PowerPoint Presentation

Information Technology Business Case

Development

University of Wisconsin System Administration

Business Cases 1, 2, & 3

August 2015

Executive Summary

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BUSINESS CASES

This document presents 3 business cases developed over the course of the 12 weeks that Huron was

engaged by UWSA.

Contents

Business Case Template 3

Organizational Context 6

Business Case Opportunities & Strategic Enablers 13

Business Case 1 17

Business Case 2 37

Business Case 3 60

Appendix 90

Business Case Template

Business Cases

BUSINESS CASE OVERVIEW

Huron’s business cases are structured proposals that outline the benefits and considerations of an

initiative to add informational and analytical value to decision-making.

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Business cases are designed to:

• Quantify the impact of recommendations

• Provide analysis to support and justify the findings

• Create an impetus to take action

Strong business cases draw conclusions based on:

• Current-state assessment

• Benchmarking, gap analysis or option evaluation

• Cost benefit analysis

Business Cases

DATA & ASSUMPTIONS

5

Data Assumptions and Notes:

• Data available at the time of this report was either inconsistent, incomplete, or unknown. This underscores the

need for a more standardized and transparent approach to data collection and reporting.

• Projected financial impact displayed may not include full cost of implementation. For opportunities selected to

pursue, the UW should engage in more robust data collection and analysis to identify the full scope of

implementation, resource requirements, and associated costs.

• Analyses may not incorporate campus-level initiatives taking place to reduce costs in reaction to the

announced budget cuts. Additional consideration should be given to reductions that have already taken place

at the institutional level.

Organizational Context

Business Cases

ORGANIZATION CONTEXT

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The work that culminates in the business cases presented in this

document was conducted during a period of immense challenge with

an uncertain budget future and therefore unclear responses to cuts.

Before we get into the detail of the business cases, we wish to

acknowledge the engagement of the IT community across the

University of Wisconsin system campuses, including the CIOs, and the

engagement of Provosts and Chief Business Officers in providing

input, data, guidance, perspective, institutional and historical context,

and encouragement.

Business Cases

ORGANIZATION CONTEXT

8

Providing the full context is infeasible, however, there are several critical elements of context that are

important to understand when considering the ideas and recommendations presented in this document.

Organizational Context:

• The University of Wisconsin System is facing reductions in state funding by approximately $125 million per year

• Those cuts are the largest of a series of cuts the University has received over the past decade

• The campuses that comprise the UW System operate predominately independently with several noted

exceptions including: (System-wide high-speed network, Common Systems Review Group, VoIP collaboration,

virtualization collaborations)

• Recent leadership turn-over throughout the UW System (Chancellors, Provosts, UW system leadership)

• Culture of decentralized and distributed decision making both at the system and institutional level

IT Trends:

• Rapid pace of innovation

• Changing user preferences require that IT functions be increasingly nimble and adaptive

• Increasing adoption of digitization and technology across nearly every facet of the academy

• Increased capacity and capability for 3

rd

party services (e.g., Amazon Web Services)

• Students who are “digital natives” served by faculty and staff with vastly different attitudes, capabilities, and

understanding of technology

Business Cases

BUSINESS CASE OPPORTUNITY IDENTIFICATION

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Huron utilized a process by which a broad group of stakeholders provided contextual knowledge of UWS,

engaged in identifying opportunities, and provided input into language / grouping of opportunities.

• Initiated data request to all campuses

• Conducted multiple CIO working sessions

• Utilized ITMC brainstorming notes

• Distributed survey to all CIOs, CBOs, and Provosts

• Synthesized opportunities, applied prioritization

framework, and presented to Advisory Committee

• Finalized opportunities presented to Executive

Leadership Team for consideration

Idea Generation / Brainstorming

Final Opportunities for

Consideration

Advisory Committee

Engagement

Identified 52 Opportunities

Combined multiple

opportunities into three

proposed business cases

Business Cases

CONSIDERATIONS

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• Culture: UW Institutions have a high degree of autonomy; this independence is ingrained in institutional cultures to varying

degrees. Feedback received from institutional stakeholders indicates that this may be very difficult to overcome for certain

opportunities identified.

• Collaboration: Institutions have begun collaborating with respect to IT initiatives, both as a result to improve service and to

reduce costs (e.g., leveraging institutions for VoIP or backup location for servers).

• Flexibility: CIOs believe that while centralization may make sense for certain initiatives / opportunities, special

consideration should be given to the need to remain flexible / sufficiently nimble to respond to institutional and market

demands in order to better serve constituents and students.

• Trust: Our discussions with stakeholders and respondents to the survey indicated that there is a lack of trust with respect to

centralization initiatives. Historically, results have been mixed and the corresponding service enhancements and costs

reductions have not been achieved.

• Timing: The timing / implementation of opportunities should be carefully considered as it will have significant impact on

change management, available funding, and service provided to constituents.

• Accountability: For any opportunity pursued, there must be clearly articulated service expectations and responsibilities

among the institutions and UWSA.

1

2

3

4

5

6

The following contextual considerations were identified through our working sessions, surveys, and

discussions with UW stakeholders.

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EFFECTIVE IT DECISION MAKING STRUCTURES

Business Cases

A disciplined governance structure aligns investment decisions with institutional and system priorities.

Leadership aligned at the appropriate levels can focus IT priorities with long-term strategies and goals.

Components of Successful IT Decision Making Structures:

• Clearly delineated decision rights and ownership

• Transparency and active communication with stakeholders

• Decisions aligned with strategic direction

• Stakeholder control of cost management and investment

• Defined triage and intake process for new issues that require attention

• Process for business case analysis, review, and input based on institutional needs and appropriate justification

• Consistent, repeatable processes for executing approved initiatives that are scalable for large and small

projects

IT Decision Making Structures

Decision making structures in the case of IT are:

• Mechanisms through which clear and repeatable sets of data, inputs, analyses, priority-setting, and accountability are provided

• Supported by processes and norms that engage stakeholders and increase transparency

Decision making structures in the case of IT are not:

• IT strategy, but the processes and organization to enable strategic decisions and successful execution

• Bureaucratic structures to slow the evaluation and execution of initiatives

Business Cases

BUSINESS CASE OPPORTUNITIES

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The following opportunities were selected by UWSA leadership for business case development.

Business Cases:

1. Migrate specific ERP systems currently hosted internally to third-party providers.

2. Explore alternative delivery models for IT services and administration.

3. Engage in enhanced strategic sourcing for IT hardware, etc.

Business Case Opportunities

& Strategic Enablers

Opportunity number

Description of each opportunity worded as an action to clarify the opportunity, not to represent a

recommendation

Estimation of the annual cost savings or revenue enhancement (Net initial investment required)

1

Assessment of the risk assumed if implemented on a scale of low to high, either for the UW System

or institutional-level

Assessment of the indirect or “systemic” effects of the opportunity on other opportunities for

efficiency

Assessment of the complexity of moving forward with implementation for each opportunity

Estimate of the timeframe to realize efficiency savings (beginning from a decision to implement)

Business Cases

IDENTIFIED COST SAVINGS AND STRATEGIC ENABLEMENT OPPORTUNITIES

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Each opportunity will be presented in the following “menu” format representing summary-level analyses

found within the business cases.

Opportunity

Annual

Financial Impact

UWS Risk

Exposure

Efficiencies

Gained

Implementation

Complexity

Timeframe

(Months)

#

High-Level Description

1 2 3 4 5 6 7

1

2

3

4

5

6

7

Business Cases

IDENTIFIED COST SAVINGS AND STRATEGIC ENABLEMENT OPPORTUNITIES

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Opportunity

Annual Est.

Savings

UWS Risk

Exposure

Efficiencies

Gained

Implementation

Complexity

Implementation

Timeframe

Business Case # 1

1

Consolidate hosting of SISs

$$$$

Medium Medium Medium 12-36 Months

2

Reduce customizations within SIS and

consolidate instances

Enabling Low High High 24-36 Months

3

Explore vendor

managed infrastructure and

rationalize current infrastructure for HRS

and SFS

$$$$

Medium Medium Medium 6-18 Months

4

Reduce customizations within HRS and

SFS

Enabling Low High High 36-60 Months

5

Develop

financial model allocating the costs

of customizations to requesting campus

Enabling Low High Low 0-6 Months

6

Develop a total cost of ownership model for

future customization requests

Enabling Low High Low 3-6 Months

7

Develop a System-

wide IT decision making

process and mechanism

Enabling Low High Low 6-12 Months

8

Include cloud option as part of vendor

system selection for Budget System

Strategic Investment Low High High 12-36 Months

9

Explore transition of non-ERP systems to

cloud solutions

TBD TBD TBD TBD TBD

Business Cases

IDENTIFIED COST SAVINGS AND STRATEGIC ENABLEMENT OPPORTUNITIES

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Opportunity

Annual Est.

Savings

UWS Risk

Exposure

Efficiencies

Gained

Implementation

Complexity

Implementation

Timeframe

Business Case # 2

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Centralize IT security resources Enabling Low High Medium 6-12 Months

11

Consolidate IT Helpdesks

$$$$

Medium Medium High 12-24 Months

12

Consolidate High Performance Computing

Enabling Low Medium Medium 6-24 Months

13

Consolidate datacenter facilities

$$$$

High High High 24-48 Months

14

Identify additional areas for system-wide

collaboration

TBD

TBD TBD TBD TBD

15

Re-Organize IT Leadership

$$$$

Medium High High 24-48 Months

Business Case # 3

16

Create System-wide

standardized bundles

for laptops, desktops, and peripherals

$$$$

Low Medium Medium 6-12 Months

17

Enforce policies for preferred purchases

(Madison foregone savings displayed)

$$$$

Low Low Low 0-6 Months

18

Develop a collaborative, System-wide

procurement function to take advantage of

scale

Enabling Low High High 12-24 Months

Business Case #1:

Evaluate Alternative Hosting Models

for Primary Systems

Business Case # 1

OBJECTIVES

Our objective in this business case was to evaluate the feasibility of migrating primary information systems

to alternative hosting models or cloud based environments.

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Though the focus of this business case was on the UW’s primary systems (SIS, HRS, SFS, Budget), Huron believes that

additional services should be considered for cloud computing.

Objectives: Huron was asked to evaluate the feasibility and / or impact of transitioning UW’s ERP systems to

alternative hosting models or cloud-based solutions. The following were incorporated into the analysis:

• Identify available options for hosting (e.g., centrally, cloud-based)

• Identify primary solutions available (e.g., Oracle, Workday)

• Evaluate the relative level of cloud maturity (e.g., infrastructure, SaaS / Cloud)

• Evaluate each system’s readiness to transition to cloud-based solutions (e.g., level of customizations)

Future-State Considerations:

• Systems are inter-connected and the development of a holistic approach to future-state system integration and

process re-design is recommended

• The impact of bolt-on and other applications should be considered as part of future-state requirements

determination

• Cloud-based solutions continue to mature; the UW should develop a comprehensive roadmap to system

upgrades and an overall cloud adoption strategy

• Upgrade to Cloud / SaaS solution may require multiple steps – cannot “flip a switch”

Business Case # 1

CONTEXT AND BACKGROUND

The rapid evolution of technology is fundamentally changing the way companies and higher education

institutions consider, consume, and manage IT.

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Context:

• As technology continues to become more pervasive across all facets of university activities, the demand to do

more with less becomes stronger

• UW institutions are having issues recruiting, hiring, and retaining technical IT staff (e.g., DBAs)

• Responses to the problem this poses include changing what institutional IT does, what system-level IT does,

and what is procured from third-parties

o Vendor solutions continue to mature

o Scale economies may drive down cost

o Vendor pricing models impact the beneficiaries from increased efficiencies

• Timing and approach to any transition will be critical factors in determining success and realization of efficiencies

Business Case # 1

WHAT IS CLOUD COMPUTING

Cloud computing is the delivery of IT resources and applications through the use of the internet rather than

through the utilization of a local server or personal computer.

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Characteristic Comments Benefits

Scale

Immediate provisioning and de-provisioning of

compute resources

Increases ability to manage and plan for IT resources

Speed

Often offers improved infrastructure and speed

over traditional, on premise environments

Servers or new environments can be deployed in minutes /

hours vs. days / weeks

Cost

Utilize a pay-as-you-use pricing model

Reduced capital expenditures and increased ability to

manage budgets

Resiliency

Geographically dispersed infrastructure Improved ability to mitigate risks

Who is Using Cloud Computing?

• Companies: Netflix does not own or operate their own datacenters  outsourced to Amazon

• Higher Education: Consortiums such as Unizin or Internet2  collaborations able to leverage scale

• Personal Users: All iPhone users have access to Apple’s iCloud storage  personal cloud

Business Case # 1

WHAT IS CLOUD COMPUTING

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Essential Characteristics*

1. On Demand: Consumer can provision computing capabilities as needed, such as server time and network storage, without requiring human

interaction with each service’s provider

2. Broad Network Access: Capabilities are available over the network and accessed through standard mechanisms that promote heterogeneous

thin/thick client platforms (e.g., mobile phones)

3. Resource Pooling: Provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and

virtual resources dynamically assigned and re-assigned according to consumer demand

4. Rapid Elasticity: Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to

quickly scale in

5. Measured Service: Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction

appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts)

*Source: EDUCAUSE

Characteristics Localized Private Cloud

Virtual Private

Cloud

Public Cloud

Location

On Premise Off Premise Off Premise Off Premise

Hardware Owner

Institution Vendor Vendor Vendor

Payment Model

Capital + Support Provision + Usage Monthly / Usage Pay-per-use

Scalability

Low-Medium Medium High Very High

App. Migration Effort

None Low Low Dependent on App.

