Higher education

Unit4: Delivering Not Only What People Need, But Also What They Want

The ‘People Platform’ is The Secret Sauce

Is there a difference between what people in people-centric businesses need and what they want? You betcha! They need applications like finance, human resource information systems (HRIS), procurement and all the different pieces needed to maintain the system of record of their businesses. In other words, virtually everyone needs basic Enterprise Resource Planning (ERP). But ERP isn’t new and exciting. What they really want are the cool features, functions and applications that help them clearly differentiate themselves and make them stand out from the pack. They need those routine back office processes to run smoothly, but they also need the agility to respond to change and embrace new ideas and new technologies.

A recent Mint Jutras report asked the question: Is “Agile ERP” an Oxymoron? For decades using “agile” to describe ERP was indeed the conjunction of incongruous and even contradictory terms – the very definition of an oxymoron. Unit4, a software solution provider that specializes in people-centric businesses, has always prided itself in its agility. For many years the goal of Business World (its flagship ERP solution) was to effectively and efficiently meet the needs of businesses living in change (BLINC). Yet over those years Unit4’s product portfolio has also been extended to include additional solutions that can address more specific vertical needs and provide a level of differentiation. These additions came, not only through both its own development efforts, but also through acquisition.

Most notably Unit4 has acquired a Student Information System (SIS) for higher education, a Professional Services Automation (PSA) solution for professional services organizations and Corporate Performance Management (CPM) for all types of people businesses. While these might fall into the category of “the cool stuff,” Unit4 isn’t stopping there. At the same time, it has been developing a range of microservices that will help all these and its Business World ERP take advantage of new and disruptive technologies in order to unleash their full potential. At the core of these innovative services is the Unit4 People Platform.

Business Applications of the Future

Business applications of the future are more flexible, configurable and (perhaps most importantly) more extensible. In Is “Agile ERP” an Oxymoron? we talked about the importance of components-based architectures and the ability to extend the foundational solution that runs your business. We also talked about the importance of the underlying development platform. The speed of innovation and the ease of consuming it are largely dependent on the platform on which your ERP solution is built. A development platform can provide “application services” for things like file handling, security, searches and access from mobile devices. The value of the development platform is derived largely from developing a service once and re-using it throughout a product or suite of modules.

But with a diverse portfolio of products, Unit4 also deals with different development platforms. For example, Unit4 Business World is based on an architecture previously branded as Vita. But its newly acquired PSA solution is based on Microsoft Dynamics 365. How can Unit4 develop a service once and leverage it throughout its growing portfolio of products? The answer lies in its People Platform. While its different products may be based on different development platforms, the People Platform is a different kind of platform.

The Unit4 People Platform

Technically not a development platform, think of the Unit4 People Platform more as a collection of innovative services, beyond the typical file handling and security.

Figure 1: Unit4’s Platform for Innovation

Source: Unit4

These innovative services are meant to open doors to the growing number of digital technologies just coming of age. These are the type of services the People Platform is putting within the reach of Unit4 customers. Most notable are alerts and a virtual assistant (Wanda) that takes advantage of both natural language processing (think Siri or Alexa for enterprise applications) and machine learning (the more you use it, the smarter it gets). And also the business intelligence delivered with it CPM solution, including predictive analytics.

Unit4 is being proactive in making use of these new and potentially disruptive technologies. The 2017 Mint Jutras Enterprise Solution Study found a large percentage of our survey population in services types of businesses lacked familiarity with these technologies, and/or saw little value to their businesses (Table 1).

Table 1: How familiar are you with these technologies as they relate (or not) to your business?

Source: Mint Jutras 2017 Enterprise Solution Study

We point this out, not to imply there is little value – quite the contrary. We recognize enormous value and applaud Unit4 for playing a role in educating its customers and getting out ahead of the demand. Let’s take a look at an example.

Who (or What) is Wanda?

Unit4’s Wanda is the perfect example of the kind of value delivered using the People Platform. It is currently available for Unit4 Business World customers, but Unit4 is working hard on bringing it to its PSA and SIS constituents as well.

Wanda is a new way of interacting with Unit4’s enterprise applications. She makes use of natural language processing (yes, you can talk to her) and machine learning to help people automate, prioritize and complete repetitive tasks in a fraction of the time it has always taken. As a virtual assistant, Wanda is embedded in the user interface and accessed through Skype, Slack or Facebook messenger. This allows users to communicate and interact with the solution through a “chat,” much like they would with a colleague. And Wanda is smart enough to understand when multiple topics might be mixed in a single conversation, so no need to artificially compartmentalize. All of this is possible without formally logging into the application.

And in fact if you are already comfortable communicating with Alexa in your home setting, you have a head start in using Wanda. That is because Alexa has already met Wanda and in the not too distant future you can use her to ask Wanda questions. Click here to see and hear a live demonstration.

This is made possible through the use of Microsoft’s Language Understanding Intelligent Service (LUIS). This is the underlying technology that gives Wanda the ability to understand what a person wants through the spoken word, not codes or clicks.

