Digital Transformation Is Critical To Learner and Institution Success
Digital Transformation Is Critical To Learner and Institution Success
SPONSORED BY:
Digital Transformation
is Critical to Learner
and Institution Success
RESEARCH BY:
Ruthbea Yesner
Vice President, Government Insights,
Education and Smart Cities, IDC
Table of Contents
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Methodology
This white paper examines the process of digital transformation (DX) for higher education
as a response to current trends and market forces. It was developed using existing content
from ongoing research in IDC’s worldwide and regional Education Digital Transformation
Strategies practice, including several global surveys of educational institutions completed
in 2019 and 2020. In addition, IDC conducted phone interviews with key Salesforce
staff and the digital transformation leaders at Arizona State University (ASU), BI Norwegian
Business School, Monash University, and the London School of Economics and Political
Science (LSE).
Note: All numbers in this document may not be exact due to rounding.
Accelerating
Digital Transformation in
Higher Education
Market forces have shifted the expectations and needs of learners today.
Digital-native students expect a personalized and connected learning
experience that delivers value. They want their higher education experience
to give them the skills needed in the workplace. Nontraditional students,
those who may be employees or have family obligations, need flexible
options as they refresh existing skills or learn new skills to keep pace with
employment opportunities.
The existing business model of higher education has lacked midmarket, affordable
options and often relies on scarcity to drive value. Tier 1 universities are either
very expensive, especially for students studying abroad, or highly competitive,
while tier 2 and 3 universities have seen their costs rise dramatically as well.
This is a mismatch for the needs of upcoming digital-native and nontraditional
students, who question the high costs of education and the labor market, in which
employers place a premium on employees who have higher education degrees
or specialized certificates and training. At the same time, IDC surveys show that 70% of companies
70% of companies have difficulty sourcing digitally savvy workers. have difficulty
As a result, there has been a rapid growth in online learning, often provided by sourcing digital-
private, new market entrants. IDC predicts that without a change from existing savvy workers.
higher education institutions, over the next five years, tertiary institutions without
digital learning and online accreditation will lose 5% of their student enrollment
numbers each year to online learning platforms.
The COVID-19 crisis has further exposed existing business model and services
delivery challenges, highlighting the need for greater flexibility in offering
remote or online services and the need for agility to respond quickly to a major
crisis. Higher education institutions need to reassess now how they can deliver
on their institutional mission in light of these new realities and continue to
impact the world.
COVID-19 Highlights
the Need for DX
The impact of COVID-19 is a defining moment for DX in higher
education, in which institutions have been forced into the rapid
delivery of online learning, remote work, and online processes.
Digitally determined institutions with some form of DX, especially cloud
platform capabilities, were able to respond faster and easier to provide
constituent service, help desk support, personalized communications, and
online tools. These capabilities go beyond the pandemic and offer a view
into how institutions can respond to emergencies such as public health crises and severe
weather events.
The crisis also pushed institutions to consider where their need areas are for accelerated
transformation. In the same survey from April 2020, higher education institutions
responded that “strengthening software capabilities for digital innovation” was the first
priority, and “exploring new business models and growth areas” and “creating new remote
office and enterprise-wide collaboration systems” were the next priorities. These are key
areas to address in order to enable long-term resiliency to future crises. Furthermore, in
IDC’s May 2020 COVID-19 Impact on IT Spending Survey, education institutions indicated
that many of areas of operations will be permanently changed by the pandemic.
FIGURE 1
COVID-19 Changes Expected to Be Permanent
(% of respondents)
Q. Which of these areas will likely be permanently changed as a result of the COVID-19 pandemic?
FIGURE 2
Key Areas to Address for DX Success:
Digitally Determined Versus Digitally Distraught Institutions
Digitally Distraught
Cultural reboot Cultural standstill
FIGURE 3
Approaches to DX in Higher Education
(% of respondents)
Q. What is your institution’s approach to DX efforts?
71%
Digitally
Distraught
29%
Digitally
Determined
30.0%
22.1%
19.0% 18.6%
10.2%
n = 150 higher education respondents | Source: IDC’s Global DX Leaders Survey, 2019
To do this, universities and colleges must become digitally determined and embrace the
development of new digital capabilities. Real results in key areas can be achieved, as
the case studies in this white paper demonstrate. Education institutions around the
world report benefits in revenue from new and existing products and services, increased
loyalty, retention and acquisition, and productivity improvements as a result of DX
strategy and investment (see Figure 4).
FIGURE 4
Benefits of DX in Higher Education
(% of respondents)
Q. Where have you achieved the biggest benefits from your current DX programs/projects?
44.0%
34.0%
31.0%
28.8%
25.6% 25.1%
FIGURE 5
DX Challenges in Higher Education
Outdated KPIs.