Break / Fix Approach

Repair H/W Repair VM or H/W Repair VM Recreate VM

Business Case # 1

WHAT IS CLOUD COMPUTING

In addition to the localized (on premise) hosting model, “X as a service” options are changing the way

corporations and higher education institutions manage, provision, and invest in IT resources.

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Infrastructure as a Service

(IaaS)

Platform as a Service

(PaaS)

Software as a Service

(SaaS)

Overview

Virtualized computing

infrastructure (pooling of

resources)

Web and mobile application

development using pre-

configured components

Delivers on-demand

applications that are hosted

and managed by vendor

Benefits

• Vendor manages

infrastructure

• Highly scalable

• Reduced capital expenditures

• Service provider

maintains programming

languages, application

servers, and databases

• Reduced upgrade times

• Pay-as-you-use pricing

model

• Encourages

standardization

Considerations

• Reduced control of local IT

resources

• Requires careful analysis of

actual resources required

• Increased vendor lock-in

• Integration and support

to existing applications

• Customizations can

quickly increase costs to

support and upgrade

complexity

• High vendor lock-in

Example Companies

Providing Service

• Amazon, Microsoft, Google,

Rackspace, IBM, HP

• Amazon, Oracle,

Microsoft, Engine Yard

• Salesforce, Microsoft,

Google

Level of Standardization

Level of Local Control

Business Case # 1

WHAT IS CLOUD COMPUTING

Within higher education and more broadly, organizations seek increased efficiency through a transition to a

hybrid service delivery environment comprised of a network of internal and external service providers.

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Public

Computing

Consortiums

System Level

Campus

Level

Ex: Infrastructure, Hosted Services

Ex: Unizin, Internet2

Ex: Collaborative Disaster Recovery

Scale

Business Case # 1

LEADING HIGHER EDUCATION ERP VENDORS

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Increasingly, vendors and companies are investing in cloud-based solutions as a transition from

“traditional” ERPs.

Comments:

• Industry investment in “cloud” based ERP systems is strong and appears to be the signaled direction of

technology migration

• PwC predicts that by 2016, investments by companies in SaaS solutions will double to $78 billion, vs.

investments in traditional ERP systems, declining by over 30% to less than $15 billion*

• Gartner predicts that by 2018, at least 30% of service-centric companies will move the majority of their

ERP applications to the cloud**

• Gartner predicts that by 2017, 70% of hybrid ERPs (combination of cloud and “traditional” solutions) will fail

to improve cost-benefit outcomes unless cloud applications provide differentiated functionality – cloud

applications do not provide value without careful consideration of process, etc.

• Companies like Oracle and Workday are rapidly investing in, and developing, integrated cloud solutions

Source:

*Forbes: Five Catalysts Accelerating Cloud ERP Growth in 2015

**Gartner

Business Case # 1

HIGHER EDUCATION CLOUD CONSORTIUMS– UNIZIN AND INTERNET 2

Large, Higher Education led consortiums are changing the way cloud-based services are developed and

made available to institutions, research centers, and other governmental / industry partners.

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• Founded in 2014

• Consortium founded and led by higher education

institutions with a focus on developing a new approach to

digital learning

• Sought an alternative option for learning management

systems with a focus on collaboration rather than

institution-specific initiatives

• Cloud-scale service operator and integrator supporting

Digital Education offerings to partners including Content,

Software Platforms, and Analytics

• Designed to better support faculty and enable student

success

• Focus to provide “common gauge rail approach” for

infrastructure – encourages faculty collaboration

• Founded in 1997

• Non-profit computer networking consortium

• Institutions / partners can provision network and other

services

• Connects over 60,000 U.S. educational, research,

government, and community anchor institutions

• Develops and deploys network technologies such as

large-scale performance measurement and management

tools, secure identity and access management tools, and

the ability to schedule high-bandwidth, high-performance

circuits

• Creates a faster alternative to the internet and fostered

creativity, research, and development not previously

possible

Business Case # 1

SELECT EXAMPLES OF ERP CLOUD COMPUTING IN HIGHER EDUCATION

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Increasingly, institutions are pursuing cloud-based options to reduce expenditures, re-allocate resources

towards strategic initiatives, and enhance services provided to constituents.

Select Examples of Managed Services (Primary Systems)

Institution Service Pursued Stated Institutional Reasoning

Cornell University

Cloud HCM and Payroll

• Elimination of difficult and time-consuming upgrades

• Wanted to streamline administrative operations

Brown University

Cloud Expenses, Financials, HCM,

Payroll, and Time Tracking

• Ability to re-allocate resources to mission critical

endeavors

• Cost of ownership and business model concept –

institution does not want to be designing business

processes

Boise State

University

Oracle ERP Planning Cloud

• Ability to achieve savings from process improvements

• Reduced infrastructure costs, ability to re-purpose staff,

and eliminate costly upgrades

Case Western

Reserve

Opted for vendor managed application

and production support rather than

invest in new infrastructure

• Infrastructure reliability & speed – increased service

provided while avoiding investment in capital expenditures

• Reduced Risk – improved disaster recovery, data security,

ability to recruit and retain staff

In addition to cloud ERPs, some institutions have developed a more holistic approach to the cloud. The University of

Notre Dame instituted a “cloud first” program with the goal of moving 80% of IT services to the cloud by 2017.

Business Case # 1

BENEFITS / CONSIDERATIONS OF CLOUD COMPUTING

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Benefits Considerations

• Cloud-based computing is emerging as a more mature

market than it was several years ago

• Reduces costs (transition from CapEx and OpEx)

• Increases focus on core business and strategic vision –

frees up internal resources

• 24/7 service and support

• Pay-per-user / pay-as-you-use model vs. building and

maintaining infrastructure

• Accelerates innovation

• Potential reduction in deployment / upgrade time due to

increased standardization

• Not dependent on location Increased mobilization

• Changes the role of institutional IT staff – focus transitions

to service management and other institutional priorities

• Transition to cloud-computing cannot take place overnight –

requires appropriate due diligence and appropriate vendor

management mechanisms

• Inhibits customizations and increases standardization

(customizations may result in increased costs)

• Requires clearly articulated Service Level Agreements that

define expectations and services provided to constituents

• Requires that the vendor remains compliant with state and

federal rules and regulations – certain cloud models (e.g.,

SaaS) may require additional costs to support new

regulations

• Increases focus on data security – management of data

security changes from on premise model to vendor

managed, potentially requiring changes in current policies /

technical standards

• Increased cost / and ramp-up time (e.g., hiring and training

staff) of transition away from cloud computing – can become

heavily vendor dependent

While cloud computing can offer significant benefits with respect to service, standardization, and cost, the

movement to a cloud environment will require significant due diligence prior to migration.

Business Case # 1

HOSTING OPTIONS FOR CURRENT SYSTEMS

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There are several hosting options available for each system. At present, the largest short-to-intermediate

term opportunity that exists is centralized hosting of Student Information Systems (SISs).

Hosting Model

Centralized Local

Highly Customized “Vanilla”

Level of Customization

SFS

HRS

SIS

Reduce Customizations

Centralize SIS Hosting

Future-State Options: Huron

anticipates that, for the foreseeable

future, the University’s enterprise IT

environment could be a hybrid of

multiple hosting / delivery modalities.

Hosting Options:

1. Hosted centrally

2. Identify vendor managed

infrastructure and application

support

3. Identify cloud / SaaS solution

Business Case # 1

SIS RECOMMENDATION OVERVIEW

29

Although precise costs

1

for operating current SISs are unknown, a high-level quantification indicates UW

institutions can realize significant savings by consolidating from campus-based to central hosting of SISs.

* Current state of discussions with CIOs

** Initial survey responses from institutions

***All estimates are based on discussions conducted between UW institution CIOs and UWSA CIO. Data provided by UWSA CIO.

Table Assumptions:

• Current-state salary and fringe estimated to be $95,000 for all FTE salary calculations

• Current-state localized FTE ranges identified through survey and subsequent discussions among CIOs (range 20-35 FTE)

• Future-state hosting assumes centralized staff increased by 4 FTE to manage centralized hardware, etc.

• Multi-year approach assumes financing of Oracle equipment – Future-state consolidation figures provided by Oracle

• UW CIOs suggest potential hardware savings will vary as same hardware supports multiple campus-level service

Note: (1) See Appendix for cost estimates using available data

Huron estimates that, System-wide, the UW could achieve significant annual savings by consolidating the hosting of SISs

to a single location with additional savings opportunities through reducing customizations.

Est. Current State Operating Costs ($000s) Est. Current State Operating Costs ($000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5

Current State Low

(20 Inst. FTE)**

$4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500

Current State High

(35 Inst. FTE)***

$6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Oracle Consolidation Recommendation – Accelerated ($000s) Oracle Consolidation Recommendation – Multi-Year ($000s)

Annual Cost $5,200 $2,100 $2,100 $2,100 $2,100 $3,500 $3,200 $3,200 $2,400 $2,100

Business Case # 1

STANDARDIZATION OF INSTITUTIONAL BUSINESS PROCESSES

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In addition to consolidating hosting of all SISs to a centralized model, the UWS should engage in a

comprehensive business process review to identify and remove lower-value-add customizations.

Drivers of Disparate SIS Processes

• Institutional move to PeopleSoft was incremental –

development of business processes not coordinated

• Processes developed around available functionality.

As functionality improved, business processes may

have remained – unclear level of utilized system

functionality

• Disparate use of bolt-on technologies and applications

results in increased institutional customizations and

localized support required

Move Towards Standardization

• Requires directive from System and Institutional

leadership to engage in business process and coding

structure evaluation and re-design

• Recognize and develop common approach to

addressing differences in campus processes

• Develop a systematic approach and strategy for

future-state SIS implementation that identifies

commonalities among institutions

Achievable Outcomes from Standardized Processes & Data Coding

• Allows institutions to re-allocate IT resources to more strategic objectives rather than supporting institution-specific customizations

– may also provide institutions and the system to consolidate systems / applications

• Enables the development of real-time or predictive analytics vs. point-in-time review

• Reduces complexity and enables deployment of shared services for back-office / administrative processing without impact to

constituents

Business Case # 1

VENDOR MATURITY AND UWS READINESS

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At this point in time, large-scale cloud-based SIS solutions are several years from mainstream adoption.

The UWS should utilize this timeframe to develop an approach to process and data standardization.

Vendor Maturity:

• Gartner predicted (2014) that SIS SaaS models are at least 5-10 years from widespread adoption

• Primary cloud-based vendors, Oracle Campus Solutions and Workday Student, are at least 2-3 years away from being fully

functional, cloud-based student lifecycle solutions – both currently building, testing, and rolling out modules

Examples of Standardization Effort Representatives

Examples of Data Coding Differences (Student Records):

• Basic student demographic information (e.g., gender,

ethnicity)

• Academic identifiers – taking courses at multiple institutions,

course completion / withdraw

• Coding of students (e.g., resident, distance education)

Examples of Institutional Process Differentiators:

• Academic calendars

• Registration timelines

• Posting of grades

• Student billing cycles

• Application of student aid packages (e.g., merit aid)

• Tracking student advising sessions

• How / where data are stored

System-wide standardization will require a sizeable effort from

UW staff across multiple units, including representatives from

each of the following areas:

• Faculty Representation

• Financial Aid

• Registrar

• Bursar

• Institutional Research

• Academic Advising

• Technical Staff

• Professional School and Distance Learning Programs –

tend to be more complex

• Standardization may require significant changes to current

campus business processes and operating culture

Business Case # 1

HRS & SFS OVERVIEW

32

The current HRS and SFS systems are at similar points with respect to centralization and support. Over the

next several years, both will be considered for upgrades.

System Current State Opportunity Reasoning

SFS

• Centrally hosted and supported at DoIT

and funded through CSRG

• Current version: 9.1

• Approximately 290 unique modifications

• Recently reduced number of instances

and back-up schedule to reduce costs

• Explore vendor managed

infrastructure (IaaS)

• Explore upgrade to PeopleSoft

9.2 and alternative infrastructure

hosting

• Refine and standardize business

processes and then explore

upgrade to cloud solution

• Upgrade decision will

likely be made in the next

few years

• IaaS model has potential

for reduced short-to-mid-

term costs while

processes are

standardized in

preparation for cloud

solution

• Upgrade to 9.2 or cloud

solution presents different

cost scenarios, timelines,

and impact to UW

business processes

HRS

• Centrally hosted and supported at DoIT

and funded through CSRG

• Current version 9.0

• System customizations are in part due

to state legislation and lack of

systematic IT governance

• Unique customization examples include

multiple TAMS, time clock, JEMS,

duplicated personnel systems (UPS)

Business Case # 1

HRS & SFS OVERVIEW (CONT’D)

33

According to the Gartner Benchmarking Report completed for the UWS, infrastructure costs exceeded

those of identified peer institutions. The opportunity exists to evaluate annual infrastructure costs for each

system.

