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How to Incorporate Effective IT Business Practices in a University EnvironmentThrough a Public-Private Partnership

Presented To:

The EDUCAUSE Southeast Regional Conference“IT Leadership in the 21st Century”

June 18, 2002

Presented By:

J. Brice BibleAssistant Vice President for

Research and Information TechnologyThe University of Tennessee

Joseph L. GipsonSenior Business Analyst

Science Applications International Corporation

Copyright: Brice Bible and Joseph Gipson [2002]. This work is the intellectual property of the authors. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying

is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

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Presentation Agenda

Introductions

Overview of Problem

Proposed Solution

Current Status

Limitation

Lessons Learned

Summary

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The IT Dream

“Well, I do have this recurring dream that one day I might see some results.”

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Science Applications International Corporation

Oak Ridge, TN Office

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SAIC Overview

$6B

$4B

$3B

$2B

$1B

$0’02’92

16% average annual growth rate for the

past 15 years

Rev

enu

es Sto

ck

$40

$30

$20

$10

$0

5 year Annualized Return: 37%

10 Year Annualized Return: 28%

$6.2B Founded 1969 – Bob Beyster

Largest employee-ownedtechnology products

andservices firm inthe world

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#1 of the Top 20 Systems Integrators Federal Computer Week (September 2000)

Best Research and Development Red Herring (June 1999)

#3 of the Top 10 Private Info-Tech CompaniesBusinessWeek (June 2001)

1st in Performing the Most Complex IT Activities FCW Government Technology Group (March 2000)

#294 of the FORTUNE 500®

Fortune (April 2002)

Market Leadership

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350 offices worldwide 42,000 employees

Washington, D.C. Metro Area

13,870 Personnel

San Diego4,457

Personnel

New Jersey6,209

Personnel

Tennessee875

Personnel

SAIC Locations

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Key Business Areas

SAIC Overview

Information Technology Education Manufacturing Healthcare/Pharmaceuticals Media Financial Services Telecommunications National Security Energy & Environment Transportation

Business Mix

50% Commercial

50% Government

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Core Business Focus

$6B$6B

Business Alignment Systems Integration Software Development

(SEI/CMM) Systems Engineering Performance Management Information Security Internet & Web Services Outsourcing Services

Information Technology (41%)

Telecommunications (29%) Systems Engineering Broadband/Wireline/Wireless Network Management Converged Networks – Voice/Video/Data

R&D and TechnicalServices (28%) Product and process

modeling and simulation Hull design and

performance optimization Next Generation Network

R&D

Products (2%) Telecommunications

Operations Systems Trusted Supply Chain

Mgt Tools and Process Customer Relationship

Management

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Some Universities Served

Cleveland State University• PeopleSoft Student Administration Stabilization

University of Hawaii• Operation and support for the Maui

Supercomputing Center

University of California, San Diego• Acoustic Thermometry of Ocean Climate

Johns Hopkins University• Software Engineering Support

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The University of Tennessee

Land-Grant Institution for State ofTennessee Founded in 1794

Five Campuses and Three InstitutesStatewide

• Research University ComprisesTwo Campuses and Three Institutes

42,000 Students

13,000 Faculty/Staff

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Information Technology at UT

450 Employees $45M Annual Budget Two Significant Reorganizations Since 1999

• Another Expected Summer 2002

Recent Major Initiatives (Knoxville campus only)• SAP Financial and Human Resource System• Blackboard Course Info Enterprise Implementation• Knoxville Campus Network Upgrade Program• Knoxville Campus Wireless Network Installation• Web Architecture Redesign and Implementation• Student Information Systems Upgrade

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IT Environment at UT

Major New System Projects Underway Experienced Staff Retirements “Aging” IT Workforce (10+ Year Old Knowledge) Overbearing Business and Finance Office Human Resources Lack of Understanding of the

IT Market Mismatched Skill Sets On-Going Legacy Support Requirements Enterprise-Wide Cost Containment Measures In

Place

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In-House COTS

National Stats

70

60

50

40

30

20

10

0

Percentage of Solutions

Development Mode

Old Systems

New Systems

Source: Dataquest (June 2000)

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Hype Cycle

Type A Adoption Type B Adoption Type C Adoption

Maturity

Hype

Peak of InflatedExpectations

TechnologyTrigger

Trough ofDisillusionment

Slope ofEnlightenment

Plateau ofProductivity

LearningPortals

PDAPhones

Web Services

On-lineCourses

ERP

WirelessLANs

Enterprise PortalsSIS

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University IT Dilemma

How do we implement new IT initiatives while supporting

legacy systems with an aging workforce on a limited budget?

