Developing Your Roadmap The Association of Independent Colleges and Universities of Massachusetts. October 3, 2013

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1 Developing Your Roadmap The Association of Independent Colleges and Universities of Massachusetts October 3, 2013

2 Agenda 1. Introductions 2. Higher Ed Industry Trends 3. Technology Trends in Higher Ed 4. Developing Your Roadmap 5. Assessment Case Study 6. Questions & Answers

3 Higher Ed Industry Trends

4 Sustainability A recent Gallup survey asked Higher Educa0on business officers if they agree that the business models for the sectors of Higher Ed were sustainable. Key findings include:! Significant concerns about sustainability of tui3on dependent ins3tu3ons that lack the safety net of a significant endowment! Concerns about the sustainability of second 3er public ins3tu3ons! Only 62% of respondents agreed or strongly agreed that they are confident of their own ins3tu3on s financial model over the next 5 years - That number drops to 41% when asked about a 10 year period Type of Ins0tu0on Public Flagship Public 4 Year (non- flagship) Community Colleges Elite Private Universi3es (Endowments > 1 Billon) Elite Liberal Arts Colleges (Endowments > 500 Million) Private 4 Year ins0tu0ons For Profit Ins3tu3ons Percent Agree or Strongly Agree 62% 26% 51% 84% 67% 17% 21% 2013 Inside Higher Ed survey conducted by Gallup 4

5 Industry Trends Demographics Declining popula3on of college age Americans Increased levels of student debt, high tui3ons and poor job prospects are leading students and parents to ques3on the value of a degree Applicants are applying to more schools due to the online Common Applica3on Compe//on Increase in Alternate Educa3onal Models Rise of itunes U and Massive Open Online Courses (MOOC); experimen3ng with models for providing degree credit Increased acceptance and respect of for- profit online universi3es Tradi3onal colleges and universi3es online offerings are expanding Competency based educa3on models have been approved to be eligible for financial aid support Business Model Many ins3tu3ons are dependent on tui3on revenue with costs that are largely fixed Administra3ve burdens and costs have grown faster than student enrollment Ins3tu3ons are seeing market resistance to increased tui3on in higher tui3on discount rates Poli/cal Uncertainty Significant propor3on of tui3on revenues flow through government programs for grants and loans Ongoing poli3cal debates on student debt and controlling college costs; concern that addi3onal regula3ons will increase compliance burdens on ins3tu3ons Student Loan rates will now move with the financial markets; if interest rates begin to rise it will impact affordability 5

6 Technology Trends in Higher Ed

7 Technology Trends in Higher Ed High Level Overview Application Trends Best of breed application strategies are common Gartner has not produced a magic quadrant on central administrative software in 5 years as a result Adoption of CRM solutions to manage student populations Implementation of student self service portals Increased competition in Learning Management Software (LMS),including some open source options New vendors include Moodle, Sakai, Canvas, and Desire2Learn Reduced Blackboard market share from 71% to 45% in last 6 years Cloud Adoption 24% of higher ed business officers indicated that moving core campus operations and support services to the cloud was Very Important 1 Increased adoption of cloud applications in the Student Information, Learning Management, and Enterprise Resource Planning areas Cloud applications can help universities move quickly to adapt to emerging nontraditional models Cloud HCM/ERP Vendor WorkDay recently announced it is building a student information system Big Data & Predictive Analytics Increased use of metrics to make better decisions Predictive analytics are being used to provide insight into recruiting, application, financial aid, student achievement, and advising areas Metrics also support how advertising strategies drive enrollment, particularly for online institutions where advertising budgets are significant Predictive analytics help Institutions identify trigger events and patterns to identify and prevent drop outs Inside Higher Ed survey conducted by Gallup 7

