Information Technology: The Changing Roles of 21 st Century Universities

1. Information Technology: The Changing Roles of 21st Century Universities Dan Reed Dan_Reed@unc.edu Chancellor’s Eminent Professor Vice Chancellor for IT University of North Carolina at Chapel Hill Director, Renaissance Computing Institute (RENCI) Duke University North Carolina State University University of North Carolina at Chapel Hill

2. Information Technology: The Lever • The 21st century is about knowledge economies • managing information for competitive advantage • Universities are in the knowledge business! • creation, preservation, transmission, and application • IT is about knowledge management • education, research, service and business processes • Two relevant entities at UNC Chapel Hill • Information Technology Services (ITS) • Renaissance Computing Institute (RENCI) “Give me a place to stand and a lever long enough, and I will move the world.” Archimedes, 287-212 BC

3. President’s IT Advisory Committee • Computational Science: Ensuring America’s Competitiveness • A Wake-up Call: The Challenges to U.S. Preeminence and Competitiveness • Medieval or Modern? Research and Education Structures for the 21st Century • Multi-decade Roadmap for Computational Science • Sustained Infrastructure for Discovery and Competitiveness • Research and Development Challenges

4. Exemplar 21st Century Challenges • Population growth • severe weather sensitivity • statewide impact • geobiology and environment • economics and finance • sociology and policy • Economics and health care • longitudinal public health data • environmental interactions • genetic susceptibility • heart disease, cancer, Alzheimer's • privacy and insurance • public policy and coordination

5. Leuttich and Blanton Storm Surge UNC ADCIRC Model Severe Storm Modeling • $10T U.S. economy • 40% is adversely affected by weather and climate • $1M in loss to evacuate each mile of coastline • we now over warn by 3X! • average over warning is 200 miles ($200M/event) • Multiple models • atmosphere, ocean, geography • biology, fishing, environment • economic and social • Goal • timely and accurate forecasts • using dynamic adaptation • Attributes • integrated monitoring and analysis • data capture and adaptive analysis • LEAD Grid • Linked Environments for Atmospheric Discovery • Oklahoma, Indiana, UCAR, Colorado State, Howard, Alabama • Millersville, NCSA, North Carolina

6. June 26, 2000

7. The Pace of Innovation is Quickening • Social compacts and acceptable use • historically, generally over a generation • generational internalization is no longer possible • Concomitant economic dislocation • learning for a lifetime Television 100 Telephone Electricity Radio Automobile VCR % Penetration 50 PC Cellular 20 Internet Source: Council on Competitiveness 0 25 50 75 100 125 150 Years

8. Understanding the Future • Some rules of thumb • in the near term, we overestimate change • in the long term, we underestimate changes • Outside their field of expertise • experts are often better at predictions • the contra-Delphi effect • Inventing the future is far more successful • recognize exponentials • quantitative change brings qualitative change • Technological and social change • move at different rates and have differing consequences • Consider digital music • born of storage technology advances • bred social and business change

9. Qualitative Change 1972 80 GB in 2004 5 MB in 1956

10. Digital Photography • Digital camera sales • now exceed analog • Kodak (January 2004) • cutting up to 15,000 jobs Source: GfK Marketing Services

11. Digital Reality: The Exponentials • Megabyte • a small novel • Gigabyte • a pickup truck filled with paper or a DVD • Terabyte: one thousand gigabytes – ~$1000 today • the text in one million books • entire U.S. Library of Congress is ~ten terabytes of text • Petabyte: one thousand terabytes • 1-2 petabytes equals all academic research library holdings • coming soon to a pocket near you! • soon routinely generated annually by many scientific instruments • Exabyte: one thousand petabytes • 5 exabytes of words spoken in the history of humanity • See www.sims.berkeley.edu/research/projects/how-much-info-2003/ Source: Hal Varian, UC-Berkeley

12. The Six Computing Eras • Big Iron (post WW II) • vacuum tubes and campy science fiction movies • Mainframe (‘60s/’70s) • spinning tapes and bad science fiction movies • Workstations (‘70s/’80s) • spinning disks and Star Trek™ • PCs (‘80s/’90s) • spinning CDs and Jurassic Park™ • Internet (‘90s) • spinning DVDs and Internet pet food companies  • Implicit computing (21st century) • IPods™ and The Matrix™ • embedded intelligence in everyday objects • number of processors/person  infinity

