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    Speeding Up on Curves

    Brad Wheeler, Ph.D.

    Indiana University Vice President for IT & CIO

    Professor of Information Systems, IU Kelley School of Business

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    Thank You

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    There is Nothing New Under th

    http://www.bubblews.c

    For Information Technology

    Ecclesiastes 1:9 What ha

    what has been don

    there is nothin

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    Curves are Interesting

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    Not Like Predictable Linear Li

    Time

    XY

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    Ma

    theCor

    Time

    X

    X

    Y

    Y

    Over t

    Mor

    Less

    Less

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    Oct 31st, 2007 = $247 November 17th, 2008 =

    X

    Y

    2008

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    2008 2002

    X

    Y

    Y

    X

    X

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    X= Inve

    Y= Prof

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    As the Australian iron ore magnate Lang Hancoc

    remarked in similar circumstances, "Always do t

    to what the mob is doing. Works every time.

    Investors should remember that excitement and expenses

    are their enemies. And if they insist on trying to time their

    participation in equities, they should try to be fearful when

    others are greedy and greedy only when others are fearful.

    Warren Buffett, Chairmans Letter, 2004

    http://www.wanowandthen.com/Langley-Hancock.html http://en.wikipedia.org/wiki

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    Industrial Heroes Who Think Differe

    ThoughtDifferently

    Redefined andSaved a Company

    Defined anIndustry

    Foresaw and Shapedthe Curves

    Jobs Bezos Gerstner

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    What are the Relevant Curve

    For Higher Education

    What are the SmartBets? Why?

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    At Least Three Curves

    1. Public to Private Good(price/cost pressures)

    2. Digital Favors Scale (rise of substitutes?)

    3. Campus CIO Influence (whos driving?)

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    1. Funding for Public Educati

    (Higher Education in Increasingly a Private Good)

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    28%27%

    25%24% 24%

    23%

    22%

    23%22%

    20%19%

    21%

    23%

    25%26%

    27%28% 28%

    31%

    33% 33% 33%

    15%

    20%

    25%

    30%

    35%

    40%

    FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

    State Appropriation and Net Student Fees

    as a Percent of Total Revenue

    State Operating Appropriation Net Student Fees

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    $300,000,000

    $350,000,000

    $400,000,000

    $450,000,000

    $500,000,000

    $550,000,000

    $600,000,000

    $650,000,000

    $700,000,000

    1990 1993 1996 1999 2002 2005 2008 20

    Operating Appropriation Increased at Inflation Rate

    (1990 Dollars)

    Actual State Operating Appropriation

    State Operating Appropriation increased at CPI

    State Operating Appropriation increased at HEPI

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    $5,000

    $5,200

    $5,400

    $5,600

    $5,800

    $6,000

    $6,200

    $6,400

    $6,600

    1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20

    State Operating Appropriation per Student FTE

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    Conclusion: Colleges and Universities

    Substantially Change our Cost Struct

    Minimal goal: Can We Reallocate at least 20%

    the cost of Administrative Services

    to the Mission by 2020?

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    2. Digital Goes to Scale

    What is our Path to Scale?(Particularly for Online Learning)

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    Digital Economies of Scale

    Analytics (Improvement)

    Analytics (Triggers Improvement)

    Behavior

    ContentDistributionAnalytics

    What role for universities?

    Content

    Textbooks, Simulations,

    Media, etc.

    Distribution

    MOOCs, Courses, Lessons,Degrees, Badges, etc.

    Markets

    Students with Many

    ?

    Bundles

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    Is This Time Different?

    Online Learning

    Substitutes for colleges/universities?

    Complements for colleges/universities?

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    Four Revenue Models

    1. Residential Education (flipped classroom

    2. Online Courses / Degrees

    3. Massive Online Courses (MOCs)

    4. Massive Open Online Courses (MOOCs)Free

    $

    $$

    $$$

    Which are complements? Substitutes?

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    SoWhatto Do?

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    1. Independence

    2. Dependence

    3. Interdependence

    3 Generic Campus Strategies for Curve Coping Shaping

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    Campus Independence as a Str

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    Campus Dependence as a Stra

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    Campus Interdependence as Str

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    PersonalInsights from

    Three Strategies

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    Involving Others

    A Tale of Dependence and Interdependen

    (Personal Insights)

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    Aspiration

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    Conflict

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    Authority

    Ownership

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    Authority

    Ownership

    I fl

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    Influence

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    Achieve!

    Repeat?

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    Marketplaceof ideas for Intention

    Interdependent Communities, but th

    need a strongArchitectureto he

    resolve inevitable Conflicts.

    Marketecture of Communit

    Marketecture Matrix

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    Marketecture Matrix

    Each University

    Solo

    Contracts

    Open Source Software

    Cooperative

    Communities

    Buying

    Clubs

    Internet2 Net+

    Collaborative

    Communities

    HathiTrust or Kuali

    Influence

    Lower

    Higher

    Authority

    Lower Higher

    Marketplace(Use) Community(Own)

    Wheeler & Hilton, EDUCAUS

    (Examples from University Communities)

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    R i S di U C

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    Review: Speeding Up on Curves

    Curves Price and Cost Pressure?

    Path to Digital Scale?

    Campus CIO Influence?

    Generic Strategies Independence

    Dependence

    Interdependence*

    * Lessons in the Marketecture of Community

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    Curves are Interesting

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    Speeding Up on Curves

    Brad Wheeler, Ph.D.

    Indiana University Vice President for IT & CIO

    Professor of Information Systems, IU Kelley School of Business