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Stanford Learns a Software Lesson

Nick Irelan writes "In 1994 Stanford set aside $60 million to aquire the latest financial and management software from PeopleSoft and Oracle. However, the upgrade that was planned years ago is still not complete. Stanford has even begun outsourcing! 'Those who can't do teach :)'."

34 of 314 comments (clear)

  1. or not by Anonymous Coward · · Score: 5, Insightful

    'Those who can't do teach'

    As if the computer science professors at stanford are the ones that set up the financial and human-resources systems.

    1. Re:or not by Anonymous Coward · · Score: 2, Insightful



      "As if the computer science professors at stanford are the ones that set up the financial and human-resources systems."

      It would be prudent to consult several lawyers, accountants, and computer scientists before making such an IT committment, and it's quite an insult that they wouldn't have thought to go in-house for such consultation. This is *Stanford*. They shouldn't have any problem finding competent people in their organization.

      It's really embarrassing that they got into this situation and they should suffer the consequences.

      The professors should be doing an I-told-you-so dance. And the people responsible should be told to pound sand, if not pay restitution.

    2. Re:or not by Laivincolmo · · Score: 1, Insightful

      In my experience it has been that those who teach (college) would rather DO their own work and care less about the student.

    3. Re:or not by Tony-A · · Score: 4, Insightful

      There's a lot of politics in these things, and a lot of money flying around and buying opinion. As often as not the last thing those in power want is their own Computer Science people involved. That would queer the whole money flying around deal.

      That's actually one of the strongest arguments for Open Source.
      Even if the software were more expensive for poorer quality and even if the support were inferior, you'd still come out ahead. Seems like Munich went for the more expensive Linux option.

      "In fact, the high-profile business battle between the vendors complicates matters. Each company's software is known to interfere with the other's, to the detriment of customers like Stanford."
      Makes KDE and Gnome sound friendly to each other.

      "For Handley, a big problem is that the software is designed to be used by public companies, not decentralized educational institutions. He notes that every ERP package he's worked with--Oracle, PeopleSoft and SAP--has a single ship-to address in the purchasing module. That's great for a company like IBM, which is organized around a central receiving unit"
      WHAT! IBM has one loading dock? He's been had.

    4. Re:or not by maximilln · · Score: 2, Insightful

      'Those who can't do teach'

      When I was young and cocky I prattled off that line. I have regretted it for the last 8 years. It's insulting, demeaning, and while it may be true in some cases, it's not true in nearly all cases and is on the same order as prejudice and racism.

      --
      +++ATHZ 99:5:80
  2. Conflict of interest by capt.Hij · · Score: 5, Insightful

    Three Stanford professors serve on Oracle's board of directors, and CEO Larry Ellison has pledged $10 million to the university as director of the Ellison Medical Foundation. Across San Francisco Bay behind a range of hills is PeopleSoft, which has been fighting Oracle's hostile takeover attempt for the last year.

    Seems like there is a bit of a conflict of interest on all sides here. Big surprise that this is an expensive bust...

  3. Okay.... by Dachannien · · Score: 4, Insightful

    "Those who can't do, teach"

    Last I checked, faculty was not generally responsible for doing IT software upgrades.

    1. Re:Okay.... by REBloomfield · · Score: 3, Insightful

      No, but it generally is faculty who want the latest buzzwords, and since three prof's sit on Oracle's board of directors, you can bet it was them giving the admins the orders....

  4. "Those who cant..." by The+Only+Druid · · Score: 5, Insightful

    Nothing disgusts me more in normal conversation than this sort of bullshit parading as wit (its similar to 'kill all the lawyers' being invoked as the wisdom of Shakespeare, with everyone forgetting that the line is a description of the first step in installing a tyrant).

    Those who can do, do. Those who teach are doing! You think you learned everything you know on your own? Go tell your parents, your teachers, your professors, your bosses, your friends, etc.

