1. Visualizing the Value of IT …People, Technology, Services, and Processes Donna Liss Beth Forrest Warner Associate Vice ProvostAssistant Vice Provost October 24, 2007

2. EDUCAUSE Annual Conference 20072 October 24, 2007 Copyright Beth Forrest Warner and Donna Liss, 2007. This work is the intellectual property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the authors. To disseminate otherwise or to republish requires written permission from the authors.

3. EDUCAUSE Annual Conference 20073 October 24, 2007 The Spellings Commission “What we have learned over the last year makes clear that American higher education has become what, in the business world, would be called a mature enterprise: increasingly risk-averse, at times self- satisfied, and unduly expensive.” A Test of Leadership: Charting the future of US Higher Education

4. EDUCAUSE Annual Conference 20074 October 24, 2007 Perceptions of IT…  Is information technology…  A solution to the challenges that higher education faces;  A contributor to the needed answers; or  Just another cost and yet another cost center? EDUCAUSE “Grand Challenges” Initiative Brian L. Hawkins, Annual Conference, 2006

5. EDUCAUSE Annual Conference 20075 October 24, 2007 KU Provost’s Challenge  Questions posed to all KU departments:  Who are you?  What do you do?  Why is it important to KU? Finding the Answers for IT…

6. EDUCAUSE Annual Conference 20076 October 24, 2007 Where to Begin? Finding Models  Need a systematic approach to answering questions about who, what, why, how, and where?  Many models are available, but how can they work together to give a more complete picture? “You can’t redesign your system by dividing it into parts; everyone must look at the whole together.” Peter Senge (1994), The Fifth Discipline Fieldbook

7. EDUCAUSE Annual Conference 20077 October 24, 2007 Models for Higher Education & IT Who are we working with?Business Partners Model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+)

8. EDUCAUSE Annual Conference 20078 October 24, 2007 Who Are We Working With? Enterprise Business Partners Model  Business Partners Model identifies the different organizations, groups, and individuals that the organization interfaces with during normal business operations.  It articulates the different inputs that each organization receives from each business partner, and …  …the outputs that each business partner receives from the organization. Who are we working with?

9. EDUCAUSE Annual Conference 20079 October 24, 2007 Why Use a Business Partners Model  Simple, usable model  Shows communication streams  Looks at communication in relation to the business  who are the contacts during normal business operations  what information is important to each group Who are we working with?

10. EDUCAUSE Annual Conference 200710 October 24, 2007 KU Enterprise Business Partners Model Who are we working with?

11. EDUCAUSE Annual Conference 200711 October 24, 2007 Models: What’s Next? Who are we working with?Business Partners model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+)

12. EDUCAUSE Annual Conference 200712 October 24, 2007 Why Are We Doing It?  Need a practical model to determine how IT adds value to:  Higher Education in general  Our University in particular  Need a model that provides a:  High Level Business Model Focus  View University’s business goals as one enterprise  View overall processes rather than units & departments  Way to rationalize / prioritize applications and services  Performance Feedback / Assessment Model Why are we doing it?

13. EDUCAUSE Annual Conference 200713 October 24, 2007 Enterprise Value Chain Model  Porter’s Value Chain Model  Created by M.E. Porter  Competitive Strategy, New York:The Free Press (1980)  Competitive advantage is based on cost or differentiation or both  Breaks down industry or organization  series of value-generating activities  culminates in total value delivered by the organization Why are we doing it?

14. EDUCAUSE Annual Conference 200714 October 24, 2007 Enterprise Value Chain Model  Uniform way of looking at all organizations, i.e. universities  Gives organizations a better understanding of how different units function together  Good starting point to think about how to meet goals  Can show how IT enhances each link of the value chain  Acts as a framework for Application Maps & Service Catalogs  Parts of the Value Chain:  Primary Activities  Support Activities  Close to universal for every organization Why are we doing it?

15. EDUCAUSE Annual Conference 200715 October 24, 2007 Primary Activity Components Porter’s ModelHigher Education Model Inbound logistics: receiving & warehousing of raw materials; distribution to manufacturing as needed Admissions Research Proposals Enrollment Grants Operations: process of transforming inputs into finished products and services Instruction Research Counseling Research Admin. Outbound logistics: warehousing and distribution of finished goods Graduation Publication Placement Performance Marketing and Sales: identification of customer needs and generation of sales Recruitment Technology Transfer Service: support of customers after products and services are sold to them Academic support Service to Community Alumni support Why are we doing it?

