TO: Barbara Means FROM: Austin Lasseter DATE: October 27, 2009 RE: “Can we get more info on companies that claim to provide enterprise solutions for K-12?” Dear Barbara, I believe that “enterprise solutions” is used somewhat interchangeably with terms like “enterprise management system,” “enterprise software,” and “solutions architecture.” This family of school-related software products seems to be an outgrowth of the original IT function in schools: the Student Information Systems (SIS), which continues to be the most important function of any “enterprise solutions” product. As far as I can tell, a lot of companies offer this product to K-12 schools. The same companies also offer similar services to colleges & universities as well as business organizations. From what I gathered, the leader in K-12 services is a company called Pearson. Two recent reports exist that claim to describe the playing field in K-12 Enterprise Management (Eduventure, and Wilson & Nelson) but both reports are very expensive to access in full. I hope this is helpful; I confess I never heard of “enterprise solutions” before yesterday so some of this may be way off target. Hope it helps. Austin Outline of the Brief: 1. 2. 3. 4. 5. 6. History Trends in K-12 Enterprise Management Software Trends in K-12 Student Information Systems (SIS) Key Players Important Resources Appendix: Terms 1. History: a. Ten years ago, the Student Information System (SIS) was the only mission-critical academic application that most campus IT departments had to worry about. b. Then colleges and universities began adding Learning Management Systems (LMSs). LMSs provided universities with enterprise systems that could support core academic processes of teaching and learning for the first time, but they needed course and student registration information from the SIS in order to do so. Integration was retrofitted to SISs for this purpose. c. Campus IT departments have often struggled to maintain just the one integration between the SIS and the LMS. Now they are facing demands to support dozens of integrations. They need a new architecture that will break down application silos. d. Therefore, college & K-12 IT departments are now outsourcing this architecture to provider companies, which often refer to themselves as “Academic Enterprise Solutions” companies. (See: oracle). 2. Trends in K-12 Enterprise Management a. Trends in enterprise software & technology services for all businesses i. a $1.8 billion industry in 2009 ii. expected to grow annually at a modest 5% to 7% over the next few years. iii. Corporations are seeking an integrated enterprise approach to data management iv. Schools are imitating corporations in this regard b. Survey of district officials (Eduventure Report) i. Ninety-one percent of district officials indicated that it is important "to integrate academic and administrative data from various district technology systems." ii. Similarly, 90% agreed that "a K-12 enterprise management approach would enable their district to be more effective on behalf of its students." c. Data warehouse in a K-12 enterprise management platform: i. financial ii. human resources iii. facilities management iv. school and student characteristics v. instructional practices vi. assessment strategies vii. professional development viii. student achievement results. d. Perceptions of district leaders about enterprise management software i. Growth of K-12 enterprise management software is fueled by NCLB data reporting demands ii. districts ranked stakeholder access to (92%) and reporting of (87%) key data, as well as time-savings (87%), as among the strongest perceived benefits of enterprise systems. iii. district staff is relatively less confident in the potential of enterprise management systems to improve instruction, increase student performance, or enhance teacher preparedness. iv. Districts are responding directly to the need for solutions to the immediate reporting-related challenges v. Providers of enterprise solutions have not yet succeeded in providing a compelling argument regarding the link between effective enterprise data management and systemic strategies to raise student performance. 3. Trends in K-12 Student Information Systems (SIS) a. The ARRA stimulus funds will probably spur an unusually large purchase of SIS and Data Warehouses next summer. b. Four ways of calculating market share. c. Open source software like OpenSIS is having a rough go breaking into the K-12 education market. 