Univ. looks to curb HopkinsOne spending
McGill explained that the high initial level of expenditure was due to the early stages of the project but said that HopkinsOne would not cost more than originally expected.
"There are only two more years in the program. Ninety to 95 percent is installed and already operating," he said.
The program is expected to end in June 2009. Until then HopkinsOne will be installing upgrades to the system, all of which are included in the budget.
The system that HopkinsOne has installed from SAP supports the people in the hospital and the school and will also have ongoing maintenance costs.
"In the broad context of expenditure it is one that we just have to do. The divisions in the university are paying over time, like a mortgage," he said.
The system of payment involves installments of $5 million each year for 15 years, plus these costs. At this time, HopkinsOne is in its early years of payment.
"It's not that large a sum of money - it is part of a $3 billion a year operation, and for an administrative system," McGill said.
"It's expenditure that if we didn't spend it on this, we would have it to spend on something else, but we had to do this and the cost is built into the system with the planning," he said.
McGill compared the HopkinsOne situation to that of buying a house more expensive than the buyer anticipated - and the buyer must choose not to buy new shingles for his roof in an attempt to stay within his budget.
"We are in the final stages of the project, and trimming back costs," McGill said.
"There are only two more years in the program. Ninety to 95 percent is installed and already operating," he said.
The program is expected to end in June 2009. Until then HopkinsOne will be installing upgrades to the system, all of which are included in the budget.
The system that HopkinsOne has installed from SAP supports the people in the hospital and the school and will also have ongoing maintenance costs.
"In the broad context of expenditure it is one that we just have to do. The divisions in the university are paying over time, like a mortgage," he said.
The system of payment involves installments of $5 million each year for 15 years, plus these costs. At this time, HopkinsOne is in its early years of payment.
"It's not that large a sum of money - it is part of a $3 billion a year operation, and for an administrative system," McGill said.
"It's expenditure that if we didn't spend it on this, we would have it to spend on something else, but we had to do this and the cost is built into the system with the planning," he said.
McGill compared the HopkinsOne situation to that of buying a house more expensive than the buyer anticipated - and the buyer must choose not to buy new shingles for his roof in an attempt to stay within his budget.
"We are in the final stages of the project, and trimming back costs," McGill said.
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