Digital transformation in Higher Education webinar Monday 10 September 2018 Speakers: Kuldip Sandhu and Paul Featherstone The link to the write up page and resources of this webinar: https://www.apm.org.uk/news/digital-transformation-in-higher-education-webinar/

1. 1
Kuldip Sandhu & Paul Featherstone
Digital Transformation in UK Higher EducationInnovative Quality Solutions (IQS)
www.innovativequalitysolutions.co.uk
07990 566671

2. 2
The UK HE Disruption Storyline
1. The Higher
Education sector
in UKI today
2. Emergence of
Digital business
models in other
industries
3. Global Digital
Disruption in HE
and your losing
student
numbers/income
4. Digitalisation
and Digital
adoption in UKI
5. You can now
hear from
someone who
has evolved in
UKI

3. 1. UK Higher Education Sector
The higher education sector is a major contributor to the UK Economy
.Universities in the UK
received £34.7 billion in
income in 2016-17
Universities generated a larger annual
turnover than the legal activities sector
(£31 billion) and the advertising and
marketing sectors (£20billion)
In that one year, university
research, student services
and teaching contributed
£21.5 billion to UK gross
domestic product
In total, UK universities and their expenditure
supported a £46.8 billion gross value-added
contribution to GDP. This equates to 2.6
percent of the economic activity in the UK in
2014-15.
The research universities undertake also
benefits the supply-side of the economy
leading to the development of new products,
enhancing productive processes and fostering
innovation
Source: The economic impact of UK universities, 2014-15, Oxford Economics October 2017
2/3’s of UK HE institutions
have incomes of more
than £100M
Educators of the future Leaders of the nation – we should not fail them
Just over a ¼ of
institutions have 20,000
students and above
54% of income is
generated from student
fees

4. 1. Wide spectrum of Universities….
• 2.3M UK Students (UG, PG, Part
Time)
• 136 UK Universities
• Russell group (20-24 large
research based Universities)
• Incomes from £50M to £1bn
• Students from 5K to 50K

5. 5
The UK HE Disruption Storyline
1. The Higher
Education sector
in UKI today
2. Emergence of
Digital business
models in other
industries
3. Global Digital
Disruption in HE
and your losing
student numbers
4. Digitalisation
and Digital
adoption in UKI
5. You can now
hear from
someone who
has evolved in
UKI

6. 2. THE WORLD HAS CHANGED
Fourth industrial revolution & the rise of digital
Economic uncertainty and change
Global political and social instability

7. 2. The change in customer experience…….societal change
Technology Change:
• Big data
• AI
• Robotics
• Blockchain
• New products & services
• Enabling new business models
• New forms of organising
• Not just reducing headcount but
reshaping jobs
Technology Enabled to Technology Centric

8. 2. Pace of Technology Adoption has increased

9. 2. Still not convinced? What happens in a Internet minute?

10. ….and then the rise of the bots ….
Artificial
Intelligence &
Robotics

11. But then there is more ….
Artificial
Intelligence &
Robotics

12. Not forgetting what this means in terms of connected data

13. 2. Digital Disruption is here
World’s largest Taxi
firm…… owns no
Taxis
Largest
accommodation
provider……owns
no property
Largest phone
companies……
owns no Telco
infrastructure
World’s most
valuable
retailer…… owns
no Inventory
World most
popular media
owner…… owns no
content
Largest software
vendors…… don’t
right the Apps

14. An Investor’s View …
1. The competitive digital landscape
– Pace
– Disruption
– CEO’s aren’t seeing it
2. Reinvent or die (disrupt and obliterate)
– Plan for reinvention (ThorpyFx)
– Value models are changing (TheGigRig)
– Speed is an imperative (Strategy/ Joe’s Pedals)
– How these fit …
3. What should the CEO/ CIO/ CTO/ CDO/ CAO be doing?
– Be digital business savvy
– Understand the impact of the new order
– Start the reinvention activity today
9
Technologyis eating everyindustry

15. An Investor’s View …
1. The competitive digital landscape
– Pace
– Disruption
– CEO’s aren’t seeing it
2. Reinvent or die (disrupt and obliterate)
– Plan for reinvention (ThorpyFx)
– Value models are changing (TheGigRig)
– Speed is an imperative (Strategy/ Joe’s Pedals)
– How these fit …
3. What should the CEO/ CIO/ CTO/ CDO/ CAO be doing?
– Be digital business savvy
– Understand the impact of the new order
– Start the reinvention activity today
9
Technologyis eating everyindustry
2018
2023
$851B $717B $703B $701B $508B
$?T $?T $?T $?T $?T

