1. IT Governance Propelled IT Revolution IT Governance Summit Denver, CO September 10-11, 2007 Laurie G. Antolovic’ Deputy CIO and Finance Officer Office of the VP for IT & CIO lantolov@indiana.edu © 2007 Trustees of Indiana University Creative Commons Attribution License 2.5

2. Presentation Outline Governance Models Governance in the Academe IU Experience Realities Conclusions 2

3. 3 IT Governance “Specifying the decision rights and accountability framework to encourage desirable behavior in using IT.” Weill & Ross, (2004) IT Governance, HBS Press.

4. 4 Decisions Three governance questions... 1.What decisions must be made? 2.Who should make these decisions? Input rights Decision rights 3.How will we make and monitor these decisions? 5 types of Decisions….6 Archetypes… Weill & Ross, (2004) IT Governance, HBS Press.

5. 5 IT Principles IT Architecture IT Infra- structure Strategies Acad/Admin Application Needs IT Investment Acad/Admin Monarchy IT Monarchy Feudal Federal Duopoly Anarchy Don’t Know Domain Style © MIT Sloan CISR Adapted

6. 6 How Enterprises Actually Govern - Survey IT Principles IT Architecture IT Infra- structure Strategies Business Application Needs IT Investment Business Monarchy IT Monarchy Feudal Federal Duopoly Anarchy Don’t Know Domain Style © MIT Sloan CISR InputDecisionInputDecisionInputDecisionInputDecisionInputDecision 0 1 0 83 15 0 1 27 18 3 14 36 0 2 0 20 0 46 34 0 0 6 73 0 4 15 1 1 0 10 1 59 30 0 0 7 59 2 6 23 1 2 1 0 1 81 17 0 0 12 8 18 30 27 3 2 1 0 0 93 6 0 0 30 9 3 27 30 1 0

7. IT Governance in the Academe Business objectives often unclear; vary with levels of business monarchies (system, campus, college, departments) General culture of federalism and anarchy Faculty governance IT dollars opaque Investment decisions made at many levels Turf v. cost efficiencies; economies of scale 7

8. IU Experience 8

9. Early 1990s Administrative Computing (University) University Telecommunications (University) Academic Computing (Bloomington) Communication Services “Phones” (Bloomington) Instructional Support Services (Bloomington) Integrated Technologies (Indianapolis) Regional Campus Computing 9

10. Mid-1990s Business Monarchy Decisions Defined role and structure of IT Brought semblance of corporate model (new cabinet-level position: VPIT) Aligned campus IT organizations Articulated enterprise business goals 10

11. Environment Responsibility-Centered Management (RCM) culture Campuses had disparate IT cultures, infrastructures, services Funding for IT all over the place Aligned campuses but what about the colleges within the campuses? 11

12. Goal for IT at Indiana University "To be a leader in absolute terms in information technology." - IU President Myles Brand, 1996

13. Strategic Alignment IU Strategic Directions Charter: 1994-1999 o 30 recommendations, 3 broad themes: communities of learning, excellence, accountability & best practices o Incentive funding: $25M seed fund Institutional vision for Indiana University o American public research university o Leadership in the creative use and application of IT

14. IT Strategic Plan

15. Most comprehensive IT plan ever at IU University-wide in scope Comprehensive six-year blueprint: 1998-2004 10 major recommendations, 68 detailed actions Commenced implementation in 1998- 1999 Completed in 2004

16. IT PRINCIPLES Business Monarchy Decides 16

17. IT Principles Major Themes Transformational Power of Information Technology Teaching and Learning Research University Information Systems Telecommunications Access to information, computation, communication Life-cycle funding of information technology

18. IT Principles 10 Major Recommendations 1. Sound Fiscal Planning 2. Access to Network Resources 3. Faculty & Staff Engagement 4. Teaching & Learning 5. Research 6. University Information Systems 7. Telecommunications: Convergence 8. Student Computing 9. Digital Libraries 10. Security

19. IT Monarchy Communicates Consultation within the University after presentation to the President More than 150 briefings (Faculty councils, Advisory committees, Campus chancellors, etc.) Comments and input requested Advice as to priorities particularly sought Recommendations and priorities of IT Plan were endorsed Promote awareness of the IT Plan Identify areas of collaboration or partnership Encourage local IT planning

20. Business Monarchy Approves IT Investment Total cost over implementation period and beyond (5.5 years $207M) Identified Funding ($86M) Additional Funding Required ($121M) On-going Base Required After Full Implementation Period ($16M) Note: Doubled student tech fees on all campuses when state funding was withdrawn

21. ARCHITECTURE, INFRASTRUCTURE IT Monarchy Decides 21

22. APPLICATIONS Duopolies Decide 22

23. Implementation Plan Detailed implementation plan for each action Defined implementation “owner” for each action Engagement at the highest levels (VPIT and AVPs) Accountability Regular status and financial reports IT Plan basis for IT Annual Reports IT Plan Accomplishments incorporated in annual budget process