4. Some Key Players in the Market for K-12 Student Information Systems (SIS) a. SIS market is dominated by Pearson i. Controls greater market share than any other SIS company ii. Previously offered one software product called School (for Mac and Win) iii. Recently absorbed its two nearest competitors Powerschool and Chancery iv. “There is a great deal of movement in the tier below Pearson – the acquisitions pulled two of the stronger second tier companies out of the mix and others have taken advantage of the void. Details are in the report.” Source. b. Lawson i. Largest district in South Carolina contracts with Lawson: Report c. Eduventures d. Oracle AES e. SAS Education 5. Important Resources: a. SIS Trends and Opportunity report from 2003. b. Oracle White Paper c. Eduventures' report, Trends in K-12 Enterprise Management: Are Districts Ready to Cross the Chasm? i. Press Release ii. Summary iii. Only available through purchase d. Wilson & Nelson 2009 i. “The only comprehensive market research report on Student Information Systems and Data Warehouses in the K-12 education market.” ii. Press Release on publication of report iii. Table of Contents, very helpful. iv. Access to the full report costs $3000 v. Authors are planning to publish a follow-up report APPENDIX: TERMS The phrase “enterprise solutions” is amalgamated from several other buzz words currently popular in IT: 1. 2. 3. 4. 5. “enterprise” a. In the business world, “enterprise” refers to the whole organization, as opposed to just a “department” b. In the computer industry, an enterprise is an organization that uses computers. A word was needed that would encompass corporations, small businesses, non-profit institutions, government bodies, and possibly other kinds of organizations. The term enterprise seemed to do the job. In practice, the term is applied much more often to larger organizations than smaller ones. c. The term may now be used to mean virtually anything large and corporate, by virtue of it having become the latest corporate-speak buzzword. “enterprise system” a. A system that supports enterprise-wide or cross-functional requirements, rather than a single department or group within the organization. b. A software product designed to integrate computer systems that run all phases of an enterprise's operations to facilitate cooperation and coordination of work across the enterprise. The intent is to integrate core business processes (such as sales, accounting, finance, human resources, inventory and manufacturing). The ideal enterprise system could control all major business processes in real time via a single software architecture. “enterprise information system” a. Enterprise Information Systems provide a technology platform that enables organizations to integrate and coordinate their business processes. They provide a single system that is central to the organization and ensure that information can be shared across all functional levels and management hierarchies. Enterprise systems are invaluable in eliminating the problem of information fragmentation caused by multiple information systems in an organization, by creating a standard data structure. b. A typical Enterprise Information System would be housed in one or more Data centers , run Enterprise software, and could include applications such as Content management systems and typically cross organizational borders. “enterprise software” a. Enterprise software, also known as enterprise application software (EAS), is intended to solve an enterprise problem (rather than a departmental problem) b. Due to the cost of building what is often proprietary software, only large enterprises attempt to build such enterprise software that models the entire business enterprise and is the core IT system of governing the enterprise and the core of communication within the enterprise. “strategic enterprise management” a. Strategic Enterprise Management (SEM) refers to the management techniques, metrics and related tools (such as computer software) designed to assist companies in making high-level (strategic) decisions. b. a business using SEM would incorporate a strategic information system, to manage information and assist in strategic decision making. i. A strategic information system has been defined as, "The information system to support or change enterprise's strategy." 6. “enterprise architecture” a. To some, "enterprise architecture" refers either to the structure of a business, or the documents and diagrams that describe that structure. b. To others, "enterprise architecture" refers to the business methods that seek to understand and document that structure. c. Enterprise architecture is a complete expression of the enterprise; a master plan which “acts as a collaboration force” between aspects of business planning such as goals, visions, strategies and governance principles; aspects of business operations such as business terms, organization structures, processes and data; aspects of automation such as information systems and databases; and the enabling technological infrastructure of the business such as computers, operating systems and networks. 7. “solutions architecture” a. a kind of architecture domain, that aims to address specific problems and requirements, usually through the design of specific information systems or applications. b. The solution described may be all or part of what an enterprise architect's migration plan delivers. The solution might be unrelated to any such plan. Solution architecture often leads to software architecture work[2] and technical architecture work, and often contains elements of those. The following image from the 2006 FEA Practice Guidance of US OMB sheds light on the relationship between enterprise architecture and segment(BPR) or Solution architectures.