16. SaaS IaaS PaaS
2. Example Digital Business Models
Model 2:Hybrid Enterprise
Traditional
Enterprise
Digital
Native
Digital
Acquisition
Business Model
Reinvention
Model 3: Digital Enterprise
Enhanced Customer
Experience
Bi & Tri Modal
Agile / Innovation /IoT/DevSecOps
Big Data / Analytics
Digital Native (Start Up)
Offerings
(Products/Services)
Business Processes
IT systems
Model 1: Traditional Enterprise
Customer Satisfaction
Infrastructure
SDLC / Waterfall
Digitalisation & Efficiency
Digitalisation & Digital
Transformation

17. 17
2. Digital disrupts or enables every industry
Telemedicine
Wearables are enabling
Care workers, Nurses,
Doctors and Surgeons to
assess patients' condition
remotely
Drones with fitted
cameras and robots to
victims' rescue as first line
response
Artificial Intelligence for
initial TRIAGE
Farming
Drones with fitted
cameras, Machine
learning help farmers
map terrain and plan for
next cultivation
Reactive, Predictive and
Prescriptive analytics are
helping to determine the
right amount of
intervention
Remote handled and
focused X'cide sparay
Banking
Digital banks with no
presence on the high
street
Predictive analytics being
used to send you offers
for credit cards and
mortgage
Payment solutions that
take care of periodic
payments and receipts
Your mobile, your bank

18. 18
The UK HE Disruption Storyline
1. The Higher
Education sector
in UKI today
2. Emergence of
Digital business
models in other
industries
3. Global Digital
Disruption in HE
and your losing
student numbers
4. Digitalisation
and Digital
adoption in UKI
5. You can now
hear from
someone who
has evolved in
UKI

19. 3. The Student is ‘King’ - Challenges
Deep, radical and urgent transformation is required in higher education. The biggest risk is that as a result of
complacency, caution or anxiety the pace of change is too slow and the nature of change is too incremental.
The business models of higher education
that marched triumphantly across the
globe in the second half of the 20th
century are broken:
Student Fees have created a
competitive landscape
Brexit has made the UK
less attractive for EU and
International Students
Public controversy about
tuition fees, Vice-Chancellors’
pay, higher education value for
money and the level of student
debt
Survival of the strongest
institutions failing due to a lack of
income. UCAS applications for
2018 almost 250,000 down on
2016, and over 100,000 down on
last year (1.4% decline)
Flawed ranking system
biased to the large Russell
group research based
Universities
Lack of understanding of
student needs (vocationally
versus, distance, academic,
part time, MOOCs)
Competition / Disruption
(MOOCs, skill-educator,
General Assembly and
consultancies are now stepping
up to compete)
Lack of focus/segmentation
(teaching versus research,
vocational courses, large
spend on Estates) Business Model possibilities now available:
• the elite university
• the mass university
• the niche university
• the local university
• The distance learning university
Digital / IT Function
maturity is low and there is a
lack of consistent innovation
Heavy regulation and over
reliance on governance
REF/TEF/Office of Students

20. 3. Courses for free………..
Coursera
MOOCs
Lynda.com on LinkedIn
Cornell
University
online
courses
Western
Governors
University
Publish Degree
Costs online

21. In reviewing this research, we have identified the trends in higher education and technology that could
have the most impact on the future Strategic Plan for Universities. They include:
• Increased experimentation in teaching and learning
– Faculty focus on student engagement and outcomes informed by data and learning analytics
– Student expectations for personalised and interactive learning
– Expanded access through online and other delivery models
– Changes in the physical campus and learning spaces
• New opportunities in research
– Big data creation and analysis (data science)
– Increasing interdisciplinaryscholarship and research
– Cross working between Universities and abilities to cross reference to research in progress at other institutions
– Increasing ability to undertake virtual experiments and modelling
• Intensified security requirements
– Meeting cyber security accreditations and certifications
– Changing cyber security attacks and machine learning or artificial intelligence to reduce zero-day threats
– Conflict between security and academic freedom
– Pressure to monitor people and resources
• Rapidly changing technologies in higher education
– Explosive growth in social, mobile, analytics, cloud, and video technologies
– Growing expectations for open interfaces, open data, and interoperability
– Proliferation of non-interoperable collaborationtools and systems
– Increasing use of personal devices and direct access to third-party solutions
3. HE & IT Trends/Innovation

