December 29, 2019
To Members of the University Community,
We are in the midst of implementing the new financial system SAP. As expected, it is a lengthy process, difficult and often exasperating. We are constantly exposed to the feedback we receive from the ground regarding the financial system in general and specifically the process of implementation. In this letter we will try to clarify why this process is necessary, what are the actions we are taking in order to make the process of implementation as easy as possible, and what we are planning to improve as the process continues.
The previous financial system, the “Finance”, operated in the University for exactly forty years. The system suffered from many obstacles and the information it supplied was not reliable. The system also did not enable an overall view or basic abilities to know what was happening in our institution and to make the financial operation more efficient. Here we note three examples among a variety of outstanding drawbacks: (1) We purchase equipment and materials in hundreds of millions of shekels annually. The previous system did not enable us to use this great advantage for significant savings in purchases. Most of the purchases in the University are carried out through research funds and these are the ones that will benefit directly from such savings. (2) It is very difficult to locate errors in this system after the input of a purchase request, and so every error leads to investment of a great deal of time to locate the error, and a serious delay in payments.
(3) Various parts of this system were not coordinated with each other and so we often received different reports on the same action. In a more general manner, the reports put out by this system were often defective, and required manual work.
The vast majority of leading organizations in the western world have moved to the ERP systems which provide a solution for the drawbacks noted and for many additional drawbacks. The system that we have chosen, SAP, is being used by more than 75% of the academic institutions found among the top 100 worldwide. This is a complex system, but one that enables great flexibility, various cuts of information, advanced ability for analysis )BI( and future expansion. The outstanding drawback of such a system is due to its complexity, both less intuitive and requiring acquisition of expertise in operating it. Furthermore, the process of implementation is usually long, difficult and often exasperating. This is a phenomenon that occurred in all of the organizations that began to use these systems. And yet, nearly all of the leading universities in the world chose to implement such systems because of the existing consensus that at the end of the period of implementation, the system will enable much better functioning.
Our University decided to purchase the SAP system over four years ago. Knowing the difficulties anticipated in implementation of such a system, for over two years we prepared for its operation. As the basis for the system, we actually implemented the system of the Technion, with the adjustments and changes relevant to us including many consultations with similar institutions in Israel (particularly the Weizmann Institute and Tel Aviv University). We hired the Ness Company to help us in adapting the system to our needs and implementing it. In this process we were assisted in the years 2016 – 2018 by focus groups from within the academic staff on the various campuses, and by the relevant professionals in the Authority for Research and Development, the Finance Division, the Human Resources Division and many others. These focus groups assisted greatly in characterizing the system. We decided also to add a unique model, whose function was to make it easier for the researchers and directors of laboratories – the portal for the researcher. The system was examined and chosen over long months by the personnel of the “Ness” company and by us. It is important to note that the stage when the system becomes functional in such systems it is extremely complicated, because there is no opportunity to do a real and partial “pilot”: One must move in a sharp manner from one system to another due to the many components and interfaces. As stated, the process of transfer, in every organization that we know, is a painful process which lasts for several months. Therefore, we postponed becoming operational several times in order to improve the quality of the system and its stability.
It is clear that such a preparation process is not without errors. It may be that we might have broadened the consultations with the focus groups, and it may be that we could have anticipated and prevented some of the problems that arose. We are speaking about an enormous change, and we tried and tried to make the move as easy as possible. This involves a sort of “new language” for us (although this is already the standard in the world around us). There are also transfers to functioning that is customary in institutions similar to ours, such as use of catalog numbers for purchases (that would enable us to use our great advantage). We granted more than 15,000 permits in this process, supported by nearly 40 instructors and many tens of University employees. We know the process is not simple, that there is harm to the academic output during the period of transfer, but we have no doubt that in the long run this is an important and beneficial move.
Where are we today? It is two months since we became operational, and indices show that the financial system is mainly back to a routine of functioning, with more than two thousand people in the University community using the system. We set up three telephone and on-line support headquarters. The volume of appeals to the headquarters, at its peak during the period it became operational, was at about 700 approaches daily, and has dropped in the past weeks to just over one hundred. Tens of thousands of actions have been carried out in the system since it became operational, and the University has moved to the new system almost fully. An important measure – the volume of the central purchase activities (that is purchase in high amounts that are carried out by the Purchase Department) shows that we have returned to a level of more than 75% in comparison with the volume of activity a year ago. There are still some faults in the system, but their number is decreasing. We are receiving feedback and criticism that includes many requests for changes and improvements and we are implementing these as much as possible. We wish to emphasize that we are pleased to receive feedback even if it is critical. That is the main way to improve and make the system more efficient.
What do we anticipate with regard to the continuation of the implementation process? In the coming months we will continue to provide close support for users that require it, through external instructors and University personnel. We estimate that the volume of activity will return to the customary size in the coming weeks. The main difficulties that arose in the first weeks, mainly about permits and funding categories, have already been solved. The drawbacks found in the system of travel have been handled, and now the system is working and stable. The past week we concentrated comments received from the University staff with regard to various aspects of the system and we are now working to significantly upgrade the main components that were identified as bottlenecks in the system, and this includes the portal for the researcher and operation of a unique system that will simplify the work with catalog numbers. Most of the development of these improvements in expected to be completed within six weeks. Furthermore, the Authority for Research and Development is working to seriously limit the categories of research grants. By the end of January, the new version of the portal will begin to function and with it the improvements requested by many of the researchers and directors of laboratories. Additional improvements that we are working on in the coming months focus on purchase processes and various reports.
It is clear to all of us that we are experiencing a challenging period. However, it is clear to us that we must join the 21st century with regard to computerization and be in a similar position as those organizations and universities to which we belong. Therefore, we are determined to complete the process, and we thank the members of the academic and administrative staffs for their crucial contribution to the success of the project.
Sincerely,
Prof. Asher Cohen, President
Prof. Barak Medina, Rector
Mr. Yishai Fraenkel, Vice President and Director General