1. Benchmarks: Helping Your President Understand IT Investments David Smallen, Hamilton College Educause 2004 October 13, 2004

2. Fundamental Assumptions IT has become essential (IT does matter) IT has become essential (IT does matter) IT has become financially significant IT has become financially significant Therefore: Therefore: –IT can/ must be managed/ explained/ understood in ways similar to other traditional institutional resources Explainable costs Explainable costs Reasonable alternatives Reasonable alternatives

3. Today’s Presentation How much should IT cost? How much should IT cost? –High level views of budgets and staffing Making useful comparisons Making useful comparisons –Focus today on BLA and HC Peer institutions

4. Data from The COSTS Project Cost Of Supporting Technology Services www.costsproject.org Project began 1997 Project began 1997 Co-director Karen Leach Co-director Karen Leach Data collected Data collected –Institutional demographics –IT budgets –IT staffing IT Benchmarks developed IT Benchmarks developed

5. Presidents ask… How much should IT cost? How much should IT cost? –Benchmarks IT budget as a percent of institutional budget (Budget Impact) IT budget as a percent of institutional budget (Budget Impact) IT budget per capita (Budget Support Level) IT budget per capita (Budget Support Level)

6. IT Benchmark Techniques Select Peer/comparison Group Select Peer/comparison Group Look at the typical range Look at the typical range Look at multi-year trends Look at multi-year trends

7. The Typical Range Economies of scale? Effective strategies? Inadequate resources? Strategic emphasis? Exceptional quality? Efficiency opportunity? 25 th percentile 75 th percentile Upper quadrantLower quadrant

8. Budget Impact (IT budget as percent of institutional budget) 2003/2004 HC = 4.6% BLAMA 25 th Percentile 4.2%3.9% 50 th Percentile 4.95.2 75 th Percentile 5.96.3 # of cases 6829

13. Budget Support Level - Comparison Group is important!!! 2003/2004HC=$1,572BLA HC Peers MA 25 th Percentile $989$1,502$516 50 th Percentile 1,3911,693618 75 th Percentile 1,6822,150819

15. Budget Support Level

16. What drives per capita spending on IT? Institutional or IT Service Level? Institutional or IT Service Level? Institutional Size? Institutional Size? –Is there evidence of economies of scale? Complexity of IT environment? Complexity of IT environment? Other? Other?

18. Budget Impact (IT Budget/Institutional Budget) X Institutional Budget per capita (Institutional Budget/Total campus population) = Budget Support Level (IT Budget/Total campus population)

19. Institutional budget per capita 2003/2004HC=$34,311BLAHCPeersMA 25 th Percentile $21,674$28,787$10,000 50 th Percentile 26,03132,80012,082 75 th Percentile 32,40036,49715,466

20. Presidents ask… What are the key components of an IT budget? What are the key components of an IT budget? –What alternatives exist to manage that budget?

21. Budget Profile (Percent of overall IT budget) 2003/2004(averages)BLAMAHC Personnel 51 % 52% 50 % Student Help 335 Contract/Consulting455 Hardware/Software/ Capital 373537 Professional Development 112 Other441

22. IT Staffing Benchmarks ? Institutional Level Aggregated Service Level Service Level

25. Student IT staff as a percentage of overall IT Staff 2003/2004 HC = 34% BLA HC Peers 25 th Percentile 19%19% 50 th Percentile 2727 75 th Percentile 3734

26. Aggregate Service Areas - definitions Infrastructure support Infrastructure support –Repair –Installation –Network Enterprise Systems Support Enterprise Systems Support –ERP –Web User Support User Support –Help Line –Curricular –Student –Training

27. Service staffing as a percentage of overall IT staffing (averages) BLAHC 1999- 2000 2000- 2001 2001- 2002 2002- 2003 2003- 2004 Infra- structure 26%1425%23%24%24%22 Enter- prise 24212523242521 User support 39554042404149

28. Faculty/IT Curricular Support Staff 2003/2004 HC = 43 BLA HC Peers MA 25 th Percentile 322585 50 th Percentile 4939126 75 th Percentile 8249259

29. Campus Population/ Help Desk 2003/2004 HC = 609 BLA HC Peers MA 25 th Percentile 464431826 50 th Percentile 6495311568 75 th Percentile 9027142588

30. Campus Computers/ Network Support Staff 2003/2004 HC = 637 BLA HC Peers MA 25 th Percentile 539432819 50 th Percentile 7716551220 75 th Percentile 10237951860

31. Students/ Student IT Support Staff 2003/2004 HC = 184 BLA HC Peers MA 25 th Percentile 215221465 50 th Percentile 374372810 75 th Percentile 6625441279

32. Strategies + Programs => Staffing/Budget Levels

33. Strategies that could affect IT services Infrastructure Infrastructure –Replacement schedule –Standards –Sourcing Enterprise systems Enterprise systems –Integration –Customization User support User support –Service level –Sourcing –Partnerships

34. Programs that could affect IT services Infrastructure Infrastructure –Number of technology classrooms Enterprise systems Enterprise systems –Self-service (Web) User support User support –Number of computers –Institutional emphases

35. Quality Cost IT Services LowHigh Low High Strategic/ innovative?? Best Practice?? ???? Opportunity for change???

36. Takeaways – General Utilize ratios (benchmarks) NOT absolute numbers in comparisons Utilize ratios (benchmarks) NOT absolute numbers in comparisons Compare with similar institutions (peers) Compare with similar institutions (peers) IT benchmarks are reflective of overall institutional resources IT benchmarks are reflective of overall institutional resources The “typical range” is a starting point for exploring institutional alternatives The “typical range” is a starting point for exploring institutional alternatives Staffing/budget changes should reflect programmatic changes Staffing/budget changes should reflect programmatic changes Fine grained benchmarks may be less reliable Fine grained benchmarks may be less reliable

37. Takeaways – Specific (BLA and MA institutions) IT investments have moderated in the last year after several years of outpacing institutional budgets (BLA and MA institutions) IT investments have moderated in the last year after several years of outpacing institutional budgets –IT budget typically between 4 and 6 % of institutional budget –IT Budget per capita reflects available institutional resources. (BLA and MA institutions) Approximately 50% of IT budgets are for staff (BLA and MA institutions) Approximately 50% of IT budgets are for staff (BLA institutions) IT staff support loads are leveling out after several years of outpacing the growth in the campus population (BLA institutions) IT staff support loads are leveling out after several years of outpacing the growth in the campus population

38. Takeaways – Specific (BLA institutions) Student help provides approximately 25 % of total IT support (BLA institutions) Student help provides approximately 25 % of total IT support (BLA institutions) Staffing for IT is approximately: (BLA institutions) Staffing for IT is approximately: –25% for infrastructure, –25% for enterprise systems –40% for user support Each IT staff member at MA institutions support approximately twice the number of people as IT staff at BLA institutions Each IT staff member at MA institutions support approximately twice the number of people as IT staff at BLA institutions

39. Additional Resources COSTS project: www.costsproject.org COSTS project: www.costsproject.orgwww.costsproject.org Educause Core Data Service; www.educause.edu/apps/coredata/index.asp Educause Core Data Service; www.educause.edu/apps/coredata/index.asp www.educause.edu/apps/coredata/index.asp CIC paper: Information Technology Benchmarks, A practical guide for College and University Presidents www.cic.org/publications/books_reports/index.asp CIC paper: Information Technology Benchmarks, A practical guide for College and University Presidents www.cic.org/publications/books_reports/index.asp