What’s cloud got to do with it? ICA CON 2012 Michael King Vice President, Global Education Industry © 2011 IBM Corporation The world is connected: economically, socially and technically. An educated workforce, scientific research, and innovation are all essential to the development of a sustainable economy where today’s students will be: Doing jobs that have not been invented yet - Estimates are 85% of the jobs today’s learners will be doing don’t yet exist - The top 10 in-demand jobs in 2010 did not exist in 2004 Using technologies that don’t currently exist Solving problems we don’t know are problems yet 2 2 2 © 2011 IBM Corporation Educational attainment makes a substantial difference in an individual’s well-being, contribution to society and its economy Education Pays Unemployment rate in 2010 (%) Median weekly earnings in 2010 ($) 1.9 2.4 4.0 5.4 7.0 9.2 10.3 Professional Degree 1,610 Master’s degree 1,272 Bachelor’s degree 1,038 Associate degree 767 Some college, no degree 712 High school diploma Less than a high school diploma 14.9 1,550 Doctoral degree Unemployment rate in 2010 (%) 626 444 Average $782 Source: Bureau of Labor Statistics, Current Population Survey © 2011 IBM Corporation 3 Education leadership face increasing demands from parents, legislators and students while balancing tightening budgets Demands $5.3B Funding 1 in 4 drop out Race to the Top Funding to support education transformation in the US (1) Over 27% of students in the US fail to complete high school (5) Budgetary Pressures Changing Demographics Student Achievement Professional Development Affordable, Equal Access Diplomas, Degrees Workforce Skills Lifelong Learning Time Education Leaders Deliver 440% increase College tuition and fees increase over 25 years, more than four times the rate of inflation (2) $119,000 contributions 20% shortfall employment disadvantage for students not completing high school (4) Additional taxes and social contributions from a higher education graduate compared to a high school graduate © 2011 IBM Corporation 4 What’s Cloud got to do with it? © 2011 IBM Corporation 5 Education leaders are focusing on three aspects for critical improvements in education and its contribution to society. Accelerate research discovery and innovation capabilities Maximize operational efficiency & effectiveness Improve teaching effectiveness and student outcomes © 2011 IBM Corporation 6 IBM’s own use of cloud extends across the global IBM organization as a shared service and has transformed the IBM business on multiple levels. • 109,000 IBM employees use Blue Insight, the world’s largest business analytics private cloud. • 1,800 IBM marketers across 6 continents utilize IBM cloud-based Marketing Operations daily. • 6,000 IBM users of Blueworks Live to improve internal business processes • 200 million minutes of IBM web conferencing with LotusLive Meetings. • Avoiding over $20M in expenses over 5 years with our private analytics cloud • 1,200 users in IBM China development labs, plus IBM Call Center teams in the United States and India, have migrated to a desktop cloud environment. © 2011 IBM Corporation 7 © 2012 IBM Corporation 7 Cloud computing helps move beyond organizational silos Without cloud computing With cloud computing Virtualized resources Automated deployment of IT resources Standardized services • • • • Software Hardware Storage Networking • • • • Locationindependent Rapid scalability Self-service Software Hardware Storage Networking • Software • Hardware • Storage • Networking © 2011 IBM Corporation 8 Operational Efficiencies & Effectiveness from Shared Services: Enterprise Risk Management across the Univ. of Calif campuses Business challenge Reinventing business • UC System – 10 campuses & 5 Med Ctrs Access to trends in KPIs provided to executives, decision-makers & staff alike • Existing systems not designed to support analytical processing across campuses Quick visibility to where to get the most cost of risk reduction for each dollar spent • No UC-wide function supporting decision makers to understand UC’s level of risk Automation of periodic reporting drives efficiency gains in face of budget reductions • Information non-integrated, missing, ambiguously defined, or inaccessible. Flexibility across – HR, Med Ctr Care Quality, Waste Mgmt and Recycling, Finance, Safety and Insurable Risk, etc Rethinking IT Enterprise Risk Management • Data warehouse for risk and controls info • Centralized data environment (e.g. Integrated claims (losses), corporate data (exposures)… • Quantifies and track new and pre-defined KPIs UC Regents endorsed the ERM solution in March of this year / 2012, citing a decrease in the cost of risk to $13.43 per $1,000 of operating budget, representing a cost avoidance savings of $493 M since 2003-04.. © 2011 IBM Corporation 9 9 Campus Buildings are ripe for improving operational efficiencies with cloud 2025 50% 2nd 2x By 2025, buildings will be the #1 consumer of energy. Up to 50% of energy and water in buildings are often wasted. Real estate is the 2nd largest