$-

$1,000,000

$2,000,000

$3,000,000

UWS System Peer Avg. Peer 25th

2014 Gartner Benchmarking Report

HRS Spend on Infrastructure

Compute - Midrange Storage

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

UWS System Peer Avg. Peer 25th

2014 Gartner Benchmarking Report

SFS Spend on Infrastructure

Compute - Midrange Storage

Gartner HRS and SFS Benchmarking Analysis:

• Range of annual potential savings for HRS and SFS infrastructure between $200k - $800k and between $60k - $262k to Peer

Avg. and Peer 25

th

(respectively)

Hosting Model Considerations:

• Review current state infrastructure support to identify where reductions can occur (e.g., number of instances, back-up

schedules, number of active projects)

• Engage with vendor to evaluate alternative hosting infrastructure costs to support instances  requires increased focus on

vendor management and full analysis of operating infrastructure requirements

Business Case # 1

HRS & SFS OVERVIEW (CONT’D)

34

The UWS should address the underlying drivers of customizations, and overall costs prior to moving to

cloud-based solutions.

Reasoning: Inefficiencies exist that cannot be solved simply by implementing a cloud-based solution. Cloud-based

solutions provide the opportunity to standardize business processes that meet future-state business models.

• Lack of a formalized mechanism through which System-wide IT decisions can be made and the current model of

distributing the costs of customizations into the CSRG charges (across the board) means that requestors of

customizations or configurations may not fully understand implications / costs with requested customizations and

there is no group formally charged to review and approve/ deny requests

• Inefficient processes or one-off customizations are costly and cannot be solved by moving to a cloud-based

system

• Identification of future-state processes / users requirements (e.g., Establish minimum threshold to be

granted administrator access in HRS) can result in reduced costs under a pay-per-user structure

• Utilize a common approach to talent acquisition management systems

• Review of current policies will identify what is / is not operationally required – differentiate between

legislative requirements and UWS policy

• Reduce number of bolt-on / support applications system-wide

Short-term savings may be achieved through a vendor-hosted infrastructure, the UW should accelerate its strategy of

removing customizations to further reduce costs and to prepare for a potential transition to the cloud.

Business Case # 1

BUDGET SYSTEM CONSIDERATIONS

35

As Oracle and other companies are investing in the cloud and following a cloud-first mentality, the

University may consider a cloud-based option as part of its consideration for a new budget system.

On-Premise Hosted Model Cloud Based Model

Benefits

• Increased control over customizations and

configuration of system

• Greater control over system including data,

upgrade timing and cycles

• Fewer local IT resources needed to operate and

maintain system

• Quicker installations and upgrades

• Earlier access to system enhancements

• May be lower cost (depending on licensing

structure and number of users)

Considerations

• Large, complex universities / systems may

require unique hardware to maintain system

performance

• May require specialized technical staff (who are

hard to recruit and retain) to maintain and

operate system

• Some functionality not yet available on cloud

instances

• Upgrades happen on vendor’s schedule

• Data/system integration for custom / local

systems may be more difficult

Depending on the vendor selected, the University should consider cloud based options for a new budget system.

Business Case # 1

RECOMMENDATIONS

36

The UWS should take several steps over the next 36-48 months to achieve immediate cost reductions and

position the System to successfully transition to cloud based solutions as they mature.

Opportunity

Annual Est.

Savings

UWS Risk

Exposure

Efficiencies

Gained

Implementation

Complexity

Implementation

Timeframe

Business Case # 1

1

Consolidate hosting of SISs

$$$$

Medium Medium Medium 12-36 Months

2

Reduce customizations within SIS and

consolidate instances

Enabling Low High High 24-36 Months

3

Explore vendor

managed infrastructure and

rationalize current infrastructure for HRS

and SFS

$$$$

Medium Medium Medium 6-18 Months

4

Reduce customizations within HRS and

SFS

Enabling Low High High 36-60 Months

5

Develop

financial model allocating the costs

of customizations to requesting campus

Enabling Low High Low 0-6 Months

6

Develop a total cost of ownership model for

future customization requests

Enabling Low High Low 3-6 Months

7

Develop a System-

wide IT decision making

process and mechanism

Enabling Low High Low 6-12 Months

8

Include cloud option as part of vendor

system selection for Budget System

Strategic Investment Low High High 12-36 Months

9

Explore transition of non-ERP systems to

cloud solutions

TBD TBD TBD TBD TBD

Business Case #2:

Evaluate Alternative IT Administrative and Service

Delivery Models

38

CURRENT STATE IT ADMINISTRATION & SERVICE DELIVERY

Business Case #2

Each UW has built and supports localized information technology structures designed to meet the needs of

their institution, resulting in system-wide duplication and disparate operating models.

Overview:

• Aligned with the decentralized nature of the UWS, each campus has its own IT organization(s) providing a range

of similar services (e.g., Network and Infrastructure, Client Services, Enterprise Systems, Academic

Technologies) to similar constituencies (e.g., faculty, students, staff) supporting similar functions (e.g., teaching,

research, administration)

• Campus specific organization of IT activities varies greatly from campus to campus, reflective of the differences

in campus structure, culture, and operational norms

• Campus IT organizations and CIOs have engaged in a range of collaborative ventures (e.g., Disaster Recovery,

back-up support), though participation in these ventures is voluntary and they lack an overarching approach to

governance

Huron utilized the following guiding principles regarding the consolidation of IT services; cost reduction, mission

enablement, standardization, and service enhancement to constituents.

39

CURRENT STATE IT ADMINISTRATION & SERVICE DELIVERY

Business Case #2

The opportunity exists to systematically re-envision the way IT is administered and services are delivered.

In order to fully explore the concept of collaboration, we have structured and focused our thinking in two areas:

function-specific opportunities that are achievable within the current operating context and holistic opportunities that

would require a reimagining of the way IT services are delivered across the University of Wisconsin.

Function Specific Assessment:

Hypothesis: The UWS could lower cost, improve service, or a combination of the two by creating a cross-campus

capacity to support specific functions, including:

Holistic Approach:

Hypothesis: The UWS could add substantial capability and expertise without a significant increase in expenditure or

significant reduction to the administrative costs of Information Technology by organizing the provision of IT at a

“System” level.

• Training

• IT Security

• Helpdesk and IT Support

• IT Purchasing

• Research Computing

• Network Support /

Investments

• Datacenters

40

TYPES OF IT MODELS

Business Case #2

While there are nuances to operating models, there are two primary types that the UWS should consider -

consolidation of service-specific operations or a more holistic approach to IT.

Service

Higher

3 1

Same

2

Same Lower

Cost

3

1

2

1

3

2

IT Security

Help-desk

Data Center Consolidation, HPC

41

EXAMPLE 1: IT SECURITY

The opportunity exists to create a centralized team of UW IT security staff focused on developing,

implementing, and ensuring system-wide standards and technical controls are met.

Business Case # 2

Current State:

• 13 known UW contacts (headcount) related to IT security, some split time with other local responsibilities

• Not all campuses have financial resources or ability to attract / retain dedicated IT security staff

• System-wide UW Baseline for IT security has been developed over the previous two years, though it is

unclear if some or all campuses have met those standards at this time

• Disparate approach to IT standards, coupled with shared / common systems present potential systematic

vulnerabilities for individual campuses

Impetus for Change: Institutions are increasingly exposed to security threats:

• Auburn University publically exposed over 360,000 SSNs while replacing a broken server

• Penn State’s Engineering School exposed staff, student, and public/ private research partner information over a

period of two years because of a breach in the school’s computers

• Additional institutions recently impacted by security threats: Johns Hopkins, Carnegie Mellon, UC Berkeley, MIT,

University of Maryland, North Dakota University, Butler University, and Indiana University (among others)

42

EXAMPLE 1: IT SECURITY (CONT’D)

Transitioning to a IT Security team that is, perhaps geographically dispersed but with central reporting,

while complex, can provide the UWS with a standardized approach to IT security.

Business Case # 2

Challenges with transition:

• Lack of standardized IT functions system-wide result in disparate current state operations and standards

• Lack of an existing formalized governance mechanism to empower centralized security efforts (e.g., policy

development and enforcement)

• Centralized security team would require financial and staff resources from institutions:

o Institutional FTE resources to assist in centralization efforts, new policy development, and

implementation efforts (e.g., identification of localized current state)

o Funding to support centralized team and potential changes in current practices to meet system-wide

standards (e.g., changes in system configurations)

o Training of current staff on newly developed policies

43

EXAMPLE 1: IT SECURITY (CONT’D)

The deployment of a centralized team should be considered as an enabler of a comprehensive and

systematic approach to developing and enforcing standards and risk mitigation strategies.

Business Case # 2

Impact of Consolidation:

• Standard approach to system-wide IT security

management and risk mitigation

• Standard technical auditing and accountability 

standardized audit procedures, timing, review, etc.

• Consistent approach leads to reduced institutional

and systematic vulnerabilities

• Alignment of IT procurement and lifecycle

management with end-point risk

• Consistent data security and retention policies

Similar Example – UWSA Internal Audit

• UWSA recently centralized system auditors as a way to

provide increased consistency and a more formalized

approach to process review

• Chief Auditor reports directly to President Cross and the

Board of Regents – delegated authority to develop a

systematic, unbiased, approach to review

Benefits of Centralized IT Security Model

• Consistent, systematic approach and standards to IT

security

• Authority to assess, implement, and refine standards in an

expedited fashion

• Proactive and coordinated approach to meeting newly

established standards

Business Case # 2

EXAMPLE 2: HELPDESK (HD) OVERVIEW

44

Currently, each institution maintains centralized helpdesks for IT support. Madison and Milwaukee list

distributed IT support via locally managed helpdesk (e.g., college level).

*Data Assumptions:

• Does not include distributed Helpdesk staff – number of distributed helpdesks not fully known. Madison and Milwaukee list distributed help desks for certain colleges / schools

• Institutional FTE defined as FTE Faculty, FTE Staff, or FTE Student

• Aggregate ticket information uses most recent complete year as provided by CIOs or publically available information on websites.

• Central HD Ticket information not available for Eau Claire, Oshkosh, or Colleges / Extension – an estimation was made by multiplying the average known (Ticket/Inst. FTE) by the number of institutional FTE

Helpdesk Overview (System-wide)

• 20 known centrally managed helpdesks – Madison and Milwaukee list distributed IT support (e.g., respective Colleges)

• Approximately 339,000 total centralized HD tickets received ranging from basic inquiries through more resource intensive

application support

• Disparate data tracking utilized system-wide resulting in inconsistent data availability – no consistent metric tracking

• Multiple instances and types of ticket management systems and virtual self-service knowledge management documents.

Institutions do collaborate with respect to knowledge bases (e.g., UW Milwaukee utilizes UW Madison’s knowledge base)

• Institutional operating hours vary - most adjust hours for fall/spring/summer terms

• Institutions are utilizing student workers to encourage career development, retention, etc.

45

EXAMPLE 2: CONCEPTUAL FUTURE STATE HD MODEL

A hub-and-spoke model for helpdesk delivery will require additional analysis, planning, and potential

investment to ensure a seamless transition and uninterrupted service provided to staff and students.

Business Case # 2

Central Helpdesk:

• Highly trained “generalist” and tier-2 staff respond to all incoming tickets, or route calls appropriately to

institutional level (e.g., desktop / classroom support)

• Utilizes a routing resolution priority whereby the most serious issues are prioritized using a single ticketing system

Distributed Support:

• “On-the-ground” staff and students assist with physical desktop support, laptop re-imaging, classroom set-up, etc.

• Promotes the increased use of student workers which can lower operating costs while contributing to student

success and retention (e.g., financial, career building)

• Distance learning faculty and students likely not significantly impacted by change in operations

Change Components

• Disparate knowledge management / virtual self-service systems will need to be consolidated

• Requires the development of unified processes and standardized escalation procedures

• Requires development of system-wide Service Level Agreement

• Constituent change management efforts to new processes

• Development of a formalized training program for all student workers

• Future-state FTE distribution – some institutions may require additional on-site staff to meet institutional policies (e.g., Stout

with student laptop program)

46

EXAMPLE 2: FUTURE-STATE HELPDESK BENEFITS AND CONSIDERATIONS

Centralizing helpdesk activities provides for increased standardization of service provided, the ability to

monitor metrics and demonstrate accountability to stakeholders, and support a growing "bring your own

device" trend.

Business Case # 2

Benefits Considerations

• Consistent ticket tracking and reportable system-wide

metrics

• Consistent, systematic approach to constituent support

(e.g., response times, escalation procedures, follow-up,

etc.)

• Enables the standardization of technologies supported

• Increased use of students can further reduce overall costs

while maintaining consistent levels of service – ability to

scale up / down during academic and summer terms

• Requires change management efforts to coach

stakeholders on new process

• Requires highly trained centralized staff versed in multiple

applications and devices

• May require standardization of applications, hardware, etc.

supported

• UWS can choose to outsource “after-hours” ticketing

management to third-party vendor – requires additional

analysis

Ex: Helpdesk / Desktop Support Consolidation Comments

Institutional Example: University of Minnesota

• Evaluated current Helpdesk and desktop support staffing

(collegiate and non-collegiate) – operated 72 separate

helpdesks

• Identified an annual range of savings / staff re-allocation of

$7.3 - $9.1 million

• Transition to consolidated future-state is still in progress –

achieved annual savings of approximately $2.3 million

47

EXAMPLE 3: CENTRALIZED HIGH PERFORMANCE COMPUTING (HPC)

The opportunity exists to develop a policy that centralizes research computing and enables all institutional

faculty, researchers, and students to provision computing resources upon request.

