THE SAN DIEGO CITY

SCHOOL

Enterprise Resource Planning Return on

Investment
BACKGROUND
 8th largest in US.
 2nd largest in California.
 142000 students.
 180 facilities.
 K- 12 grades.
 25000 employees.
 Operating budget - $ 1.1 billion.
EDUCATION INDUSTRY
 2nd largest in US after Health Care

 $800 b annual expd. { 40% in schools}

 Public schools – monopoly

 Low IT spending – 2% of revenues

 Fragmentation of system and Data.

 Labor – Intensive and Disruptive.

ERP
 Single Database.

 Reports/ Requisition/ Inventory management –

Automated.

 Financial Data at immediate disposal.

SOUNDS TOO GOOD TO BE TRUE??

Technical and difficult.

50% implementations failed.

ERP in School Districts
 Industry leaders coming out with tailored products
for education market.

 Improvement in core offerings.

 Dropped prices

 Top line consulting firms shifting focus on School

Districts.
 Ideal ERP System

District’s Finance Food & Health

Services

Integration
Information
District’s HR Students
Treatment of Student

 Checking Student’s Health

 Updation of Treatment Records

 Asset Mgt Software

 SIS
 Problems for SDCS

 Limited Budgets

 Under Qualified Personnel

 Changing Leadership

 Perceived risk
ERP- Big Picture at SDCS

 To develop enterprise wide system

 18 months to Integrate plans

 SIS – Holy grail of ERP

 Survey- 50 % value

 Diverted to HR module
 SDCS HR System

 30 year old legacy system

 Includes PAYROLL, PERSONNEL & BENEFIT SYSTEMS

 No Integration

 Separate Data Entry

 Duplication
 Components of HR module

 Employee Benefits
 Medical, Dental, Life Insurance
 Retirement systems
 Social Security benefits
 Payroll
 Time & Labor data
 Paycheck Processing
 Personnel
 Tracking Apllicants
Choosing an HR System
Assessment Criteria
 Product Functionality 40%

 Price 25%

 Support 15%

 Organization Strength 10%

 Total 100%
Choosing an HR System
 What to Choose

 Vanilla Implementation

 Best of Bread approach

Recommendation by Gartner Group

“Institutes that want to implement financial package

from one vendor and student information system
from another-and to use packages from still more
vendors…will face high risk, numerous problems
and a low probability of success…We do not
recommend that institute pursue such best of bread
strategies as an option for building an integrated
campus information system”
System Implementation Timeline
 10-24 months for one module

 4-5 years for a full scale project

ERP System Expenses
 Software Cost
 Implementation and Consulting Cost
 Infrastructure Cost
 Training
 Ongoing Cost
 Software Maintenance and Support
 Infrastructure Maintenance and Support

 On Site Staff
ERP System Benefits
 Tangible cost saving benefits
 Staff reduction
 Reduced Overtime
 Fiscal Control
 Printing, processing cost and space cost
 Saving on errors
 Productivity Improvement
 Setting staff free for crucial functions
 Soft benefits
 Improved Employee Moral
 Improved recruiting
 Improved Management access to Data
Risks with ERP Systems
 Scope Creep
 Wide Scale Deployment
 Issue Escalation
 Organizational Change
 Risks specific to Education Industry
 Negotiations
 IT Experience
 Software Modifications