    Pardon the vulgarity, but grow some fucking common sense.

    --
    "Stumble before you crawl"
  5. 'Those who can't do teach' by jeffy124 · · Score: 5, Insightful

    how dare you suggest that Don Knuth cant "do"

    --
    The One Rule Of Chess You'll Ever Need: Don't play someone who carries a kit in their bookbag.
  6. There something to be said... by DeepDarkSky · · Score: 3, Insightful

    about being able to do partial rollouts of various systems, keeping loose coupling between them and planning a migration path that doesn't require changes to everything all at the same time. The problem with the "business software" and the required customization, however, highlights the problem with packaged, closed-source software. Open Source software does not require you to be at the latest and greatest version. However, software vendors are often only willing to support the newest versions and discontinue support for older versions.

    There will be a great market for companies who specializes in supporting older versions of software that the original software vendor no longer supports.

  7. 'Those who can't do teach :)'." by Baldrson · · Score: 4, Insightful
    If that's applicable to the Stanford situation then the Oracle development staff should be teaching at Stanford shouldn't they?

    I mean, after all, it's not like John McCarthy wrote the Oracle financials package.

  8. They should make their own open-source software by Anonymous+Writer · · Score: 5, Insightful

    Surely the same institution that came up with a distributed computing software project such as Folding@Home can handle a menial financial and record-keeping software project. If they made their own, using the GPL, then other universities could adopt it as well, and contribute to its development.

    1. Re:They should make their own open-source software by Tony-A · · Score: 2, Insightful

      "Non-trivial" doesn't even begin to describe the complexity of what goes on, to the point that even humans can't get it straight. Just the other day, I had to simultaneously corral no less than 5 university employees to figure out exactly what was going on with my pay situation.

      It is easy to add complexity. It is extremely difficult to reduce unnecessary complexity. Open Source is not a magic bullet, it's not that simple, but something is not working right when it takes all 5, simultaneously, rather than any of the 5.

  9. I don't know... by TamMan2000 · · Score: 4, Insightful

    I don't know any PhDs, let alone proffesors, who specialize in the pro's and con's of individual applications. Most of them are far more focused on the science behind all of this stuff. They tend to leave the details of implimentation to the folks in industry...

    and yes, I do work for a university.

    --
    "I'll have a Guinness, no wait, make that a Coors Light" -Grad student I work with, who shall remain anonymous...
  10. Let us not forget that WE LEARN FROM PROFESSORS by nathansu · · Score: 5, Insightful

    Those who can't do teach...

    I've read some ignorant things on /., but none as ignorant as this. Teaching is one of the most admirable things a person can do as it gives back to the community in every way, shape, and form. Those who 'do' learn from those who teach.

    As a student I actually think that it is much more true that "those who cannot teach 'do'" rather than vica verca. Get some common sense before saying somthing extremely STUPID like that.

    1. Re:Let us not forget that WE LEARN FROM PROFESSORS by pooh666 · · Score: 4, Insightful

      Funny, I always learned from the book because the professors didn't really give a damn and certainly didn't have time to explain something to more than a very few people. So yes, I admire the books.. They have always been my greatest teachers..

    2. Re:Let us not forget that WE LEARN FROM PROFESSORS by fermion · · Score: 5, Insightful
      The thing that students forget, or never knew, or refuse to realize, is that learning is a two way street, and as you advance in education the responsibility for learning fall more on the student and less on the teacher. It becomes merely whining to blame the teacher.

      In Elementary school you spend the day with a teacher and might get 5-10 minutes of personlized attention from each teacher. By the time you get to highschool, you might get a few minutes of personalized attention from each teacher per week. You can make that more by being a more active student.

      In college the students who just want to be told what to do get no personal time with the teacher. They also do not tend to get anything out of the class because the come in with the attitude that the professor do not care and do not want to explain. While this may be true in a limited sense, it is not a helpful philosophy.