Business Case # 2

Examples of Shared HPC Computing Comments

Multi-Institutional Example: POD IU

• High performance computing cluster available for on-demand use by any

domestic or foreign researchers associated with institutions of higher

education, federally funded R&D center, or other federal / state entities

• Collaborative effort among Indiana University, UVA, UC Berkeley, and U.

Michigan and Penguin Computing

• Utilizes a “pay-as-you-go” pricing model with same configurations as

existing government supercomputers  cost effective solution to access

compute resources

Examples of HPC Across UW Considerations for Centralization System-wide Mission Enablement

• UW Madison

• UW Milwaukee

• UW La Crosse

• UW Eau Claire

• Some institutions use XSEDE

• Implementation should coincide with

UW Institutions grant funded HPC

cycles

• Leverage existing dedicated

infrastructure

• Provide access to cutting-edge

computing resources to all UW

faculty, researchers, and students

• Utilize a pay-as-you-use cost

recovery model

Huron recommends further analysis regarding realizing scale of existing shared system research / high performance

computing investments and the development of an implementation timeline that incorporates technology refresh cycles.

48

EXAMPLE 4: CONSOLIDATE SYSTEM-WIDE DATACENTERS / SERVER FACILITIES

Currently, each institution maintains their own respective datacenter(s). The opportunity exists to explore

the consolidation of system-wide data-centers and server facilities, resulting in achieved economies of

scale.

Business Case # 2

*Data received was either not explicit in naming number of datacenters or was inconclusive based on wording. Some institutions did not provide data resulting in estimation of a minimum of one datacenter / institution.

Anticipated Approach / Data Issues Known Information

• Assess current inventory of datacenter / server facility

equipment, policies, procedures, usage statistics, operating

costs, space, etc.

• Review level of virtualization and identify estimated near-

term savings by increased virtualization

• Identify estimated savings by co-location / consolidated

facilities and potential cost avoidance

Available data was either inconsistent or not provided at all.

Huron was not provided with UW Whitewater survey.

• Estimated number of “centrally” managed datacenters is 22*

• Limited current server, data center/ facility inventory, etc. –

some institutions provided detailed server information others

did not participate

• Generally, institutions indicated they have or plan to engage

in server virtualization (Centrally)

• Distributed / departmental level datacenters / server

facilities is unknown, though UW Madison estimates their

number to be approximately 96

• UW Madison initially estimated a 5-year savings of ~$6.8

million, primarily by co-locating data centers / server

facilities

• UW Stout’s strategic plan highlights institutional datacenter

consolidation as a priority

49

EXAMPLE 4: CONSOLIDATE SYSTEM-WIDE DATACENTERS (CONT’D)

The consolidation of UW datacenters would be a complex initiative spanning several years of planning,

rationalization, and migration efforts.

Business Case # 2

*Data received was either not explicit in naming number of datacenters or was inconclusive based on wording. Some institutions did not provide data resulting in estimation of a minimum of one datacenter / institution.

Representative Example: New York State & SUNY

• In 2013, Governor Cuomo announced the consolidation of 50 New York State Datacenters and server rooms spanning 140,000

square feet into one location at SUNY College of Nanoscale Science and Engineering

• Currently engaged in increased server virtualization, physical co-location, and a systematic review of current applications to

reduce amount of storage and compute resources required

• Consolidated datacenter is a 50,000 square foot tier 3 facility promising 99.982% availability

• Estimated $1 billion in savings over 20 years (~$50 million per year)

• Effort is part of an overall consolidation effort by the state of New York to realize IT savings estimated to be $100 million / year

Consolidation Complexities & Components:

• Comprehensive inventory of current infrastructure

• Comprehensive understanding of Tier 1, 2, and 3 applications

• Identification of future-state infrastructure needs

• Identification of future-state datacenter locations

• Identification of project funding and future-state budget model for operation

• System-wide disaster recovery plan

• Development of a institutional data and application migration plan  migrate institutions gradually

50

EXAMPLE 4: CONSOLIDATING SYSTEM-WIDE DATACENTERS (CONT’D)

Huron recommends that further analyses be conducted to identify the full extent of the opportunity,

including a systematic data collection and evaluation process to understand the true current state.

Business Case # 2

UW Madison anticipates saving ~$7M over 5 years through the consolidation of its data centers and server facilities;

based on the scale and scope of computing across the System, Huron anticipates that number to increase for a

coordinated UW-wide effort.

Benefits of Data Center Consolidation Data Required for Comprehensive Analysis

• Reduced Costs: Reduced network and application

infrastructure results in lower hardware costs, energy

consumption, space requirements, and avoidance in capital

expenditures.

• Increased Control for IT: Simplified architecture and the

ability to deploy management strategies and protocols

designed to maximize bandwidth utilization and performance

• Reduced Scope of Security: Reduced number of sites leads

to a standardized approach to physical center management.

Similarly, reduced centers leads to more consistent disaster

recovery planning, implementation, and execution of solutions.

• Improved Compliance: Promotes process and system

automation (reducing staff involvement) and aligns procedures

and functions with policies, regulations, standards, and

service metrics. Additionally, it encourages comprehensive

auditing and demonstration of operational compliance.

• System-wide inventory of:

o Centralized and de-centralized datacenter and

server facilities, PUE analysis, level of server

virtualization / utilization, and total current state

operating costs

o Plans to reduce level of hosted applications (e.g.,

SIS centralization reduces localized infrastructure)

o Planned or anticipated capital expenditures for

servers, equipment, and facilities

o Future state compute and storage requirements

o Development of a system-wide master plan to

realize facilities savings over the next 10 years

Consolidation efforts can be achieved by two primary

methods; 1) consolidate current infrastructure into 3

regionalized datacenters (e.g., Geographically), or 2)

outsource to a vendor managed provider (e.g., AWS, IBM)

51

HOLISTIC APPROACH: REORGANIZE INFORMATION TECHNOLOGY DELIVERY

The UW has the opportunity to significantly increase service and/or reduce costs by reorganizing the

provisioning and administration of IT at a “System” level.

Business Case # 2

Considerations:

• Current model of a campus-centric service model creates significant redundancy in activities and services

across the System

• Alternative models seeking to organize IT services at a different level (e.g., regional, campus profile) are without

precedent at the University of Wisconsin and run counter to the prevailing organizational cultures

• Alternative models present significant opportunities to increase service and / or reduce costs; these benefits

should be considered in the context of the changes to institutional control, challenges with culture, and

institutional strategies

Decision: Huron does not believe this to be a binary (yes/no) decision. Ultimately, careful consideration

should be given to the following decision components:

• Mix (and location) of leadership / management – how will governing group be selected?

•

Services provisioned – what will this group be responsible for?

• Financial impact – how will budgets / investment priorities be established?

• Changes in risk profile - how does re-organization impact institutional / system risk?

• Changes to control – how will re-organized decision-making be managed and enforced?

52

REORGANIZE INFORMATION TECHNOLOGY DELIVERY

Although differences exist in scope, diversity, and scale of institutional-specific IT, institutional based CIOs

have significant commonality in organization and service provision.

Business Case # 2

Estimated FTEs / IT Unit

Institution Client Services

Network &

Infrastructure

Services

Enterprise

Software &

Application

Services

Instructional

Technology

Services

Administration/

Finance/ Other

Est. Total FTEs

Eau Claire

13.8 13.0 15.9 10.9 1.0 54.6

Extension / Colleges

4.0 18.7 1.0 6.0 11.0 40.7

Green Bay

7.0 4.0 9.6 12.0 4.0 36.6

La Crosse

13.0 10.0 5.0 8.0 2.0 38.0

Milwaukee

25.0 39.0 16.8 8.0 7.0 95.8

Madison

67.5 204.2 90.7 75.6 25.8 463.8

Oshkosh

12.0 7.0 9.0 13.5 3.0 44.5

Parkside

4.0 3.0 5.0 5.0 8.0 25.0

Platteville

12.0 12.0 12.0 7.0 2.0 45.0

River Falls

4.0 13.0 10.0 2.0 2.0 31.0

Stout

9.0 9.0 7.5 10.0 4.0 39.5

Stevens Point

24.8 10.0 2.0 10.0 46.8

Superior

5.0 6.0 6.0 0.8 17.8

Whitewater

2.0 4.0 33.0 39.0

UWSA

1.0 13.0 3.0 17.0

Total

204.1 348.9 201.5 164.0 116.6 1,035.1

Assumptions:

• Categorized staff based on available organizational charts, public website information, or position descriptions within HR provided file. Description of

categorization can be found in the appendix

• Positions not clearly marked or aligned to a single category placed in Administration/ Finance/ Other category

• Source: HR Personnel file received from UWSA, does not include distributed IT staff

53

REORGANIZE INFORMATION TECHNOLOGY DELIVERY

In order to successfully transition to a System-wide model for the provision and leadership of IT services,

the UWS would have to develop enhanced capabilities to support a new model.

Business Case # 2

Required Core Capabilities:

1. A mechanism through which the System could make decisions regarding IT priorities, budgets, service models,

and service levels – currently, decision-making is institutionally focused

• Campus leadership collectively should consider what technology is truly unique to campus strategic

priorities and rationalize IT Services accordingly

2. Improved data environment, enhanced reporting, and performance measurement – currently, data are not

readily available or fully understood resulting in the inability to inform decision-making

3. Articulation of the value added to faculty, institutional leadership, and the System of new IT-related roles both

on-campus and at the system level

54

DECISION MAKING

The University of Wisconsin has few System-wide mechanisms through which opportunities can be

evaluated and decisions made as a “system.”

Business Case # 2

Common Systems Review Group (CSRG), comprised of IT, academic, and administrative leadership, is one of the

few examples of System-wide IT decision making (though the reality is that only approximately 4% of the CSRG

budget is uncommitted per year and there are far more projects requesting funding than there is funding available).

To be successful, any new model will need to expand the remit of a group like CSRG.

Required Capabilities & Authority:

• Develop shared solutions

• Evaluate opportunities to transition campus based activities to “scale”

• Decide on service levels and functionality of shared systems

• Ensure IT services are aligned with budgets and campus requirements.

Changes to IT funding may include:

• Pay overhead costs for central IT out of a central fund and charge institutions on a direct or marginal basis

• Provide select IT services without a charge to institutions

The University of Wisconsin should empower the CSRG (or a variant) to expand it’s remit to include the development of a

capacity to make broader cross-campus IT decisions and to provide oversight of any System-wide services.

55

SYSTEM-WIDE CAPABILITIES

The current campus-centric model means that the data that comprise IT investment are distributed

throughout the organization, limiting the ability for effective system-wide decision making.

Business Case # 2

Establish

authority of

CSRG (or

similar group)

Identify

reporting

needs

Document

required data

elements

Establish

common data

definitions

Develop data

collection tool

Collect data

(iterative)

Illustrative – for discussion purposes only

IT Data is not readily available or fully known through-out the

system. Creating a standard process for data collection and

reporting will increase transparency and provide for more

informed decision making

56

RE-ENVISIONING THE ROLES OF CAMPUS-BASED IT SERVICES

If we consciously ignored the traditional boundaries of institutions and pushed our thinking beyond the

current state, we believe the UW could serve campus-based IT needs through a regional CIO model.

Business Case # 2

Changing Role of the CIO:

• Shift from “technology – oriented” focus to “business – oriented” strategic partner

• Highly adaptable to rapidly changing IT landscape

• Focused on global security

• Driver of process innovation and improvement

• Shift from asset managers to service managers (e.g., cloud computing)

To successfully transition the role of the UW CIOs and allow them to focus on more strategic and value-add initiatives, IT

services will need to be administered and provisioned differently than they currently are.

57

RE-ENVISIONING THE ROLE OF CAMPUS-BASED IT SERVICES

If campuses were able to procure more IT services from UW System, the time and attention of CIOs could

shift from operational to strategic. Creating individual specializations would extend the services offered.

Business Case # 2

Illustrative – for discussion purposes only

IT Operations

Responsible for

• Operating (service level and P&L responsive) enterprise-scale applications and services

• Network architecture and maintenance

• Managing vendor relationships

Implementation

Responsible for

• Scaling new technology

• Overseeing management of all IT “projects”

Risk

Responsible for

• Establishing system-wide risk management infrastructure

• Advising institutions where resources don’t exist

• Working with institution-specific resources (where available)

Digital Officer(s)

Responsible for

• Becoming “trusted strategic” and digital leaders on-campus IT

• Supporting institution-specific teaching and learning technology

• Supporting institution-specific strategic planning

Data

Responsible for

• Establishing and maintaining system-wide data governance

• Managing core data inventory

• Working with institution-specific resources (where available)

System-wide Responsibility

Campus-based

58

POTENTIAL FUTURE-STATE SYSTEM-WIDE IT ADMINISTRATION MODEL (CONT’D)

Business Case # 2

Leadership Component Proposed Role / Governance

System-wide IT Governance Group

• Governed by “board of directors” comprised of institutional and system

leadership (CBOs, IT, Academic, Chancellor)

• Provide strategic and directive oversight over IT related policies and initiatives

• Provide budgetary oversight for systematic IT initiatives

• Focus on transforming UWS IT to best support business / student management

needs

• Engage with other (external) institutions to identify collaborative opportunities

Leadership Components (Alternative CIO Model)

• Re-allocate Institutional IT Leadership – strategic and IT decision-making made

at system-level

• Reduced disparate IT administration services provided – move towards pooled

resources focused on systematic standardization (e.g., Data Center, analytics)

Structure Requirements:

• Systematic support for new approach (UWSA, Chancellors) – draft governing group bylaws and reporting structure

•

Negotiated and enforced SLAs with institutions – board and institutions must be held accountable to each other

• Formalized cost-recovery / funding model

• Decision-making authority for major IT initiatives – reduced campus autonomy for IT decision-making

• Early input into business decisions – IT must be integrated in business decisions and associated analyses

• Accountable to constituencies – elected board, communication channels, feedback loop, etc.