Why Are These Innovative Services important?

While delivering what people want, instead of or in addition to what they need, sounds very appealing, there is more than just a wish list involved here. Agility and the ability to extend current solutions to do more, including providing differentiation, is becoming a “must have” today. Why? We live in disruptive times. The 2016 Mint Jutras Enterprise Solution Study found 88% of companies believe they face some level of risk in their businesses and/or industries being disrupted by new innovative products, new ways of selling or pricing existing products or services, entirely new business models, or some combination of all of the above. And then of course there are still the more traditional disruptive factors like expansion and growth, organizational restructuring and regulatory changes, just to name a few.

All this disruption can have a cascading impact on business application requirements, making agility – the ability to easily innovate, evolve and change – even more important than current functionality.

While only 10% of our 2016 survey participants felt that risk was high and/or imminent, most do understand the risk is real. While about one in three (34%) feel the risk is low, we have to ask: How do you think the taxi industry might have answered this question on the eve of the launch of Uber? Do you think the hotel industry anticipated Airbnb? Did Block Buster foresee the devastating impact Netflix would have on its business? What kind of disruption is lurking out there for you?

The Internet and the digital economy made all of these disruptions possible and none were decades in the making. Compared to slow, evolutionary changes of the past, they literally happened almost overnight. The Internet has leveled the playing field, allowing any company, even small ones, to establish a global presence. This creates new competition, along with new opportunity. While new windows of opportunity open every day, they can also close as fast as they open.

Change is inevitable, bringing about new requirements. As your business changes, along with the world around you, the speed with which new features and functions can be developed, delivered and consumed will clearly impact your agility.

Key Takeaways and Recommendations

Agile ERP is no longer the oxymoron it once was, and yet many of the solutions installed today remain rigid and require extensive modifications to meet the changing needs of enterprises today. And the pace of change does not appear to slowing down. Even traditional types of business change resulting from growth, expansion, organizational restructuring, and/or regulatory changes are accelerating along with the pace of business itself. Add to that the threat of disruption made possible by the digital economy. A stagnant solution may just put you ahead in the race to the bottom.

Unit4’s People Platform and the company’s drive to deliver innovative services that can complement and extend your solution to put you back in the race to the top of your game. Unit4 is in business for people. Whether you operate in a professional services organization, higher education or in one of a growing number of people-centric businesses, Unit4’s People Platform, together with one (or more) of its purpose-built applications, could very well be your secret sauce in getting you what you want while satisfying what you need.

Save

Save

Tagged , , , , , , , , , , , , ,

Unit4 Lines Up Vertically: Higher Education Setting An Example

Unit4’s specialty has long been people-centric organizations. In fact its tag line today is, “In business for people.” These people-centric organizations not only include service-oriented commercial businesses, but also non-profits, higher education, governments and other public services. While some might call this people centricity a “vertical” focus, in fact Unit4’s Enterprise Resource Planning (ERP) solution (although Unit4 prefers the term SRP for Services Resource Planning) has quite broad appeal. You might even call it more of a horizontal play across the services industries. But that is now changing.

In the past Unit4 built its strategy and its messaging around its VITA architecture’s ability to easily accommodate change. It was indeed a very broad (horizontal?) message targeting businesses living in change (BLINC). BLINC became Unit4’s mantra and in some ways, it is even more relevant today than when the acronym was first crafted. Every type of business and organization not only faces change today, but at an accelerating pace. And while change has always been hard to manage, today it can be dangerously so, especially when that change is disruptive.

After watching Uber disrupt the taxi industry, Netflix and iTunes disrupt entertainment and Airbnb disrupt hospitality, today we live in a world where nobody can predict which segment will be disrupted next. Our 2016 Mint Jutras Enterprise Solution Study asked participants to rate the risk of their industry being disrupted (Figure 1).

Figure 1: How much risk do you face in your industry being disrupted?

Unit4 fig 1Source: Mint Jutras 2016 Enterprise Solution Study

Few feel they are exempt from any risk. This disruption might come from new product introductions (26%), new ways of selling/pricing existing products (29%), entirely new business models (12%) or some combination of the above (33%).

But in spite of the continued relevance of managing change, there comes a time when old messaging has to make way for new. The next new message from Unit4 was its concept of “self-driving ERP”. Self-driving ERP is all about making ERP a productivity driver rather than a productivity killer. It’s about automating low value tasks, so that high value individuals can combine the right skills and knowledge with the right information to produce better outcomes.

This is a great goal and Unit4 is well on its way to delivering on its promises, particularly with its recently announced Digital Assistant and Business World On!. But self-driving ERP is still a rather broad, horizontal message that can be applied to a plethora of industries and circumstances. So in taking a more verticalized strategy, is Unit4 abandoning prior strategies around BLINC and self-driving ERP? Absolutely not. Think of it more as a refinement of strategy.

