The implications to North Carolina LEAs and HRMS
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1 Trends in LEA Enterprise Apps The implications to North Carolina LEAs and HRMS September
2 Where Does the Money Go? $9,802,610,275 was spent on school system salaries & benefits in % of all expenditures were for human resources Why not spend an infinitesimal percentage to ensure that the mostqualified people are in the best-fitting job, at the right time, and for the least possible cost? $3 million is just % of salaries * 2
3 Current Architecture BUD BAAS Applicant Tracking Salary Audit Accounting Package Licensure Positions and Employee Records Professional Development & CEUs HR Reporting Teacher Evaluation 3
4 Key HR Software Functions Reporting Applicant Tracking Hiring & On-Boarding Employee Records and Data Vacancy Management Position Control Job & Employee Assignments CEU Tracking & Licensure Staff Actions Contracts 4
5 Trends in NC LEAs Licensure moving to cloud-based Iron Data system Teacher Evaluation system moving to cloud-based True North Logic system ISIS & SunPac are moving from AS/400 to Microsoft SQL systems K12 Enterprise offering MS-based Finance/Payroll/HR system to replace SunPac ISIS will likely have most customers migrated to MS-based system next year Abundant options for education-specific applicant tracking systems Combined, all of these things place HRMS s future in jeopardy... 5
6 Why is HRMS in Jeopardy? As financial software (ISIS, SunPac) moves to Windows, Finance Directors may find less value in AS/400 (iseries) systems HRMS could potentially be the only AS/400 app 3 rd Party Applicant Tracking systems may reduce the use of HRMS significantly in many LEAs - potentially reducing HRMS receipts We estimate LEAs will spend $150,000+ on 3 rd party applicant tracking software in 2013, in addition to HRMS fees New Licensure or CEU Tracking system may alleviate the need for HRMS significantly in many LEAs - potentially reducing HRMS receipts Industry trend is toward more integrated finance/hr/erp solutions, away from HRMS 6
7 Key HR Software Functions Reporting Applicant Tracking Hiring & On-Boarding Employee Records and Data Vacancy Management Position Control Job & Employee Assignments CEU Tracking & Licensure Staff Actions Contracts 7
8 LEAs Not Using HRMS 3 LEAs do not use HRMS at all: Use a Custom CEU Tracking Web App Manual processes, Simple Databases (these are smaller LEAs with low turnover) Two use AppliTrack cloud-based system for Applicant Tracking 8
9 Reduce burden on LEA staff for State-wide requirements 9 21 st Century ERP System Goals Eliminate re-keying between HR and finance departments Provide employee self service portal greatly reducing central office forms processing requirements Single authoritative source of employee data Eliminate any discrepancy between payroll data and HR data Better auditing, better management with dashboards, timely data Integrate Budgeting, Salary Audit and State-mandated reports:
10 Example Software as a Service Invisibly Hosted Modern browser support Leverage SMEs who do one thing, and do it well 10
11 AppliTrack & SearchSoft 17 LEAs are using AppliTrack today 2 LEAs are using SearchSoft today We estimate that Statewide, a 3 rd party applicant tracking system: Could cost less than $400,000 /year Greatly reduce HR staff effort expended on recruiting, interviewing and on-boarding Market and expose NC jobs to talent outside of the State 11
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17 Superintendent s Interface
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22 We Need NCSchoolJobs.com
23 True North Logic: CEU Tracking 23
24 HRMS Fees $659,000 = $1600 per LEA + ( * ADM ) capped at $33,000 ISIS customers contribute:!! $206,000 for 366,000 ADM SunPac customers contribute:!$387,000 for 788,000 ADM Wake & CMS contribute:!! $66,000 for 290,000 ADM Example: If a few large LEAs use 3 rd party applicant system and access Licensure through API,...this changes... Example: If existing SunPac LEAs move to K12 Enterprise for HR functions,...this changes... 24
25 Current Architecture BUD BAAS Applicant Tracking Salary Audit Accounting Package Licensure Positions and Employee Records Professional Development & CEUs HR Reporting Teacher Evaluation 25
26 New Architecture Budgeting Positions and Employee Records NCSchoolJobs.com Applicant Tracking Accounting Package Salary Audit Data Integration Service Reporting System Licensure Professional Development & CEUs Teacher Evaluation
27 How To Gradually Reduce Dependence on HRMS Identify components that can easily be replaced with commercial software packages and guide LEAs to them Identify underused components in HRMS and stop new development first, then eventually end support Specify and document HRMS features and develop a benchmark to which vendors can develop commercial software Reduce HRMS fees; allow funds to be applied to commercial software Allow market forces to develop solutions that integrate with other industry standard solutions (e.g. IronData, TNL, Integration Services & Reporting) HRMS Steering Committee becomes the much broader "Business Systems Advisory Committee" DPI is out of the software development business and in the benchmarking/leadership business DPI negotiates statewide for optimum prices
28 Time Line Maintain old HRMS functionality on AS/400 platform: couple years Develop Specification for 3 rd Party Core HR Functionality: 2013 Move to 3 rd Party Applicant Tracking Systems: 2013 Reduce LEA s HRMS fees: 2014 Move to 3 rd Party CEU Tracking Systems: early 2014 Provide integration, reporting, benchmarking & leadership: ongoing 28
29 iseries Cloud 29
30 Cloud Example: Amazon.com Amazon Elastic Compute Cloud Customers: "Netflix, a leading online subscription service for watching movies and TV programs, has grown its streaming video business to millions of users globally. By using AWS, Netflix can quickly deploy thousands of servers and terabytes of storage within minutes." NASDAQ OMX Group, the inventor of the electronic exchange, uses Amazon Web Services (AWS) as the basis for FinQloud, a cloud computing solution specific to the financial services industry. FinQloud enables clients to store, manage and process large amounts of data cost-effectively while also helping them meet regulatory requirements.
31 What is the AS/400 (iseries) Cloud? One large system replaces dozens & dozens of smaller systems. This little box can hold eight 3.6GHz CPUs, 512GB RAM, 7TB Disk in just 1.6 cubic feet. Economies of scale. Reduction in support and cost of basic system needs. Better security & backup. Staff focuses on strategic goals, not system operations. If all LEAs moved to SAS cloud, Statewide savings is between $1,000,000 and $2,000,000 per year.
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