13. Social Process Implications • Social compacts and acceptable use • historically, generally over a generation • telegraph, telephone, automobile • today, the pace of change has accelerated • generational internalization no longer possible • Concomitant economic dislocation • learning for a lifetime • Applications and ethics • right/wrong and consensus • informed debate and engagement • Diverse domains • biomedicine, environment, business, …

14. Information and Social Processes • Google • it’s a search engine, it’s a verb, … • Blogs • published self-expression • Instant Messenger • social networks • Wireless messaging • semi-synchronous • Internet commerce • the dot.com boom/bust • EBay, Amazon • Spam, phishing, … • anti-social behavior Web Browser: 12 Years Ago

15. Attention as a Scarce Resource What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention, and a need to allocate that attention efficiently among the overabundance of information sources that might consume it. Herbert Simon

16. University Data Challenges • Multiple cultures • arts, humanities and social sciences • sciences and engineering • Many scholarly communication approaches • books, monographs, journals, conferences • access time, priority and intellectual property • multiple media and expression • text, audio, video, artifacts, performances, … • primary and secondary source materials • professional societies and private publishers • Institutional repositories • multiple visions and roles • digital archives and/or alternative publication venues • research and education • access modes and goals, not just articles or books • longitudinal access and lifelong learning • what and how much to save • declining cost of storage and simplicity of deposit

17. Phishing and Identity Theft

18. Privacy and Security: Eternal Tension “But it was all right, everything was all right, the struggle was finished. He had won the victory over himself. He loved Big Brother.” George Orwell

19. Even McDonalds Can Outsource “If you're in L.A.... and you hear a person with a North Dakota accent taking your order, you'll know what we're up to," McDonald's Chief Executive Jim Skinner told investors during a presentation at the Bear Stearns Retail, Restaurants and Apparel Conference in New York. “You have a professional order taker with strong communications skills whose job is to do nothing but take down orders,” said Matthew Paull, McDonald's chief financial officer. • Why outsource? • increased accuracy • fewer incorrect orders • reduced wait time • higher customer satisfaction • more customers served

20. The World Is Flat • North Carolina’s competitors are not • Boston, Atlanta, Chicago, Los Angeles, … • The competition is global • Bangalore, Mumbai, Shanghai, Seoul, … • Costs of information flow • are approaching zero • Global economic winners will • have a better trained workforce • have the ability to participate globally • be horizontally, not vertically integrated • nobody is best at everything

21. Lessons for North Carolina • Evolving economy • shrinkage • agriculture, textiles, furniture, … • growth • banking/finance, biotechnology, IT • Shifting demographics • rapid Hispanic population growth • changing age distributions • Globalization • virtual organizations • come as you are structures • Embrace change, for it brings opportunity! • albeit with pain and dislocation

22. Evolving University Roles • American university “eras” • pre and post-colonial • private and original state universities (e.g., UNC-CH) • land grant • many state universities (e.g., NCSU) • post World War II • GI bill and educational “democratization” • today, the fourth wave • economic drivers and continual re-education • A new compact with the citizens • lifelong education and economic competitiveness • knowledge economy leverage • value chain enhancement • Intelligent application of IT is a powerful force

23. Roles of Great Universities • Frame and lead the debate on critical issues • shape state, national and international positions • Train tomorrow’s leaders • public and private • Enrich the human experience • scholarly, cultural, social and recreational activities • Nurture and broaden participation • the common wellspring of humanity • Produce and transfer new knowledge • the raw material of the knowledge economy • Sustain lifelong education • knowledge for a lifetime and refreshed skills for a profession • Catalyze economic development • job creation and corporate competitiveness

24. Science and Engineering Degrees • Population ratios • 24 year olds • NS&E degrees • Natural Science & Engineering • Changing behavior • U.S. implications • globalization and innovation • 21st century economy Source: NSF S&E Indicators, 2004

25. Bachelor’s Degree Holders: 2002 Source: NSF S&E Indicators, 2004

26. Engagement and Economics Bohr Pasteur Understanding Driven Edison Use Driven

27. Industry create marketable products return fair shareholder value be a good corporate citizen effective working environment Environment relatively short timelines applied R&D proprietary bias frequently productize Universities educate students and staff generate knowledge take research risks Environment relatively long timelines basic research “openness” bias less frequently productize Industry/Academic Relationships Prototypes Production Innovation Collaboration