Service-oriented businesses and people-centric organizations have a lot in common, but there are also some very clear and distinct differences within this general category. As with any type of organization, each is a bit different, but some are more different than the rest. Over the years, in focusing attention on a service orientation (as opposed to product-centric businesses), Unit4 has been building on those similarities. Now it is time to accentuate the unique elements that distinguish higher education from non-profits, professional service organizations from public service providers (including governments), healthcare from real estate, just to name a few. Each of these people-centric organizations has its own unique requirements.

In combination with this, Unit4’s new tag line is “in business for people.” Given its focus on people-centric organizations, at first glance this doesn’t appear to be anything new. But Unit4 is adding a new dimension to the “people” part. Ordinarily ERP is for the people running the business or the organization. Take higher education as an example. Yes Unit4 is in education to help the people running the college or university (the administration). But it is also in education for the students. And it is in education for the alumni. And for the donors and benefactors. And the professors. And for all that, you need more than your typical ERP with a service orientation.

If you are in education for (all of the) people, you need a student management system. This is definitely not your typical core ERP module. It is an application that helps students enroll in the right courses for their degree programs. It’s an application that supports student recruitment and entrance applications. It helps manage tuition payments, student loans and more.

Then again, if you are in education for professors, you also need to help manage research efforts, from the feasibility study and due diligence to proposal development and financial planning to project planning, management and completion. Plus you need to manage assets and facilities on campus and probably the occasional special project. And of course you still need ERP for financials, procurement, HR and payroll.

Unit4 provides all of this, but not all in a single giant monolithic ERP solution. Let’s face it: Most other service-oriented organizations don’t need student management. You don’t want to overburden other types of customers with features and functions they will never use. So Unit4 packages up student management separately. Yes, it is integrated to ERP where appropriate. After all, tuition bills create accounts receivables and payments impact cash management, the income statement and balance sheet.

But Unit4’s student management application can also run stand-alone. This is actually more important than you might think. Providing a full verticalized solution for any industry today is a delicate balancing act for both solution providers and those consuming those solutions. Theoretically you would like a single integrated solution to meet all the needs of your organization. But the urgency of satisfying different needs varies across different functions within the organization, and so does the readiness of different departments. Maybe whatever you are using to manage your back office is “good enough”, at least for now. But you are in desperate need to better manage student services. You don’t want to have to wait until finance is ready before you provide online enrollment to courses.

This is exactly the type of requirement that has blazed the trail towards loosely coupled versus tightly integrated ERP solutions. A tightly integrated solution shares a common set of data, is developed under a common development environment and all moves forward in lock step. That is both good news and bad news for organizations. The good news is obvious: integration is inherent, no redundancy or duplication of data that needs to be synchronized, etc. But the fact that all the different parts of the organization must move forward together often slows the process and builds barriers to consuming new features.

Tightly integrated can be bad news for the solution provider as well. Development efforts across a a wide footprint needs to be tightly orchestrated and packaged together. A feature that is completed in March might not be delivered until December. And in order to satisfy a specific need (like student management), an entire integrated solution must be ripped out and replaced. When an organization is not quite ready for that, the vendor loses the deal either to no decision or because a competitor’s solution can stand alone.

The solution to this dilemma is loosely coupling the different functions so they might move forward separately, without losing the integration. By offering specialty functions like student management as (also) stand-alone solutions, the vendor is able to satisfy the urgent need without disrupting the entire organization. But the best of both worlds is to offer the add-on functionality that can stand alone, but also be fully integrated with a complete back-end ERP – now or later.

This is Unit4’s strategy. Higher Education is leading the way in execution, largely because of the acquisition a year ago of Three Rivers Systems and its Comprehensive Academic Management System (CAMS). Unit4’s current installed base of customers in higher education is a mix of those originally sold by Unit4 (prior to the acquisition) and those brought to the party by Three Rivers. In fact the latter represents the lion’s share of customers in this segment in North America. While all of the original Unit4 customers run its ERP and about 75% also run a version of student management authored by Unit4, all (100%) of the prior Three Rivers customers run student management, but run a mix of ERP solutions, including Unit4’s. In the future, the combined company will lead with student management in this segment, but expect to pull an ERP system along in about 50% of deals. In order for this to work, student management and ERP must be separate, but (optionally and seamlessly) integrated.

Looking to the future, I expect to see Unit4 replicating this strategy in other people-centric segments, starting with Professional Services organizations (watch for functionality to support contingent workforces), followed by not-for-profits (building on strengths in grants and research management) and then governments and public services. But I also see Unit4 diving deeper into what you might call sub or micro-verticals. Community colleges are a big market for Unit4 today, but the recruitment process for a private university like Harvard Law School (also a Unit4 customer) is just one aspect that is entirely different.

In order for Unit4 to successfully execute on this vertical strategy it will need to aggressively leverage all the work it has done previously. The same architectural principles that helped businesses living in change navigate through changing business conditions should help those same customers weather the potential storm of looming disruption. And if Unit4’s self-driving ERP can relieve them of some of the burden of the mundane, they stand a far better chance of deciding on the right (next) destination and how best to get there… either incrementally or all at once.

Tagged , , , , , , , , , , , , ,