registration

Admission search web

A/D web & datamart

Reed ExamplesReed Examples BuildBuild

– Student Information Gateway & Course Student Information Gateway & Course Registration (collaboration with Oxy)Registration (collaboration with Oxy)

– Alumni DirectoryAlumni Directory AcquireAcquire

– Banner Web for Alumni/DevelopmentBanner Web for Alumni/Development– and A/D Datamartand A/D Datamart

Student GatewayStudent Gateway Faculty & registrar prioritiesFaculty & registrar priorities Little convergence with Banner Little convergence with Banner

productsproducts No interest in changing practicesNo interest in changing practices Highly modularHighly modular Grant-fundedGrant-funded Opportunity to trade with Oxy Opportunity to trade with Oxy

Alumni Directory Alumni Directory (ReedLink)(ReedLink) Bad experience outsourcing surveyBad experience outsourcing survey Facilitate data updateFacilitate data update Not about fund-raisingNot about fund-raising Highly modular, expandableHighly modular, expandable Shares some services with GatewayShares some services with Gateway

(e.g. Career Services, email (e.g. Career Services, email forwarding)forwarding)

Now reconsidering some outsourcing Now reconsidering some outsourcing

Alumni/DevelopmentAlumni/Development Executive reporting for developmentExecutive reporting for development Highly ad-hoc queries, on the roadHighly ad-hoc queries, on the road Timeline - “yesterday”Timeline - “yesterday” Complex table structureComplex table structure Highly integrativeHighly integrative Web for Alumni/DevelopmentWeb for Alumni/Development Alumni/Development datamartAlumni/Development datamart

Alumni/DevelopmentAlumni/Development Two-year implementationTwo-year implementation Dedicated new staff lineDedicated new staff line Server with second Oracle instanceServer with second Oracle instance Not necessarily faster, but feels betterNot necessarily faster, but feels better Both staff and infrastructure bring Both staff and infrastructure bring

other benefitsother benefits

Build Build ProsPros

– Close match with Close match with needsneeds

– Easier integrationEasier integration– Maintain Maintain

standardsstandards– Expertise for Expertise for

other projectsother projects

ConsCons– Vulnerable to Vulnerable to

staff changesstaff changes– Vulnerable to Vulnerable to

changes in changes in technologytechnology

– Needed project Needed project managementmanagement

Buy Buy ProsPros

– Community of Community of usersusers

– Ability to Ability to interface with interface with existing systemsexisting systems

– Big jump in Big jump in functionalityfunctionality

– SustainabilitySustainability

ConsCons– CostCost– Difficulty of Difficulty of

customizingcustomizing– Uncertainty of Uncertainty of

continuing costs (or continuing costs (or certainty of increase)certainty of increase)

– Viability of Viability of company/productcompany/product

– Planning still requiredPlanning still required

Outsource Outsource ProsPros

– Focused Focused expertise Faster expertise Faster implementationimplementation

– Predictable Predictable implementation implementation costscosts

ConsCons– Integration with Integration with

other systemsother systems– Lack of featuresLack of features– Unpredictable Unpredictable

continuing costscontinuing costs– Collaborative Collaborative

relationship a relationship a mustmust

Where are we going?

and why are we in this handbasket?

"When you come to a "When you come to a fork in the fork in the road....take it ”road....take it ”-- Yogi-- Yogi Berra Berra