Questions for a 9 Year Old

1. Questions for a 9 Year Old Brad Wheeler Vice President for IT, Dean, and Professor Indiana University http://1.bp.blogspot.com/-cD91WFsK4Co/TZPIY-7QLWI/AAAAAAABpgE/tiiH51mMAak/s1600/Chess%2BPlayer%2B-%2BCartoon.jpg

2. 30 August 2004

3. Discussion Questions • Why bother? • Does Kuali really cost less to implement, operate, maintain? • Aren’t cloud-based admin systems a better path forward? • Why adopt/invest now rather than later? • How long until a full suite? • Tell me how it works…really [Kuali 101].

4. <Kuali 101>(Cliff Notes Version)

5. Kuali Community Ecosystem Open Licensing Software Consumers Software Producers Commercial Support

6. Two Models of Software Production The Bazaar The Cathedral

7. A gap…. Need for a Hybrid Model …Community Source “The Pub…the Place Between the Cathedral and the Bazaar”

8. Values-driven Community Few, but important, “Immutables” • Small foundation, Big Projects…Kuali is not your vendor • Common, non-viral open-open license • Projects must have a formal charter/gov • Kuali Foundation manages fund-based, audited financials • Members can be institutions or firms • Foundation owns and authorizes use of brand

9. Kuali Secret Sauce?... Values Lightweight Coordination (few immutables) ValuedCollaboration (participate) Severable Property (walkaway)

11. Portfolio-ness

12. Kuali Foundation Services to Projects • Legal Services • Intellectual Property and Licensing • Financial Management • Hosting Services • Community Coordination and Events • Collaboration Infrastructure • Quality Assurance • Communication Management • Public Relations • kuali.org

13. Kuali Foundation • $28M in Net Assets FY12 • Includes MOU commitments and cash • $25M restricted to projects • Kuali Projects are spending about $18M per year via foundation • 501(c)3. Clean audit. 6 staff.

14. Institutional Membership

15. Commercial Membership Kuali Commercial Affiliates (KCAs) provide: • Services • Planning • Implementation • Cloud Delivery • Support

16. KualiDays (Public) – Fall900 in Nov 13 2) KualiWorkshop (Members) – Spring Kuali Meetings Approach

17. Typical Project Stages Discussion Incubation Build Enhance Investors What? Board Sustain Who? Functional Council Scope Common Need Technical Team Plan Integrate When? Timeline Expand?

18. 2014 and Beyond Keep your money in your Mission

19. Crossing the Chasm What Kuali Messages best appeal to Early Adopters? http://blog.triplepointpr.com/wp-content/uploads/2013/04/Technology-Adoption-Lifecycle.png

20. Kuali “Choice” Ads

21. Means: Rethinking Kuali Foundation Dues Present Dues – Unchanged Since 2006 Looking Ahead What are the right levels of Dues? How should they change over time? Funding Portfolio-ness via NewSustaining Member Category?

26. Licensing Cost Models Licensing & Support Costs $$ $$$ $ Number of Students, Faculty, Staff, etc.

27. What does Kuali include? http://www.kuali.org/software Kuali Open Library Environment - Comprehensive Library Management System Kuali Student - Comprehensive student administration system. Kuali Financial System - Comprehensive Financial System Kuali Coeus - Comprehensive Research Administration and Compliance System Kuali People Management - Comprehensive HR system. Kuali Rice -Foundation for all Kuali applications

28. Kuali NOW for Student IU Enhances Oracle/PeopleSoft Student System with Kuali Modules

29. </Kuali 101>(Cliff Notes Version)

30. Discussion Questions • Why bother? • Does Kuali really cost less to implement, operate, maintain? • Aren’t cloud-based admin systems a better path forward? • Why adopt/invest now rather than later? • How long until a full suite? • Tell me how it works…really [Kuali 101].

31. 1. Why Bother? Big administrative systems are not strategic. They ARE expensive, political, and never finished. Pay it and focus on mission.

32. At Least Three Curves Confronting Universities • Public to Private Good …(price/cost pressures) • Digital Favors Scale …(rise of substitutes?) • Campus CIO Influence …(who’s driving?)

33. 1. Funding for Public Education (Higher Education in Increasingly a Private Good)

35. HEPI CPI Actual

37. Conclusion: Colleges and Universities Must Substantially Change our Cost Structure 20% by 2020? 50%? Minimal goal: Can We Reallocate at least 20% of the cost of Administrative Servicesto the Mission by 2020?

38. 2. Does Kuali Cost Less?

39. System Lifecycle Approaches and Costs? What is the shape of thecumulativecost curve?Does it varyby path?Does it matter?Why? How ManyScholarshipsProfessorships?

40. System Definitions on Next Page • Key Points • # of add-on systems is growing • # of homegrown systems growing • % of resources required for maintenance is growing • Backlog of desired new capability is growing

41. Cost Per Year

42. Here we go again… $5B? $10B?

43. Collective Billions in Administrative Expense $100M  ∞ $83M Replaced by $82M project

46. $186.5M / 15 years = 12.43M per Year

47. Presentation to Regents, July 11, 2012

48. $83.5M Presentation to Regents, July 11, 2012

49. Implementing Kuali Financials

50. 5 Yr TCO Comparison of ApproachesFinancial System What Drives the Savings? $15M Software Maintenance Software Maintenance Implementation Costs Better ‘Fit’ = Less Customization, Faster Deployment Internal Support Community Development Implementation Costs $10M Software Licensing Hardware & Infrastructure Internal Support Implementation Costs $5M Community Development Software Licensing Internal Support Hardware & Infrastructure Cloud Service Internal Support Impl. Costs Hardware & Infrastructure Impl. Costs Impl. Costs HW & Infrastructure HW & Infrastructure StateU FTE: 6,000 Exp: $45M FTE: 40,000 Exp: $2.7B FTE: 100,000 Exp: $5.2B FTE: 24,000 Exp: $600M FTE: 5,700 Exp: $166M Upgrade Only