8 Technology Trends in Higher Ed Application Portfolio Trends in Student Information Systems Vendor Market Share Ellucian 40% Campus Management 24% Oracle 12% Jenzabar 9% Three Rivers Systems 3% RJM SONISWEB 1% Homegrown 5% Other 5% Key Takeaways: Vendor Landscape for Student Information Systems (SIS) has been relatively static.! Consolidation: Through acquisition, Ellucian owns both the Sun Guard Banner and Datatel Colleague platforms! New Entrant: Cloud based HCM and ERP vendor Workday just announced in September that they are building a Student Information System Inside Higher Ed Sept

9 Developing Your Roadmap

10 Developing Your Roadmap Define the Goals: Using Technology for Efficiency and Effectiveness Process improvement and technology initiatives be focused on increasing the organization s ability execute on current or new businesses strategies (Effectiveness) or streamline current operations (Efficiency): External Internal Informa0on Technology Efficiency Informa0on Technology Effec0veness Managing staff expense Managing so`ware applica3on, server and worksta3on expenses Managing IT maintenance costs Technology founda3on Helping the business to compete Delivering high impact projects Delivering high client sa3sfac3on Driving change Doing More with Less Enabling Business Objec/ves 10

11 Developing Your Roadmap Perform an Assessment Ac0vi0es Discovery Analysis Roadmap Development Understand the organiza3on's strategy, goals and objec3ves Evalua3on of Current State: People Process Technology Iden3fy & Analyze Risks Iden3fy process improvement opportuni3es Research and Develop poten3al solu3on op3ons Assess technology fit with key processes Develop a plan to execute Business Case for change Recommenda3on on strategic alterna3ves to pursue Risk mi3ga3on plan Project Planning Tasks & milestones Investment es3mates Resource requirements Key Stakeholder approval 11

12 Developing Your Roadmap Improve Decision Making Capabilities! In the Gallup survey, 45% of respondents said it was Very Important to use technology tools to identify problems and potential improvements! Yet only 16% Strongly Agreed that their institution uses an analytical framework to make decisions on spending My ins0tu0on has the data needed to make informed decisions about: Which programs should be eliminated or enhanced Performance of each administra3ve unit Performance of administra3ve technology Performance of academic technology % strongly Agree 13% 8% 8% 7% 2013 Inside Higher Ed survey conducted by Gallup 12

13 Developing Your Roadmap Create a Framework for Decision Making! What is the right business model given an individual institution s circumstances? - On campus college experience will never fully go away - Can online courses/curriculum create revenue and sustain on campus learning?! Executing on Strategy - Assessing and prioritizing key initiatives - Creating an overall roadmap to achieve strategic business goals - Project management resources and structure to ensure success Tradi3onal Campus Tradi3onal Students Campus Experience Alterna3ve Educa3on Non Tradi3onal Students Hybrid Online / In- Person Online Only Programs 13

14 Developing Your Roadmap Prioritize Projects Proper governance provides a framework for effec3ve decision making in determining how to priori3ze limited resources in line with the organiza3ons strategy and goals. Informa0on Technology Governance CommiUee Responsibili0es: Meet monthly to review status of key projects Ensure projects are in alignment with business strategy Evaluate / approve new project requests Hold the ul3mate project accountability Avoid involvement in day- to- day IT opera3ons geared toward keeping the lights on Resolve issues and remove roadblocks Clarify scope Evaluate feedback on progress and major deliverables IT Governance CommiUee Opera0ng Process: Project Teams Formed for specific projects designated during the IT Governance CommiDee meeengs. These teams should be cross funceonal between IT and OperaEons and will report back to the commidee on progress. 14

15 Developing Your Roadmap Manage Projects through Effective Governance Successful projects adopt a structure where the organiza3on is responsible for the project ac3vity, working with centrally administered processes and guidelines. Steering Committee Establishes vision and strategy Approves decisions/ac3ons, monitors progress Set guiding principles/protocols Issue resolu3on Communicates with stakeholders Provides organiza3onal support Problem Escala3on Program Management Office Manages project 3meline Facilitates working sessions & communica3ons Provides program management tools/templates Iden3fies/manages cri3cal risks Resolves interdependency conflicts Escalate cri3cal issues Tracks program/project metrics Projects and Project Work Streams Team 1 Team 2 Team 3 Team 4 Team 5+ Provide subject matter expertise Perform tasks within the work breakdown structure Technology Support Teams 15

