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IT FUNDING STRATEGIES"IT IS 2003.  DO YOU KNOW WHERE YOUR IT

DOLLAR IS?"

EDUCAUSE Midwestern Regional ConferenceMarch 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

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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.

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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)

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STRATEGIES AND FOUNDATIONS

A.   Funding Strategies

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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

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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

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I. Prioritizing, Reallocating, Stretching and Leveraging Existing Funds 

• Wearing different hats

• Researchers/collaborators• Inventors/innovators• Entrepreneurs• Negotiators• Fundraisers• Relationship managers

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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

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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.

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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)

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STRATEGIES AND FOUNDATIONS

B. Foundations

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I. Institutional Priorities

• Understanding institutional priorities: university/college institutional strategic plans

http://www.iupui.edu/it/stratdir/sdcfinal.html

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II. Funding/Governance Culture

• Understanding institutional funding/governance culture: centralization v. decentralization, funding allocations v. direct charge-back, etc.

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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

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IV. IT Policy

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

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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.

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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_on_cost_and_quality_of_services.html

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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/

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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

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IX. Setting Expectations

• On-going dialogue with community

• Briefings on impact of funding situation

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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.

MoraleProductivityRetentionReturn on investment

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Context

About Indiana University

• Public research university

• 8 campuses

• 100,000 students

• Annual Budget $1.9B

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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

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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