1. www.umn.edu/oit Measuring the Value of IT to the Institution CSG Spring 2007

2. www.umn.edu/oit Why Measure Value??? To Strategically Position the IT Organization.

3. www.umn.edu/oit IT Value??

4. www.umn.edu/oit Gartner….. Business Value Defined (2003): “…measures that demonstrate how IT-related changes and investments contribute over time to improved business performance, competitiveness and economic growth.” Doc ID Number: DF-18-3219

5. www.umn.edu/oit Educause… Objective and subjective combination of measures that attempt to define the value of IT to the institution…. Assessing and Communicating the Value of IT (Nelson, 2005) Operational Excellence, Organizational Management, Client Partnership… Increasing IT Value for Customers: A Challenge for Higher Education (Beeby, Donnefeld, Jelinkova, Knox, Palenchar, Rini, 2006)

6. www.umn.edu/oit Educause… Understanding the Value of IT –Structuring the IT Value Discussion Strategic. How well is the technology supporting the strategic goals of the institution? IT Organization. Is the IT support organization effective and efficient? Project. Is a particular technology project worth pursuing? Educause Quarterly Number 3 2003 Goldstein, Katz, Olsen

7. www.umn.edu/oit Simplified IT Value Components IT Portfolio Management and Associated Costs IT Organizational Continuous Improvement Impact of Strategic Initiatives / Projects IT Strategic Alignment to Support the Institution’s Goals

8. www.umn.edu/oit Simplified IT Value Components IT Portfolio Management and Associated Costs IT Organizational Continuous Improvement Impact of Strategic Initiatives / Projects IT Strategic Alignment to Support the Institution’s Goals

9. www.umn.edu/oit Existing Common-Good/Budget Allocation Enterprise Technology Service Portfolio Student,Faculty, Staff Support Helpdesk (1-HELP) Training Digital Media Center. Computer Labs Security MS license Back-Up Automated Desk-top Computer Management (AD) Help-Desk Support Tool (Ctrl F1) Communications Data Network Telephone Unified Messaging Productivity Applications Operating System MS Office File Systems Web Collaboration (Breeze) Email Calendar (UMCal) File Storage (SAN) Personal space Enterprise storage Web Content Management (FileNet) Wiki Business Applications PeopleSoft WebCT Imaging/Doc Mgt Library Automation E-Research CUFS / Financial IMS Reporting EGMS FormsNirvana GradPlanner Portfolio GoldPass Data Base (Oracle) Portal

10. www.umn.edu/oit Existing Common-Good/Budget Allocation Enterprise Technology Services Portfolio Budget View

11. www.umn.edu/oit Common-Good/Budget Allocation Enterprise Technology Services Portfolio ‘Cost per Head’ Total Portfolio Expense: Approx. $70 Million ‘Cost per Head’ –Existing: $44.93/month ($1.50/day) –Modeled FY08: $48.16 - $50.41 ($1.60 - $1.68/day)

12. www.umn.edu/oit Simplified IT Value Components IT Portfolio Management and Associated Costs IT Organizational Continuous Improvement Impact of Strategic Initiatives / Projects IT Strategic Alignment to Support the Institution’s Goals

13. www.umn.edu/oit

15. Productivity & Efficiency

16. www.umn.edu/oit Productivity & Efficiency

17. www.umn.edu/oit Productivity & Efficiency

18. www.umn.edu/oit Productivity & Efficiency: University of Minnesota IT Spending per Capita $1,682 per Student, Faculty & Staff (headcount)

19. www.umn.edu/oit Staff Engagement

20. www.umn.edu/oit Improvement Processes…. Still Under Development…. Progress toward Institutional Best Practices and Standards

21. www.umn.edu/oit Simplified IT Value Components IT Portfolio Management and Associated Costs IT Organizational Continuous Improvement Impact of Strategic Initiatives / Projects IT Strategic Alignment to Support the Institution’s Goals

22. www.umn.edu/oit Project Title Project Description: Improvements: Costs: Comparables: Outcome: [this should be the “take-away” message about the project] Benefits Improved productivity/efficiency Reduced costs Enhanced revenues Improved service or product quality Engaged employees Mitigate risk Project Benefit Slide

