1. Benchmarking Round Table Panel Discussion
Jakkie Pretorius (Facilitator)
Louis Fourie
Andile Swartbooi
Attie Juyn
21 April 2016

2. Ask yourself… Do I spend more or less than my competitors?
How mature is my IT organization?
What are my cost drivers?
Am I overpaying for hardware or software?
Do I have the right number of people?
Are my labour costs reasonable?
Are my people as productive as they should be?
How do my service prices compare to those of internal service providers at other companies?
How do my services compare (price and quality) with what I could expect to receive from an outsourcer?
Do I have good deals with my service providers?
Am I taking advantage of automation and economies of scale?
What areas of my IT operation have the greatest opportunity for cost or service quality improvement?
What do end users, staff and students think of my services?

3. Benchmarking is a proven tool to manage these Challenges and Key IT Initiatives
Challenges & Initiatives
Application and Value of Benchmarking
Cost Reduction/Optimization
Identify & justify cost rise or reduction potential
Growth Planning
What should IT look like, how to best rebuild
IT Sourcing
Compare internal costs with expected market pricing
New CIO
Measure now and after a year to quantify your progress
Merger & Acquisition
Identification of best performing units
Budget Validation
Ensure budget is in line with peers
Reducing Carbon Footprint
Measure reductions and hard dollars saved
Funding New Projects
Create trust : Prove you spent the money in the right way
Project Management Office
Evaluate your PMO delivery and process maturity
Applications Rationalization
Get a baseline of existing portfolio to begin change
Charging for IT Services
Dissatisfaction with charges, what should be the price
Business Case Support
Measurement can build scenarios based on facts
Information Security
Validate your IS Security spend compared to peers
Source: Gartner

4. Successful Steps to Measuring IT Efficiency and Effectiveness
Know your current state of affairs
Understand how you compare to others
Identify a clear roadmap for achieving savings and improvements
Track savings, learning, and continue to assess and improve
Source: Gartner

5. Benchmarking options for Universities include:
Educause Core Data Services (CDS)
Gartner (at a cost…)
IT Score
Key Metrics Benchmark
CHECS
ASAUDIT (via CAUDIT benchmark portal)
Maturity assessments or self-assessments

6. Gartner Key Metrics Benchmark (UP example)
University of Pretoria 2015
(based on 2014 numbers)
Gartner IT Key Metrics Higher Education World-Wide 2015
IT Spend as a % of UP Revenue
4.19%
5.82%
IT Spend as % of UP Operating Expense
5.27%
6.24%
IT FTEs as % of Total Company Employees
4.01%
5.28%
Run / Grow / Transform
Run
85%
71%
Grow
11%
18%
Transform 4%
IT Budget Operational Expenses:
Hardware
27.10%
21.69%
Software
15.00%
16.70%
Personnel & Occupancy
47.80%
50.21%
Transmission
9.40%
5.91%
Outsourcing
0.70%
5.49%
Split per IT Domain:
Data Centre
20.91%
24.44%
End-User Computing
25.40%
16.60%
Service Desk
4.04%
6.52%
Voice
3.42%
6.29%
Data
12.10%
9.82%
Application Development
15.88%
12.71%
Application Support
8.69%
14.69%
Corporate IS Management
5.39%
4.67%
Finance & Admin
4.18%
4.26%

7. Educause CDS (UP example)
Total central IT spending per institutional FTE (students, faculty, and staff) vs. total central IT spending as a percentage of institutional expenses

8. Gartner IT Score (UP)
LEVEL 1 - IT is focused on running the business efficiently
LEVEL 2 - Business leaders have the leeway to use technology as required to achieve their objectives. IT demonstrates its functional excellence and its ability to deliver against its fundamentals
LEVEL 3 - IT constructively and proactively engages with the business to improve business operations and processes; and to enrich business and financial performance

9. Maturity Model (UP)
Based on the Cobit 5 PAM model, modified with inputs from Cobit 4.1 and ITIL

10. Asaudit Benchmarking Adds unique value:
Specific to South African Universities
Utilises known and standardised data – mostly HEMIS based
It costs us about R p.a. and as more institutions use it, the more useful it will become to all universities
The complexity index makes it easy to compare like-for-like institutions

11. Roadmap (Improvement plan)
Do a gap analysis
List activities
Prioritise them
Plan execution
My simple prioritisation technique for prioritising improvement activities:
Importance
2: Very important, 1: Important, 0 :Not applicable
Urgency
2: Needs urgent attention, 1: Needs attention, 0: Sufficiently addressed
Priority
Importance x Urgency 4: High, 2: Medium, 1: Low, 0: None

12. Panel Discussion