28% of institutions reported that they are using the same KPIs to measure digital efforts
that are used for manual and paper-based processes. New KPIs for measuring DX success
are needed, such as targets for how much of revenue is platform driven, the percentage
of repetitive enterprise interactions that are augmented by AI each year, or the increase in
self-service processes.
Limited DX capabilities.
30% of institutions reported that they have not developed the new capabilities required to
run a digital enterprise. For example, an institution with multiple, siloed CRM platforms
needs to consider platform capabilities to drive data-related IT investments and APIs to
reduce data acquisition and sharing costs.
n = 150 higher education respondents | Source: IDC’s Global DX Leaders Survey, 2019
Using data to create new digital services and products that bolster a
new business model for universities. This includes understanding
what different learners need and how they define value. This requires
consolidated data for a holistic and detailed view of students and prospects
and a single version of data truth for analytics and dashboards. Data also
needs to be understood and used by staff and faculty in order to understand
how programs, courses, and faculty are meeting the learner’s needs.
“Think about where
Delivering personal and cost-effective services. This includes the ability
you want to go —
to automate and scale personalization. It also relies on holistic data sets
of each learner and the ability to segment learners to understand their eyes on the horizon.
needs. It includes self-service tools such as chatbots or online forms for You don’t need
cost-effective services at scale. to know the exact
path to get there, or
We know that change will be a process made up of projects and initiatives.
It is important to consider each of these areas for each project and create exactly how it will
a DX road map that provides cohesion across projects. look, but you should
know where you
want to be.”
Create a DX Strategy and Road Map Mike Page, Head of
Enterprise CRM, LSE
DX cannot happen without a vision of where you want to go in your
transformation and what initiatives need to be modernized to fulfill your
institution’s mission and strategic priorities. This means that there has to be
a strategy that looks at the next 10 years with a road map that is modular,
scalable, and extensible.
How will your institution adjust to the future and create the needed
new business models and services?
IDC has developed a DX taxonomy that provides a framework of use cases that
will be important for the future of higher education. This taxonomy identifies
the strategic priorities of higher education, the programs that are being
developed to meet these priorities, and the specific projects that are being
implemented within those programs (see Figure 6, next page).
FIGURE 6
Tie Initiatives to DX Strategy
Online Virtualized
Modernized Digital inclusion Collaborative
Lifelong student learning
education student
and accessibility library
programs workspace
engagement
Integrated
Engagement Online and
Student success planning, Data-driven
tracking digital
tracking mentoring, and career services
and analysis proctoring
advising
Integrated
Advanced hu- HR services Comprehensive DX technology Adaptive work-
employee
man resources delivery onboarding literacy force planning
communications
Next-generation Enterprise
Data platform
Generative Predictive
Real estate
resource planning and supply chain
administration management
management
budgeting management
analytics
Next-generation
Intelligent Secure facility
emergency
campus security access
management
These projects need to be prioritized to scale across the institution rather than by
individual departments or functional areas. A use case road map helps an institution
see relationships between projects as well as determine an executable timeline
for implementation (see Figure 7). The key, too, is to understand the technology
capabilities currently available in the market. DX does not require developing one’s
own custom apps; it requires just the opposite — using an ecosystem that rests on
a common, enterprise-wide platform.
FIGURE 7
Time Horizon and Road Map for Initiatives
A digital road map should be aligned with the overall digital strategy and contain concrete goals in
Horizon 1 and more abstract and aspirational goals in Horizon 3.
Virtualized
labs
Alumni
relationship
participation
Personalized Donor
recruitment intelligence
Virtual
tours
Online
proctoring
Strategic
Goals
Horizon 3
Online Use cases that imagine
academic
the possibilities
Empowering programs Horizon 2
collaboration
Use cases that are
being incubated
Horizon 1
Use cases
deployed today
Figure 8 (next page) shows a digital platform. Data is at the center of the platform and
spans IT and departments. Start with an intelligent core that holds the code that enables
using data for insights and tools; this core is based on data management, analytics,
AI, and machine learning. Institutions will need to use cloud-based API strategies that
orchestrate data exchange across the ecosystem. Data by itself has limited value — it’s
what an institution does with the data that will be important. And while data is the core,
data and IT governance, architecture, integration, and development services are the
enablers of the platform.
