Prof Jeff Haywood & Simon Marsden Information Services University of Edinburgh Enterprise Systems: Sound Investment or Necessary Evil? 1 U21 Annual Network Meeting

Why do corporate IT systems cost so much and yet sometimes appear to deliver so little for the investment? Structure of the session: 1.How are U21 partners approaching enterprise IT? 2.Why is enterprise IT so often problematic? 3.How do we find good solutions? 4.Where next? U21 Annual Network Meeting

How are U21 partners approaching enterprise IT? U21 Annual Network Meeting Enterprise IT - 1

U21 Systems Survey We asked 3 questions – How was the software you use developed – How do you deliver the service – Who are your suppliers For each of 8 major functions – Finance- CRM – HR- Virtual Learning Environment – Payroll- & Diary – Student Records- Library Management System 18 institutions responded – 80% U21 Annual Network Meeting

What we found On average we run more than one system for each function Commercial package software is a strong preference - 83% of systems Hosted solutions account for 13% of our systems Oracle and Microsoft are our two biggest suppliers ERP approach in 45% of institutions U21 Annual Network Meeting

No of systems per institution U21 Annual Network Meeting

Development method U21 Annual Network Meeting

Delivery - In house v Hosted U21 Annual Network Meeting

Suppliers U21 Annual Network Meeting

Suppliers by Functions U21 Annual Network Meeting

Enterprise Resource Planning Using integrated systems from the same vendor for multiple functions: >2 functions = Enterprise Resource Planning (ERP) – 44%, 8 institutions implemented ERP – 5 use Oracle, 1 SAP, 1 Elucian (Banner), 1 in house – UK survey of 150 CIOs, 60% adopted ERP and of these 63% reported less duplication with better cross departmental process alignment 75% improved business intelligence U21 Annual Network Meeting

How much IT spend is enough? How much should my university spend on corporate IT? – probably more not less How much do others spend? – Very difficult to know – Gartner shows financial services: 12% turnover Pharmaceuticals: 8% Education: 2.5% – UK survey of research intensive Us (Russell Gp) suggests in region of 3-6% of turnover (4.5% +/- 33% !) U21 Annual Network Meeting

U21 Annual Network Meeting Questions for discussion: Do these data accord with your expectations? How generally satisfied are you with your enterprise IT? If dissatisfied, what are you main areas of unhappiness?

Why is enterprise IT so often problematic? U21 Annual Network Meeting Enterprise IT - 2

Where to invest? IT as an investment better business Should lead to… U21 Annual Network Meeting

Balancing your IT investment Run – Reduce costs no increase in revenue Grow – Increase revenue from existing products Transform – New products, new markets IT Strategy Awayday September % run 20% grow 20% transform

17 U21 Annual Network Meeting University of Edinburgh Strategic Plan 08-12

18 U21 Annual Network Meeting IT contributions to UoE SP Strategic Goals VLE & e-learning systems / e-assessment Classroom technologies Microlabs & software Student application & self-service systems Accommodation services IT +? High Performance Computing Digital research data management Open access research publications/PURE Research software +? directory of experts Open access research outputs Online CPD tools Managing IPR/patents etc +?

Challenges for strategic ICT JISC / HE Leadership Foundation – Strategic ICT Toolkit Are the foundations on which ICT are delivered sufficient to facilitate the level of ICT that will meet corporate objectives? Strategic ICT needs to address these challenges for the university: – Lack of IT agility – Lack of IT integration – Duplication of IT facilities & services – Data held in sealed silos – Lack of useful Management Information – Senior managers cannot identify if what is delivered is vfm U21 Annual Network Meeting

A return on your investment Is $50M too much for a new X system? NO, if the Total Cost of Ownership < Return on Investment DIRECT COSTS (all staff+ all stuff + all services) during lifetime of system - calculate/estimate OPPORTUNITY COSTS Could have done something more productive QUANTITATIVE JISC Impact Calculator (eg 5 days pa, 1000 staff, 5 years = £1.5M-£5M) Compare to Do-Nothing Option QUALITATIVE Sweat the assets Drive data quality up Streamline processes (eg LEAN) Reputation U21 Annual Network Meeting

U21 Annual Network Meeting

U21 Annual Network Meeting Questions for discussion: Do you routinely require TCO and ROI estimates for large IT projects? Do you review whether these were achieved afterwards (or just sigh and move on…)?

