DeliveringValue: NextGenMichigan ITLeadersConference June2012 - - PowerPoint PPT Presentation

Delivering
Value:
 NextGen
Michigan


IT
Leaders
Conference

 June
2012






1


• Steady
reduc,on
in
support
for


public
higher
educa,on
con,nues.


• Research
revenue
has
increased
&
is


expected
to
double
by
2017.



• Compe,,on
for
students,
faculty,


grants,
and
donors
is
intense
 Our
Challenges










Our
Challenges


• Pressure
for
accountability
from
the


public
is
at
an
all
,me
high.


• Technology
is
driving
unprecedented


change.


• Our
business
model
is
in
flux.


• Increase
quality
of
admiHed
students.

• Build
on
our
breadth
of
programs.

• Invest
in
faculty.

• Reduce
opera,ng
costs
by
$235
million

• ver
10
years.

• Reinvest
in
the
things
that
bring
strategic,


compe,,ve
advantage.


Our
Strategy


























Transforming
IT


ITS


Michigan
 Administra,ve
 Informa,on
 Services
 IT
Central
Services
 Informa,on
 Technology
 Security
Services


6






















Mission‐Aligned
Governance


Note:
These
counts
represent
the
cumula,ve
number
of
 services
delivered
by
all
providers
across
the
university.















The
Case
for
Change


1


Source:
“IT
Ra,onaliza,on
Project
Approach
and
Preliminary
Findings
‐
Accenture
Presenta,on
to
Provost
and
CFO”,
6/21/2010



There
is
a
high
level
of
service
redundancy
at
U‐M.1


193
Desktop
 Support
 Services
 131
Storage
 Services
 60
Server
 Hos,ng
 Services
 125
Network
Services
 79
Security
 Services
 102
Help
Desk
Services


Academic

 Units


ITS
 Central

 Administra,ve

 Units


$300M
 Total
UM
IT
 Spend*
 15%
 37%
 48%


79%


*
excluding
Hospital,
Dearborn,
and
Flint


80%
 Medical
School,
LSA,
CoE
 ISR,
Ross,
Libraries


University’s
IT
Spend


Year
7
 Year
9
 Current

 Baseline
 ($5)
 ($10)
 ($15)
 ($20)
 ($25)
 $5
 $10
 Year
2
 Year
4
 Year
5
 Poten,al
Impact
to
IT
Spend
(in
millions
USD)
 Investment
 Savings
 Annual
Net
Benefit
 Key:
 Year
3
 Year
1
 Year
10
 Year
6
 Year
8
 3.5
 5.2
 0.5






Business
Case
Summary

8.4
 7.0
 13.3
 18.3
 22.2
 22.7
 23.5
 24.3
 4.7
 4.9
 (6.2)
 (14.1)
 (21.6)
 (22.7)
 (24.3)
 (23.5)
 4.2
 25.1
 0.7
 (25.1)
 7.9
 8.6


Reduce
IT
Spend
 Increase
IT
Spend
 Conserva2ve
Scenario
 Aggressive
Scenario:
Investment:
$41M
‐‐‐
Savings:
$235‐‐‐
 Cumula2ve
Benefits:
$194
‐‐‐
Breakeven
point:
Year
3



Total
Savings
 $161M
 Total
Investment
 $34M
 CumulaKve
Benefits
 $127M
 Break
Even
Point
 Year
4


Execu,ng
the
recommenda,ons
is
es,mated
to
reduce
the
annual
IT
spend
by
$14M
in
 Year
5
and
by
$25M
in
Year
10.


0.6


11


Recommenda,ons


1. Consolidate central administration IT desktop

support

• 2. Rationalize central administration applications
• 3. Enhance high-performance computing (HPC) cyber

infrastructure and related consulting

• 4. Enhance desktop and classroom support for

academic units

• 5. Enhance academic and research administration

application services

• 6. Unify e-mail, calendar and related collaboration tools

The IT rationalization recommendations are intended to create shared infrastructure and commodity services for the university.

12

Recommenda,ons

• 6. Consolidate network support to allow anyone to

access the campus network anytime and from anywhere

• 7. Virtualize compute services (build private cloud)
• 8. Build tiered storage offering
• 9. Migrate local server rooms to managed data centers
• 10. Establish common identity management and security

services

• 11. Develop and implement a new IT funding and

chargeback model

• 12. Improve ITS

Mission

 Unique
 Services
 Commodity
 Services
 Mission

 Unique
 Services
 Commodity
 Services


MISSION
ALIGNED
IT


14

Goals


• The goals of the NextGen Michigan are to
• reduce costs
• improve IT service quality
• build a shared infrastructure and services
• deliver mission aligned IT that enables Michigan

to excel

• Our ability to achieve the goals depends on how

well we manage the transformation

15

Challenges

• Becoming a shared service provider while also

building NextGen services

• Maintaining executive sponsorship during difficult

transitions involving taxing deans

• Leading change to shared services across

distributed units with different cultures

16

Challenges

• Delivering shared services in a “have it your way”

culture

• Maintaining the “NextGen” vision while delivering
• n IT Rationalization
• Building trust in role of the CIO as the leader of IT

for Michigan

17

Transforming

IT