28. Lessons from the Dot.Com Bust • Pets.com • founded in 1999 • February 2000 IPO for $82.5M • IPO at $11/share • ultimately closed at $0.22/share • national TV marketing • $2M Super Bowl spot • $20M total in 1999 • 1.8M visitors/month by October 2000 • 570,000 customers • Lessons • outspent rivals 2:1 • overestimated online customer base • ineffective value proposition • did not offer compelling rationale • sold below cost with free shipping • My grandmother told me, “Good judgment comes from experience. Experience comes from bad judgment.”

29. Lessons from the Dot.Com Bust • Dot.Com strategies • build customer brand • increase web site traffic • Lessons • recognize costs • customer acquisition • service fulfillment • make money  • The “irrational exuberance” happened before • vehicle manufacturing • 2600 U.S. companies since 1896 • only two remain (Ford and GM) • high-end commercial aircraft • only our friends at Boeing remain

30. Lessons from the Dot.Com Bust • Competitive advantage • low cost or differentiation at a premium • operational effectiveness or strategic positioning • Customer value proposition • identify it clearly and never forget it • eBay provides a market for rarities • Customer base retention • simplify customer return and repurchase • Amazon retains credit card and preference data Procurement and Logistics Manufacturing and Operations Outbound Logistics Sales and Marketing Service Human Resources Technology Management

31. Hype Realism Q Factor Number of Adopters Death (e.g., dot.com) Hangover Trigger Early Adopters Early Majority Late Majority “A small group of thoughtful people could change the world.  Indeed, it's the only thing that ever has. ” Margaret Mead Time Time Technology Adoption Cycles Based on Gartner Group Idea

32. Carolina’s Institutional Priorities • Strengthen faculty recruitment, retention, development • Create richest possible learning environment for undergraduate, graduate and professional students • Invest in centers of excellence in research and creativity • Enhance Carolina’s engagement with North Carolina and the world • Successfully complete campus development plan; begin Carolina North • Determine strategies to direct resources to highest priorities • Define Carolina’s role as a leader

33. Mission empower faculty, staff, students advance Carolina institutional missions Organizational structure integrated three separate elements academic and research computing (ATN) administrative computing (AIS) systems and procedures created ITS advisory committees customer engagement Senior leadership VC for IT and CIO Dan Reed Associate VC and Deputy CIO Robyn East (from GWU) Associate VC for Planning John Oberlin Ten technical areas communications financial planning and HR teaching and learning research computing telecommunications IT infrastructure & operations enterprise data management enterprise applications user support and engagement security Information Technology Services (ITS)

34. ITS Is … • Security and privacy services • Computer laboratories • IT Response Center (ITRC) • Campus licensed software • Carolina Computing Initiative (CCI) • Blackboard and distance education • Electronic classrooms • On-campus telephone company • Campus network and email • Administrative applications • Research computing support • and many more things …

35. Selected ITS Goals • Implement Enterprise Resource Planning systems to replace aging administrative systems, integrate major business functions and enable more effective management of Carolina’s $2B+ enterprise • Upgrade the campus network infrastructure to state-of-the-art capacity, enabling the services of the future – integrated telephony and networking • Develop a storage infrastructure that will adequately accommodate academic and research computing needs • Develop the physical IT infrastructure to accommodate growth in buildings, programs and IT adoption • Develop new and innovative applications of IT in the classroom and across the curriculum

36. Admissions Student Web Services - Student Central Student Information Services Student Web Services - Applicant Central Billing for Tuition and Fees Student Aid Student Housing Academic Advising Institutional Reporting External Agencies Online Interfaces Student Records - Grades, Transcripts, etc. Degree Audit

