Why school districts should adopt a new lesson plan with an IT investment strategy

[Jennifer_Streck]

Authored by: Tom Ackermann, IT Asset Financial Manager, HPE Financial Services

With the growth of mobile devices in schools and on campuses, the increase in digital content and the need for more personalized learning has changed how students learn. A one-to-one technology program is no longer a luxury, but a necessity driven by current events.  Local school districts are looking to make smart investments in technology that will allow educators to deliver curriculum, an exciting user experience, and meet IT requirements with greater reliability, security, and value.

Keeping technology current and well maintained in a sustainable, predictable manner is now a strategic priority. Despite the current, unprecedented, federal and state stimulus funding for technology, it’s imperative to have a multi-year plan that optimizes all the available resources.  Ideally, you should consider solutions that enable a long-term program allowing you to redirect stimulus funding to other high-priority initiatives where extended, funding options may not exist.

Key to a long-term, sustainable, technology program is the adoption of an IT investment strategy. The essential elements include:

1. Discipline to manage technology over a defined lifecycle
2. Predictable costs/budget
3. Technology refresh in line with established lifecycles
4. Consideration for deployment / warranty costs for all devices
5. Flexible options at the end of the lifecycle

An effective IT investment strategy considers the complete lifecycle of the equipment from the acquisition phase, to asset management, to retirement, to transition refresh. HPE Financial Services not only has deep expertise in IT asset economics, but years of experience in working with school districts to develop, implement, and refine a customized IT investment strategy best suited for their organization.

Through extended payment options we can provide you the financial capability and flexibility to acquire advanced technology now, while offering convenient access to a regular refresh and upgrade program. You can align your expenses with your use of IT and avoid large, up-front, cash expenditures. No need to delay your plans. Offer students, faculty, and administrators a foundation for success, while accomplishing more of your IT and financial goals.

Think Big!
Instead of a traditional capital purchase, wouldn't it be nice to be able to acquire 3-4x the number of devices -- and spread the cost of that investment over multiple years?  This strategy delivers the organizational discipline to asset lifecycle-management that can get lost in a traditional purchase strategy. Additionally, this solution gives you options at an asset level to go month-to-month, extend the agreement, or purchase outright.

With this approach these decisions do not have to be made until the end of the initial lifecycle. The key takeaway is you do not need 100% precision at end of term to achieve your goals and still save money.

Alternatively, you may wish to own the equipment at end of term. However, the end of life disposition process must be considered to ensure future success. In the payment model described above, the assets are returned to a tech renewal center so you don’t need to worry about where and how to dispose the assets or the downstream, environmental ramifications.

To enable ease in transition and disposition of these client-owned assets at the end of the  lifecycle, you could deploy an Asset Upcycling program. Such services are not only about maximizing financial recovery in an environmentally responsible way.  Effective asset upcycling solutions are about much more than getting rid of old tech. 

It’s about creating additional capacity to do more with your budget.  We all know that, even with the stimulus funding, investment is still lacking. Asset upcycling programs are an innovative way to do more within the budgets that you have.

Bottom line: there are different strategies that can be implemented to achieve success; yet, the total lifecycle solution should be considered in whatever path the client determines is best.

Other high-impact alternatives to direct ARP ESSER funds may include the following priority areas where access to cost-effective, payment options may not be available:

• Investing in resources to implement CDC's K-12 operational strategy for in-person learning to keep educators, staff, and students safe
• Avoiding devastating layoffs and hiring additional educators to address learning loss
• Implementing strategies to meet the social, emotional, mental health, and academic needs of students hit hardest by the pandemic, including through evidence-based interventions and critical services like community schools
• Funding hotspots and devices for students without connectivity for remote learning

Your organization’s focus should be on educating students – not asset lifecycle management and investment strategies.  Partner with HPEFS to develop scalable, long-term approaches.

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About the Author
Tom Ackermann, IT Asset Financial Manager, HPE Financial Services has 30+ years’ experience in the financial services sector. Tom is an IT asset economic professional helping state & local / K-12 / Higher Education clients in the Midwest create investment capacity to fund transformational IT projects.  Leveraging his expertise in IT asset economics, he advises clients on the utilization of consumption-based payment models and IT lifecycle solutions to enable public sector clients to fund their transformational IT projects.  Tom joined HPEFS in 2012; prior to that he worked for IBM Global Financing and PwC.  Tom is a Certified Public Accountant, with an undergraduate degree from Loyola University-Chicago where he also earned his MBA with a concentration in finance.