The defined roles of the System-wide IT Governance Group are critical to its success. To achieve a more

strategic approach to IT, Institution- and System-leadership should empower it with decision-making authority.

59

RECAP

The UWS should take several steps over the next few years to reorganize the way IT systems and services

are organized and provisioned to realize both medium- and long-term cost reductions.

Business Case # 2

Opportunity

Annual Est.

Savings

UWS Risk

Exposure

Efficiencies

Gained

Implementation

Complexity

Implementation

Timeframe

Business Case # 2

10

Centralize IT security resources Enabling Low High Medium 6-12 Months

11

Consolidate IT Helpdesks

$$$$

Medium Medium High 12-24 Months

12

Consolidate High Performance Computing

Enabling Low Medium Medium 6-24 Months

13

Consolidate datacenter facilities

$$$$

High High High 24-48 Months

14

Identify additional areas for system-wide

collaboration

TBD

TBD TBD TBD TBD

15

Re-Organize IT Leadership

$$$$

Medium High High 24-48 Months

Business Case #3:

Engage in Enhanced Strategic Sourcing for

IT Hardware

Business Case # 3

CONTEXT AND BACKGROUND

Our objective in this business case was to evaluate specific IT categories where increased strategic

sourcing and demand management could provide substantial savings to UW Institutions.

61

Objectives: Huron was asked to evaluate IT spend across the UW-System to determine where substantial cost

savings can be achieved.

• Evaluate System-wide spend on IT-related products

• Evaluate vendor-specific IT spend to determine savings opportunities (Dell, HP, Apple)

• Evaluate the processes and structures by which IT purchases are made

Future-State Considerations:

• Actual cost-savings are dependent on the willingness of individual UW Institutions to collaborate on purchasing

decisions, negotiations, and policy creation and compliance.

• Per UW Madison purchasing staff, collaboration efforts by the UW have historically been focused on the

purchase of software products due to a history of mandatory IT hardware contracts at DOA

62

RECOMMENDATION OVERVIEW

Opportunity Annual Est. Savings

UWS Risk

Exposure

Efficiencies Gained

Implementation

Complexity

Implementation

Timeframe

Create System-wide standardized bundles for

laptops, desktops, and peripherals

$$$$

Low Medium Medium 6-12 Months

Enforce policies for

preferred purchases (Madison

foregone savings displayed)

$$$$

Low Low Low 0-6 Months

Develop a collaborative, System-wide

procurement function to take advantage of scale

Enabling Low High High 12-24 Months

Business Case #3

Current State Situation Recommendation Components Considerations & Risks

• System-wide collaboration efforts for IT

Hardware purchases are minimal

• IT hardware and software policies vary

across UW institutions

o Models available for purchase vary

significantly across UW institutions

• No data warehouse exists to consolidate

purchasing data across purchasing methods

• Data definitions, such as product naming

conventions, are not standardized making it

difficult to aggregate data for analysis

• Develop a system-wide collaboration

function for IT hardware purchases

• Establish a single set of standardized

desktop and laptop models available for

purchase across all UW institutions

• Develop and establish system-wide policies

related to IT Hardware purchases

• Implement guidelines and policies that

require end users to provide a valid

business need in order to purchase high-

end or non-standardized desktop and laptop

models (may need to reflect academic

missions of UW institutions)

• Actual achievable cost savings are

dependent on the level of collaboration for

contract negotiations, policy establishment,

and implementation of demand

management practice to ensure policy

compliance

• P-card purchases generally represent a

spend method for which no vendor

discounts are received, however there are

incentives at the campus level to use p-

cards due to the rebates received

Source: *Savings Estimates Based on Analysis of Laptops, Desktops, and Monitors; Additional Savings Opportunities are Likely Available in Other Peripheral Categories

The UW should take advantage of the magnitude of system-wide spend and seek opportunities to engage in

enhanced strategic sourcing, demand management, and strategic procurement for IT-related purchases.

Business Case #3

EXECUTIVE SUMMARY

63

Over the last several weeks, Huron has analyzed IT-spend across the UW System in order to understand the

totality of IT-related spend and develop an understanding of where potential savings opportunities are

available. Huron focused its analyses on laptops, desktops, and monitors for Apple, Dell, and HP. The

analyses presented in this business case represent those areas in which Huron was able to identify

significant cost savings opportunities within the limited timeframe available for analysis.

Total Estimated Spend (000’s) Total Estimated Annual Savings through Model Standardization (000’s)

Dell

$17,572 $

Hewlett-Packard

$7,851 $

Apple

$3,461 $

Total Spend Analyzed

$28,884 $

Total IT-Related Spend

$116,455

UW-Madison Forgone Savings*

$$

Total Estimated Annual Savings $$

The savings presented above represent savings Huron believes the UW could achieve by reducing the number of laptop,

desktop, and monitor models available to employees for purchase from each of the vendors analyzed. Huron believes

additional savings are available to the UWS if it were to consolidate laptop, desktop , and monitor spend to two primary

vendors: Apple and one non-Apple vendor. In addition, Huron believes there to be significant cost savings opportunities

available to UWS in other IT-peripheral spend; however, Huron was unable to perform detailed analyses across peripheral

spend within the limited timeframe available. Further analysis is necessary to determine savings opportunities.

Source: *Savings based on Reducing Foregone Savings by 20%-40%

Business Case #3

OVERALL DESKTOP/LAPTOP SPEND AND ANALYSIS SUMMARY

64

Huron estimates that a little over $116M is spent on IT-related products across the System annually, with

desktop and laptop spend from Dell, HP, and Apple accounting for approximately 9%.

Total Estimated Spend (000’s)

Total Estimated Desktop/

Laptop Spend (000’s)

Percentage of

Spend

Dell $17,572 $6,345 36%

Hewlett-Packard $7,851 $2,490 32%

Apple $3,461 $1,345 39%

Total Spend Analyzed $28,884 $10,180 35%

Source: *Savings based on Reducing Foregone Savings by 20%-40%

Institution: Total IT Spend (000’s)

Administration

$129

Colleges / Extension

$4,194

Eau Claire

$4,092

Green Bay

$2,025

La Crosse

$6,004

Milwaukee

$11,096

Madison

$51,670

Oshkosh

$3,744

Parkside

$1,343

Platteville

$2,953

River Falls

$2,566

Stout

$6,777

Stevens Point

$4,132

Superior

$1,303

System

$9,948

Whitewater

$4,479

Total

$116,455

Based on detailed analysis of Dell, HP, and Apple, Huron estimates the UWS can reduce total expenditures on desktops

and laptops through model standardization, and by achieving UW Madison negotiated prices, where applicable.

87,571

17,572

7,851

3,461

28,884

Total IT Spend Analyzed ($000’s)

Unanalyzed IT Spend

Dell

HP

Apple

Spend Category

Estimated Spend Dell, HP, &

Apple (000’s)

Estimated Annual Savings

(000’s)

Desktop/Laptop $10,180 $

Business Case #3

MODEL STANDARDIZATION AND BUNDLING

In order to achieve savings, UW Institutions will need to collaborate and cooperate to ensure standardized

models meet the technological needs of the majority of constituents across all campuses.

65

The UWS must take in to account the following considerations when evaluating potential models for standardization:

• Standardized models should vary in technological capabilities to ensure that administrative, academic,

and research computing needs are all met

• IT organizations across UWS need to be active participants in engaging campus constituents to understand user

preferences to define standardized models, and to build campus support for the established vendor and vendor

products

• UWS needs to ensure that the preferences of all levels of stakeholders are included in the determination of

standardized models to be offered

Business Case #3

DATA CHALLENGES & ANALYSIS METHODOLOGY

Huron obtained and aggregated SFS, MDS, and P-card procurement data from April 2014 through March

2015 to perform detailed IT spend analysis.

66

The following describes the data used for analysis, how it was combined, and the assumptions made by Huron to estimate total IT

spend across the UWSA:

1. SFS, MDS, and P-card data was obtained from UWS and combined to estimate total IT spend in various categories

2. SFS data, as provided by UWSA, included the following IT-related SFS codes:

3. The following P-card categories were included for analysis:

4. MDS data includes all Dell and Staples spend regardless of category; in addition, the following categories were included to

identify IT spend:

5. In addition, Huron included MDS data where Huron was able to assign IT categories based on transaction detail information

6. Due to data and time constraints, Huron focused its analysis on a select high-spend IT vendors, including Dell, Apple, and

Hewlett Packard

•2200 – Telecomm-Blanket Encumbrance

•2201 – Telecomm Services-Centrex

•2210 – Telephone Service-NonSTS Tolls

•2230 – Telephone Service-Install, etc.

•2240 – Telephone Service-STS

•2250 – Telephone-STS Access, Etc.

•2260 – Communication-Misc.

•2270 – Cellular Service

•2271 – Cellular Equipment

•2330 – Rental of DP Equip

•2235 – Lease of DP Equip

•2360 – Rental of Other Equip

•2370 – Lease of Equipment

•2410 – Leasehold Repairs & Maint.

•2460 – Maintenance & Repair-DP Equip

•2670 – Printing & Duplicating-State

•2675 – Printing & Duplicating-NonStat

•3150 – Software-Purchases

•3151 – Software Maintenance Payments

•3194 – Comp & Peripherals not Capital

•3791 – Computer Exchange Repair Parts

•4620 – Computer Equipment

•4625 – Computer Equip-Cap Lease

•4630 – Software Purchase Capitalized

•4635 – Software-Capital Lease

•Electronic Components and Supplies

•Information Technology Broadcasting and Telecommunications

•Office Equipment and Accessories and Supplies

•Printing and Photographic and Audio and Visual Equipment and Supplies

•Computer and Data Process

•Computer Network/Information Systems

•Computer Repair/Maintenance

•Computer Software Stores

•Electronics Stores

•Telecom Equipment

•Wholesale Computers

67

DESKTOP, LAPTOP, AND PERIPHERAL MARKET

Business Case #3

The desktop and laptop, and peripheral IT hardware environments have become consolidated and

commoditized, providing high spenders with the opportunity to negotiate favorable discounts with vendors.

Desktop and Laptop Environment:

• The PC market has consolidated through mergers and acquisitions

o Dell, HP, and Lenovo are the major manufacturers in the market

o Lenovo recently overtook HP in 2013 to claim the largest PC market share, in the global market

o Desktops and laptops can also be purchased through major national IT distributors such as CDW-G and GovConnection

o Typical PC life-cycles span 3 to 5 years, most Higher Education institutions employ a 4 year life-cycle

• A continuous cycle of commoditization and technological improvements create challenges in contract optimization (e.g., New technology carries an

initial price premium)

• Pricing for computer hardware products is driven by several key factors; vendors place high value on long-term preferred / primary status contract

relationships

o Standardization: bundled configurations provide deep discounts to universities; many universities have developed preferred supplier

relationships that offer standard/bundled configurations for specific products

o Product configuration and customization: premium pricing for component upgrades

o Volume: buying in bulk provides leverage in pricing negotiations

• Apple, a higher cost option compared to PCs, has recognized an increase in end user preference on college campuses among students, faculties,

and staff members, especially for their iPad line of products

Peripheral IT Hardware Environment:

• Primary national distributors servicing Higher Education institutions include CDW-G and GovConnection, both offer a broad selection of products,

including peripherals, computers, enterprise products, software, office equipment, etc.

• Equipment and supplies are also directly purchased from manufacturers (Dell, HP, etc.)

• Due to the diverse types of products and brand selections, maverick spend outside of main contracted vendors is common in this category, often

through suppliers such as Amazon, Best Buy, TigerDirect, Newegg, etc.

o Small peripherals, accessories, and equipment such as toner, printers, keyboards, etc. are also purchased through office supply vendors

• IT peripherals is a commoditized industry in which major vendors are capable of offering similar, products, pricing, and services

68

PROCUREMENT OVERVIEW

The ability to achieve maximum savings is dependent on organizational willingness to coordinate in establishing buying

power leverage and negotiating contracts, and the ability of the UWS to implement changes beyond the price opportunity.

There are multiple procurement levers the UWS can utilize to realize cost savings in strategic sourcing,

demand management, and strategic procurement.

Business Case #3

Approaches

Procurement Levers

• Evaluate supplier costs

• Obtain lowest cost from incumbent supplier; if not, consider

lower cost suppliers

• Concentrate volume

• Conduct best price evaluation

• Introduce new suppliers

• Modify consumption

• Find alternative ways of fulfilling need

• Standardize specifications

• Simplify specifications to reduce costs

• Increase policy compliance

• Create or modify supplier or consumption policies

• Channel users to preferred supplier agreements

• Provide marketplace visibility for preferred suppliers

• Create operating efficiencies for suppliers

• Ability to pay vendors more rapidly

Typical Savings Opportunity Breakdown

Strategic Sourcing

Demand Management

Strategic Procurement

eProcurement

Price Opportunity

Buying Power Leverage

Demand Management

Product/Service

Specification Rationalization

Policy Review and Compliance

eProcurement

The UW vision should be comprehensive:

• Organizational changes may be required to accomplish

standardization and integration of strategy

• Focus on negotiating additional System-wide master

agreements with high spend, primary suppliers to achieve

greater discounts than currently received and improve

customer relationships

69

CURRENT STATE OVERVIEW

Business Case #3

Current procurement processes, standards, and policies vary across UW Institutions leading to

inefficiencies and increased costs.

