1. Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail — quote.requests@gartner.com. Gartner Industry Research Higher Education Administrative Systems Trends Dutch Universities and Universities for Professional Education Executive Study Team San Francisco, 23 January 2005 Ron Yanosky

2. Gartner Industry Research Publisher’s Note Slides that reference specific software suppliers or that contain Gartner-specific analyses have been omitted in this version. For a complete presentation, please contact the author. jim farmer

3. Gartner Industry Research Overview Higher education challenges driving technology planning The student services portfolio Administrative systems: project management, marketplace and technology trends Evaluating open source Organizing for successful technology planning

4. Gartner Industry Research Tuition & Fees Outpacing Household Income Sources: US Census Bureau, The College Board Indexed Tuition + Fees and Household Income (1990 = 100) Cumulative Real Change

5. Gartner Industry Research Graduating High School SeniorsUndergrads 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20032004200520062007200820092010201120122013 2009: peak high school grads +4% –3% USA Undergraduate Recruitment Challenges Source: National Center for Education Statistics

6. Gartner Industry Research Needed: Flexible Information Systems Greater student mobility & choice, less institutional loyalty Increasingly stringent regulation (privacy, finance, homeland security) Accountability and restructured financing Globalization of higher education Convergence of digital knowledge repositories Digital-era student expectations/youth culture

7. Gartner Industry Research Authentication Single Sign-On Internal and External Content Search and Discovery Content Management License Management Rights Management Linking Personal Administrative Management (ERP) Communication and Collaboration Personal Academic Management (CMS) 24x7 Help Security/Privacy A Learner Centered Information System

8. Gartner Industry Research Commercial Enterprise Portal Features Source: Gartner E-Learning Survey 2003 (USA respondents)

9. Gartner Industry Research Major ERP Component Source (2003) Source: Gartner E-Learning Survey 2003 (USA respondents)

10. Gartner Industry Research Time What CEOs and others expect to spend Implementation Period Cost Steady-State ERP Costs What some vendors tell you What really happens What happens with customization

11. Gartner Industry Research Five Biggest ERP Implementation Myths Legend 1: As soon as the implementation has gone live, the enterprise is “finished” deploying ERP. Legend 2: We will go “plain vanilla” to save money and time. Legend 3: Big vendors are more stable than little vendors. Legend 4: If we have executive go-ahead to implement an ERP, it must be everyone’s top priority. Legend 5: Agreeing to all user demands will keep them happy.

12. Gartner Industry Research Campus America CARS CMDS Quodata PeopleSoft Oracle ABT Exeter SCT SAP SunGard SCT Datatel SAP 1Q00 1Q04 PeopleSoft Oracle Jenzabar JDE => Acquired/MergedAcquirerNew Contender Oracle 1Q05 Campus Management [Name TBD] SCT Jenzabar Datatel SAP SCT Administrative Systems Vendor Consolidation

13. Gartner Industry Research Magic Quadrant Analysis Completeness of Vision VisionariesNiche Players ChallengersLeaders Ability to Execute Focus on Today Focus on Tomorrow Executes well today, may dominate large segment, but doesn't understand market direction. Executes well today, well positioned for tomorrow. Either focuses on small segment and does it well, or is unfocused and does not out-motivate or outperform others. Understands where market is going or has vision for changing market rules, but doesn't execute well yet. (in technology, viability, service, features)

14. Gartner Industry Research Slide omitted The slide positioned current higher education software suppliers in the Gartner “Magic Quadrants.”

15. Gartner Industry Research The Emerging Infrastructure Stack Application Server Portal Integration Suite Line-of-Business Applications Old View New View Operating System and DBMS

16. Gartner Industry Research Course Management Tool AUTHORINGAUTHORING METADATATOOLSMETADATATOOLS Tool Tool SIS Academic Analytics Learning Content Management Library Management Portal Conferencing/Collab. Beyond Course Management Institutional Content Repositories External Content Repositories

17. Gartner Industry Research Fact: Next-Gen Software Infrastructure Is Still a Mix of Innovation and Proven Maturity Relative Time in Marketplace (Low to High) Noise (Low to High) SODA SOA Broker BPM BAM CEP APS RTI Portal WSN Rules BPA SES Linux Fusion SOBA MOM Corba EDI mobility Composite Apps Web services

18. Gartner Industry Research Multiple stacks in larger data centers are a reality MS IDE Hardware OS DBMS Directory Integration App. Server Portal Apps BEA IDE Hardware OS DBMS Directory Integration App. Server Portal Apps Sun IDE Hardware OS DBMS Directory Integration App. Server Portal Apps Oracle IDE Hardware OS DBMS Directory Integration App. Server Portal Apps SAP IDE Hardware OS DBMS Directory Integration App. Server Portal Apps IBM IDE Hardware OS DBMS Directory Integration App. Server Portal Apps Options to rationalize 1. One main opportunistic stack and one main systematic stack 2. An “uberstack” Fact: Most Institutions Have a Multiple ‘Stack’ Management Problem

19. Gartner Industry Research Where Open Source Software Is Used/Will Be Used Currently usingExpect to Use in 24 Months Based on a Chronicle of Higher Education/Gartner survey of selected Chronicle subscribers December, 2003 -- CIO respondents only +53% +100%

20. Gartner Industry Research … Best in class? Growing numbers? … Benevolent dictator? Meritocracy? … Wide fundamental support? … Timely release schedule? Bug-fix latency? … Distributed version control? Bug tracking? … Leverages known products? … Modular? Parallel development? User base Core development Developer community Track record Coordination mechanisms Foundations Architecture Alliances and ISV enthusiasm Distribution Support Evaluation Criteria Commercial interest? Peer group support? Evidence Open-Source Evaluation Framework

21. Gartner Industry Research Turf/Politics Process Technology Easy Hard Hierarchy of Challenges Organizational and Process Challenges Organizational –Pre-information age organizational models –Multiple jurisdictions –Turf battles –Academic fiefdoms Processes –Human resources –Procurement process –Funding process Technology –Standards –Data integration –Legacy maintenance –Privacy/security

22. Gartner Industry Research Source Gartner 2003 IT Governance Best Practices

23. Gartner Industry Research Slide omitted Higher Education Technology Hype Cycle, 2004 Gartner placed applications and technology on their Hype Cycle. Open source e-learning was given two to five years to plateau.

24. Gartner Industry Research Recommendations Use technology to advance academic and business goals, not technological ones Plan for standards-based, flexible and open information systems (but don’t expect standards to solve all problems) Incorporate formal change management mechanisms Make executive support for IS projects visible Base open-source decisions on overall value received, rather than acquisition cost savings

25. Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner’s official approval. Such approvals may be requested via e-mail — quote.requests@gartner.com. Gartner Industry Research Higher Education Administrative Systems Trends Dutch Universities and Universities for Professional Education Executive Study Team San Francisco, 23 January 2005 Ron Yanosky ron.yanosky@gartner.com