FIGURE 8
The Key Elements of a Digital Platform
INTEGRATION ECOSYSTEM
ENGAGEMENTS
SERVICES
DATA DATA
People Bot
Assets IoT
INTERNAL INTELLIGENT EXTERNAL
PROCESSES CORE PROCESSES
Connected
Processes AR/VR
API Mobile
A C TIO N S
IN S DEVELOPMENT
ENTERPRISE IG HTS
ENGAGEMENTS SERVICES
1 2 3 4
Cloud-based Agile application New customer An intelligent core
API strategies architectures experience based on data
that orchestrate on PaaS using technologies that management,
exchange of microservices fully support cognitive, artificial
data across your and containers customer- and intelligence, and
ecosystem ecosystem-facing machine learning
business models
There are multiple areas of change management that are important for successful DX.
The first area is often a lack of internal capabilities and skills to develop a DX platform,
including initial architecture and design skills; other areas include application management,
development, and integration skills. Staff need to be able to manage the platform and
cloud vendor relationships, have the skills to adopt and take advantage of the platform,
and absorb the user specifications and help translate them into new service.
Investing in existing employees to teach them new skills can be a strategy that helps
by reducing the need to look for expensive and scarce outside hires and by offering
valuable employees, who have institutional knowledge and historical background
on legacy systems, a way to obtain new skills and work on cutting-edge projects.
Skills in DevOps and DevSecOps, data management, cybersecurity, and managing
hybrid cloud technologies are key areas of investment, as well as certifications on
specific solutions.
Change management is also important around process redesign and adoption. Separate
from technical skills, organizational design and communications skills are also needed
to help the entire institution learn and adapt to a new platform and understand its
capabilities. This requires a strong manager who can lead in governance and project
management to maintain momentum of DX initiatives over time. A DX platform is not
a one-shot implementation. Platforms will be continuously updated with new releases,
new functionalities, and new modules, so users and managers need to be constantly
trained as well. IDC surveys show that 70% of DX initiatives are led by the CIO, CTO,
chief digital officer, or head of digital transformation.
Salesforce Platform
Supports DX Strategy
Digital transformation is part of LSE’s 2030 strategy and LSE360 vision to improve Quick Stats:
services to constituents by making engagement with the institution easier and
Founded in 1895
more personalized. This includes replacing legacy technologies and workflows
with digital processes and technology that provide a better understanding of
students, prospects, alumni, donors, sponsors, and researchers. The DX strategy, 12,000 students
as defined by LSE360, uses the Salesforce platform to maintain a lifelong
relationship between LSE and its students and alumni. 140 countries
In 2016, the Student Marketing and Recruitment team upgraded its CRM system represented
to the Salesforce Education Cloud platform with the goals of understanding
prospective students more deeply and delivering a personalized applicant 150,000 alumni
experience via an easy-to-use, unified experience.
A better registration and attendee experience for 200+ events a year with
an ability to track student participation
Siloed event
LSE had a one-size-
registration and
fits-all method Manual application
tracking with a less
for contacting and processes and no
Legacy streamlined and
communicating personalized outreach to
system user-friendly
with students about schools from
experience. No
classes, events, lower income areas.
personalized
and offerings.
communications.
Event registrations,
Using Education Cloud’s Enhanced Widening
ticketing, and mobile
advanced Participation with
app to track attendance
segmentation online application
data provided a touch
capabilities, LSE forms that feed directly
With point with prospective
migrated data, email into Salesforce via
Salesforce students, executive
communications, AppExchange. Students
learners, and alums and
and events to the get automated email
an ability to feed data
Salesforce platform updates and can track
into a 360-degree stu-
for student recruiting. progress online.
dent view.
Following the success of these initiatives, and after determining the business case, LSE
began to consolidate CRM functionality and CRM systems onto the enterprise platform.
Today, the Salesforce platform provides a set of core services using Education Cloud,
Service Cloud, Marketing Cloud, and Community Cloud.
There is also a program delivering across the following areas (with many already live):
Widening Participation, Student Marketing and Recruitment, Undergraduate and
Graduate degree online selection, Summer School, Student Services, Student
Fees, Research Ethics and Commercialization, Careers, and Philanthropy and Global
Engagement (including Alumni). Today, LSE has over 1,100 users and Community
licensing for external users and students.
Why Salesforce?
LSE chose Salesforce for:
Extensibility and the ability to create generic solutions for multiple areas
and uses
Rapid development of new features and functionality
A low-code/no-code environment
Data sharing features that allow granular options of what data is shared and what is not
Next Steps
Salesforce has become a foundational element in LSE’s delivery on the 2030 strategy
by providing a lifelong connection with students that is personalized and proactive.
The use of the platform continues to develop as services expand across divisions,
offering the agility to provide services both onsite and online.