Current State Assessment

• Minimal System-wide collaboration efforts to leverage UW

purchasing power to negotiate additional product discounts

• Current System and Institution organizational structures

hinder collaboration efforts with individual institutions

making purchases mostly from State WCSA contracts

• Lack of system-wide standards for desktop and laptop

models available for purchase

• At the institution level, utilization of standard desktop and

laptop models appear to be encouraged but not mandated.

The number of models available at each institution varies

significantly

• End users have the ability to purchase from a variety of

vendors, including Dell, Apple, HP, Lenovo, etc.

•

Huron estimates that approximately $116M is spent on IT-

related items across the System on a yearly basis

Through System-wide collaboration for discount negotiations, product standardization, and improved policy creation and

compliance, Huron believes the UW could achieve additional cost savings.

Institution: Total IT Spend (000’s)

Administration

$129

Colleges / Extension

$4,194

Eau Claire

$4,092

Green Bay

$2,025

La Crosse

$6,004

Milwaukee

$11,096

Madison

$51,670

Oshkosh

$3,744

Parkside

$1,343

Platteville

$2,953

River Falls

$2,566

Stout

$6,777

Stevens Point

$4,132

Superior

$1,303

System

$9,948

Whitewater

$4,479

Total

$116,455

Source: *April 2014-March 2015 Financial Data Provided by UWSA,

Business Case #3

SAVINGS CALCULATIONS DESCRIPTION

Savings calculations were estimated by Huron using the following data and assumptions:

70

Huron obtained Dell, HP, and Apple data from varying sources. The following data sources were used to calculate

weighted-average prices and to estimate savings for the selected vendors:

• Dell – Huron utilized UW institution spend data provided by the DOA

• HP – Huron utilized spend data for UW institutions provided directly by Hewlett-Packard

• Apple – Huron utilized UW institution spend data provided by UWSA

Huron understands that UW Madison bundle prices vary from weighted-average prices calculated using DOA data.

Weighted-average prices calculated would include only those purchases through the state contracts, which do not

have the same level of discounts as those obtained by UW Madison.

71

DELL SPEND OVERVIEW

Business Case #3

Spend on Dell products is split across a minimum of 14 different vendors, though the majority seems to be

purchased directly from Dell.

Institution: *Total Approximate Dell Spend

(000’s)

Colleges / Extension

$739

Eau Claire

$1,114

Green Bay

$0

La Crosse

$1,220

Milwaukee

$2,244

Madison

$11,127

Oshkosh

$4

Parkside

$303

Platteville

$2

River Falls

$346

Stout

$3

Stevens Point

$20

Superior

$267

Whitewater

$8

Cities, Counties, Found., System

$175

Total

$17,572

The Dell contract on MDS is limited to UW-Madison; however, the opportunity exists to renegotiate with Dell to include all

UW Institutions to purchase Dell products through MDS, providing the greatest total value to UW System.

Source: *April 2014-March 2015 Financial Data Provided by UWSA, Includes Purchases of Dell Products from Non-Dell Suppliers

Current State Assessment and Observations

• Approximately $17.6M was spent on Dell merchandise across the UW

System during the timeframe analyzed

• UW Madison, UW Milwaukee, UW La Crosse, and UW Eau Claire are

among the highest purchasers of Dell merchandise within the system

• UW Madison negotiated additional discounts with Dell on top of the

State contract, however, Dell was unwilling to extend the contract to

the entire UW System during the time of the negotiation

Vendor *Total Approximate Dell Spend

(000’s)

Dell

$17,330

Ronsberg Technology Partners Inc.

$103

Staples

$55

Avalon Technologies

$29

Other

$55

Total

$17,572

72

DELL SPEND BY PRODUCT CATEGORY

Business Case #3

Spend with Dell is divided into six primary product categories including Desktops, Laptops, Servers,

Workstations, Tablets, and IT Peripheral products (comprised of accessories, toner, monitors, etc.).

Note: Servers include servers, switches, and server storage

$3,301

$3,044

$96

$144

$3,129

$7,857

Dell Spend By Product Category ($000’s)

Desktop

Laptop

Tablet

Workstation

Servers

IT Peripherals

Observations

• Close to $1.6M in Dell goods were purchased with P-cards

• Combined Dell desktop and laptop spend accounts for $6.4M (36% of total Dell spend)

• Server purchases, including rack servers, blade servers, tower servers, server storage expansion, and server switches, account

for approximately $3.1M (18% of total Dell spend)

$9,686

$1,593

$6,292

Dell Spend By Purchasing Method ($000’s)

MDS

P-card

SFS

Source: *April 2014-March 2015 Financial Data Provided by UWSA, Includes Purchases of Dell Products from Non-Dell Suppliers

Business Case #3

DELL SPEND ANALYSIS

73

In addition to obtaining UW purchasing data, Huron received Dell spend data from the Department of

Administration (DOA) that allows for a more detailed analysis.

• Based on conversations with UWSA Procurement staff, it was determined that the variance is likely caused by either Dell

purchases that weren’t covered under the State (WSCA) contract, purchases made by the UW on other (non-WSCA) contracts,

or purchases that were not covered by any contract

Source *Total Approximate Dell Spend (000’s) Comments

Department of Administration Data

$12,281

• Date range: April 2014-March2015

UWS Data

$15,761

• Date range: April 2014-March2015

• Data includes IT purchases directly from

Dell from both SFS and MDS (P-card data

would not be included in the DOA data)

Variance

$3,480

Huron utilized the DOA data for UW institutions as the basis for analyzing specific IT categories and for quantifying

savings, as the data definitions were more standardized, providing for a more accurate analysis.

74

DELL LAPTOP OVERVIEW

Business Case #3

There are at least 23 Dell laptop models purchased across the UW, indicating the potential to realize savings

through system-wide laptop model standardization.

504

329

297

184

195

149

266

0

100

200

300

400

500

600

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

LATITUDE

E7440

LATITUDE

E7240

LATITUDE

E5440

LATITUDE

E5540

PRECISION

M6800

LATITUDE

E6440

OTHER

MODEL

Total Dell Laptop Spend & Number of Laptops

Purchased by Model

Total Laptop Spend Number of Laptops

Observations

• “Other” category includes 3 additional laptop models purchased within the UW System

• Most commonly purchased Dell laptop across the UW is the Dell Latitude E7440, accounting for at least 504 laptop purchases

(29% of the total Dell laptop spend through the DOA)

Source: April 2014-March 2015 Financial Data Provided by DOA, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

LATITUDE E7440

504 $1,271

LATITUDE E7240

329 $1,141

LATITUDE E5440

297 $889

LATITUDE E5540

184 $810

PRECISION M6800

195 $1,568

LATITUDE E6440

149 $1,167

LATITUDE E6540

85 $1,434

XPS13

42 $975

LATITUDE 3340

32 $868

LATITUDE E7450

30 $1,424

LATITUDE E7250

17 $999

LATITUDE 3540

16 $852

LATITUDE 3440

7 $765

PRECISION M4800

7 $2,020

XPS DUO 12

6 $1,693

PRECISION M3800

5 $2,093

LATITUDE E6430

4 $1,181

XPS 9530

4 $1,569

XPS 13 9343

3 $1,271

DELL PRECISION M2800

2 $1,141

OTHER

4 Varies

75

UW MADISON DELL LAPTOP PRICES

Business Case #3

UW Madison was able to negotiate additional discounts with Dell on top of the WSCA contract by creating 6

preferred standardized laptop bundles.

Source: April 2014-March 2015 Financial Data Provided by DOA, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price, UW Madison data provided by UW Madison Purchasing

UW Madison Negotiated Prices

Laptop Model

Price Before

Negotiation

Preferred

Pricing

Additional Discount after

WSCA Contract Pricing

Latitude 5450 $1,001.34 $779.00 23%

Latitude 5450

w/SSD

$1,091.04 $827.00 24%

Latitude 5550 $1,001.34 $779.00 23%

Latitude 5550

w/SSD

$1,091.04 $827.00 24%

Latitude E7250 $1,306.99 $949.00 27%

Latitude E7450 $1,283.02

$949.00

26%

Weighted-average prices calculated for comparable Dell laptop models utilizing UW institution data provided by the DOA

are, on average, higher than the prices UW Madison was able to negotiate with Dell.

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

LATITUDE E5440 297 $889

LATITUDE E5540 184 $810

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

LATITUDE E7440

504 $1,271

LATITUDE E7240

329 $1,141

76

DELL LAPTOP SAVINGS OPPORTUNITY

Business Case #3

Huron utilized Dell laptop prices negotiated by UW Madison on the E5 and E7 Series to estimate potential

savings for the entire UW.

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

LATITUDE E7440

504 $1,271

LATITUDE E7240

329 $1,141

LATITUDE E5440

297 $889

LATITUDE E5540

184 $810

LATITUDE E7450

30 $1,425

LATITUDE E7250

17 $999

LATITUDE

5250 1 1,136

1

Dell Laptop Savings Through Model Standardization

UW Madison E5 Series Price $779

UW Madison E7 Series Price $949

Total Number of E5 and E7 Series Laptops

Purchased through DOA

1,362

Total DOA Spend on E5 and E7 Series Laptops $1,491K

Estimated Savings from Achieving 50% Adoption

Rate at UW Madison Prices for all E5 and E7 Series

Laptops

$

Huron estimates UW could achieve significant savings annually by renegotiating their contract with Dell to ensure that all

E5 and E7 Series laptops are purchased at UW Madison negotiated prices and achieving a 50% adoption rate.

Additional Savings from Unaccounted SFS and P-Card

Dell Laptop Spend Directly from Dell

2

Estimation of Additional P-Card E5

and E7 Series Laptop Spend

$101K

3

Estimation of Additional SFS E5 and

E7 Series Laptop Spend

$468K

Total Estimated Additional E5 and E7

Series Laptop Spend

$569K

Estimated Additional Savings Based

on Estimated 50% Adoption Rate at

20% Savings Rate on E5 and E7 Series

Laptops

$

Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

Percentage Savings Rate: Estimated Savings achieving UW Madison E5 and E7 Series

Prices/ Total DOA Dell E5 and E7 Series Laptop Spend

Source:

1

April 2014-March 2015 Financial Data Provided by DOA,

2

P-card Desktop Spend Estimated from April 2014-March 2015 Data Provided by UWS,

3

Additional SFS Desktop Spend Estimated from Data Provided by UWS

77

DELL DESKTOP OVERVIEW

Business Case #3

There are at least five known non-all-in-one Dell desktop models being purchased across UWS; Huron

believes that by standardizing Dell desktop models, UWS could achieve significant cost savings.

1,635

1,064

850

337

10

0

200

400

600

800

1000

1200

1400

1600

1800

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

OPTIPLEX 7020 OPTIPLEX 9020 OPTIPLEX 7010 OPTIPLEX 3020 OPTIPLEX XE2

Total Dell Desktop Spend & Number of Desktops

Purchased by Model

Total Desktop Spend Number of Desktops

Observations

• The most common Dell desktop purchased across the system is the Dell Optiplex 7020, accounting for 1,635 desktop purchases (27% of total Dell

desktop spend)

• The second most common Dell desktop purchased across the system is the Dell Optiplex 9020, accounting for 1,064 desktop purchases (42% of total

spend)

• The Optiplex 9020, which accounts for more than 42% of total spend, has a significantly higher weighted-average price when compared to other

commonly purchased models

Desktop

Model

Quantity

Purchased

Weighted-Avg.

Price/Unit

OPTIPLEX 7020

1,635 $384

OPTIPLEX 9020

1,064 $926

OPTIPLEX 7010

850 $596

OPTIPLEX 3020

337 $556

OPTIPLEX XE2

10 $1,116

Source: April 2014-March 2015 Financial Data Provided by DOA, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

78

DELL DESKTOP SAVINGS OPPORTUNITY

Business Case #3

Huron estimated savings based on the prices UW Madison was able to negotiate with Dell on the Optiplex

7020 desktop model.

Source:

1

April 2014-March 2015 Financial Data Provided by DOA,

2

P-card Desktop Spend Estimated from April 2014-March 2015 Data Provided by UWS,

3

Additional SFS Desktop Spend Estimated from Data Provided by UWS

Huron estimates the UW could achieve significant annual savings if it were able to obtain the UW Madison price on the

Optiplex 7020 machine and shift 50% of non-Optiplex 7020 purchases to the Optiplex 7020.

