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Preparing for the Next Evolution of Higher Education

Preparing for the Next Evolution of Higher Education. Herman Bulls Chairman, Public Institutions August 3, 2013. Infrastructure challenges. People living longer, healthier lives. Digital technologies. Personalized medicine. Distance learning. Biotechnology. BIG DATA. Flattening world.

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Preparing for the Next Evolution of Higher Education

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  1. Preparing for the Next Evolution of Higher Education Herman Bulls Chairman, Public Institutions August 3, 2013

  2. Infrastructure challenges People living longer, healthier lives Digital technologies Personalized medicine Distance learning Biotechnology BIG DATA Flattening world Automation Growth in cities Zero emissions Energy challenges Growth of virtual content Consumer is king Instantaneous, ubiquitous access Smart infrastructure Emerging economies Digital formats Artificial intelligence “Peak attention” 3D printers Individualism Power shifts

  3. Millennials in the workforce 40 million millennials are already in the workforce, and by the year 2025, they’ll make up three out of every four workers worldwide. 3

  4. “Just in time” everything Over 4 million students are currently taking at least one of their classes online…and it will continue to increase. 4

  5. Connectivity and convergence By 2020, the world will see 80 billion connected devices, nine billion mobile phones and five billion internet users, 50% of whom connect through handheld devices. 5

  6. Big data There will be 35 zettabytes of data generated annually by 2020; up from 2.7 zettabytes in 2013 6

  7. “Smart” is the new “Green” Companies worldwide invested $5.5 billion in intelligent building systems in 2012, and the number is expected to rise to $18.1 billion by 2017. 7

  8. The move towards “ZERO” As technology continues to advance, we will be able to create foolproof systems that remove what we do not want, resulting in “zero….” 8

  9. Mega Cities Across the world, the pace of urbanization is picking up. City limits are expanding and so-called “mega-cities” are emerging, along with “mega-regions” and “mega-corridors.” 9

  10. What does this mean for higher education institutions? • Different resources are needed • The value of a traditional institution is questioned • Become more competitive by understanding and analyzing existing data • Learn from best practices in corporate and other sectors which have the discipline of market forces to manage resources 10

  11. What does this mean for facilities in higher education institutions? • A changing demand for real estate • Continued fiscal challenges will require a unique approach • A greater need to understand available technology • It will be more critical than ever to become a "partner" with your Chief Business Officer. 11

  12. Will you be a part of the problem, or a part of the solution? 12

  13. Case study State of Tennessee • Situation • 10.5 million square foot portfolio of State owned and leased real estate. • Initiatives • Perform a Facilities Assessment for 4.5 million sf • Undergo an Operations Analysis • Create Occupancy Master Plans for major cities • Develop a Capital Pre-Planning Process for state agencies • Implement a Transaction Management Process for state leases • Outsource Facilities Management (enhanced process, systems, procedures, training) • Results • Identified deferred capital funding requirements of $241.1 million while determining there were potential savings in the operating expenses $ 50 million over 5 years • Master occupancy plans save $100 million over 10 years; reduce portfolio 1 million sf • Redesigned space resulted in 30-35% increase in number of employees. • Capital Planning process is enabling the State to avoid $122.4 million in potential budget shortfalls. • Employee moral improved (lighting, collaboration space, environment). • Colleges and Universities in the State are able to use this contract 13

  14. Questions? Herman Bulls Chairman, Public Institutions Herman.Bulls@am.jll.com +1 212 719 5612

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