      In fact you did exactly what you should have done. Go to the books and get other points of view. If you were not connecting with the professor, then he or she did exactly what they should have done, which is to send to get other points of view. Unlike your teachers, professors are not trained to work the issue from every angle until the student understands. Now that the student is in college, they are expected to have the skills to find the answers themselves. A professor merely points out a useful direction.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  11. Re:Those who can't do, teach by quizteamer · · Score: 5, Insightful

    An even more accurate phrase is
    Those that can do
    Those that understand teach

    --
    Live Long and Prosper
  12. Not news or even remarkable by salesgeek · · Score: 2, Insightful

    A failed or struggling ERP implementation is no an IT issue. Implementing new financial and business software is very difficult, especially in organizations that require multiple methodologies to manage money. Success requires that nearly every employee change some facet of their job... and when you look at a university that is a staggering number of people.

    Fast moving private corporations struggle with ERP implementations - some even go out of business and blame it on the software... when in reality the problem was millions of threads holding gulliver down.

    --
    -- $G
  13. People, Not PeopleSoft by yancey · · Score: 2, Insightful

    The University of North Texas is about 60% through our own migration from mainframe to Oracle/PeopleSoft and I have to say that the transition is going quite well so far. We are already done with financials and inventory and many other parts of the system and are going live with registration this coming fall term. Projects are being completed mostly on-time and with relatively few problems. Now, our team did a tremendous amount of research before getting into this and knew much about the problems at other universities. It seems the problem is not the software, but the tendency of these organizations to continue doing business in their old ways. They try to force the new software to behave much the same way as the legacy systems they are trying to replace. From what I can tell, the problem is not with PeopleSoft or Oracle, but the universities themselves.

    --
    Ouch! The truth hurts!
  14. Big Bucks for Stupid Bloatware by skywire · · Score: 2, Insightful

    He [Handley] notes that every ERP package he's worked with--Oracle, PeopleSoft and SAP--has a single ship-to address in the purchasing module. That's great for a company like IBM, which is organized around a central receiving unit, but ...

    No, it's not even great for a large public company. It's unbelievably stupid. These vendors are getting the big bucks for massive ERP products containing everything but the kitchen sink, but when it comes to shipping and receiving, they typically just tack on a ridiculously simplistic toy module so they can add "Shipping and Receiving" as another bullet in their marketing materials.

    --
    Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.
  15. Shocking by twitter · · Score: 4, Insightful
    "Sometimes I look back and wonder if this wave of ERP software ? wasn't a collective hallucination," says Stanford CIO Chris Handley, a former psychology instructor who joined Stanford from PricewaterhouseCoopers in 1999. "Just buying the software does not solve the problem. You have to change the institution, and that's something Stanford struggled with."

    Change an institution to match software? Why not change the software to match the institution?

    the board of trustees since 1999 has been asked to approve $93.4 million in capital expenditures for applications and infrastructure . The trustees had approved $60 million in 1994 to overhaul Stanford's entire administrative information systems, a project they expected would take five years, even though controller Susan Calandra says some of the projects in the original plan were never started.

    For $60,000,000 they should have a custom system that works with anything. Hell, they should have as much for $5,000,000. Now they want 93,000,000 more?

    The delay has been caused in part by Oracle itself, which helped Stanford customize the software so heavily?changing Oracle Financials to accommodate the way Stanford redistributes overhead costs across its grants, for instance?that together they broke continuity with future versions of the software, rendering portions of what they put in place unusable.

    I can't imagine something so poorly modularized. What's going on here?

    The university must cope with what Handley calls "version upgrade gridlock"?installing Oracle v. 11.5.9 requires changing PeopleSoft v. 7.6, upgrading to PeopleSoft v. 8 requires changing Oracle v. 11.5.9, and so on.

    Oh, now I see they should have used free software from the get go and done it themselves.

    --

    Friends don't help friends install M$ junk.

