Assessment of the CIO Landscape Theresa Rowe | March 15, 2010 Chief Information Officer Oakland University

AGENDA  CIOs discussion on list and meetings  Current challenges  Discussion

CIO LIST: WHAT ARE WE TALKING ABOUT?  Product selection and product cost optimization  Facilities, access controls, new builds, sustainability  Security, risk and compliance  Governance issues  IT as a business… or not

PRODUCT SELECTION  Software, efficiency, new features  Software as a service, cloud services  Open / community source  Vendors  eBooks

DISCUSSION ON CAMPUS: BUDGET  Budget cuts - This year, your budget cut is: A.No, our IT budget has not been cut. B.Yes, our IT budget has been cut by < 5%. C.Yes, our IT budget has been cut by 5-10%. D.Yes, our IT budget has been cut by 10-20%. E.Yes, our IT budget has been cut by > 20%.

DISCUSSION ON CAMPUS: BUDGET  Budget cuts – Over the past 3 years, your cumulative budget cut experience is: A.No, our IT budget has not been cut. B.Yes, our IT budget has been cut by < 5%. C.Yes, our IT budget has been cut by 5-10%. D.Yes, our IT budget has been cut by 10-20%. E.Yes, our IT budget has been cut by > 20%.

STAGING CUTS OVER TIME: ROUND 1  Opportunities to redefine and reorganize  Eliminate some fluff  Turn off what you didn’t want to keep anyways

STAGING CUTS OVER TIME: ROUND 2  Defensive maneuvers  Centralization versus decentralization  Consolidation  Operational and service eliminations  Charge-back strategies

STAGING CUTS OVER TIME: ROUND 3  Redefining the central IT organization  Least the organization can be to maintain operations  Rethinking core and essential services

PRIORITIZATION OF CUTS  What is your top priority among the following alternatives for budget cuts? A.Delay the new: delay new services, features B.Focus on hardware: virtualization, consolidation, extend refresh cycle C.Eliminate or reduce existing services, shrink, charge- back D.Right-sourcing: vendor-supported low-cost services (Gmail) or open-source solutions E.Review personnel: eliminate or freeze positions, training

EXTERNAL FORCES  Google impact – redefines service limits  Consumerization – unlimited devices, unlimited choices, unlimited buyers  Vendor constraints - caught in the middle of product battles  Google & Apple  Oracle & VMWare  Blackboard and D2Learn

UNDERLYING THEMES  What do we internally source and what do we externally source  Can we continue to own the sourcing decision  Brokering IT  Cost related to budget and budget cuts  Appropriateness of the language of business and return on investment

PHILOSOPHICAL  Avoiding budget-cut paralysis  Avoiding a fossilized culture  Retaining the top talent (avoid lazy/loser management)  Ongoing vulnerability to disruption  Tolerate ambiguity!

HOPEFULNESS  How hopeful are you for the future? A.Excited for the challenge, like racing the America’s Cup race B.Strong winds, strong sails, staying the course C.Forlorn and given up in the doldrums D.Shipwrecked!

DISCUSSION  Tell us about your current budget challenges.  Are you changing or discontinuing services or product selection?  How are external forces affecting your organization?  Tell us about governance: state organizations, boards, and university leadership.

BREAK DISCUSSION QUESTION: DISRUPTION IN THE FORCE  What evidence have you seen of permanent change in your organization?  What are the disruptions?  What effect will the disruptions have on your operation and organization?  What do you want to do about it?

THANK YOU