Why Higher Ed Needs to Go All-in on Digital

In the wake of the COVID-19 pandemic, the majority of students within the 18-24-year-old demographic now expect hybrid learning environments–even once we are beyond the pandemic. And a vast number of adult learners are seeking options that accommodate their work and family lives now that it’s clear that effective learning can indeed occur virtually. Implementing cloud technologies and achieving digital maturity within higher education will enable institutions to be innovative and responsive to evolving student preferences, while being prepared for future disruptions.

The state of digital maturity

In February and March 2021, Boston Consulting Group (BCG), in partnership with Google, surveyed U.S. higher education leaders on their views of the state of digital maturity in the higher education sector. This survey found that institutional and technology leaders strongly agreed that moving legacy IT systems to the cloud, centralizing and integrating data, and increasing the use of advanced analytics is necessary to make a successful digital transformation, and ultimately achieve digital maturity.

But what is digital maturity? Digital maturity—a measure of an organization’s ability to create value through digital delivery—focuses on three areas of technological advancement that drive large-scale innovation:

1. Using cloud infrastructure
2. Expanding access to data
3. Using that data to improve processes through advanced analytics, such as Artificial Intelligence and Machine Learning (AI/ML)

Although university leaders agree on prioritizing digital maturity, more than 55% said they considered their schools to be “digital performers” or “digital leaders.” However, only 25% of tech leaders at these universities stated that their schools regularly use data analytics. As with corporations and governments, higher education institutions face barriers to technological innovation, such as:

• Competing priorities to meet step-change goals and decentralized decision making
• Budget constraints
• Cultural resistance to change
• Tech staff skillset gaps

Still, leaders understand that the way to overcome institutional inertia is with a strong, goal-oriented vision of what is best for the institution overall. Although only a handful of schools have reached digital maturity as we define it, others can learn a great deal from their examples. Here are the top takeaways from higher education leaders who successfully transformed their institutions:

Digital solutions can improve the student journey in many ways

As digital capabilities hold the key to dealing effectively with declining enrollment and rising costs, higher ed leaders identified four goals that are critical to improving performance:

1. Improve the student journey
2. Increase operational efficiency
3. Scale computing power in advanced research
4. Innovate education delivery

The research found that technology investments can help enhance the student journey in the recruiting and retention of students, improving digital education delivery, government funding, and donations from alumni. Digital maturity can make institutions more agile and efficient in delivering education that aligns with the changing societal norms, evolving student preferences, and future disruptions. Survey participants shared that they plan to increase the use of the cloud by more than 50% over the next three years. By shifting legacy IT systems to the cloud, institutions can increase scalability, lower the cost of ownership, and improve operational agility, while offering a more secure, long-term data storage solution.

Cloud-native software-as-a-service (SaaS) solutions provide an excellent platform for centralizing data. However, institutions that attempt to “lift and shift” their legacy systems to the cloud may encounter challenges to achieving measurable improvements in data integration and cost reduction. Higher ed leaders must realize that centralizing data and transitioning to the cloud do not happen simultaneously.

Leaders who are able to articulate a strong vision and commitment will experience a more successful technology transformation. By linking their vision to specific needs, such as more effective recruiting, leaders will find their technology investments will have a more substantial return. University presidents should base their decisions about which systems to move, when, and how on desired performance outcomes.

Big visions become a reality with small steps. Small pilot projects are an excellent way to start the journey toward digital maturity. Small steps toward a significant transformation can reduce resistance to change, build positive momentum, and produce better student outcomes. Read the full report here. If you’d like to talk to a Google Cloud expert, get in touch. 

Business leaders see much in Artificial Intelligence, including new ways to save money, serve customers, and figure out what to build. What’s often tougher is deciding how to engage. That’s understandable, since getting into AI often raises questions about costs, data integrity, project length, and similar issues of planning and execution.

For CIOs concerned with the deployment and use of IT at their companies, these are critical issues. Here is one way to think about this complexity, by breaking it down into three different areas; Early Automation, Learning and working, and System Views.

First, a bit of good news and myth dispelling for readers who think AI is some far off promise, still in the labs and not safe for work. The reality is that AI is very much here, and almost everyone in your workplace is using it every day. People work with AI when they use Google Search, Photos, the autocomplete feature in Docs, live translation in Pixel phones, and many other areas. It is in the products of many other companies too.

“IDC reports that the market for AI software, hardware and services is expected to break the $500 billion mark in 2023.”