22. 3. CIO PRIORITIES ARE CHANGING
What are the main issues your board is looking for IT to address?
Source: Harvey Nash / KPMG CIO Survey 2016/17
Customer
Engagement

23. 3. CIO PRIORITIES ARE CHANGING
What are the main issues your board is looking for IT to address? UK Education
Source: Harvey Nash / KPMG CIO Survey 2016/17
2016 2015 2014 2013
Change since
2013
Increasing operational efficiencies 73% 60% 62% 94% -22%
Improving business processes 67% 70% 76% 72% -7%
Better engagement with customers/prospects 60% 58% 55% 67% -10%
Enabling business change 56% 65% 88% 67% -16%
Saving costs 53% 65% 55% 72% -26%
Delivering consistent and stable IT performance to the business 53% 56% 71% 78% -32%
Delivering business intelligence / analytics 49% 60% 55% 47% 4%
Cyber security 49% New in 2016
Developing innovative new products and services 40% 35% 36% 61% -34%
Driving revenue growth 40% 26% 33% 28% 43%
Managing operational risk and compliance 38% 33% 52% 44% -14%
Improving the success rate of projects 33% 28% 43% 58% -43%
Outperforming competitors with new business models 22% 19% 33% 36% -39%
Achieving sustainable / green IT 16% 23% 38% 31% -48%
Reputation management via social media technology 13% 9% 17% 17% -24%
Enabling mobile commerce 11% 9% 26% 31% -65%
Improving time to market 11% 9% 14% 28% -61%
Driving synergies from Mergers & Acquisitions 9% 16% 5% 8% 13%
Investing in Social Media platforms 7% 9% 19%n/a -63%
Insights from data
Revenue Growth:
• Increasing student
admissions and
retention rates
• Enhancing student
/staff /academic
experience

24. 3. CIO INFLUENCE REACHES NEW PEAK
34%
Report to CEO
(Jump of 10% from last year,
Highest in survey history)
67%
Expect influence to
continue to grow
57%
Sit on Exec Board
(Highest in survey history)

25. 3. CIO INFLUENCE IN UK EDUCATION
13%
Report to CEO
(the same as last year)
64%
Expect influence to
continue to grow
33%
Sit on Exec Board
(lowest it’s been for 5 years)

26. 26
The UK HE Disruption Storyline
1. The Higher
Education sector
in UKI today
2. Emergence of
Digital business
models in other
industries
3. Global Digital
Disruption in HE
and your losing
student numbers
4. Digitalisation
and Digital
adoption in UKI
5. You can now
hear from
someone who
has evolved in
UKI

27. Internet of Things
Big Data &
Analytics
Computing
Everywhere
On Demand
Cloud Computing
AI/ML/
Robotics
Cybersecurity
Organisation
Transparency
Anytime,
Anywhere
Demands
Consumerisation
of IT
Customer
Experience
Business
Process
Reinvention
Bi-modal IT| Shadow IT | Relationship Building
Approach | Agility & Flexibility | Cross Org
Collaboration | Upskilling | New Risk Exposure
Digital/Technology Trends
Cultural Trends
Impact on the Business & IT Function
Digital Transformation = Business Model Reinvention + Technology Innovation

28. 4. REACHING BEYOND TRADITIONAL IT
UK Higher Education has become the battleground for student satisfaction,
retention and growth – Technology can act as the competitive advantage
/differentiator for attracting students/staff/academics to Institutions

29. 29
The UK HE Disruption Storyline
1. The Higher
Education sector
in UKI today
2. Emergence of
Digital business
models in other
industries
3. Global Digital
Disruption in HE
and your losing
student numbers
4. Digitalisation
and Digital
adoption in UKI
5. You can now
hear from
someone who
has evolved in
UKI

30. 5. Digital Transformation at a Russell Group University
Case Reference

31. 5. Durham University Overview
The higher education elite University using Technology for Competitive Advantage
.
Voted best wi-fi on Campus in
student survey nationally in 2017
Legacy IT systems out of date and
either required replacement or
upgrade
Significant Angst afforded to IT
due to the failure to deliver key IT
projects in the past
Significant Investment in IT
Infrastructure on the NWP
Programme has built a rock solid
infrastructure
• Distinctive collegiate (16 off)
environment
• 17,500 students and over 8,000
staff.
• UK Russell Group University
• Academic departments organised
into three faculties of Arts &
Humanities, Social Sciences &
Health and Science
• Well respected brand in the UK
and Internationally
• Want to expand and growth
• Distinctive features with
aspirations
• 78th in the QS World University
Rankings
IT Successes & Challenges

