Turning Information into Knowledge in a post-Bradley Environment

Monish Paul & Bhavesh Chavda

12 November 2009

- 2 -

Agenda

Monish Paul - The changing landscape : the burning platform for performance management

Bhavesh Chavda – Actionable information management strategies - leading practices; key learnings

- 3 -

The Black Swan Theory – Are You Prepared?

The Black Swan, by Nassim Nicholas Taleb, argues that unforeseen upheavals and irregularities are in fact the norm, rather than the exception

A metaphor for unforeseen events which change perceptions, expand possibilities and re-write the rules

Key component of the Black Swan thinking is how we cope with unpredictable events – and whether we see them as obstacles or opportunities

The strategic choice:

– Are you willing to lead a change in ‘the order of the rafts’ during a time of turbulence, or will you let others lead that change?

- 4 -

Policy and Economic Drivers are Creating Significant Challenges, and Opportunities for Institutions

Workforce change•ageing workforce and war for talent•industrial environment and performance culture•increasing student-staff ratio•increasing casual staff ratio.

Revenue trends•long term decline in real public funding•increased reliance on fee paying programs•plateauing international growth.

Increased competition•de-regulation of student funding•private and international providers•competitive funding to areas of strength.

Economic outlook•constrained government spending•pressure on investment and advancement returns•tightening international demand•improved domestic demand.

Organisational efficiency•tension between ‘academic’ and ‘business’ structures•rise of administrative and capital costs•change readiness/business agility•professional staff skills.

Engagement and impact•collaboration imperative with private sector, education partners and communities•promoting access and regional delivery.

Technology and information•web 2.0 challenge; user generated content, open networks•rising competitive importance of ICT•information management and reporting.

Higher Education

Policy directions•diversification and differentiation•compacts and systems•increased participation•productivity and performance•stronger standards requirements.

- 5 -

Policy and Economic Drivers are Creating Significant Challenges, and Opportunities for Institutions

Workforce change•ageing workforce and war for talent•industrial environment and performance culture•increasing student-staff ratio•increasing casual staff ratio.

Revenue trends•long term decline in real public funding•increased reliance on fee paying programs•plateauing international growth.

Increased competition•de-regulation of student funding•private and international providers•competitive funding to areas of strength.

Economic outlook•constrained government spending•pressure on investment and advancement returns•tightening international demand•improved domestic demand.

Organisational efficiency•tension between ‘academic’ and ‘business’ structures•rise of administrative and capital costs•change readiness/business agility•professional staff skills.

Engagement and impact•collaboration imperative with private sector, education partners and communities•promoting access and regional delivery.

Technology and information•web 2.0 challenge; user generated content, open networks•rising competitive importance of ICT•information management and reporting.

Higher Education

Policy directions•diversification and differentiation•compacts and systems•increased participation•productivity and performance•stronger standards requirements.

Higher Education Value

Operating MarginFunding & Revenue

GrowthAsset Efficiency

Expectations & Strengths

• Academic programs; Funding levels; revenue diversification

• Marketing; general & administrative costs; cost of program delivery; tax

• Human capital; intellectual property & assets; property, plant & equipment; receivables & payables

• External impact; quality outcomes; institutional strengths

• Focus and alignment

• Teaching portfolio

• Student Experience

• Innovation

• Diversified delivery

• Operational Excellence

• Shared Services

• Outsourcing & shared service partnering

• Talent management

• Campus and asset models and management

• IP assets

• Governance & risk

• Partnerships & collaboration

• Program & portfolio management

• Change management & agility

Val

ue

Dri

vers

Val

ue

Imp

rove

me

nt

Lev

ers

Deloitte Education Value Map ©

How does Enterprise Information Management play a role in enabling value through your organisation?

- 6 -

Enterprise Information Management

- 7 -

Competitive strengths will be based on agility and being able to anticipate

ToAnticipate

Operate Accumulate

Formulate

Plan Organise Control

• Best practice dictates a strong performance management framework is required to ensure speed and efficiency in measuring institutional performance.

• Ensure the “right people have the right information at all times” to formulate the right strategies.