  16. It's the Staff, Stupid by jonbrewer · · Score: 4, Insightful

    ERP systems implementations fail due to people and organizations, not due to technology.

    Give a university administrator a system she doesn't know or like, and she's not going to put any effort in to making it work.

    Give an IT department a mandate that they don't feel they had an adequate role in bringing about, and they're going to blame the technology, no matter what the real problem is.

    Slap down a system made for a sane business in front of a university and tell that university to behave like a sane business in order to make the system work... well, it won't work.

    Having seen PeopleSoft and Oracle Financials implementations from several angles, I firmly believe that the technology is fine - nothing spectacular or earth-shattering - but fine. The problem lies entirely with the organization implementing.

    How to fix this? There's the ten million dollar question. A hint at the answer is this: look at Oracle Financials and PeopleSoft implementations in organizations with strict heirarchical (read militaristic) management. Success rates?

  17. Re:Bah - they might be better off by ksheff · · Score: 2, Insightful

    What can't you modify? They give you the source for most of it so you can modify it to fit your environment and business requirements.

    Some of the upgrades are necessary. Govts tend to get cranky if you're not withholding the proper amount of taxes. However, in my experience, it was always good to wait to apply the tax upgrades as long as possible because they would often include some bugs. I'd rather let the early adopters pull their hair out and wait for the resulting patches from PS.

    --
    the good ground has been paved over by suicidal maniacs
  18. we want to believe by fermion · · Score: 5, Insightful
    I think is just another case of wanting to believe. I was involved with purchasing an ERP system in the mid 90's, and it was one of the reasons I was happy to leave. The purchasing decision was based more on bells and whistles than what it could do for the company. I saw no in depth analysis of how each piece of software would pay for itself, what would be required to get it running after initial installation, and or how a group of people who did not use computer would use this. Simplicity should have been the issue, but all I heard was 'Look at the pretty buttons' and 'Windows is always cheaper' and 'Thin nets are the wave of the future.'

    One thing that was very clear to everyone who was thinking, even back then, was that an ERP would not pay for itself and therefore had to be bought on the basis on making life easier. Another thing that was clear was that you had to have a clear idea of how it would be used, and how much it would cost to use, otherwise it would never get used.

    I saw the same blindness when i was working for a company that sold custom websites. Mostly we took a cut of advertising, and I suppose paid salesmen commission based on what we all now know is mark to market. At that time the advertising market was dying, and all the tech people, and even some of the managers, knew that the deals would result in no money. However that truth was not useful for the salesmen who wanted large commissions or the upper management that wanted large sales. So deals were put together that cost the company hundreds of thousands of dollars to honor, with customers that made not commitments whatsoever. Of course all this came crashing down.

    So, having worked in small business, corporate, and academia, I would say there is little difference in the ability to be blinded by greed and the smooth talking salesman.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  19. ERP? Extracting Real Payola by Ronald+Dumsfeld · · Score: 3, Insightful

    When you repeatedly hear stories of companies having problems installing ERP packages, why should it come as any surprise that an educational institution for which the package is not designed has problems with it?

    Personally, I think the person(s) responsible for specifying off-the-shelf software with some customisations should be shot.

    I've worked on ERP implementations, heck, I've worked on ERP software development. It's all about providing a sophisticated accounting system with cookie-cutter business modules around it. Everyone has customisations on it, how large those customisations are depend on how far away you are, or want to be, from the template the ERP provider offers. Education is well away from what those templates offer. Probably so far away that you cannot justify the cost of the migration and customisations. That leaves you wondering if someone recommended the migration because it would look good on their CV.

    --
    Where's the Kaboom?
    There's supposed to be an Earth-shattering Kaboom.
  20. Stupid ! by deniea · · Score: 2, Insightful

    In my opinion, they should use more of their 'in-house capital'. I'm sure they have business and IT related corses there.

    By having graduate students have as a final project something like that, they can save lots of bucks on things like that.