37. Finance Central Financial Records System InDEPTh Payroll Finance and Administration Accounts Payable System Position Management Research Grants Accounting Benefits System Investments Management Training and Development System Coeus Employee Records Budget System Tarheel Temps Admissions Asset Accounting Student Web Services - Student Central Person ID (PID) Management System Student Information Services Student Web Services - Applicant Central Cash Receipts Employment System Travel Accounting Billing for Tuition and Fees InPower Human Resources Information System Purchasing System Student Aid Capital Improvements Facility Planning & Design Materials Management Inventory Control System Student Housing Utilities Billing System Academic Advising MAXIMO Cogeneration Facility System Equipment Tracking ONE Card System Institutional Reporting Inventory Tracking Printing Services Management System Work Order Tracking External Agencies Online Interfaces Facilities Personnel System Student Stores Retail Management System Student Records - Grades, Transcripts, etc. Facilities Maintenance Enterprise Job Tracking Degree Audit Inventory Campus Police System Time & Material Tracking Environmental Health and Safety Management Information System Motor Vehicle Tracking Mailing Services System Insite Space Management System Facilities Equipment – Tool Facilities Procurement Information Technology Purchases System

38. Capital Improvements Facility Planning & Design Utilities Billing System MAXIMO Cogeneration Facility System Equipment Tracking Inventory Tracking Work Order Tracking Facilities Personnel System Facilities Maintenance Enterprise Job Tracking Inventory Time & Material Tracking Motor Vehicle Tracking Mailing Services System Facilities Procurement Data Warehouse Other University Applications Telecommunications Billing System Finance Central Alumni Records System Finance and Administration Payroll Accounts Payable System Position Management Coeus Admissions Benefits System StudentWeb Services - Student Central Investments Management Development Office Contributor Records System Training and Development System Student Web Services – Applicant Central Student Records - Grades, Transcripts, etc. Employee Records Budget System Tarheel Temps Asset Accounting Continuing Education Management System Person ID (PID) Management System Billing for Tuition and Fees Cash Receipts Employment System Student Aid Travel Accounting Student Information Services InPower Human Resources Information System UNC Physicians & Associates Medical Billing System Purchasing System Student Housing Materials Management Inventory Control System Academic Advising Institutional Reporting ONE Card System Computer Repair Center System External Agencies Online Interfaces Printing Services Management System Degree Audit Student Stores Retail Management System Other State Agencies Campus Police System Environmental Health and Safety Management Information System Office of the President Financial System Insite Space Management System UNC Television Contributor Records System Information Technology Purchases System Campus Directory

39. Campus Strategic IT Planning • Tied to campus strategic plan • becoming America’s best public university • Coordinated planning groups • overall strategic IT plan Research & Scholarship Committee Enterprise Applications Committee Coordinating Committee Education & Learning Committee Communication & Networking Committee

40. Renaissance Computing Institute • RENCI vision • a multidisciplinary institute • academe, commerce and society • broad in scope and participation • from art to zoology • Objectives • enrich and empower human potential • faculty, staff, students, collaborators • create multidisciplinary partnerships • science, engineering and computing • commerce, humanities and the arts • develop and deploy leading infrastructure • driven by collaborative opportunities • enable and sustain economic development • Multidisciplinary team model • scientists, creative artists, and computing researchers • exploring new approaches to old and new problems • Leverages research excellence • Targets statewide opportunities

41. Renaissance Presence: Multiyear Rollout National Lambda Rail (Washington) • Components • optical networks, infrastructure, collaboration and people Triad RTP Asheville Greenville Charlotte Wilmington Fiber Optic links National Lambda Rail (Atlanta)

42. The Barriers of Time and Space • Networks are the 21st century interstate highway system • expertise and information, the real product National Lambda Rail (NLR)

43. Projecting Presence • Many modalities • Access Grid, network-enabled group meetings • remote sites, following the people, opportunities and money • mobile presence, to opportunities and remote areas

44. State Engagement Education & Outreach Economic Engagement Research Support Statewide Optical Networking Leading Edge Computing Facilities Engaged Staff and Outreach … Mobile Mobile Mobile Mobile … Regional Site Regional Site Anchor Site Statewide Optical Networking Distributed Data Archives RENCI Distributed Vision

45. RENCI and Strategic Competitiveness • Industry challenges • quarterly profits • international competition • little R and big D • The Innovator’s Dilemma • Crossing the “valley of death” • new technologies and ideas • the pipeline of new ideas • committed and experienced staff • university and industry engagement • Lessons from the NCSA experience • industrial examples • Caterpillar: virtual environments and design • Motorola: rescue channels and standards • Allstate: data mining • Eli Lilly: drug screening • hundreds of millions of dollars in savings • 10:1 investment advantage

46. Thanks for Your Interest!