- 8 -

Performance Management – The Burning Platform

• The Australian Government’s policies on Higher Education include a number of initiatives that change university funding models with increased emphasis on performance targets.

• Universities will need an agile and dynamic performance management framework to ensure that decision makers can respond to opportunities in a timely manner.

Source:Source:

GOVERNMENT REFORM

- 9 -

Burning Platform 1 - Student Centred Funding

• From 2012

Universities will be funded for student places on the basis of student demand.

Universities will not be funded for places they do not fill – no funding floor.

• Transitional arrangements in 2010-11, during this period the cap on funding for over enrolments will be lifted from 5% to 10% and the funding floor for under enrolment will remain.

Implications for Performance Management framework

Regular evaluation of course offerings required – does demand justify offering? What is the contribution margin for each course?

Track demand in “real-time” to enable deployment of tactical responses to changes in demand during admission / enrolment periods.

Develop models to forecast and run scenarios on student demand for strategic and operational planning.

- 10 -

Burning Platform 2 - Mission Based Compacts for Universities

• Individual relationship between government and each university

Define mission for each university

Describe how each university will fulfil its mission and meet Australian Government policy objectives.

• Government will define clear and consistent targets for improvement and reform which will trigger reward payments.

• Consultation with the sector to commence this year (2009) on appropriate tools and indicators to measure performance

Implications for Performance Management framework

Agile and dynamic performance management platform (including technology, people and process) required to respond to changing government performance measures.

- 11 -

Burning Platform 3 - Higher Education Performance Funding

• From 2012 the Government will introduce at-risk performance funding for universities. Reward payments will be triggered if reform and improvement targets are met.

• Performance targets for teaching & learning quality which could include measures of student engagement, and participation by under represented groups

• 2010 negotiation and agreement of targets, 2011 facilitation payments and 2012 performance funding available.

Implications for Performance Management framework

Track actual performance in “real- time” against agreed targets to identify targets “at-risk” and implement strategies to improve.

Fast access to current and historic information to facilitate negotiation process and fast-track receipt of funding

Robust historical analysis to use as input into negotiations with Government – ensure that targets set are realistic

- 12 -

Burning Platform 4- Sustainable Research Excellence in Universities

• Augment the existing Research Infrastructure Block Grants Scheme - increase average level of support by 2014 to assist institutions in meeting the costs of research activities.

• Complemented by the establishment of a Joint Research Engagement funding stream to encourage greater collaboration between universities and the business and non-government sectors.

• Funding model

All universities receive an increase in formula-based allocation using 20% of additional funding

Access to remaining 80% will be contingent on universities undertaking activity based or transparent costing as well as meeting specified performance targets

• Consultation 2009, 2010 facilitation payment and phased introduction of additional funding.

Implications for Performance Management framework

Track actual performance in “real- time” against agreed targets to identify targets “at-risk” and implement strategies to improve.

Robust cost management and analysis frameworks.

- 13 -

Examples of specific Information and Data requirements to help achieve Performance Management metrics

* Only represents a small set of the many Information requirements which Institutions require today.

What do I need to Measure?What do I need to Measure?

What information types must be

captured *What information types must be

captured *

KPI (METRICS)KPI (METRICS)

KPI (METRICS)KPI (METRICS)

SMI (METRICS)SMI (METRICS)

Load & Planning DataLoad & Planning Data

Student – EFTSL, AdmissionStudent – EFTSL, Admission

Retention / AttritionRetention / Attrition

Grants or Funding DataGrants or Funding Data

Student DemographicsStudent Demographics

Research & Course InformationResearch & Course Information

- 14 -

Made Difficult by the Following…

Enterprise Information Management (EIM)

Challenges

Inconsistent Data Definitions

Disparate or Duplicated

Environments

Information Silos – ‘Islands

of Value’

