1. Platform Thinking IT Partners Conference June 17, 2014 John Charles 1

2. Platform Thinking – What Changes? Design To be a platform, a system must provide a useful function or service and allow 3 rd party access Network Effects Platforms have communities, products have features Value Platforms open themselves to and gain enormous value from 3 rd party contributors/developers Platform-based Ecosystem 2

3. For Nearly 2 Decades the Microsoft Platform Beat the Apple Product Microsoft opened their platform, licensed widely, and built a huge developer ecosystem. Apple kept their product closed. Source: Parker & Van Alstyne 3

4. Model T Platform Flour Mill Mobile Church Sawmill Race Car Hay Carrier Snowmobile Goat Carrier You know your business model is working when users of your platform do something you didn’t expect 4

5. “We tried to create every feature in the world and said, ‘O.K., we can do it, why should we let a third party do it?’” (MySpace cofounder) DeWolfe “We should have picked 5 to 10 key features that we would be totally focused on and let other people innovate on everything else.” The Rise & Ignominious Fall of MySpace – Business Week 2011 Does Open Work? 5

6. Platform provider focuses on most valuable apps Value increases as others add to platform’s “Long Tail” Source: Van Alstyne (2014), “Platform Shift: How New Biz Models are Changing the Shape of Industry” Value Platform Thinking – What Changes? Strategy Goal is transactions volume & creating user value Don’t need to own the one-off resources/apps – simply convince those providers to join you Innovation Platforms can be adapted to countless needs & niches that the platform’s original developers could not possibly imagine 6

7. The Pace of Change Seemed Somewhat Linear in the Past – but its Exponential Nature is Now Clearly Apparent 7 1990’s 2010’s Change Time But, we must now optimize for: Time to market Rapid changes User experience But, we must now optimize for: Time to market Rapid changes User experience We optimized for: Performance Reliability Cost We optimized for: Performance Reliability Cost

8. Much of Higher-Ed Seems to be Suffering from Boiling Frog Syndrome Higher-ed’s biggest challenge is its time zone. It’s 9:30am, June 17, 2014 on the East Coast… …but the app portfolio at many institutions is stuck in the late 1990s or early 2000s Higher-ed was ahead of the curve in terms of its use of technology… …but then the curve ran us over 8

9. Google’s Eight Pillars of Innovation Innovation Have a mission that matters Think big but start small Strive for continual innovation - not instant perfection Look for ideas every- where Share everything Spark with imagination - fuel with data Be a platform Never fail to fail - continue to learn and iterate 9

10. Why IT Organizations with Traditional 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). 10 Backlog of IT Projects

11. Consumerization Has Radically Changed User Expectations for Enterprise Apps Source: Innovator’s Guide (Mendix) 11

12. To Remain Relevant, Higher-Ed IT Units must Reduce the Amount of Change-Induced Resource Consumption – the Key Enabler for Lowering KTLO and Becoming more Responsive Pace-based Application Change Strategy Platform-based IT Service Strategy & Tools Responsive IT Operations & Services 12 Lower the change- induced resource consumption Innovation & differentiation apps need to change frequently Whereas, the core code- sets for ERP & other system-of-record apps do not Reduce the app development overhead for all IT service providers Shorten the app development time Accommodate local work- process and workflow differences Value Creation Improved decision-making Improved processes

13. Transformation Strategy 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 & toolkits - 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 & toolkits Pace-based Application Change Strategy Platform-based IT Services Strategy & Tools 13

14. Unlock Business Value & Enable Innovation BUILD Applications Better & Faster Reduce time to market Accelerate app development by 10x RESPOND Quickly to Changes & Opportunities Capitalize on new opportunities before they are gone Accommodate constant updates ENABLE the Business & Accelerate Innovation Eliminate project backlog bottlenecks Open platforms to extension by others 14

15. Transformations in Responsiveness and Support for Innovation within the IT@MIT Ecosystem 15 “Value-Add” for Distributed IT Units IS&T Transformation KTLO Reduction Productivity Expansion

16. 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 16 ✔ Technology plan & associated proof-of-concepts Financial plan & associated funding models Governance plan & associated policy agenda Communications plan & associated collaboration platforms

17. If you believe in the power of people connecting… …embrace platforms If you converted your product/service to a platform… …what would it enable? 17

18. Thank You! Questions or Comments? 18