Next on the agenda is a focus on student health and well-being and alumni and
looking at how Salesforce Einstein Discovery can help uncover deeper insights into
the student journey.
ASU works with Salesforce as a strategic partner to use Education Cloud as Ranked #1 for
a comprehensive set of solutions for the university. The Salesforce platform innovation by
integrates systems from over 32 colleges and departments to create U.S. News and
comprehensive constituent profiles. This enables ASU to provide unified World Report
students services, personalized messaging, scaled automation and self-service,
and a single view for deep analytics and performance tracking.
experts in the tools and data along with functional and business staff to break down silos.
The teams collaborate without a heavy top-down structure, similar to how agile software
development teams work.
This includes actively encouraging staff to learn new skills by taking advantage of
ASU’s own programs, as well as codeveloping solutions with Salesforce. ASU
works to provide unique work opportunities to compensate for a lower pay scale
compared with the private sector for skilled Salesforce developers and helps
existing staff develop new skills using Trailhead.
Why Salesforce?
Salesforce has supported ASU in realizing its mission and goals through iterative teamwork.
The partnership is driven by the customized innovation that Salesforce supports. For
example, the teams are working on blockchain and education credentialing so that ASU
can reduce barriers to communicate with community colleges about shared students.
Next Steps
Salesforce is integral to ASU, and there are many next steps for the partnership. The
university is looking to use Salesforce to manage events, support students in career
advancement, and foster closer corporate relationships in the near future.
While this white paper provides a framework for DX in higher education, this is
just the first step in a long-term effort to radically change institutions. Given
that, it is important to begin right. The following is a summary of initial key actions
for the first phases of a digital transformation journey:
Spend time on strategic planning to ensure digital platforms and new use cases are
aligned around a common, enterprise-wide vision that has executive support.
This includes understanding what is possible; many institutions don’t fully realize the
capabilities of solutions and may not fully scope out how capabilities can be used
to transform the institution.
Invest in design and architecture planning to save time and money. There are important
architectural components and principles to consider, especially for enterprise-level
platforms across multiple business units. Use outside resources if you have to, but do
invest time and energy in architecture design.
Don’t move existing problems to the cloud. Now is the time to address long-standing
challenges from legacy environment and fix them.
Define needs areas and how you are measuring success. Develop new KPIs for measuring
DX impact in financials, business, and operations.
Prioritize scaling. Islands of innovation don’t scale, and they don’t provide the needed
functionality for the future of higher education.
Take a unified platform approach. This is important, even if you start small and not with a
full, enterprise-wide deployment.
Recognize that data is key. Data management and data governance set the foundation for
advanced analytics and insights for transformative decision making.
Use tools to scale innovation. Platforms are about scaling innovation. Part of this is
automation to use new tools, such as blockchain and chatbots, to manage processes that
are difficult to scale.
Incorporate change management as part of DX. This involves not only reskilling and
upskilling employees on technologies but also creating and adopting new business
processes by many different stakeholders such as faculty, staff, students, alumni, and
corporate donors.
Include continuous improvement plans with regular reviews of evolution and progress.
As discussed throughout this white paper, DX is a journey and a process. The course will
need to be adjusted and corrected along the way to account for new trends, innovations,
and market disruptions.
Digital transformation takes time and persistence, and the key is to start
somewhere and start now.
Educate yourself and your institution on what is possible with digital platform capabilities
today. Talk with peers in online communities and events to gain a deeper understanding
of how technology can support the institutional mission. Personal conversations can uncover
important details and lessons learned.
Get buy-in from leadership and ensure there is a clear lead who can oversee platform
development. Create an internal team of staff, from across the institution, who will
help push DX and associated governance and institutional changes. Start work with people
you know who can help evangelize DX and amplify the message.
Get community input on initiatives. Set up a process to ensure there is input from key user
groups over time, and collect information about needed services and how users
want to access services and their key concerns about DX.
Include continuous improvement plans with regular reviews of evolution and progress. As
discussed throughout this white paper, DX is a journey and a process. The course
will need to be adjusted and corrected along the way to account for new trends, innovations,
and market disruptions.
Embed security, privacy, accessibility, and inclusion into all aspects of DX decision making
to ensure your institution has digital trust with staff, faculty, learners, and alumni.
For decades, academia has operated on its own time frame, focused on the art of learning,
research, and thought leadership. While these are still fundamental tenets of higher
education, the global learning environment is rapidly changing as digital-native students
enter universities with expectations for a connected campus experience, as technology
innovations disrupt markets and skill sets are in constant need of upgrades, and as
access to tertiary degrees becomes essential for upward mobility. It is time for higher
education to embrace and accelerate digital transformation as a necessary process for its
survival and relevance.