Lack of Data Governance &

Ownership

Inaccurate & Incomplete

Data

Lack of transparent, meaningful business rules – e.g. load &

planning calculations

Lack of a common information hub or

repository for reporting data

Information availability and access – where and

when needed

No standardised BI technologies or platforms – multiple ref’ points for

same data

Multiple versions of the truth, e.g. student load numbers, Cost Centre

spend

Lack of information assurance and

continuos need to validate and reconcile

information

Minimal data ownership and governance, - Accountability and

Information overload

Data quality and integrity

Lack of Standardised Definitions - e.g. Course,

Information, EFTSL, Basis of Admission, Funding Categories

- 15 -

Overcoming those challenges….Using a Integrated Approach and Framework

A Strategic ‘Enterprise Information Management approach will assist to establish and promote an agile and flexible Information environment to support performance

management initiatives

EIM Strategy Information Governance Enterprise Data Management Enterprise Content Management Business Intelligence & Data Warehousing Business Performance Management Data Quality Management

Plan Design Build Deliver OperateVision

Value

Project Management

People, Change, and Learning

Support

Security and Controls

Technical Infrastructure

Testing

Application Environment

Enterprise Information Process

Information Governance and Organisation

Information Environment

- 16 -- 16 -

Location ID

Region Name

State Name

City Name

Funding ID

Funding Desc

Broad Funding

Narrow Funding

Student ID

Last Name

First Name

Course ID

Course Name

Enrolments Fact

Student ID (FK)

Course ID

Location ID

Funding ID

LOAD

EFTSL

RETENTION

Course Dimension

Student Dimension

Teaching Dimension

Funding Category Dimension

Student EnrolmentsUNIT ID

Unit Dimension

UNIT Name

Information Environment Align and create Information Maps which will help define and establish the ‘integrated and holistic Data Model

Benefits

Supports the ability for Institutions to effectively measure against performance targets across multiple dimensions e.g. Student EFTSL Numbers or Course Information.

Defines and embeds ‘common’ conformed views of data e.g. Student or Staff information across the Institution through the use of standardised data definitions and business glossaries.

Helps to preserve the tracking of historical data/attributes and changes for trend analysis

Enforces Data integrity - Provides a repository of "cleaned up " transaction processing systems data e.g. Student, HR or Finance systems

Provides a integrated ‘information centric’ platform for easier end user access from a single ‘trusted’ repository- Leading to increased productivity and analysis.

Information Maps Integrated Data Models

- 17 -- 17 -

Benefits

Helps to define information governance policies and procedures e.g. how processes and business rules will be captured, owned, documented and transparently made available across the Institution.

Sets guidelines as to how enterprise data and Information will be integrated and delivered through the environment through optimum Service Delivery models.

Helps to manage the current skill requirements and gaps for the to-be governance organisation

Provides and promotes consistent data management and definitions e.g. Staff positional Data or Course Unit offering data.

Information Governance and Organisation Helps to define and use a enterprise-wide framework for the management and accountability of information and data

MIS

/

Da

ta C

ust

odia

nD

ata

Ste

wa

rd /

D

ata

Ow

ne

rB

usi

ne

ss U

ser

Yes

Yes

No

No

Collaboration

No

Yes

No

Yes

Identify/review business term to

be defined, updated or baselined

Document the agreed upon

business term for the Data Dictionary

Inform and provide

documentation to MIS on the new/updated

definition

Submit proposed definition/

modification with recommendation to Data Owner(s)

for approval

Communicate suggestion for term addition/modification to

appropriate Data Steward

Publish definition to PCG

Review updated business term in

the Data Dictionary with

MIS

Review reports for rationalization

Identify need for clarification of a business term

Review updated business term in

the Data Dictionary with Data Steward

Does the change require Data

Owner(s) approval?

Inform Business User and

determine next steps

Add/update business term in

the Data Dictionary

Business User

Agree upon term definition, category, classification and other attributes

captured in the Data Dictionary

Does Data Owner(s) approve?

Facilitate discussion with Data Stewards

from other functional groups

as necessaryData Steward

Is business term updated

appropriately?

No action is neccesary

Is the term currently defined

in the Data Dictionary, and is

it accurate?

