2. INDIANAUNIVERSITYINDIANAUNIVERSITY 1 IT FUNDING STRATEGIES "IT IS 2003. DO YOU KNOW WHERE YOUR IT DOLLAR IS?" EDUCAUSE Midwestern Regional Conference March 24-26, 2003 Chicago, IL Laurie G. Antolovic’ Chief Financial Officer Office of the VP for Information Technology and CIO Indiana University Copyright 2003 Laurie G. Antolovic

3. INDIANAUNIVERSITYINDIANAUNIVERSITY 2 Abstract With the relentless demand for more IT services and an economic downturn resulting in reduced funding for higher education, it is imperative for IT organizations to develop new funding strategies in order to continue to be aligned with institutional priorities, stay focused on its priority goals, and be responsive to constituencies.

4. INDIANAUNIVERSITYINDIANAUNIVERSITY 3 Outline This presentation will cover funding strategies and the requisite foundation work that IT organizations may find helpful. Some of the ideas for this presentation were discussed at the following forums: Educause IT Funding Group (co-leader) CIC IT Funding Group (chair)

5. INDIANAUNIVERSITYINDIANAUNIVERSITY 4 STRATEGIES AND FOUNDATIONS A. Funding Strategies

6. INDIANAUNIVERSITYINDIANAUNIVERSITY 5 I. Prioritizing, Reallocating, Stretching and Leveraging Existing Funds Getting in shape (the pie is not getting bigger, only the demand for services is!) lose weight gain agility prioritize realign reallocate

7. INDIANAUNIVERSITYINDIANAUNIVERSITY 6 I. Prioritizing, Reallocating, Stretching and Leveraging Existing Funds Making new friends while keeping old ones New external allies and partners Revitalize existing allies and partners New internal allies and partners

8. INDIANAUNIVERSITYINDIANAUNIVERSITY 7 I. Prioritizing, Reallocating, Stretching and Leveraging Existing Funds Wearing different hats Researchers/collaborators Inventors/innovators Entrepreneurs Negotiators Fundraisers Relationship managers

9. INDIANAUNIVERSITYINDIANAUNIVERSITY 8 I. Prioritizing, Reallocating, Stretching and Leveraging Existing Funds Wearing progressive lenses: analyze situations and make decisions at various focal points instantaneously: long-term mid-term short-term Now Key: Clarity of Vision and Purpose

10. INDIANAUNIVERSITYINDIANAUNIVERSITY 9 II. Finding New Funds sponsored research (technologists as researcher/faculty partners) fund-raising (a development office for IT) commercializing intellectual property new fees, e.g. student technology fees, targeted tuition component special appropriations new business lines: computer store, etc. vendor incentives, etc.

11. INDIANAUNIVERSITYINDIANAUNIVERSITY 10 III. Principles and Funding Models Articulated principles and objectives Life cycle funding for IT Sustainable funding models; appropriate for service/product life cycle Tie in to institutional planning and budgeting Capital financing mechanisms New funding models: charging for new or expanded services e.g. data networks, wireless networks, laptops, etc.; or services beyond “normal” (e.g. Cornell “pay by the drink” bandwidth fee model)

12. INDIANAUNIVERSITYINDIANAUNIVERSITY 11 STRATEGIES AND FOUNDATIONS B. Foundations

13. INDIANAUNIVERSITYINDIANAUNIVERSITY 12 I. Institutional Priorities Understanding institutional priorities: university/college institutional strategic plans http://www.iupui.edu/it/stratdir/sdcfin al.html

14. INDIANAUNIVERSITYINDIANAUNIVERSITY 13 II. Funding/Governance Culture Understanding institutional funding/governance culture: centralization v. decentralization, funding allocations v. direct charge- back, etc.

15. INDIANAUNIVERSITYINDIANAUNIVERSITY 14 III. IT Strategic Plans Charting a course for IT: IT strategic plans, alignment with institutional strategic plans, funding and implementation http://www.indiana.edu/~ovpit/strategic/ http://www.indiana.edu/~uitc/cover.html

16. INDIANAUNIVERSITYINDIANAUNIVERSITY 15 IV. IT Policy Setting and Enforcing Policy: Policies on access and acceptable use; user privileges and responsibilities, data stewardship, system administration, IT security, etc.

17. INDIANAUNIVERSITYINDIANAUNIVERSITY 16 V. Where dollars come from Understanding where our IT dollars come from: campus general funds, student technology fees, targeted tuition component, direct charge-back, sponsored research, etc.

18. INDIANAUNIVERSITYINDIANAUNIVERSITY 17 VI. Where dollars go Understanding where our IT dollars go: costing for services, other performance measures, analysis, and communication http://www.indiana.edu/~uits/business/report_o n_cost_and_quality_of_services.html

19. INDIANAUNIVERSITYINDIANAUNIVERSITY 18 VII. What Constituencies Say Listening to our constituencies: structured solicitation of user feedback, IT advisory committees, faculty councils, student government; analysis of feedback, action, and communication http://www.indiana.edu/~uitssur/

20. INDIANAUNIVERSITYINDIANAUNIVERSITY 19 VIII. Using information Making full use of information: engagement and communication at executive level down to the ranks, feedback loop to planning and budgeting, communicating broadly with constituencies http://www.indiana.edu/~uitc/cover.html

21. INDIANAUNIVERSITYINDIANAUNIVERSITY 20 IX. Setting Expectations On-going dialogue with community Briefings on impact of funding situation

22. INDIANAUNIVERSITYINDIANAUNIVERSITY 21 X. Making Wise Investments Human capital tends to be our biggest investment: it is foolish economy to cut training and professional development even in times of budget retrenchment. Morale Productivity Retention Return on investment

23. INDIANAUNIVERSITYINDIANAUNIVERSITY 22 Context About Indiana University Public research university 8 campuses 100,000 students Annual Budget $1.9B

24. INDIANAUNIVERSITYINDIANAUNIVERSITY 23 Context About the Office of the VP for IT and CIO Responsibility for all campuses Teaching and Learning Research and Academic Computing Telecommunications (Data, Video, Voice) University Information Systems IT Policy and Security Digital Library Pervasive Computing Laboratories Annual Budget $100M

25. INDIANAUNIVERSITYINDIANAUNIVERSITY 24 Contact Information: Laurie G. Antolovic’ Finance Officer Office of the VP for Information Technology and Chief Information Officer/ Office of the Vice President for Research and the University Graduate School Indiana University lantolov@indiana.edu