NextGen Michigan

IT Rationalization

Learn more about new funding model and recommendations for improving IT services

What is IT rationalization?

Michigan Model for Financial Strategy & Cost Control

IT rationalization is a university-wide initiative to determine the best source of information technology services and to reduce non-productive redundancy in IT solutions across campus.

IT Rationalization Fact Sheet (178KB PDF)

CIO Update on Information Technology Initiatives (November 2010)

The university retained Accenture Consulting to conduct the first-ever comprehensive assessment of information technology as it is currently distributed and provided at the campus and unit level.

Read a summary of the key campus recommendations in the Accenture final report.

Read a summary of the key ITS recommendations in the Accenture final report.

NextGen Michigan: Rationalize IT Across Campus

IT rationalization:

  • identifies sustainable and recurring IT cost savings
  • strengthens capabilities at acceptable service levels
  • consolidates and integrates in a systematic way:
    • applications
    • facilities
    • hardware
    • information technology systems
    • infrastructure
    • networks

What are desired outcomes of IT rationalization?

Rationalizing IT resources is designed to accomplish two equally important NextGen Michigan goals:

  1. Reduce U-M collective IT costs in a way that results in greater sharing of resources while providing higher quality services;
  2. Reinvest some of the savings in new technologies that support innovation and advancement in U-M teaching, learning and research.

New funding model that:

  • makes IT costs at all levels more accurate and transparent
  • rewards cost and operationally efficient IT spending while discouraging nonstrategic spending
  • removes disincentives and institutional barriers to acceptance of shared services and infrastructure

New service delivery model that:

  • determines most appropriate sourcing
  • enhances economies of scale
  • improves interoperability of applications, products, and services across campus
  • results in faster deployment of new shared products and services

IT Sourcing Options

Unit-Provided Services Shared Services (Units working together) Central IT-Provided Services External-Provided Services
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Value-added IT services that contribute to unique mission of the unit IT services where two or more units can partner to effectively share expenses IT services where economies of scale can be achieved at university level IT services where external providers can offer economies of scale and meet U-M's service requirements

One important objective of rationalization is to implement IT sourcing delivery that provides more competitive services for less money.

Rationalization at U-M will occur along a continuum from very limited to complete for any particular infrastructure component.

From February–July 2010, Accenture conducted more than 200 workshops and interviews with schools, colleges, institutes, and other units. A graphical representation of the IT inventory developed by Accenture shows the current sourcing and frequency distribution of IT services by category as self-reported by units during the workshops and interviews. This graph is a high-level campus snapshot.