expense on the income statement. Data center energy use doubling every 5 years. © 2011 IBM Corporation 10 Examples of Operational Efficiencies from Smarter Buildings SMART IS SMART IS SMART IS Solving building systems shortcomings with the most appropriate, effective & energy efficient approaches. Integration of energy and asset management to lower operating cost. Optimizing energy consumption lowers operating costs and reduces carbon emissions. Tulane University: Connecting to existing building systems to collect metered data; incorporating advanced analytics to uncover sub optimal conditions; bringing disparate data together to drive better decision making and measurably reduce overall energy costs. Alliance Partner: Johnson Controls. IBM Rochester, MN: Incremental energy savings of approximately 5% yearly through various improvements and programs; after the installation of IBM Intelligent Building Management, the team achieved an incremental 8% savings. Alliance Partner: Johnson Controls. Bryant University: An IT initiative to create an energy-efficient data center shifted to a partnership between IT & Facilities to construct smarter buildings. A 15% reduction in energy use and 50% reduction in data center floor space has reduced their carbon footprint. Alliance Partner: Schneider Electric. © 2011 IBM Corporation 11 Education leaders are focusing on three aspects for critical improvements in education and its contribution to society. Accelerate research discovery and innovation capabilities Maximize operational efficiency & effectiveness Improve teaching effectiveness and student outcomes © 2011 IBM Corporation 12 World of R&D 2010 Size of circle reflects the relative amount of annual R&D spending by the country noted © 2011 IBM Corporation 13 Research is a substantial portion of revenue for some universities. University of California, for example, has 25% of system revenue from funded research. Over $60B in Research annual funding to US academic institutions, and growing globally Increasing expectations by funding agencies for improved outcomes through: Interdisciplinary research: e.g. NIH funded $210M over 5 yrs to 9 interdisciplinary research consortia to tackle most challenges health issues Industry partnerships: Houston Cancer Prevention inst. – $35M to 5 universites and 2 biotech firms Collaboration across institutions: e.g. ReachNC cross-state alliance to compete for grants © 2011 IBM Corporation 14 North Carolina State University makes a breakthrough in access to research & academic computing resources with cloud computing. 150% increase in students served per application license and projected software licensing costs up to 75% savings Business challenge: More than 31,000 students, nearly 8,000 faculty and staff. Growing demand for academic computing resources demanded a fundamental change in how the way it managed them. Rethinking IT Cloud computing model for provisioning technology offers quantum improvement in access, efficiency and convenience over traditional computer labs. Reinventing business “Our goal was to rethink the way we met the academic computing needs. By collaborating with IBM, we are now better able to deliver on that mission.” —Mladen Vouk, head of the Department of Computer Science, NC State University 15 © 2011 IBM Corporation Nanyang Technological University doing First-of-a-Kind work on the convergence of Cloud Computing and High Performance Computing NTU’s cutting-edge research is supported with HPC and a Green solutions approach IBM and NTU join collaborative effort to converge Cloud Computing and HPC Business challenge • To continuously advance to the next level of research, NTU needed a new High Performance Computing (HPC) Centre that can manage extensive data handling, compute-intensive analysis and large-scale modeling. Rethinking IT • • • 300 units of IBM System x “iDataFlex” Green Data Centre Design that significantly reduces power consumption IBM hardware design virtually eliminates data centre cooling requirements, enabling further cost and energy savings. HPC Cloud: HPC-as-a-Service Model Business challenge • To provide the capabilities needed to meet the HPC Requirements for the NTU Research community. • To provide and promote Parallel Computational training and consultation for the Research community at NTU, including: • • • • Understand earth Teutonic movements Simulation of flight dynamics Scientific Computational Research Rendering of animation and movies Rethinking IT • IBM Smart Cloud Solution with Tivoli’s TSAM and STG’s HPC Cloud Management Suite © 2011 IBM Corporation 16 University of Bari: Cloud in action economically Students at Italy’s University of Bari use IBM cloud to create innovative solutions to help the local economy. Business challenge • Give students a platform to create innovative solutions for local communities and businesses in southern Italy. Rethinking IT • Elastic, cloud-based services from sensors, market systems and GPS data, connecting university, private sector and government agencies. Reinventing business • Cut shipping times for local deliveries in half. • More efficient supply chain with fishermen completing transactions with merchants while still at sea. • Winemakers increase quality with constant soilcondition monitoring. © 2011 IBM Corporation 17 © 2011 IBM Corporation 17 University of Warwick: Making connections the smart way WMG is an academic department at the University of Warwick – Dedicated to developing innovative research and sharing knowledge with the business community Dr. Jay Bal and his team have built an extended enterprise system (West Midlands Collaborative Commerce Marketplace) Rethinking IT Over 15,000 users from more than 10,000 member companies – – – – Matches buyers and suppliers, primarily in the engineering industries Captures what companies can do, not just what they currently do Helps businesses move from supplying components to systems and new markets Provides alerts on new business opportunities, including tenders, directly to participating companies based on detailed profiles of core skills & capabilities – Members can use the system to find capable and compatible partners to help tackle an opportunity as well Reinventing business – The tool helps to generate more than €4 billion (US$ 5.67 billion) of new business revenues per year for its members – Over 50,000 tenders a year flow through the system, and it has over 15,000 users from more than 10,000 member companies © 2011 IBM Corporation 18 18 IBM Watson brings together a set of transformational technologies to drive optimized outcomes 2 1 Understands natural language and human speech 3 Adapts and Learns from user selections and responses Generates and evaluates hypothesis for better outcomes 99% 60% 10% …built on a massively parallel probabilistic evidence-based architecture optimized for POWER7 © 2011 IBM Corporation 19 IBM Watson Is Delivered as a Service Accessible through Cloud User Answers Questions Public Cloud IBM Watson as a Service IBM Platform Metadata (e.g. Query Pattern, Data Models, Ontologies) Private Cloud Algorithms Algorithms Algorithms Algorithms Public Info 3rd Party Data Client Info IBM Data Hybrid IT © 2011 IBM Corporation 20 Education leaders are focusing on three aspects for critical improvements in education and its contribution to society. Accelerate research discovery and innovation capabilities Maximize operational efficiency & effectiveness Improve teaching effectiveness and student outcomes © 2011 IBM Corporation 21 Can the future of education become a more outcome-focused continuum supporting lifelong learning? TECHNOLOGY IMMERSION Any Device Learning Primary School Secondary School PERSONAL LEARNING PATHS Student-Centered Processes Higher Education Continuing Education KNOWLEDGE SKILLS Learning Communities Single View of the Student Instrumented • Student-centric • Integrated Assessment ECONOMIC ALIGNMENT Systemic View of Education The Educational Continuum • Aligned Data • Outcomes Insight GLOBAL INTEGRATION Services Specialization Intelligent Workforce Skills Economic Sustainability Interconnected • Shared Services • Interoperable Processes © 2011 IBM Corporation 22 22 IBM Smarter Education Framework integrates analytics with partners, such as Desire2Learn, to improve student outcomes Leveraging information about students, teaching faculty, content and standards to make better programmatic decisions Anticipating and addressing learning needs in real time and identifying at-risk students proactively Coordinating teachers, students, parents, and colleagues to help manage the intervention process Learning Environment Learning Repository Predictive analytics Longitudinal dashboards Capture Single View of the Student Intervention management Usage Analytics ePorfolio Collaboration Mobility © 2011 IBM Corporation 23 In Hamilton County, Tennessee’s Department of Education uses predictive analytics to improve student achievement. The county achieved an 8% increase in the graduation rate to 80% 25% reduction In the annual dropout rate Test scores were higher due to curriculum and teaching changes Business challenge: Students consistently scoring below state benchmarks on standardized tests; school system lacked detailed data to understand why. Rethinking IT Analytics and advanced modeling tools to help teachers, counselors and administrators better understand adverse patterns, how they develop and how to avoid them. Reinventing business “Now everyone is looking at the data, and the results speak for themselves.” —Dr. Kirk Kelly, Director of Testing and Accountability, Hamilton County © 2011 IBM Corporation 24 Mobile County Public Schools improves graduation rates, student test scores with real time insights provided to teachers and counselors. early warning system Alerts teachers and counselors to at-risk student BEFORE they drop out 3% increase Business challenge: Mobile County’s needed to improve academic performance and decrease the share of its students who dropped out of school. In 2008, that stood at 48 percent, translating into roughly 2,500 Mobile youths Rethinking IT