1. Transforming the Future of IT@MIT EVPT Senior Management Meeting May 7, 2014 John Charles 1

2. What I’ve Learned about how IT @ MIT is Different… and Not So Much… Different… Unrivaled when is comes to the use of advanced technologies in support of basic and applied research A national model in the use of enabling technologies in shaping the quality of the MIT educational experience Long history and culture of “making” things – which tends to favor “build-over-buy” – even for non-differentiating services Unrivaled when is comes to the use of advanced technologies in support of basic and applied research A national model in the use of enabling technologies in shaping the quality of the MIT educational experience Long history and culture of “making” things – which tends to favor “build-over-buy” – even for non-differentiating services and Not So Much… Many IT-enabled services still look and feel as fresh as the late 1990s IS&T and DLC IT units are still using “zero-sum” IT service models Most IT units are struggling to keep pace with the evolving needs of their constituency groups Projects take too long – and cost too much Governance committees are setting priorities – but not yet ensuring that benefits are realized 2

3. Why IT Organizations with Traditional (Zero-Sum) IT Service Delivery Models and Practices Struggle to be Responsive – and Struggle to Support Innovation Gartner’s TCO analysis shows that 80% to 85% of an IT organization’s budget is consumed by simply “keeping the lights on” (KTLO). 3 Backlog of IT Projects

4. In the Past, the Pace of Change Seemed Somewhat Linear – but it’s Exponential Nature is Now Clearly Apparent 4 1990’s 2010’s Change Time Now we must optimize for: User experience Time to market Rapid changes Now we must optimize for: User experience Time to market Rapid changes In the past we optimized for: Cost Reliability Performance In the past we optimized for: Cost Reliability Performance

5. The Workload Associated with Customization of Base Code Sets and Making Other Types of Changes to Application Systems is the Major Component of the KTLO Resource Consumption Challenge Enhancements & New Features Maintenance Fixes & Upgrades Performance Tuning Annual Resource Consumption (40% or more of Initial Costs) Source: Gartner 5

6. To Remain Relevant, IT Organizations must Reduce the Amount of Change-Induced Resource Consumption – the Key Enabler for Becoming more Responsive Pace-based Application Change Strategy Platform-based IT Services Strategy & Tools Responsive IT Operations & Services 6 Lower the change- induced resource consumption Innovation & differentiation apps need to change frequently Whereas, ERP & other system-of-record apps do not Reduce the app development overhead for all IT service providers Shorten app development time Accommodate local work process and workflow differences Value Creation Improve decision-making Improve processes

7. Transformed IT Operations & Services Innovation & Pilot Project Apps Daily or Weekly Changes App Systems that Create Differentiation Monthly or Quarterly Changes All Other Mission Critical Apps (ERP, etc.) Semi-annual or Annual Changes - Buy or build new apps with robust sets of APIs - Configure, but do NOT customize base code sets for newly acquired apps - Publish APIs for all new apps - STOP customizing legacy apps - Publish APIs for legacy apps - Change &/or add functionality “on top” of new & legacy apps using APIs & modern app development platforms - Use mobile-ready, change-friendly app development platforms & toolkts - Buy or build new apps with robust sets of APIs - Configure, but do NOT customize base code sets for newly acquired apps - Publish APIs for all new apps - STOP customizing legacy apps - Publish APIs for legacy apps - Change &/or add functionality “on top” of new & legacy apps using APIs & modern app development platforms - Use mobile-ready, change-friendly app development platforms & toolkts Pace-based Application Change Strategy Platform-based IT Services Strategy & Tools 7 API: Application Programming Interface (allow web communities to create an open architecture for sharing content and data between communities and applications)

8. Platform-based Ecosystem Users Application & Integration Platforms (APIs & Cloud Middleware) On-Premises Legacy “As Is” Apps & Systems- of-Record Private Cloud New Systems & Services Private Cloud New Systems & Services Public Cloud New Software-as- a-Service (SaaS) Systems Public Cloud New Software-as- a-Service (SaaS) Systems 3 rd Party Developed Apps Locally Developed Apps Centrally Developed Apps 3 rd Party Developed Apps New or modified (easily changeable) features, functions, & business rules Data models, systems-of- record, & SaaS with “as-is” base code sets API: Application Programming Interface (allow web communities to create an open architecture for sharing content and data between communities and applications)

9. Transformations in Responsiveness (and Expanded Support for Innovation) Begin to Scale 9

10. Simply put, we intend to systemically leverage platform thinking & platform technologies to scale capacity for projects and innovation within MIT’s complex ecosystem of IT service providers and IT service consumers. 10

11. 2020 Vision for IT@MIT MIT’s 2020 IT Vision has two complementary and mutually supporting elements: IT excellence through modernization; and A strategic focus on enabling members of the MIT community to innovate IT services in response to the diverse needs of their respective research, education, student life, and administrative functions. What it means: IT services will be packaged for intuitive, mobile, self- service use Faculty will be able to leverage APIs and data to create new services and platforms for teaching and research Students will be able to leverage APIs and data to create new applications and sites by properly using institutional data that can be made available to them DLCs and administrative units with suitable capability will be able to independently create new services and platforms that address their specific needs DLCs and administrative units in need of greater assistance from IS&T will be better served by IS&T’s enhanced capacity Individual members of MIT’s increasingly global community will be able to create new data and applications IS&T will have greater capacity for supporting innovation 11

12. Risks High Low High Likelihood Impact of Risk Perceived as Shift of Work (&/or Costs) from IS&T to Others IS&T Unable to Make the Mind & Skillset Shifts Ineffective Partnerships with IT Units & Project Sponsors Gov & Steering Cmts Fail to Embrace Strategies Uneven Community Readiness (Capacity)

13. Goals & Priorities for VP of IS&T 13 Technology Strategy Service Delivery Cultural Alignment Communication Leadership Retain & Attract Top Talent

14. Guiding Principles for IT@MIT IT @ MIT Align with the MIT Culture Adhere to Commonly Accepted & Emerging IT Practices & Standards Balance Strategic IT Investments Leverage Core Network Connectivity Treat Data as an Institute Asset Innovate with Appropriate Tolerance for Risk Govern with Transparency & Foster IT Excellence 14

15. Timeline Jan-Jun Listening Tour & Community Engagement (Consensus Vision, Goals, & Guiding Principles) Jul-Aug Formulate Findings & Develop Strategies for Realizing the Vision Sep- Oct Community Engagement in Finalizing IT Strategies Nov- Dec Approval of IT Strategic Plan & Publication of Implementation Roadmaps 15

16. Thank You! For more information (and to provide additional feedback) please visit the Future of IT@MIT website: http://it.mit.edu