16. EDUCAUSE Annual Conference 200716 October 24, 2007 Primary Activities: Other Aspects  Process Management  Core Activities:  Teaching  Research  Service  Quality Management (of Core Activities)  Product Information  University Infrastructure Assets Why are we doing it?

17. EDUCAUSE Annual Conference 200717 October 24, 2007 Support Activity Components Porter’s ModelHigher Education Model Firm Infrastructure: organizational structure, control systems, company culture, etc. Administration Management Financial Management Human Resource Management: employee recruiting, hiring, training, development, and compensation. HR Management Technology Development: technologies to support value-creating activities. IT Management Classroom Management Research Resources Management Procurement: purchasing inputs such as materials, supplies, and equipment. Procurement Management Physical Plant Management Support Asset Information Why are we doing it?

18. EDUCAUSE Annual Conference 200718 October 24, 2007 Value Chain: Template Why are we doing it?

19. EDUCAUSE Annual Conference 200719 October 24, 2007 Higher Education Value Chain (ex. KU) Supporting Activities Primary Activities Core Business Process Management Quality Management Product Information Support Asset Info Supporting Processes Supporting (Financial, HR, IT, Research, …) Assets Teaching: Assessment, Degrees, Credentialing, Transcripts Process Management Recruitment Admissions, Enrollment InstructionAcademic Support Placement, Counseling Research: Peer Review, Research Awards, Tenure University Infrastructure Assets The transmission of information and knowledge to others HR Management Financial Management IT Management Administration Management Goals Customers Procurement Management Physical Plant Management Service: Evaluation, Tenure Research Proposals Research Admin Research Facilities, Libraries Publishing, Performance The creation of information and knowledge Professional Service University Service Training, Development Alumni Support The application of information and knowledge to benefit society Teaching Research Service Research Resources Management The mission of the University of Kansas encompasses teaching, research and service as well as an international dimension and humanitarian values. Students Faculty Parents Alumni General Public Federal Government State Government Industry Professional Societies Research Communities Community Service Why are we doing it?

20. EDUCAUSE Annual Conference 200720 October 24, 2007 Models: Next Steps? Who are we working with?Business Partners model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+) DL

21. EDUCAUSE Annual Conference 200721 October 24, 2007 What Are We Doing? Technology and the Value Chain  Overall, technology is playing an ever greater role in business strategy  Technology is embedded at every link of the value chain – but not always apparent  How do we show technology’s importance to the value-generating activities of our organization?? How do we concretely show the value? An Enterprise Application Map

22. EDUCAUSE Annual Conference 200722 October 24, 2007 Enterprise Application Map  Enterprise Application Map - an extension of the value chain  The Application Map seeks to categorize the applications and systems in an organization with links on the value chain.  It is:  A business and technology hybrid model  High-level What are we doing?

23. EDUCAUSE Annual Conference 200723 October 24, 2007  Each application / system / etc. is placed on the appropriate area of the value chain  If it is used in multiple different functions, then put it in all of them that apply  Really not much more to it than that - creating the value chain is the biggest hurdle What are we doing? University of Kansas Enterprise Application Map (Draft)