32. 32
5. Overall Observed Digital / IT Maturity
1.Strategy
4 People 5. Technology / Data3. Process
Digital / IT
Excellence
Digital Centric
IT Centric
Strategic
Tactical2.Structure
Stage1:
Adhoc
Stage2:
Operationally
Focussed
Stage3:IT
Managedasa
business
Stage4:
ValueCreator
Stage5:
Business
Integrator
1. Basic “Best Effort”
5. Innovative (Business Integration)
Consolidation
Rationalisation
Optimisation
Agility
Standardisation across the
IT function. Rigour &
controls of internal IT
process & project delivery.
Limited business alignment
2. Controlled (Operationally
Focussed)
Predictable processes
around service delivery and
management. Awareness of
need for change.
4. Optimised (Value Creator)
Business aligned. Focusing
on connected “joint” service
delivery and capability
development
Seemless business
integration. Service driven.
Continuous learning,
converging on optimised
technology service
applications
3. Standardised (IT Managed as a
business)
Reactive, disconnected
from business, internal
focus, processes and
technology fragmented.
Limited architecture
view.
Current State
Digital / IT Maturity
Initial State
Digital / IT Maturity
Target State
Digital / IT Maturity

33. 5. Durham University Outcomes
The higher education elite University using Technology for Competitive Advantage
.
IT Transformation roadmap with prioritised
IT systems list for implementation covering
student, staff and research systems
IT Strategy endorsed by Durham University
UEC, Senate & Council governance
committees for implementation which included
a IT spend of over £20M+ over the next 5
years
IT Target Operating with the buy-in of staff,
academics and senior IT colleagues including the
IS Steering committee and senior executives
across IT covering central and federated staff
detailing support and sourcing models
Development of an Investment
Framework for approval of incremental
business cases for the future
implementation of the IT strategy
Enhancing the Student Experience for the Students of the future
Detailed transformational implementation plan developed
with strategic alignment to the Durham DOES initiative
covering 12 project workstreams (systems, infrastructure,
process, people) including risks, assumptions, issues,
dependencies, constraints (RAIDC), timelines, reporting
mechanism and programme structure.
• Co creation
• Empowerment
• Listening
• Involving
• Agile and iterative
• Devolved decision making

34. 34
6. Key Take Aways

35. Digital Transformation in UK Higher Education
Key Facets for the Change
• Business Model relevant to target audience
• Leadership – IT seat on the Board
• Digital Vision & Strategy
• Cultural Change
• Technology Investment
• Technology Enablement
• New Operating Model – Generational buy in
• Data driven Agile Transformation
Peter Drucker said "culture eats
strategy for breakfast"
“The Only Thing
That Is Constant
Is Change -”
― Heraclitus

36. Key Competencies for Digital Leaders
Strategic Orientation
Data Centricity
Results Orientation
Commercial Agility
Inspirational Leadership
Collaboration, Influence & Agility
Customer Centricity
Able to develop a digital vision for the institution/organisation that
dovetails with emerging opportunities
Bias towards action and able to marshal resources to move forwards
with pace/agility whilst set priorities to manage trade-offs
Fluent in data analysis and interpretation linking information from
qualitatively and quantitively inputs
Able to translate initiatives into commercial opportunities/ value
adding activities to leverage the firms digital assets
Can create an environment that leads to excitement and team
motivation that can lead to action, support, buy in and acts as an
emotional attachment for the team, not just the task
Can collaborate across functions to gain support, momentum and
iteratively to drive alignment and reaching solutions in joint decision
making
Have a deep understanding of customer behaviour and needs to have
awareness of behavioural changes based on different channels and
expectations evolve

37. • Strategic Guidance, Pragmatic Solutions
• Deep Technology Innovation Expertise
• Understanding of Higher Education sector
• From Vision to Reality and Beyond
• Personal Service
• Independent, Trusted Advisors
Innovative Quality Solutions
Kuldip Sandhu / Paul Featherstone
www.innovativequalitysolutions.co.uk
07990 566671