Additional Savings from Unaccounted SFS and P-Card

Dell Laptop Spend Directly from Dell

2

Estimation of Additional Non-Optiplex

7020 and 7010 P-Card Desktop Spend

$466K

3

Estimation of Additional Non-Optiplex

7020 and 7010 SFS Desktop Spend

$245K

Total Estimated Additional Desktop

Spend

$1,292K

Estimated Additional Savings Based

on Shifting 50% of Non-Optiplex 7020

and 7010 Machines at 16% Savings

Rate to UW Madison Purchasing Price

$

Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

Desktop Model Quantity Purchased Weighted-Avg. Price/Unit

OPTIPLEX 7020

1,635 $384

OPTIPLEX 9020

1,064 $926

OPTIPLEX 7010

850 $596

OPTIPLEX 3020

337 $556

OPTIPLEX XE2

10 $1,116

Dell Desktop Savings Through Adoption of UW Madison Preferred

Desktops

UW Madison OptiPlex 7020 SFF with 8gig

Price

$579

Number of Non-Optiplex 7020 and 7010

Machines Purchased

1,411

Total Spend Outside of Optiplex 7020 and

7010 Models

$1,183K

Estimated Annual Savings by Shifting 50% of

Non-Optiplex 7020 and 7010 Machines to the

UW Madison Purchasing Price

$

Percentage Savings Rate: Estimated Savings from Achieving Optiplex 7020 Price for Non-

Optiplex 7020 and 7010 Machines/Total Non-Optiplex 7020 and 7010 DOA Dell Desktop

Spend

79

HEWLETT-PACKARD SPEND OVERVIEW

Business Case #3

Hewlett-Packard spend varies significantly across UW Institutions, and many vendors currently supply the

UWS with Hewlett-Packard merchandise.

Institution: Total Approximate HP Spend

(000’s)

Colleges / Extension

$143

Eau Claire

$140

Green Bay

$291

La Crosse

$84

Milwaukee

$240

Madison

$1,085

Oshkosh

$837

Parkside

$ 21

Platteville

$432

River Falls

$58

Stout

$1,983

Stevens Point

$1,094

Superior

$77

Whitewater

$1,234

Cities, Counties, Fed, State, etc.

$131

Total

$7,851

There may be an opportunity to achieve savings by consolidating all Hewlett-Packard spend to a single vendor.

Source: April 2014-March 2015 Financial Data Provided by UWSA

Current State Assessment and Observations

• Approximately $7.9M is spent on Hewlett-Packard merchandise

across the UW System; however, only approximately $4.9M, or 61%,

of the merchandise is purchased directly from Hewlett-Packard

• UW Stout, UW Stevens Point, and UW Whitewater are among the

highest spenders of HP merchandise across UWSA, accounting for

approximately 55% of total HP spend

• There are at least 19 vendors that provide the UWS with HP goods

4,777

2,002

417

253

137

265

HP Spend by Vendor ($000’s)

Hewlett-Packard

Staples

Vanguard Computers

Camera Corner

Southern Computer

Warehouse

Other

80

HEWLETT-PACKARD SPEND BY PRODUCT CATEGORY

Business Case #3

Source: April 2014-March 2015 Financial Data Provided by UWSA

Spend with HP is divided into five primary categories including Desktop, Laptop, Workstation, IT Peripherals,

and Unclassifiable, which included items that Huron was unable to classify due to deficient data.

$1,026

$5,088

$1,464

$179

$93

HP Spend By Product Category ($000’s)

Desktop

IT Peripherals

Laptop

Unclassifiable

Workstation

Observations

• The majority of Hewlett-Packard merchandise is purchased through the SFS, accounting for approximately $5.4M (70% of total

HP spend)

• UW purchased approximately $2.5M worth of HP desktops and laptops (32% of total HP spend)

• Due to blanket order purchases (purchases of multiple machines) and deficient description data, Huron was unable to classify

close to $180K worth of HP spend

$2,024

$368

$5,458

HP Spend By Purchasing Method ($000’s)

MDS

P-card

SFS

81

HEWLETT-PACKARD LAPTOP OVERVIEW

Business Case #3

Huron analyzed FY14 spend data provided by Hewlett-Packard and identified 21 different laptop models

purchased directly from HP by UW Institutions.

498

235

169

117

79

271

0

100

200

300

400

500

600

$0

$50,000

$100,000

$150,000

$200,000

$250,000

HP

EliteBook

8470p

HP

EliteBook

850 G1

HP

EliteBook

8570p

HP

EliteBook

840 G1

HP

EliteBook

9470m

Other

FY14 Total HP Laptop Spend and Number of

Units Purchased by Model

Total Spend Quantity Purchased

Observations

• There were 21 different laptop models were purchased with a weighted-average price ranging from $240-$2,965

• The most commonly purchased laptop across UWS purchased directly from HP is the HP EliteBook 8470p, accounting for 498 total machines and

approximately 22% of total HP laptop spend

• Weighted-average prices per unit for laptop models vary significantly indicating that a cost savings opportunity exists through model standardization and

improved demand management.

Source: FY14 Data (July 2013-June 2014) Provided by Hewlett-Packard, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

HP EliteBook 8470p

498 $411

HP EliteBook 850 G1

235 $570

HP EliteBook 8570p

169 $383

HP EliteBook 840 G1

117 $575

HP EliteBook 9470m

79 $711

HP EliteBook Revolve 810

54 $766

HP EliteBook 820 G1

33 $627

HP EliteBook 2570p

30 $475

HP Pav 14 Chromebook

30 $299

HP ProBook 6570b

26 $274

HP EliteBook Revolve 810 G2

22 $846

HP ProBook 650 G1

16 $443

HP ProBook 6470b

15 $253

HP EliteBook 8770w

15 $2,966

HP ProBook 640 G1

11 $240

HP ZBook 17

7 $2,132

HP EliteBook 8570w

4 $840

HP EliteBook 2170p

3 $723

HP ZBook 15

3 $514

HP EliteBook Folio 1040 G1

1 $860

HP Chromebook 11

1 $279

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

HP EliteBook 8770w

15 $2,966

HP ZBook 17

7 $2,132

HP EliteBook Folio 1040 G1

1 $860

HP EliteBook Revolve 810 G2

22 $846

HP EliteBook 8570w

4 $840

HP EliteBook Revolve 810

54 $766

HP EliteBook 2170p

3 $723

HP EliteBook 9470m

79 $711

HP EliteBook 820 G1

33 $627

HP EliteBook 840 G1

117 $575

HP EliteBook 850 G1

235 $570

HP ZBook 15

3 $514

HP EliteBook 2570p

30 $475

HP ProBook 650 G1

16 $443

HP EliteBook 8470p

498 $411

HP EliteBook 8570p

169 $383

HP Pav 14 Chromebook

30 $299

HP Chromebook 11

1 $279

HP ProBook 6570b

26 $274

HP ProBook 6470b

15 $253

HP ProBook 640 G1

11 $240

82

HEWLETT-PACKARD LAPTOP SAVINGS OPPORTUNITY

Business Case #3

Huron estimates that the UW could achieve a small amount of savings by creating 4 standardized HP laptop

bundles in varying price ranges and ensuring that those are the models purchased by UWS employees.

Savings were based on approximately $650K of total HP laptop spend across UWS. The System may be able to achieve

additional cost savings by negotiating higher discounts for standardized laptop models or consolidating vendors.

Source: FY14 Data (July 2013-June 2014) Provided by Hewlett-Packard, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

1

2

3

4

Estimated savings achievable by establishing 1

standardized model for each group at the group’s weighted-

average price point

$

Weighted-Average Price for Groups

Group 1 $2700

Group 2 $731

Group 3 $462

Group 4 $275

83

HEWLETT-PACKARD MONITOR OVERVIEW AND SAVINGS OPPORTUNITY

Business Case #3

Based on analysis of FY14 spend data provided by HP, Huron estimates that UWS could achieve small

savings by standardizing on the top 3 HP monitor models.

449

356

316

225

209

-

50

100

150

200

250

300

350

400

450

500

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

20-inch Flat Panel

Monitor (3-3-3)

21.5-inch Flat

Panel Monitor (3-

3-3)

23-inch Flat Panel

Monitor (3-3-3)

24-inch Flat Panel

Monitor (3-3-3)

Other

FY14 Total HP Monitor Spend and Number of Units

Purchased by Model

Total Spend Quantity Purchased

Observations

• The most commonly purchased HP monitor across the UWS is the 20-inch Flat Panel Monitor, accounting for 449 machines and approximately 27.5% of

total HP monitor spend

• 19 different HP monitor models were purchased in FY14, with weighted average prices ranging from $144 to $599

• Weighted-average prices per unit for HP monitor models vary significantly indicating that a cost savings opportunity exists through model standardization

and improved demand management

Monitor Model: Quantity Purchased Weighted-Avg. Price/Unit

20-inch Flat Panel Monitor (3-3-3) 449 $144

21.5-inch Flat Panel Monitor (3-3-3) 356 $184

23-inch Flat Panel Monitor (3-3-3) 316 $201

HP Monitor Savings Through Model Standardization

Weighted-Average Price per Unit for Top 3 Models

Purchased

$173

Total Number of Units Purchased Outside of the Top 3

Models

434

Total Spend Outside of Top 3 Models $106K

Estimated Annual Savings by Moving All Purchases

with Prices Greater than $173 to a Top 3 Model at a

Weighted-Average Price of $172

$

Source: FY14 Data (July 2013-June 2014) Provided by Hewlett-Packard, Weighted Average Unit Prices were calculated using the number of machines purchased at each different unit price

84

APPLE SPEND OVERVIEW

Business Case #3

Huron estimates that close to $3.5M was spent on Apple products between April 2014 and March 2015, with

UW-LAC, UW-OSH, and UW-WTW accounting for approximately 44% of total spend.

Institution: Total Approximate Apple Spend (000’s)

Colleges / Extension

$43

Eau Claire

$242

Green Bay

$173

La Crosse

$602

Milwaukee

$292

Madison

$254

Oshkosh

$481

Parkside

$75

Platteville

$105

River Falls

$165

Stout

$208

Stevens Point

$330

Superior

$58

Whitewater

$432

Total

$3,461

Typically, it difficult to obtain discounts on Apple products, however, the UW should consider moving buyers towards

competing products for which the UW has been able to obtain discounts.

Source: April 2014-March 2015 Financial Data Provided by UWSA, Apple Items Purchased for Resale Excluded from Totals

Current State Assessment and Observations

• Close to $3.5M is spent on Apple merchandise across the

UW

• UW La Crosse, UW Oshkosh, and UW Whitewater are

among the highest purchasers of Apple products

• Over $1.1M worth of Apple spend was unclassifiable, as the

invoice description data was either absent or insufficient to

determine the type of merchandise being purchased

85

APPLE SPEND BY PRODUCT CATEGORY

Business Case #3

Source: April 2014-March 2015 Financial Data Provided by UWSA

Spend with Apple is divided into six primary product categories including Desktops, Laptops, iPads,

Warranties, IT Peripherals, and spend that Huron was unable to classify due to missing description data.

$709

$410

$636

$481

$1,120

$106

Apple Spend By Product Category ($000’s)

Desktop

iPad

IT Peripherals

Laptop

Unclassifiable

Warranty

$1,956

$1,505

Apple Spend By Purchasing Method ($000’s)

P-card

SFS

Observations

• The majority of Apple merchandise is purchased with P-cards, accounting for 57% of total Apple spend at ~$2.0M

• UWS spends approximately $1.2M on Apple desktops and laptops, accounting for approximately 34% of total Apple spend

86

APPLE LAPTOP OVERVIEW AND SAVINGS OPPORTUNITY

Business Case #3

Huron estimates that UWS could achieve cost savings by limiting Apple laptop purchases to either the

Macbook Pro 13 Inch or the Macbook Air 13 Inch models.

88

140

36

14

8

5

0

20

40

60

80

100

120

140

160

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

Macbook

Pro 15 Inch

Macbook

Pro 13 Inch

Macbook Air

13 Inch

Macbook

Pro

Unknown

Macbook Air

11 Inch

Macbook Air

Unknown

Total Apple Laptop Spend & Number of Laptops

Purchased by Model

Total Laptops Spend Number of Laptops

Source: April 2014-March 2015 Financial Data Provided by UWSA

Laptop Model: Quantity Purchased Weighted-Avg. Price/Unit

Macbook Pro 13 Inch

140 $1,029

Macbook Pro 15 Inch

88 $2,006

Macbook Air 13 Inch

36 $1,032

Macbook Pro Unknown

14 $2,509

Macbook Air 11 Inch

8 $908

Macbook Air Unknown

5 $1,047

Apple Laptop Savings Through Model Standardization

Weighted-Average Price per Unit for Macbook Pro 13

Inch and Macbook Air 13 Inch

$1,030

Total Number of Units Purchased Outside of Chosen 2

Models with Prices Greater than $1,030

107

Total Spend Outside of Chosen 2 Models with Prices

Greater than $1,030

$217K

Estimated Annual Savings by Moving 50% of

Purchases Outside of Chosen 2 Models with Prices

Greater than $1,030 to one of the 2 Chosen Models

$

Observations

• Huron estimates that over $400K was spent on Apple laptops during the timeframe used for the analysis

• Huron was unable to identify Apple laptop models for approximately $48K in spend

• The most commonly purchased Apple laptop purchased was the 13 inch Macbook Pro, accounting for approximately 36% of total Apple laptop spend

87

SAVINGS CASE STUDY

Business Case #3

UW Madison negotiated a contract with Dell which has allowed the University to realize additional savings

of approximately $1.1M over the previous 2 years.

$23K

$154K $74K $66K $103K $290K $193K $115K $95K

39%

45%

36%

43%

48%

44%

51%

47%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Q3

2013

Q4 Q1

2014

Q2 Q3 Q4 Q1

2015

Q2 Q3

Savings from Purchases of UW-Preferred Dell Computers, March 2013-March 2015

Actual Savings on Preferred Computers Estimated Forgone Dell Savings

Estimated Forgone Apple Savings Adoption Rate

Source: Estimated Savings provided by UW Madison

Savings were based on approximately $3.8M of Dell Preferred spend; in addition, UW Madison estimates that

approximately $4.3M of additional savings were forgone through Non-Preferred Dell and Apple purchases.

