SMITHSONIAN INSTITUTION -
ERP FINANCIALS IMPLEMENTATION
Situation
Smithsonian Institution's financial systems and applications were unable to meet the needs of users distributed
throughout the Institution or those of the Office of Comptroller (OC).
Museum staff was unable to work solely within the existing system or rely upon
data generated in the various reports. To facilitate functional operations, staff
utilized a system of cuff records and manual reconciliations. OC staff relied on a
variety of manual manipulations in conjunction with ad hoc processes to produce the
necessary reports and information needed by both internal and external (e.g.,
auditors, Treasury, and OMB) customers. Not all information requested was available, and
extensive amounts of time were expended throughout the Institution to reconcile cuff
and official systems. In addition, common business practices, such as closing open
purchase orders for which final payment had been made, authorizing payments, and moving
funds between accounts, were problematic due to the current system limitations.
Furthermore, the absence of real-time information about financial activities limited the
ability of the Smithsonian to develop a complete picture to support sound business
decisions. Its primary financial system, the Smithsonian Financial System (SFS), was
based on a technologically obsolete, commercial financial management software product
that could no longer be supported by its vendor. Costly and difficult to maintain, SFS
could not take advantage of advances in technology or be adapted to serve the needs of
Institutional Units.
SPS - Problem Solved.
In June 2001, SPS won a competitive contract with the Smithsonian Institution to
perform a comprehensive and full implementation of the PeopleSoft V7.5 General Ledger (GL),
Purchasing (PO), and Accounts Payable (AP) modules.
Methodology
 The implementation team provided a complete configuration of
the hardware architecture, database environments, and application fit-gap analysis as
required for PeopleSoft V7.5. In April 2002, when PeopleSoft released V8.4, the SPS
team shifted its development effort to incorporate the enhanced capabilities of the
web-based architecture of V8.4.
Processes and Tools:
A major key to ERP implementation success is
conducting effective and well-prepared fit/gap sessions. Our preferred project life
cycle tool is the Rational Tool Suite, an IBM product. As an IBM partner, we successfully
use Rational tools for business modeling, requirements management, configuration
management, and defect tracking and reporting on the majority of our projects. In
particular, Rational tools we used for the Smithsonian ERP project included ReqPro for
requirements management, ClearCase for configuration management, and ClearQuest for defect
tracking and reporting.
The SPS implementation team successfully performed the planning, development, training,
and testing to complete the migration to V8.4 in time to meet the scheduled deployment
of the GL, PO, and AP modules in October 2002. Only through customer and SPS staff
dedication and the inherent teamwork therein was it possible for this success to be realized.
Lessons Learned
Many risks were encountered during the implementation, such as the amount and type of
data to be converted and which "cuff" interfaces were no longer required, but the primary
risk encountered with the SI ERP project was the ERP application itself. Within the ERP
world, application baselines are dynamic in nature because of the continual balancing act
between maintaining a homogeneous customer support profile and providing customers with the
latest bug fixes.
For the SI, the original PeopleSoft baseline was V7.5 – a client/server
architecture. From the start of the project, SPS maintained close ties to the progress of
the new V8.4 Internet architecture. When the new V8.4 baseline was formally released, ten
months after project start and 6 months before "go live", the major risk was realized.
Following changes to the environment and configuration of the new software baseline,
new fit/gap analyses were completed, project schedules were fast-tracked, and customizations
were further minimized. Only through these proactive steps and continued teamwork was
the project able to circumvent the impact of this risk.
Results
The initial deployment's success, under a severely compressed schedule, was validated by
an "unqualified" audit opinion to SI for its FY03 accounting year, the first audit opinion
issued under the new system. Following up on the success of Phase I, the SPS team is
scheduled to implement additional financial modules (Asset Management, Accounts Receivable,
Projects, Billing, Inventory, Budget, and Grants/Contracts) throughout FY05 and FY 06.
Client Benefits
Increased efficiency of operations create organizational synergies; Improved accuracy,
reliability, and timeliness; Increased internal controls for maintaining system
and data integrity; and Enhanced organizational communications.
About SPS
Software Performance Systems, Inc. (SPS), a small business based in Maryland, is
a privately held information technology services provider.
Established in 1995, SPS specializes in the design and integration of large
Web-based solutions for State and Local Governments and commercial
clients. SPS has been honored with many national awards, including:
#10 ranking in the Computerworld Top 100 Best Places to Work in IT, Deloitte's
Virginia Technology Fast 50 and North America Technology Fast 500, and as a SBA
Exporter of the Year. More importantly, SPS solutions helped our clients win
prestigious awards, including the Grace Hopper Federal Government Technology
Leadership Award, the E-Gov Pioneer Award, the Excellence.gov Grand Prize
Award, and the Government IT Agency Award for Excellence in Government.
SPS...proven over time.
Contact Information
Software Performance Systems, Inc.
Mike Dorsett, PMP
VP Financial Solutions Division
301-518-5711
mdorsett@gosps.com
www.goSPS.com
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