16 Assessment Case Study

17 Assessment Case Study Assessment Scope & Objectives McGladrey recently performed a Rapid Assessment for a Higher Ed institution to evaluate its overall IT function and its ability to support the institutions growth. The institution featured a rapidly growing online division in addition to traditional campus education, with an additional business unit experimenting with alternative education models. The focus of the initiative was to evaluate how the IT function was positioned to support the university as it streamlined operations to improve efficiency and expanded its business model into new areas. The Pillars of an Optimized IT Function was the framework used to make the evaluations: Project Objectives Identify any Quick Win opportunities Identify potential risks Develop long term plan for IT performance enhancements Produce plan to improve the data management and reporting throughout the organization Design overall IT Roadmap for improvements that details key projects, interdependencies, timelines, and cost estimates Governance and Organization The organization ensures the business is run properly and IT decision-making is aligned strategic objectives Pillars of an Optimized IT Function Strategic Business Alignment Infrastructure Systems are manageable, integrated and maintainable while meeting functional business requirements Reliable Platform Applications & Data Management Applications support efficient business processes, while providing access to data for tangible application Risk and Controls Proper IT general controls are in place, with adherence to local and national compliance 17

18 Assessment Case Study Phased Approach to Improvements The three- phased approach below was used to structure and priori3ze key recommenda3ons: PHASE 1: Address immediate exis3ng organiza3on and technology needs PHASE 2: Improve opera3ons through op3mizing technology tools PHASE 3: Use technology as a strategic enabler Establish governance processes Ensure current technology plaporm is stable Mi3gate any cri3cal risks Address any organiza3onal needs Improve data quality, reliability, and standardiza3on Focus on process efficiency and cost reduc3on Leverage Technology as a compe33ve advantage Improve effec3veness of business processes 18

19 Assessment Case Study Issues & Recommendations PHASE I: Address immediate org. & technology needs PHASE 2: Improve opera3ons using technology PHASE 3: Use technology as a strategic enabler High Level Issues Phase I: Address immediate existing organization and technology needs 1. Limited business leader participation in project approval and prioritization 2. IT org. does not separate IT operations from project roles 3. Inconsistent expectations of IT across institution 4. ERP/SIS System's current configuration and integrations with other applications limits scalability 1. Establish governance committee and monthly IT closing process 2. Reorganize IT department to better reflect Client XYZ s priorities 3. Agree upon responsibilities between IT and the institution 4. Develop long term applications strategy based on centralized vs. best-of-breed options Phase II: Improve operations through optimizing technology tools 1. Discrepancies exist in enterprise data 2. Gaps in traditional Help Desk functionality in current system Phase III: Use technology as a strategic enabler 1. Core business processes are not sufficiently automated and cannot support a growing organization 2. Manual on-boarding process requires significant Help Desk effort Corresponding Recommendations 1. Define data elements & establish governance committee 2. Improve asset management tracking and centralized antivirus management; enhance Help Desk reporting 1. Target IT investments around business process automation and outsourcing; implement enterprise applications plan 2. Create standard, role based on-boarding for all employees through the use of help desk system 19

20 Assessment Case Study Sample Roadmap: Phase I Org. & Governance Infrastructure Legend Applica0ons & Data Mgmt. Risk & Controls ONGOING IT Governance CommiUee August 2013 September Program Management & Governance Ongoing Governance CommiUee Mee0ngs October Data integra0on for New Business Unit PHASE I: Address Immediate Exis3ng Organiza3on and Technology Needs Evaluate Network BoUlenecks Agree on IT/Business Responsibili0es & SLAs Reconfigure Network / Firewall Update/Develop ITS SLAs with Business Reorganize & Strengthen IT Organiza0on (Phase I & II) Develop Long Term Applica0ons Strategy & Implementa0on Plan Reevaluate Spam Quaran0ning levels Address SoYphone QOS Strengthen Vendor Policies SIS/ERP Security Audit Payroll Process Assessment 20