23. www.umn.edu/oit Start-upYr1Yr2Yr3Yr 4Yr 5TOTAL Improvements Costs University Net Project Impact Summary Form Unit-Specific Improvements of Particular Note: (If cost savings, specify where the savings went) Unit-Specific Costs of Particular Note: Comparables (over time, parts-to-whole, peers, industry standards, etc.):

24. www.umn.edu/oit Benchmark / Comparable Information: Over time / Parts to the whole / Peers / Industry Standards (1) Improvement Categories (2) Cost Categories (3) Start-up & over 5 years (4a) Per impacted group (4b) University overall (5) Net impact (6) Benchmarks

25. www.umn.edu/oit Example: Enterprise EventTicket System (Detailed Cost Analysis)

26. www.umn.edu/oit University Event Ticketing System Project Description: Numerous entities on campus have ticketing / customer management needs. Two of the largest – University Athletics and arts ticketing organizations – needed new systems in 2007, so the opportunity was seized to create an enterprise-wide solution. This project will increase revenues, increase customer service, and provide University management with significantly more meaningful customer information.  Improvements:  Significant customer service improvements On-line purchase / print-at-home tickets Ticket exchange and ticket forwarding capabilities  Enterprise customer relationship tracking available  Significant revenue increases $600,000 over five years above current net revenue, PLUS: Increased donations Increased ticket sales and cross promotion Increased advertising revenue  Costs:  Start-Up: $1.1 Million / Ongoing operation: ≈ $ 600,000 per year Overall Impact:  Full control and collection of ticketing fees presents highest long-term revenue potential for units  Modern, robust ticketing software and the ability to directly integrate into current enterprise systems increases user satisfaction and cross promotion opportunities  University ticketing fees will be less than industry standards Benefits Improved productivity/efficiency Reduced costs Enhanced revenues Improved service or product quality Engaged employees

27. www.umn.edu/oit Example: Shared Data Center

28. www.umn.edu/oit Shared Data Center Project Outcome: This data center initiative will:  Recover initial capital costs through increases in productivity and savings through economies of scale efficiencies, creating a 5 year net savings of $75,000, and annual net savings in year 6 and beyond of over $1,000,000 per year. Benefits Improved productivity/efficiency Reduced costs Enhanced revenues Improved service or product quality Engaged employees Project Description: Expand the capacity of the University’s existing central data centers to allow for the consolidation of locally-managed servers into shared data centers.  Improvements: Primarily realized by University units Reduces total hrs of service outages – creating measurable productivity improvements Reduces # and severity of server security breaches resulting in productivity improvements Reduces # of FTEs required for server management through economies of scale Reduces $ spent on servers, space, and infrastructure through server consolidation Increase space available to local units for office and storage by eliminating need for local server space  Costs: Borne by central OIT Start-up costs through year three: –Enhancements to WBOB and 90 Church Street data centers -- $4.14 million. Conversion costs of migrating to central server location –Staff cost to migrate to central data center -- $360,000

29. www.umn.edu/oit Simplified IT Value Components IT Portfolio Management and Associated Costs IT Organizational Continuous Improvement Impact of Strategic Initiatives / Projects IT Strategic Alignment to Support the Institution’s Goals

30. www.umn.edu/oit

31. IT Strategies to Institution’s Strategies Operational Goals Mapped to Strategies Projects Mapped To Goals Measures to IT Strategies Projects to Measures Projects to Institution’s Strategies

32. www.umn.edu/oit

38. Strategy Mapping Activity

39. www.umn.edu/oit IT Strategies to Institution’s Strategies Operational Goals Mapped to Strategies Projects Mapped To Goals Measures to IT Strategies Projects to Measures Projects to Institution’s Strategies

40. www.umn.edu/oit Developing Collaborative Informed Decision and Priority Setting Framework for Large IT Projects. -Fall 2007

41. www.umn.edu/oit To Wrap it Up… Start Somewhere… Governance is Crucial Internal Benchmarking is Powerful Subjectivity is OK What questions do these tools answer?

42. www.umn.edu/oit Thank You Questions?