Pick the right stuff U21 Annual Network Meeting Enterprise IT - 2

Strategic Sourcing for IT Systems Sourcing options 1.Commercial systems (implemented by vendor or in- house) 2.Open source systems 3.In-house built systems (re-)design business to fit software? design software to fit business? Implementation options 1.Do-it-alone 2.Shared services U21 Annual Network Meeting

U21 Annual Network Meeting

U21 Annual Network Meeting Questions for discussion: What are your main reasons for choosing particular suppliers or sources? Do you expect this to change over the next 5 years? Few U21 partners use open source even though governments often promote their use. Why is this?

How do we find good solutions? U21 Annual Network Meeting Enterprise IT - 3

Major IT projects are change projects Good governance they need U21 Annual Network Meeting Is there such a thing as an IT Project?

U21 Annual Network Meeting

U21 Annual Network Meeting

If Score 20 or over, then project is a Strategic project If Score is 10-19, then project is a Major project Defining Strategic & Major Projects – Edinburgh Toolkit U21 Annual Network Meeting Project criteriaScore rangeFeatures Budget (gross)1 – 15 £25M Impact students & staff1 - 4Direct impact across U – local impacts Complexity1 - 4Low - High Reputation1 - 4Local – international For S & M Projects, Governance Board must be established as Project Oversight with Senior Responsible Owner at SMT level for S Projects.

Guiding Strategic Projects and learning from them Edinburgh Toolkit Visual aids for project governance boards U21 Annual Network Meeting

Capability & Capacity for Strategic & Major IT Projects Capability for major IT projects = Maturity Model / Strategic ICT Toolkit / governance toolkits Capacity for major IT projects = bubble graph / quadrants U21 Annual Network Meeting

Technology Hype Cycle or Maturity Assessment 2011 Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity time expectations Years to mainstream adoption: less than 2 years2 to 5 years5 to 10 yearsmore than 10 years obsolete before plateau As of July 2011 Campus App Store Bring Your Own Device Strategy BPO Student Data Standards Learning Stack Open-Source SIS Digital Preservation of Research Data User-Centric IAM Social-Learning Platform Media Tablet Mobile-Learning on Smartphone Cloud HPC E-Textbook Lecture Capture Unified Communications Virtual Worlds Hosted Virtual Desktops Global Library Digitization Projects Open source E-Learning Repositories Mashups ITIL SaaS Admin Applications Cloud IT Infrastructure Social Media E-Portfolios Open-Source Portals SOA Organization-Centric IAM CRM Enrollment Federated IAM Open-Source VLEs Cloud U21 Annual Network Meeting

U21 Annual Network Meeting

ICT Initiative Capacity – Edinburghs modelling 36 U21 Annual Network Meeting

37 Questions for discussion: Do you routinely apply good practice governance processes to major projects? Have they helped, and if not, why not? How does/will your SMT gain comfort that it has the internal capacity and capability to manage major projects?

Where next? U21 Annual Network Meeting Enterprise IT - 4

39 U21 Annual Network Meeting Likely directions of travel for IT (EDUCAUSE) Desirable actions A.Investments that facilitate improved student retention/progression B.Investments that help increase revenues 1.Recruitment students, new formats of teaching, increased research grant success, new research areas, enhancements to fundraising C.Investments that reduce operating costs 1.Measure costs + manage costs 2.Process efficiency gains 3.Workplace design 4.Shared services Consequences a)Source commodity IT services differently b)Operate with maximum transparency c)Reinvigorate IT governance d)Develop new competencies in IT organisations

U21 Annual Network Meeting Sharing experiences U21 CIOs Group? Purposes: to share good practice in delivering major projects, and to learn from each other To seek ways to improve U21 partner support for collaborative academic and support service activities Follow up on the good engagement from the survey Conduct business electronically Occasional meetings / conferences

41 Thank you for listening…. © MSc eLearning University of Edinburgh