24. 24 IT Principles IT Architecture IT Infra- structure Strategies Acad/Admin Application Needs IT Investment Acad/Admin Monarchy IT Monarchy Feudal Federal Duopoly Anarchy Don’t Know Domain Style © MIT Sloan CISR Adapted for Higher Ed X XX X X

25. Assessment, Communication, Action Annual Accomplishment Reports Tied to IT Strategic Plan Distributed widely

26. Assessment, Communication, Action Mid-term Assessment –(Dec 2001) Identified and implemented mid- course adjustments

27. Realities Governance is never pure Multiple layers of inputs and decisions o Hybrids at those layers Governance can be evolved 27

28. Duopolies Standardization, Cost Efficiencies, Economies of Scale: Life Cycle for Desktop and Supporting Systems Local (School-based) Technical Support Staff Centers for Teaching and Learning Classroom Technology 28

29. Evolving Governance Frontier o Principles, Structure o Architecture, Infrastructure o Applications, Investment Growth & Devel o Execution o Assessment o Adjustments Maturity o Maintenance o Assessment Renewal o Natural Cycle o Disruptive Forces 29

30. Post-Frontier Phase 30

31. 31

32. 32 Futures Wheeler/Antolovic’ Quality (User Delight) Elmore Stewardship Antolovic’

33. Stewardship, Quality Annual Activity-based Costing $ Services Annual User Survey Services User Satisfaction 33

34. Stewardship, Frontiers, Quality Expenditure Review Committees “ERCx” (Service, Process and Structure Reviews = Budget Reallocations) Reinvestment in New Services o Security o Wireless o Course Management o Information Commons o Research Cyber- infrastructure o Arts and Humanities Cyber- infrastructure, o etc. 34

35. Mechanisms VPIT/CIO Cabinet UITS Operations Committee Council of CIOs (all campuses) Frontiers Council Quality Council Stewardship Faculty Council Technology Committee Student Councils Budgetary Affairs Committee 35

36. 36 IT Principles IT Architecture IT Infra- structure Strategies Acad/Admin Application Needs IT Investment Acad/Admin Monarchy IT Monarchy Feudal Federal Duopoly Anarchy Don’t Know Domain Style XXXXX © MIT Sloan CISR Adapted for Higher Ed

37. 37 IT Duopoly IT Executives and one other group 2-party arrangement where decisions represent a bilateral agreement Differs from a federal model in that federal always has both corporate and local business representation Duopoly has one or the other – but not both – and always includes IT professionals Duopolies can take one of two forms Bicycle wheel or t-shaped Weill & Ross, (2004) IT Governance, HBS Press.

38. 38 Bicycle Wheel IT Duopoly IT BU RM Weill & Ross, (2004) IT Governance, HBS Press. BU = Business Unit RM = Relationship Mgr

39. 39 T-Shaped IT Duopoly X X X X X X Y X X X X X X YYYYYYYYYYYY Executive Committee IT Committee X = Business manager Y = IT manager Weill & Ross, (2004) IT Governance, HBS Press.

40. Realities in Higher Education Not structured for effective IT governance No clear unifying enterprise goals Decision-making too slow Business monarchy has no interest nor understanding of IT in the context of the enterprise Investment decisions (funding) drives the debate 40

41. Conclusions Revolutionary change needed Proxies essential – drag the pond to the horse? CIO translates, aggregates discussions and decisions of business monarchies to business goals, IT goals IT monarchy must earn trust IT monarchy fills leadership gap through purposeful duopolies 41

42. Conclusions Permission-based IT culture is paralyzing Communication is never out of style  Gather and glean broader community input Stewardship, Quality and Frontiers at top of IT monarchy agenda 42

43. About Indiana University Seven campuses (core campuses in Bloomington and Indianapolis) $2.4B budget, 25% from the State 11,183 appointed staff 5,051 faculty 98,545 students 42,000+ course sections 1,115,164 credit hour enrollment $1B+ endowment

44. About UITS $100M annual budget 650+ full-time staff; 300 part-time staff Seven Major Portfolios Research TechnologiesEnterprise Infrastructure Learning TechnologiesEnterprise Software SupportNetworks Information and Infrastructure Assurance

45. Presentation Outline 45 Governance Models Governance in the Academe IU Experience Realities Conclusions

46. IT Governance Propelled IT Revolution IT Governance Summit Denver, CO September 10-11, 2007 Laurie G. Antolovic’ Deputy CIO and Finance Officer Office of the VP for IT & CIO lantolov@indiana.edu © 2007 Trustees of Indiana University Creative Commons Attribution License 2.5