24. EDUCAUSE Annual Conference 200724 October 24, 2007  Each application / system / etc. is placed on the appropriate area of the value chain  If it is used in multiple different functions, then put it in all of them that apply  Really not much more to it than that - creating the value chain is the biggest hurdle What are we doing? Supporting Assets: Supporting Activities HR Management: Financial Management: IT Management: Administration Management: Procurement Management: Physical Plant Management: Research Resources Management: GoogleKU WebuPortal PS BIS MS Project Exchange / Outlook Networked Storage Systems PS HRMS PS Appln DBs CMDB DEMIS/SAS Energy Cap eCommerce Application Utilities ImageNow Enterprise Appln DBs RDS KU Card PBX Open Journals System DSpace Maximo PS FIS DEMIS/SAS Utility Mgmt System Omnilock MAS200 PS HRMS DNS Stromberg Web Stats Process Management: AutoSys Process Mgmt ANSR Argus LDAP Shibbloeth Remedy Nagios TMIS NetDATA Cyclades Legato ImageNow Alteris Active Directory RINGS Maximo MAS200 Recruitment Admissions, EnrollmentInstruction Academic SupportPlacement, Counseling Research Proposals Research Admin ResearchResearch Facilities, LibrariesPublishing, Performance Research Service Exchange / Outlook PS SAKU Blackboard ImageNow uPortal Core Business Process Teaching PS SAKU Webtrieve eReserves LUNA Voyager DSpace FastTrak AdAstra ARTS PS FIS uPortal AFS Professional Service University Service Training, Development Alumni Support Community Service Community of Science Training Regn System OJS ePortfolios Streaming Video LAS Illiad IRES Server Clusters Graduating Seniors Info Quality Mgmt Teaching: Assessment, Degrees, Credentialing, Transcripts: Research: Peer Review, Research Awards, Tenure Service: Evaluation, Tenure Blackboard Product Info. University Infrastructure Assets: Networked Storage Systems Network Mgmt Systems Network PS SAKU Alteris ANSR CMDB

25. EDUCAUSE Annual Conference 200725 October 24, 2007 Why an Application Map?  Allows units to see where each specific application fits in relation to the high-level business areas in the organization  Helps find gaps where IT does not have any / adequate applications in a particular business area  Helps show how pervasive technology is in the organization  Can be used to illustrate justification for IT spending  Starts the process to visually see IT / Business alignment What are we doing?

26. EDUCAUSE Annual Conference 200726 October 24, 2007 Models: Where to Next? Who are we working with?Business Partners model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+)

27. EDUCAUSE Annual Conference 200727 October 24, 2007 Application Lists and Service Catalogs  Historical approach to meeting individual / unit needs  separate applications (Application lists)  ITIL Process Models  Recognizing interconnections between applications across the organization  ITIL Service Catalog concept  Moving from Applications lists  Services lists  Merges value to campus with application groups through operational and service level contracts How do we manage it?

28. EDUCAUSE Annual Conference 200728 October 24, 2007 How Do We Manage It?  ITIL service management concepts  IT Portfolio management concepts How do we manage it?

29. EDUCAUSE Annual Conference 200729 October 24, 2007 Service Mapping Example: How do we manage it? Paycheck Information Delivery via the Kyou Portal

30. EDUCAUSE Annual Conference 200730 October 24, 2007 Enterprise Portfolio Management  Portfolio strategy defines benefits delivered and when they can be expected  Enables organization to mature at a rate it can absorb change  Targets opportunities for early return on investment with minimal cultural impact  Aligns capabilities with solid, measurable implementation objectives www.planview.com How do we manage it?

31. EDUCAUSE Annual Conference 200731 October 24, 2007 Models: Almost There… Who are we working with?Business Partners model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+)

32. EDUCAUSE Annual Conference 200732 October 24, 2007 Where Are We Going? Strategic Planning Process  Using these models, it becomes easier to focus on core institutional services and how IT can contribute  Highlights gaps in services  Provides foundation for strategic directions  Provides basis for new service proposals  Governance models  Enterprise Application Resource Priority Group Where are we going?

33. EDUCAUSE Annual Conference 200733 October 24, 2007 Models: The Final Step Who are we working with?Business Partners model Why are we doing it?Value Chain Model What are we doing? Application Maps, Service Catalogs How do we manage the process? ITIL Services Model Where are we going?Strategic Planning How do we assess our progress? Assessment (TechQual+)

34. EDUCAUSE Annual Conference 200734 October 24, 2007 How Do We Assess Progress?  When planning any assessment activity, start by considering these four guiding questions:  What do we need to know?  Who can tell us?  How can we get the information?  What will it enable us to do?  The models discussed position IT well to answer these questions How do we assess it?

35. EDUCAUSE Annual Conference 200735 October 24, 2007 Why Do Assessment?  Benchmark current services and use data to improve efficiency and effectiveness.  Measure users’ perceptions and satisfactions with services.  Establish what services and resources are needed and desired.  Increase dialogue with users. How do we assess it?