    Why shouldn't they ? I know my university does. It also shows in a way that if you prepare students in those fields, you are confident of their capabilities, e.g. the level of 'education' your own university provides is good enough for they big companies you are training them for to work later.

    It's a 'eat your own dogfood'-kind of thing.

  21. Typical for ERP projects by costas · · Score: 3, Insightful
    I've seen massive (multi-million USD) ERP projects succeed and I've seen equally massive ERP projects crash and burn. This is nothing new, and it has nothing to do with Stanford (yes, I am a Stanford grad): it has everything to do with how you approach the installation. Rules to live by when you re-platform ERP:
    1. Find out what your business/organization want to do; what is the benefit of the change and what you are aiming for.
    2. Find out what consequences your chosen platform has to your business: what things you can do better than before, what you can only do worse and what you can do that you could not do at all before.
    3. Communicate the above to every department and every level in your organization. Have them re-thing their business processes along the new platform so that they maximize their benefit. In the process, they will "debug" a lot of the assumptions that were put in to the ERP specs and things will pop out before actual deployment.
    4. Big-bang roll-outs are a recipe for failure: deploy the new systems in parallel for as long as you can, or if that's not possible, deploy in only some portions of the business. Absorb the cost of building temporary interfaces to your old platform as testing (which it is).
    5. Cross your fingers.
  22. Re:Collective Hallucination by wass · · Score: 2, Insightful

    Ah, Berkeley. Famous for ?SD.

    --

    make world, not war

  23. Minnesota by Mike+Hicks · · Score: 2, Insightful

    A lot of places have had similar experiences. The University of Minnesota (which has one of the largest campuses in the country, though the overall statewide system isn't extraordinary) began switching over to a PeopleSoft system back around 1997. I'm not sure if it is complete yet, but I guess I haven't heard much about it for a few years (but then, I graduated a year and a half ago).

  24. often research faculty dodge admin committees by call+-151 · · Score: 2, Insightful

    One thing to keep in mind is that productive research faculty tend to be very adept at avoiding committee assignments that have little potential upside and are primarily administrative, such as one overseeing adminstrative computing in a case like this one.

    I remember someone who was a reasonable faculty member who had been doing a good job as department chair, who agreed to become chair of a university committee that was overseeing a tranistion to PeopleSoft, in fact. I tried to talk him out of it and it did in fact become the huge morass with fingerpointing that I was worried it would become, but when deciding to do it he was sure this was a straightforward ticket to moving up the administrative food-chain to dean and so on. In my experience, research faculty tend to work much better in environments when the success is primarily determined by their own efforts, and being in a situtaion where you are depending upon an outside entity (particularly one from another (non-scientific) universe, like PeopleSoft or other huge corporate entity) is a recipe for disaster.

    The point is that a university is a community and in general, people end up in different roles, perhaps at different times in their careers. Some faculty are effective researchers throughout their careers and would be unlikely to ask or be asked to serve on what I would think of as a "committee from hell," whereas others who are not contributing research-wise are often the ones who feel obligated or are asked to shoulder more of the adminstrative burden. Remember that faculty generally have no particular preparation in adminstration, and it is pretty random as to whether or not anyone works out well.

    --
    It's psychosomatic. You need a lobotomy. I'll get a saw.
  25. You what? by Aldric · · Score: 2, Insightful

    Ten years for a glorified accounting and payroll system? That's just insane!

  26. 1) buy software, 2) make it work by More+Trouble · · Score: 3, Insightful
    Buying PeopleSoft is just the first step in a long and arduous path. Perhaps you've heard that only 25% of software is commercial? The other 75% is written to manage in-house processes, e.g., finance, HR, whatever the business is. This ratio is not substantively changed by purchasing PeopleSoft: as with most vendors, step one is "buy software," step two is "spend way more time and/or money making it work."

    Someone mentioned the PHB problem. No doubt. PHBs don't understand the "make it work" step. I bought something, I'm done, right?

    :w