Additionally, it’s increasingly clear that AI can be adapted as a virtuous process, not just a one-off purchase (though there is much to recommend that.) During a recent Alphabet earnings call, CEO Sundar Pichai noted that “investments in AI will be key” to its near-term strategy, with new techniques that make it faster and easier to train and build AI for a number of uses. Additionally, the company is offering AI-driven “insights, new tools, and automation” to its advertising clients. The striking thing in this was the way that developing AI in one area could lead to growth in many others.

So, how does an IT leader foster a growth process like this for their stakeholders? By leading people through the well-established stages of Awareness, Learning, and Extension. Here’s what I mean.

Awareness: Early Automation

Consumer-facing AI is particularly strong in communications functions like voice recognition, translation, and writing tips. It’s similar in business uses: One of the most effective early instances of AI in the workplace has been Contact Center AI (CCAI), which manages basic customer communications, automatically answering common questions and prioritizing calls that require human assistance. It is doing what automation has always done best, automating the rote stuff and leaving the higher-value imaginative activity to people. It has been used by governments, retailers, telecommunications companies, and others, in a wide variety of use cases.

These and similar language-centric products, like DocAI for extracting information from things like invoices, receipts, or AI that extracts information from business contracts, have a number of benefits. For one, the investment is relatively easy to control, unlike with a research project leading to a formal launch. The payoff is also clearer. In the case of contact centers, in particular, the automation relieves stress, wins loyalty and slows disaffection in a high-turnover area. In both cases, successful results build allies in the business, who can testify to the earlier benefits when it’s time to take on something more complex.

Perhaps best of all, creating interest in basic AI services for business, right now, means people become engaged in learning more, since they see the early benefits and wonder what else might be done.

Learning: The Human Factor

The Natural Language Processing (NLP) that goes into these ready made, “out of the box” AI products can, not surprisingly, be used on much more sophisticated levels. Twitter, for example, processes 400 billion different events in real time, and its staff queries this trove using advanced NLP, answering questions and improving customer experiences.

There is clearly an enormous gap between Call Center AI and processing Twitter’s 400 billion events per day, but it’s not noticed enough how quickly that gap is closing. Look at how many products, partners, and training resources have emerged in the past few years. The gap makes sense, insofar as both the means of AI (like large data sets, good algorithms, and sufficient computing) and the value of AI, are new.

Increasingly, as AI is incorporated into standard enterprise tools like spreadsheets and analytic tools, easier to use AI becomes a skill within reach for many (even as the advanced end becomes more complex, meaning this ease of use process will continue for some time.)

It’s so new that AI skills demand isn’t met by conventional education means, creating lots of good opportunities for both nonstandard skills training, and in-house learning in the workforce. Companies offering AI skills training could well gain a competitive advantage and retain staff better.

Extension: Building System Views

When a new technology lands and gains in popularity, people seek to find new uses for it, or build connections among its different uses. Networked computing is one example, but think also of the way cars were soon followed by trucks and fire engines, or the way the data services on wireless phones soon morphed into the App Economy. If something is useful, people look for ways to grow it.

How will AI grow? My colleague Dominik Wee recently wrote about ways that AI will soon change supply chains, change product design, and improve sustainability. Most interestingly, he talked about how customers in manufacturing were realizing savings and gaining insights when once separate quality control data was combined with system wide views of the quality process.

There are several reasons to think AI will promote many such system views. For one thing, successful AI promotes the collection of data from more places, at greater frequency, since that leads to insight (and the cost of data collection is dropping.) Additionally, AI is good at spotting patterns and interactions that are not currently known. As well, AI is used in prediction and scenario planning, which leads to better understanding of how large-scale systems interact.

This comes at a time when we have more ways of seeing the world, from satellites, sensors, social media, and much more. We have more awareness of interactions, and a demand to understand them, in everything from the supply chain crisis, to human rights and sourcing regulations, or in the business realities of partnering, and serving customers in all sorts of ways, online and in the physical world.

Whether by coincidence or design, the Age of AI is also an age when organizations see themselves more accurately with a rich web of connections, with their choices and actions having more resonance than ever. That awareness is both a competitive tool, and a call to greater responsibility, potentially affording more customer loyalty and a more satisfied workforce for those who get it right.

That transformation won’t happen everywhere overnight, but it seems to be happening at all sorts of companies. And the trend for AI to assist, to be studied and grown, and to provide a richer understanding of the world, is happening every time someone touches this technology, at whatever level they need.