Monash has been on its digital transformation journey with the goal of maximizing Campuses in
return on relationships through personalized engagement with prospective and Australia,
current students, alumni, and industry and government partners using modern China, Malaysia,
tools, streamlined processes, and emerging capabilities. Since its implementation, and Italy
the Salesforce platform has been a strategic enabler at the core of Monash’s
business operations and transformation.
Ranked as a
global top
100 university
by Times Higher
Salesforce Accelerates Monash’s Digital Maturity Education
Monash built the Salesforce platform as a centralized engagement layer integrated
with a range of core business-critical applications that power the student journey.
A deliberate decision was made to use a single Salesforce environment across
the university for all departments, from Human Resources (HR) to Alumni Relations
to Admissions and Student Service, to ensure staff are working together and
able to effectively share data.
internal processes such as moving applications between departments for faster review
cycle times. This solution combines Salesforce AppExchange offerings from Conga
and DocuSign as well as the use of Salesforce CPQ for product bundling.
Departmental use goes beyond the student experience. Human resources manages
all staff tier 1 inquiries related to common questions such as payroll, leave, and the
HR contact center on Service Cloud with Salesforce Knowledge. The alumni portal
services 300,000+ alumni and manages upwards of $40 million a year in donations
online via Salesforce Communities.
The university’s response to the COVID-19 global health pandemic also demonstrated
Monash’s transformation in operations and a culture of cross-department collaboration,
leveraging the Salesforce platform. Monash demonstrated that the university can
be hyper-agile. As a result of improved release management capabilities, projects
that once would have taken 7-14 weeks were able to be completed in 48 hours while
maintaining quality.
Why Salesforce?
With a centralized IT department and IT procurement policy, Monash is very strategic and
deliberate at the platform level. As such, it was important the CRM platform of choice
was the market leader with a highly mature suite of solutions and rapidly expanding vision
of innovation.
Next Steps
Monash has transformed large portions of student engagement for prospects, current
students, and alumni. Now the university is looking to transform and provide line-of-sight
visibility into its industry relationships (e.g., what boards an individual may serve on,
major partnership opportunities, contract research opportunities, education partnerships,
and industry-based learning). In addition, Monash is rolling out Einstein Analytics to
apply predictive intelligence to continue to uplift service and engagement outcomes.
Largest business
Solutions and Technologies school in Europe
BI went in on day one with large ambitions for an enterprise engagement platform,
and the first year was focused on the architecture that would scale to its ambitions. 20,000 students
Working with an implementation partner specializing in higher education, in early
2020, BI rolled out the three core Salesforce clouds: Service Cloud to provide 1,000 staff
rapid, multichannel support to students and staff; Sales Cloud to manage and build
lasting constituent relationships; and Marketing Cloud to engage students with 4 campuses
personalized communications and marketing. located
Change management was key to successfully implementing Salesforce across the throughout
school. Part of this change management led to centralizing the school’s customer Norway and 1
service into a department called InfoHub, which handles all inquiries from students. campus in China
InfoHub also manages the Salesforce call center, which handles communications
with both internal staff and students. BI continues to centralize more functions,
using InfoHub as the core.
Shortly after the Salesforce implementation, the pandemic hit. According to BI, Salesforce
enabled the institution to cope with the school shutdown in response to COVID-19 in multiple
ways that would not have been possible without the platform.
The Salesforce solutions made it much easier to work from home. The single enterprise
solution helped staff work remotely right away, which enabled BI to continue its operations
with less disruption.
With Salesforce, the school went from 80 different email addresses to manage student
support, contact schemes, and personal chat to a single version of contact information. This
single point of contact became extremely valuable in sending out timely, relevant information
via email and SMS. It was also valuable in helping answer student questions about end-of-
year exams and the school closure. Because BI students prefer text and chat to calls or emails,
it is important that the school is able to provide information to students in their preferred
engagement method.
Why Salesforce?
BI selected Salesforce based on the rich capabilities of the platform but was also impressed
with the level of presales process support it received. After implementation, BI found the
Salesforce customer success team to be proactive and very focused on helping BI meet its
goals. “We’ve worked with many American companies and have never experienced the level
of customer service from a technology partner as we have with Salesforce,” said Amund
Bergan, Head of Digital Development at BI Norwegian Business School.
Marketing and using automated solutions. BI wants to use more tools to automate and
personalize communications with students and market to them more effectively. This would
include growing the use of Interaction Studio to track experiences and deliver relevant
offers in real time.
Engaging alumni. BI would like to use Salesforce Community as a way to engage alumni
more often and more effectively.
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