88

COLLABORATIVE PROCUREMENT FUNCTION

Business Case #3

The UW should develop a centralized procurement office that negotiates contracts, establishes policies and

procedures, enforces demand management, and ensures policy review and compliance.

System-wide Procurement Function

• Develop a robust, system-wide procurement function to centrally

negotiate contracts and manage high-spend vendors with highly trained

procurement staff to take advantage of the purchasing power of the

entire UW System

Distributed Representatives:

• Individuals from each campus would, where appropriate, aid in

identifying high-spend vendors and coordinate with campuses to

evaluate negotiating leverage

A system-wide procurement function does not necessarily need to be located at UWSA, however, there should be a

central organizational effort to negotiate system-wide contracts and establish system-wide policies and standards.

89

NEXT STEPS

Business Case #3

Huron estimates that UWS could achieve significant costs savings through laptop, desktop, and IT

peripheral standardization, and by renegotiating contracts to receive additional price discounts.

General Sourcing Tactics

• Consolidate non-Apple Laptop and Desktop spend to one primary vendor

• Use policy, marketing efforts, and contract tracking and analysis to drive utilization of established contract(s)

• Review competitiveness of current pricing

• Review demand patterns to identify opportunities to change service levels with minimal impact to end user

Option A

Option B

Area Opportunity Overview

Est. 5 Year Savings ($M)

Low High

IT Hardware

Laptop, Desktop, and

Peripheral Model

Standardization

$$ $$$

Area Opportunity Overview

Est. 5 Year Savings ($M)

Low High

IT Hardware

Standard Bundle Creation,

Vendor Consolidation, and

Apple Demand Management

$$ $$$

Area Opportunity Overview

Est. 5 Year Savings ($M)

IT Hardware

Reduce UW-Madison Forgone

Savings

$$

Organization

System-wide Collaborative

Procurement Function

Strategic Enabler

5 Year Total Savings

Given Option A

$$-$$$

5 Year Total Savings

Given Option B

$$-$$$

1. UW-Madison Forgone Savings

Based on Reduction by 20%-

40% on a Yearly Basis

2. Apple Demand Management

Involves Shifting 20-40% of

Apple Spend to the Selected

Non-Apple Vendor

Source: *Savings Estimates Based on Analysis of Laptops, Desktops, and Monitors; Additional Savings Opportunities are Likely Available in Other Peripheral Categories

Appendix

Project Oversight

91

Committee Members

Executive Leadership Team

• Ray Cross, President, University of Wisconsin System

• David Miller, Senior Vice President for Administration & Fiscal Affairs

• Jane Radue, Executive Director & Corporate Secretary, Board of Regents

• Jessica Tormey, Chief of Staff, Office of the President

• James Villa, Vice President, University Relations

• David Ward, Interim Senior Vice President, Academic & Student Affairs

• Julie Gordon, Associate Vice President, Financial Administration

Project Management Group

• Sasi Pillay, Associate Vice President, Office of Learning and Information Technology

• Jenna Weidner, Program & Policy Analyst – Advanced, Office of Senior Vice President for Administration

• David Kieper, Interim CIO, UW Green Bay

• Elena Pokot, CIO, UW Whitewater

• Robert Beck, CIO UW Milwaukee

Advisory Committee

• Sasi Pillay, Associate Vice President, OLIT

• David Kieper, Interim CIO, UW Green Bay

• Elena Pokot, CIO, UW Whitewater

• Robert Beck, CIO UW Milwaukee

• Mohammed Elhindi, CIO, UW La Crosse

• Stephen Reed, CIO, UW River Falls

• Chip Eckhardt, CIO, UW Eau Claire

• Ilya Yakovlev, CIO, UW Parkside

• John Krogman, COO of DoIT, UW Madison

• Werner Gade, CIO, UW Colleges / Extension

• Doug Wahl, CIO, UW Stout

• Bob Hetzel, CBO, UW La Crosse

• Tom Sonnleitner, CBO, UW Oshkosh

• Rob Cramer, CBO, UW Platteville

• Greg Summers, Provost, UW Stevens Point

• Faith Hensrud, Provost, UW Superior

• Johannes Britz, Provost, UW Milwaukee

COMMITTEE MEMBERSHIP

Business Case # 1

SIS FINANCIAL CONSIDERATIONS – INSTITUTIONAL CURRENT STATE COSTS

92

The following represents estimated current state infrastructure costs associated with supporting localized

hosting of SIS. Annual localized hosting costs identified through survey conducted by UWSA CIO.

Current-State and Projection Notes & Assumptions:

• Annual PeopleSoft Administration and Maintenance

costs are $900,805

• Huron analyzed work completed to date with respect to

current-state infrastructure support costs associated

with Student Information Systems.

• Discussion between CIOs and UWSA CIO indicate

base-level FTE support lowered to approximately 20

• Estimated current state costs may not fully represent

true current state due to data available at time of

analysis. Additional costs may be attributable to

hardware, etc.

• Figures do not include FTE supporting localized bolt-on

development (applications)

• Assumptions were made for certain institutions not

participating in data collection process conducted by

UWSA CIO

• Note: FTE personnel estimated assume salary and

fringe of $95,000 rather than actual amount

*Indicates institutions for which Huron made assumptions regarding current-state costs –

actual data not provided during survey or available at the time of analysis

**Includes contracted fully burdened labor

***Numbers may not add due to rounding

Institution FTE Support

FTE Costs

($000s)**

Infrastructure Costs

($000s)

Colleges* 118.3

Eau Claire 1 40 45.1

Green Bay 1.15 118.4 13.0

La Crosse 7.76 792.7 253.5

Madison 9.3 880.8 442.0

Milwaukee 1.9 213.1 8.0

Oshkosh* 1.8 129.1 4.6

Parkside 0.3 141.9

Platteville 1.2 368.8 234.0

River Falls 4 325.0 36.8

Stevens Point* 1.2 368.8 234.0

Stout 1.5 128.6 69.0

Superior* 2 141.9

Whitewater 1.8 129.1 4.6

Total 34.91 $4,000 $1,344.6

Business Case # 1

ADDITIONAL IT SERVICES AMENDABLE TO CLOUD COMPUTING

93

The advent of cloud computing has fundamentally changed the way IT services can be delivered. Additional

examples of vendor managed solutions can be found below.

Additional Cloud-based Solutions:

• Hosting of most / all current applications

• Network Hosting (e.g., VoIP)

• Website Hosting

• Datacenter Management and Storage Resources

• High Performance Computing – Via Consortium or

Third-party Vendor

• Learning Technologies (e.g., LMS)

• CRM Solutions

Change Management Considerations:

• Organizational commitment to change / development

of a long-term strategy for cloud computing

• Reduced ability to customize

• Customer support shits to vendor rather than local

staff – may result in varied response times (can be

managed via contact / SLA)

• Changes in SaaS application interfaces will occur

more often – requires staff to be open to change

Business Case #2

CURRENT STATE IT ADMINISTRATION (CONT’D)

The categories presented in the table below were used to segment University employees to determine

where overlap occurs and where alternative administration models may be implemented.

94

Types of

Cloud

IT Unit Categorization Unit Description

Client Services

• Includes campus Help Desks, hardware and software support,

IT training, computer repair, technology use consulting, asset

management, and IT service management

Network & Infrastructure Services

• Includes network management and engineering, campus

infrastructure management and maintenance, data center

management, firewall administration, and information security

Enterprise Software & Application

Services

• Includes application design, development, and support,

database administration and management, and reporting

development

Instructional Technology Services

• Includes the design, development, and evaluation of learning

technologies, and the provision of faculty and staff trainings on

instructional technology

Categorization methodologies for all UW Institutions are included in the appendix.

Client Services

IT CATEGORIZATION BASIS

The following institution-specific IT units were included as part of Client Services for the analysis

conducted by Huron.

95

Institution Total FTEs Institution-specific Units Included

UW Eau Claire

13.75

• Client Support Services

UW Extension/Colleges

4

• Account & Identity Management and Desktop Support (Est. 4 from

Account & Identity Management, Information Security, and Desktop

Support)

UW Green Bay

7

• User Support Services

UW La Crosse

13

• Client Services

UW Milwaukee

25

• Client Services (Excluding Classroom Services and Learning

TECHniques)

UW Madison

67.5

• User Services

UW Oshkosh

12

• Academic Computing

UW Parkside

4

• Support Services

UW Platteville

12

• Support Services

UW River Falls

4

• Professional Services

UW Stout

9

• Client Technology Services

UW Stevens Point

24.8

• Administrative Information Systems

• Workstation and Endpoint Technology

• College Support Team

• IT Support Services

UW Superior

5

• Technology Support Services

UW Whitewater

2

• User Environment Technology

Network and Infrastructure Services

IT CATEGORIZATION BASIS

The following institution-specific IT units were included as part of Infrastructure and Network Services for

the analysis conducted by Huron.

96

Institution Total FTEs Institution-specific Units Included

UW Eau Claire

13

• Technical Support Services

UW Extension/Colleges

18.7

• Hosting, Messaging and Collaboration, and Network Management

• Network Administrator

• Information Security (Est. 2 from Account & Identity Management,

Information Security, and Desktop Support)

UW Green Bay

4

• Infrastructure and Networking Systems / Info Security

UW La Crosse

10

• Network Services

UW Milwaukee

39

• Network and Operations Services

• Information Security Office

UW Madison

204.2

• Network Services

• Systems Engineering and Operations

• Enterprise Internet Services

• Information Security Office

UW Oshkosh

7

• Networking and Security

UW Parkside

3

• Infrastructure Team

UW Platteville

12

• Systems and Infrastructure

UW River Falls

13

• Enterprise Systems and Services

• Infrastructure and Security Technologies

UW Stout

9

• Security and Network

• Telecommunications and Networking

UW Stevens Point

10

• Network and Infrastructure

UW Superior

6

• Technology Infrastructure Services

UW Whitewater

Unknown

•

Network Operations Center

Enterprise Software and Application Services

IT CATEGORIZATION BASIS

The following institution-specific IT units were included as part of Enterprise Software and Application

Services for the analysis conducted by Huron.

97

Institution Total FTEs Institution-specific Units Included

UW Eau Claire

15.9

• Enterprise Software systems

• Projects and Software Applications

UW Extension/Colleges

1

• Application Management (Est. 1 from Learning Technology, Application

Management, and Media Services)

UW Green Bay

9.6

• Management Information Systems

UW La Crosse

4.96

• Enterprise Services

UW Milwaukee

16.8

• Application Development

UW Madison

90.7

• Application Development and Integration

UW Oshkosh

9

• Administrative Computing

UW Parkside

5

• Applications Development

UW Platteville

12

• Information Systems and Reporting

UW River Falls

10

• Enterprise Applications and Services

UW Stout

7.5

• Enterprise Information Services

UW Stevens Point

UW Superior

6

• Application Services

UW Whitewater

Unknown

• Administrative Information Services

Instructional Technology Services

IT CATEGORIZATION BASIS

The following institution-specific IT units were included as part of Instructional Technology Services for the

analysis conducted by Huron.

98

Institution Total FTEs Institution-specific Units Included

UW Eau Claire

10.93

• Media and Learning Services

UW Extension/Colleges

6

• Learning Technology (Est. 2 from Learning Technology, Application

Management, and Media Services)

• Distance Education

UW Green Bay

12

• Academic Technology Services

UW La Crosse

8

• Academic Technology Services

UW Milwaukee

8

• Classroom Services and Learning TECHniques under Client Services

UW Madison

75.6

• Learning Technologies and Academic Technology

UW Oshkosh

13.5

• Learning Technologies

UW Parkside

5

• Learning Technology Center

UW Platteville

7

• Media Development Technology

UW River Falls

2

• Teaching and Learning Technologies

UW Stout

10

• Learning Technology Services

UW Stevens Point

2

• TEC (Teaching and Learning Resource Network)

UW Superior

UW Whitewater

4

• Instructional Technology Service

Administration / Finance / Other

IT CATEGORIZATION BASIS

The following institution-specific IT units were included as part of Administration / Finance / Other for the

analysis conducted by Huron.

99

Institution Total FTEs Institution-specific Units Included*

UW Eau Claire

1

UW Extension/Colleges

11

• Service Success and Projects and Service Delivery

• Media Services (Est. 1 from Learning Technology, Application

Management, and Media Services)

UW Green Bay

4

• Web Services

• Administrative and Finance Support Staff

UW La Crosse

2

• Administrative Support Staff

UW Milwaukee

7

• Research Computing

• IT Strategic Communications

• Chief Operating Officer

UW Madison

25.75

• Communications, Financial Services, Information Tech. Academy, and

Policy & Planning

• Division Office (Non-Security)

UW Oshkosh

3

• Business Operations

UW Parkside

8

• Creative Services and Administrative Support Staff

UW Platteville

2

• Administrative Support Staff

UW River Falls

2

• Administrative Support Staff

UW Stout

4

• Administrative Support Staff

UW Stevens Point

10

• Web and Media Services, and Information Technology Administration

UW Superior

.75

• Administrative Support Staff

UW Whitewater

33

• Unable to Categorize Based on Publically Available Information

Source: Chief Information Officers were Included in Administration / Finance / Other