36. EDUCAUSE Annual Conference 200736 October 24, 2007 Assessment Tools?  EDUCAUSE Core Data Service (http://www.educause.edu/apps/coredata)http://www.educause.edu/apps/coredata  Provides comparison data about campus information technology environments and practices to help benchmark, plan for, and make decisions about campus IT services  TechQual+ (http://www.techqual.org)http://www.techqual.org  Project to develop a scientifically reliable and valid instrument that can be adopted by all institutions of higher education to conduct assessments of technology services on their own campuses.  Modeled on the existing SERVQUAL, IS SERVQUAL, and LibQual+ approaches How do we assess it?

37. EDUCAUSE Annual Conference 200737 October 24, 2007 Bringing It All Into Focus… People / Technology / Services / Processes Where We Want To Be Strategic Planning Project Portfolios IS Division / Unit Planning University Budget Request Mission / Vision Statements Project Planning Vendor Products / Changes Open Source Standards / Projects ITMBP State Project Plan Filings University Mission / Vision Dept. / School Plans & Projects State Regs / Oversight Board of Regents State Technical Architecture ITIL IS Identity Security Planning Assessment Business Partners ITIL Services Overlay Value Chain Application Maps, Service Catalogs Assessment Core Data Service TechQual+ Other Qualitative and Quantitative Methods Where We Are Strat egic Plan ning Projec t Portfol ios IS Division / Unit Planning University Budget Request Mission / Vision Stateme nts Projec t Planni ng Vendo r Produ cts / Chang es Open Source Standards / Projects ITM BP State Project Plan Filings University Mission / Vision Dept. / School Plans & Projects State Regs / Oversight Board of Regents State Technical Architecture ITIL Etc.… IS Identity Security Planning Assessment

38. EDUCAUSE Annual Conference 200738 October 24, 2007 For More Information…  Elloumi, Fathi, 2004. Value Chain Analysis: a strategic approach to online learning, in Theory and Practice of Online Learning, Chapter 3, Athabasca University. http://cde.athabascau.ca/online_book/ch3.html http://cde.athabascau.ca/online_book/ch3.html  Hawkins, Brian, 2006. The EDUCAUSE “Grand Challenges” Initiative, EDUCAUSE Annual Conference, http://www.educause.edu/LibraryDetailPage/666?ID=EDU06059http://www.educause.edu/LibraryDetailPage/666?ID=EDU06059  ITIL Infrastructure Library, Office of Government Commerce, UK, http://www.itil.co.uk/http://www.itil.co.uk/  Martin, J. and J. Leben, 1989. Strategic information planning methodologies, NJ:Prentice-Hall  Porter, M.E., 1980. Competitive Strategy, New York:The Free Press  Sison, Raymund, et.al., 2000. Value chain framework and support system for higher education. Proceedings of the Philippine Computing Science Congress. http://citeseer.ist.psu.edu/correct/462203 http://citeseer.ist.psu.edu/correct/462203  van der Merwe, A. and Cronje, J. 2004. The educational value chain as a modelling tool in re- engineering efforts. In Proceedings of the 2004 international Symposium on information and Communication Technologies (Las Vegas, Nevada, June 16 - 18, 2004). ACM International Conference Proceeding Series, vol. 90. Trinity College Dublin, 122-127. http://portal.acm.org/citation.cfm?id=1071509.1071534&coll=&dl=acm&type=series&idx=1071509& part=Proceedings&WantType=Proceedings&title=ACM%20International%20Conference%20Proce eding%20Series&CFID=15151515&CFTOKEN=6184618# http://portal.acm.org/citation.cfm?id=1071509.1071534&coll=&dl=acm&type=series&idx=1071509& part=Proceedings&WantType=Proceedings&title=ACM%20International%20Conference%20Proce eding%20Series&CFID=15151515&CFTOKEN=6184618#  Zielinski, Wojciech, 2005. ICT and competive advantage in higher education: applying value chain model and Balanced Scorecard for university, Proceedings of the 11 th International Conference of European University Information Systems, University of Manchester, http://www.mc.manchester.ac.uk/eunis2005/medialibrary/papers/paper_176.pdf http://www.mc.manchester.ac.uk/eunis2005/medialibrary/papers/paper_176.pdf

39. EDUCAUSE Annual Conference 200739 October 24, 2007 Donna LissBeth Forrest Warner Associate Vice ProvostAssistant Vice Provost dliss@ku.edubwarner@ku.edu Thoughts? Questions?