In high school graduation rates a data warehouse that integrates administrative and academic information from each of the system’s 95 schools, providing a wide range of metrics, down to the tracking of individual students. Reinventing business “The core message was that the only way to solve the problem was to give teachers, counselors and principals the information they need to help the students who need it. The original vision was sound, but we needed to summon the will—and the resources—to make it happen.” — David Akridge, CIO, Mobile County Schools © 2011 IBM Corporation 25 Alabama State Dept of Education improves strategic decision making and student achievement with integrated data analytics. Is able to analyze 150 key metrics of academic achievement and performance across 1400 schools to improve strategic decision making and programs to boost the state’s student success Business challenge: Reporting and decision-support did not allow managers & executives to understand student performance across the state’s 1400 schools Rethinking IT IBM’s Education analytics, reporting and dashboards, provide integrated near real-time information to all levels of the state and district Reinventing business “We used to have bits and pieces of information about what was happening in our schools, but it was almost impossible to get the kind of comprehensive picture that provides an effective guide for action. Now we’re much closer to where we need to be, and as we move through further phases of the project, we’ll continue to gain new, deeper insights.” - Dr. Tommy Bice, State Superintendent of Education, ALSDE © 2011 IBM Corporation 26 The most forward-thinking organizations see cloud as a force that will impact their business / education models Expect significant increase in substantial change resulting from cloud 13% 41% Expect to reinvent their customer value propositions with cloud 10% 29% Today 2015 Expect to create / transform value chain through cloud 16% 43% Shift focus to driving substantial impact on customer relationships 14% 57% *Source: Institute for Business Value / The Economist study 2011 © 2011 IBM Corporation 27 IT and Business are attracted to cloud for different reasons. Rethink IT. Reinvent business. • Initiate new revenue streams • Drive faster time to market for new academic programs & services • Meet changing expectations Transformation deliver services • Integrate services across cloud environments • Increase efficiency Efficiency • Rapidly **Source: Gartner, Cloud Computing Services, Virtualization Top CIO 2011 Wish Lists Jan 24 2011 © 2011 IBM Corporation 28 of CIOs plan to use cloud— up from 33% two years ago. Transformation Efficiency IT is drawn to cloud’s cost, efficiency and control… of business executives believe cloud enables business transformation and leaner, faster, more agile processes. …while business users are drawn to cloud’s simplified, self-service experience and new service capabilities. 2011 IBM CIO Study, London School of Economics, December 2010 © 2011 IBM Corporation 29 IBM drives client-focused open standards and interoperability. IBM solutions are built on a comprehensive, open reference model The Cloud Standards Customer Council’s activities include: Establishing the criteria for open, standards-based cloud computing, driven by customer use cases. 250+ Providing guidance to the multiple cloud standards-defining bodies. participating organizations, including several education Defining best-practices and producing case studies, use cases, requirements, gap analysis and recommendations for cloud standards. 50% operate outside the IT realm Interoperable | Flexible | Customer-driven © 2011 IBM Corporation 30 Education leaders are focusing on three aspects for critical improvements in education and its contribution to society. Cloud is becoming a Key Enabler in Transforming Education Accelerate research discovery and innovation capabilities Maximize operational efficiency & effectiveness Improve teaching effectiveness and student outcomes • Enhanced access to resources • Shared services across regions • Single view of the student • Accelerated economic impact • Data-informed business decisions • Personalized learning pathways • Innovation from collaboration • Increased efficiency, eg., energy • Improved skills alignment © 2011 IBM Corporation 31 IBM has a century of experience in helping to transform education Helping to build IT professionals for the future, Academic Initiative is announced in 2004 IBM announces Reinventing Education programs in 1994 In the 1950’s, IBM sponsored engaging learning materials for science and technology IBM Cloud Academy launched in 2010 creating a community of leaders to share best practices Academic Initiative In 2003, IBM announces Learning Alignment Model Smarter Cities Challenge Grants announced 2011 Working with museums to build engaging teaching and learning materials for STEM skills © 2011 IBM Corporation 32 © Copyright IBM Corporation 2008 All rights reserved. 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