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The Solution:Create a Public-Private IT Partnership

FY2000 Technology Partner Solicitation• Broad Scope (IT Application and Strategic

Support)• Task Order Contract Approach• Evaluation Based on Several Factors:

- Technical Capability- Commitment to Higher Education- Cost- Partnership Potential

Contract Awarded to SAIC in Spring 2001

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Why Would SAIC Participate?

SAIC vendor independent services fit into the university

SAIC’s broad range of expertise allow for a long term and very broad partnership

Science Based Company• 8% of SAIC have Ph. D.• 38% of SAIC have Masters

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Experienced Technical Staff

8% with less than 5 Years

15% with 5-10 Years

77% with more than10 Years Industry Experience

9% Administrative Professionals

14% Managerial77% Technical Professionals

8% Ph.D.

38% Master’s Degrees

54% Bachelor’s Degrees

Highly Educated in Diverse Disciplines

14% Humanities/Social Sciences

46% Sciences

20% Engineering

20% Business/Economics/Law

The Right People

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How SAIC Responded

50% of all SAIC work is in the Public Sector

SAIC leverages this existing work staff to provide extremely attractive rates (about 1/3 of similar companies)

Pull from world-wide staff

Subject Matter Experts

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Projects - IT Strategic Plan

Engaged by UT to facilitate and lead the creation of a plan

SAIC relied heavily on its prior experience to build a document starting at the highest level of IT governance

Originally Knoxville only

Now integrating Memphis

Not a Technology Road Map

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Projects - Remedy

Charged with discovering and documenting the needs for a Customer Relationship Management (CRM) system for all IT

Completing an Implementation Plan for the base system

Assisting in Implementation

Some features have been determined to be Phase II to meet time and fiscal restraints

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Projects – Web Portal

Interview and document Web Portalneeds of Students, Facultyand Staff

Document where all of thedata lives and who isresponsible for it

Build a Prototype portal

Completed Prototype for the Officeof Research providing the first singleinterface into old and new data bases

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Pending Projects

Departmental Strategic IT Planning• Electrical and Computer Engineering• Outreach and Independent Study

Remedy Implementation

Student Information System

Strategic Plan for UT Health Sciences Center (UT Memphis)

Security Implementation Plan

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Partnership Initiatives

1. Intellectual Property Development

2. Technology Transfer Evaluation

3. Support of ORNL – Managed by UT-Battelle

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SAIC donated selected patentsto UT

Five technology areas were identified

UT/SAIC currently evaluating potential of these five areasfor further development

Partnership Initiative #1Intellectual Property Donation and Development

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SAIC has expertise in technology incubation and businessdevelopment

UT migrating technology transferefforts from royalty licensingstrategy to start-up investmentfocus

Benchmarking study performedby SAIC in Fall 2001 to evaluatingUT programs

Partnership Initiative #2Technology Transfer Process Evaluation

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Partnership Initiative #3 Support of ORNL – Managed by UT-Battelle

SAIC provides IT supportservices for Oak RidgeNational Lab

UT-Battelle manages ORNL

Full Range of IT Services

Looking at other opportunities forjointly managing other large facilities

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Trust among constituents

“Stove Pipe” Mentality

Establishing Priorities

“Not Invented Here” Syndrome

Limitations – University Perspective

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Involve Legal and Procurement from the Beginning of the Process

Maintain High Level Interactions

Fight for Broadest Contract Scope Possible

Insure Project Linkage with University’s Academic and Research Strategies

Maintain Long-Term Perspective

Lessons Learned – University Perspective

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Limitations – Industry Perspective

Universities like to be the ‘General Contractor’ of IT projects

Issuing RFPs for specific projects Low bidder vs. Best Value Outsourcing management for IT projects is

foreign to the culture Over-extended management can slow

down progress

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Lessons Learned – Industry Perspective

The real work begins afterthe contract is in place

IT is driven by everyoneon campus

Educate the campus of theavailability of the contract

It takes time and several projects to introduce the value and earn the trust of the staff

Contract in place doesn’t mean the culture accepts the use of outside help

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Summary

First year has been a learning experience• SAIC has gained a wealth of understanding for University

IT challenges• UT has gained an appreciation for outside

services/capabilities

UT has achieved targeted IT goals, cheaper, faster, and without adding or retraining staff

Partnership initiatives now emerging

UT/SAIC expect partnership to grow rapidly

Both partners are excited and positive about future opportunities