MIS / Data Custodian

Identify need for clarification of a business term

Inform Data Steward

responsible for the term

Data

- 18 -- 18 -

Benefits

Provides the guiding technology principles. Enables and promotes an effective evaluation of options for the to-be architecture whilst illustrating the most critical requirements for the Information centric environment

Provides a framework which maps and supports the information needs to existing or potential infrastructure components in order to deliver the information through the most optimum channels – Query tools, Cubes or Standardised reports.

Helps to clearly define how Information is deployed and managed within the environment reducing redundancy and duplication . Equally supports a Single version of the truth , reducing the number of information silos and provides a base to integrate those ‘islands of value’

Establish a well defined environment that will ‘house’ the integrated Data Model to service the information requirements effectively and efficiently

InformationProducers

Enterprise Information Management Conceptual EDW

InformationConsumers

ORACLE

.

ALESCO

ORION/CALLISTA

UMS

ACCESS

Internal

STUDENT SERVICES

FACULTIES AND SCHOOLS

Executive

External

DEEWR

ABS

Data Acquisition & Integration

Data Architecture & Management

Information Delivery

Metadata Management

Data Quality Management

Data Governance

Master Data Management

Data Extraction

Change Data

Capture

Data Integration

Mapping &Transform

Standardise & Validate

SummariseData

EnrichmentLoad

Enterprise Data Model

DataStaging

Integrated Data Store

Operational Data Store

ConformedData Marts

Reference Data

Student

Master

Staff/EmployeeMaster

PoliciesData

StewardshipOwnership

Accountability

Security & Privacy

Quality Measuring

CleansingReportingValidation & Detection

Assignment

AlumniContacts

Reports

Data Mining

Ad- hoc Queries

OLAP

MetadataRepository

CALLISTA STUDENT

Op

era

tio

na

l a

nd

Ap

plic

atio

n S

ou

rce

Da

ta

HERC

Portals

Dash-boards

ECU Functions &

Schools

Data Definitions

PublicationsImpact

AnalysisData

LineageProcess

MetadataStructuralMetadata

ENVISAGE

CALLISTA RESEARCH

UTEI

CMS

EXCEL

Application Environment

- 19 -

Leading to …….

Enterprise Information Management

Better access to data

More accurate data

More timely data

Better understanding of data

Reusable data

Better, fasterdecisions

Increased efficiencyand productivity

Ability to meet students needs more quickly

Lower cost

- 20 -

Performance Management demands and Trends

Government policy changes will mandate better information to detect change, make better decisions and communicate the changes and decisions.

Institutions with a strong culture of information-based management should create initiatives to respond to the changing information and analysis needs of executives to remain agile and responsive to the changing demands and constraints. - Gain Strong executive sponsorship and support

Closing thoughts……

Key Success Factors

Remain technology agnostic and agile to the changing business needs, however ensure that the technology platforms support and deliver the information requirements and needs.

Develop a Scalable, Manageable and Secure Information environment - Access of right data to the right user

‘Partner’ with Business functions to review and validate information assets holistically - Integrated Information Strategies.

Create and define Information standards holistically - Information Alignment and Master Data Management

Link information management initiatives, performance management requirements and applications across and between business areas so that they can add benefit across the institution – Agile, flexible and dynamic Information Models.

Promote the use of social channels to communicate Information standards – Establish use of collaboration environments such as Wiki’s to help ‘socialise’ Business Data dictionaries or glossaries - Self Servicing and educating environment

Thank You

Mr Monish PaulPartnerDeloitte

Email - mopaul@deloitte.com.au

Mr Bhavesh ChavdaDirectorDeloitte

Email - bchavda@deloitte.com.au

Copyright © 2009 Deloitte All rights reserved.

About Deloitte

‘Deloitte’ refers to the Australian partnership of Deloitte Touche Tohmatsu and its subsidiaries. Deloitte, one of Australia’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through over 4000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit Deloitte’s web site at www.deloitte.com.au.

Deloitte is a member of Deloitte Touche Tohmatsu (a Swiss Verein). As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other, related names. Services are provided by the member firms or their subsidiaries and affiliates and not by the Deloitte Touche Tohmatsu Verein.