21 Assessment Case Study Sample Roadmap: Phases II & III Org. & Governance Infrastructure Legend Applica0ons & Data Mgmt. Risk & Controls ONGOING 2013 Q Q1 Q2 Q3 Q4 Q1 Program Management & Governance Reorg. and Strengthen IT (Cont.) Establish & Maintain Data Governance PHASE II: Improve Opera3ons Through Op3mizing Technology Tools Symantec Management Server Consolidate Network Monitoring Tools For0fy ETL Processes Address Help Desk Gaps Asset Tagging Standardize Payroll Process Outsource Payroll Implement HRIS or Outsource PHASE III: Use Technology as a Strategic Enabler Business Process Re- engineering Formalize On- Boarding with Technology SIS / ERP Implementa0on 21

22 Questions & Answers

23 Presenting Team Jim is a partner in McGladrey s Advisory Services practice. He has over 21 years of consulting experience focused on providing solutions to the complex problems encountered by finance and accounting organizations. Jim currently leads our Notfor-Profit and Higher Education industry team and our Business Process Outsourcing (BPO) practice and is focused on working with clients to automate and streamline processes and reporting through the selection and implementation of cloud based technologies. Jim Cashin, CPA Partner Jim's experience includes managing projects, including business process design and implementation, business information requirements and improvement (performance management), policy and control reviews, diagnostic benchmarking analysis of major finance processes, design and implementation of Shared Service Centers, merger integration, and packaged software selections and implementations. Graydon is a manager in McGladrey s Advisory Services practice. Graydon has over 18 years of consulting and industry experience. Graydon s experiences include project management, business process design and implementation, technology evaluation and selection, business process automation, custom application development management and design, business intelligence and reporting and ERP system deployment. Graydon Smith Manager

24 Consulting Services Business Performance Improvement Advise Deliver Maintain Consul0ng Applica0ons Infrastructure Support Strategy and Advisory! Strategy Development! Rapid Assessment! Technology Assessment! Due Diligence! System Selec3on! Benchmarking and Best Prac3ces! Project and Program Management Design and Implementa0on! Enterprise Resource Planning (ERP)! Customer Rela3onship Management (CRM)! Business Analy3cs! Corporate Performance Management! Systems Integra3on! Content Management, Portals and Collabora3on Design and Implementa0on! Network Design and Implementa3on (LAN/WAN)! Expense Management! Server Virtualiza3on! Storage and Recovery! Desktop/Applica3on Delivery! Unified Communica3ons! Mobile Compu3ng! Business Con3nuity and Disaster Recovery Business Process & Technology Outsourcing! Finance and Accoun3ng Outsourcing! IT Outsourcing! CIO Advisory! Hos3ng/Private Cloud! IT Vision SM! Managed Services Cloud Solu0ons So`ware as a Service (SaaS), Plaporm as a Service (PaaS), Infrastructure as a Service (IaaS) Enterprise Risk Management 24 24

25 About McGladrey Ranked the fifth-largest assurance, tax and business consulting provider in the U.S. McGladrey LLP is comprised of: - - More than 70 offices in the U.S. More than 6,700 employees in the U.S. Member of RSM International, one of the largest global networks of independent accounting, tax, and consulting firms with: - - A presence in 75 countries More than 30,000 people in approximately 700 offices Provides global resources with a single point of contact. Delivering outstanding client service for over 80 years. 25

26 McGladrey LLP is the U.S. member of the RSM Interna3onal ( RSMI ) network of independent accoun3ng, tax and consul3ng firms. The member firms of RSMI collaborate to provide services to global clients, but are separate and dis3nct legal en33es which cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. McGladrey, the McGladrey signature, The McGladrey Classic logo, The power of being understood, Power comes from being understood and Experience the power of being understood are trademarks of McGladrey LLP McGladrey LLP. All Rights Reserved.

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