Knowledge based economy –technological perspective: implications and solutions for agility improvement and innovation achievement in higher education

Ghilic-Micu, Bogdan; Mircea, Marinela; Stoica, Marian Article Knowledge based economy –technological perspective: implications and solutions for agility improvement and innovation achievement in higher education Amfiteatru Economic Journal Provided in Cooperation with: The Bucharest University of Economic Studies Suggested Citation: Ghilic-Micu, Bogdan; Mircea, Marinela; Stoica, Marian (2011) : Knowledge based economy –technological perspective: implications and solutions for agility improvement and innovation achievement in higher education, Amfiteatru Economic Journal, ISSN 2247-9104, The Bucharest University of Economic Studies, Bucharest, Vol. 13, Iss. 30, pp. 404-419 This Version is available at: https://hdl.handle.net/10419/168726 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. http://creativecommons.org/licenses/by/4.0/ AE Knowledge Based Economy – Technological Perspective: Implications and Solutions for Agility Improvement and Innovation Achievement in Higher Education Amfiteatru Economic 404 KNOWLEDGE BASED ECONOMY –TECHNOLOGICAL PERSPECTIVE: IMPLICATIONS AND SOLUTIONS FOR AGILITY IMPROVEMENT AND INNOVATION ACHIEVEMENT IN HIGHER EDUCATION Bogdan Ghilic-Micu1, Marinela Mircea2∗ and Marian Stoica3 1) 2) 3)Academy of Economic Studies, Bucharest, Romania Abstract Nowadays, the universities, as driving forces of innovative economy and as components of modern society, based on knowledge and collaboration, face a number of challenges and difficulties. In order to overcome them and to create/ensure the bases of eScience education and research activities, universities have to change culturally, strategically, and operationally. The paper highlights the need for ICT (Information and Communications Technology) use and its implications for higher education. In addition, the study places the theoretical aspects into a specific context, combining technologies through interfunctionality in order to ensure academic education agility and innovation. This involves the use of knowledge, process management, service oriented architectures, and Cloud solutions, exemplifying on the Academy of Economic Studies, Bucharest case. The integrated approach is extended using the SharePoint 2010 platform to improve academic management and achieve harmonization of teaching and research and development content and methods with European Union standards. The platform has been implemented and tested within two AES departments and the Master’s Degree Studies in Computer Economics. The results have encouraged the integration of the proposed solution within the institution. The study was based on the authors' competences in the areas addressed and was joined with a rigorous analysis of technology trends and various EU countries (Italy, Germany France, Belgium, Netherlands etc.) universities outputs regarding knowledge economy implications for economic higher education studies. Keywords: knowledge-based economy, information and communications technology, university studies in economics, university management, agility, innovation, SharePoint 2010 JEL Classification: A23, I23, O32, O33 ∗ Corresponding author, Marinela Mircea – [email protected] The Knowledge - Based Economy: Implication for Higher Education in Economics and Business AE Vol. XIII • No. 30 • June 2011 405 Introduction This study initiator was the bidirectional relationship between higher education (particularly economic and business studies) and the knowledge-based economy. Therein, higher education has been recognized over time as one of the social development foundations. Through partnerships among universities, government and industries, researchers and students involved in the change of society and the entire world economy (Lazowska, Lee Elliott and Smarr, 2008). Moreover, the last years’ higher education trend, namely universities’ transition to research universities, represents the main driving force of innovative economy. In order to achieve this goal, universities try to upgrade IT (Information Technology) infrastructure, as support for eScience research and education activities. Therefore, higher education institutions must know and understand students’ needs in terms of IT and access to institutional networks, regardless of time and place. Universities recognize the need to adopt new technologies, new methods, tools, and techniques to meet the needs of the twenty-first century students (see Niţă and Agheorghiesei, 2010; Plumb and Zamfir, 2009). At the same time, researchers need access to the latest computing resources to be able to run experiments and analyze results (see Zaman, Sandu and Anghel, 2009). Therefore, nowadays we face a significant increase of higher education costs and a cut in universities allotted budgets, which leads to an increased pressure in finding alternatives that would support the achievement of universities’ goals as such - educating students and performing research. In the modern knowledge-based economy, universities should follow any businesses conducts and behaviors, aiming at becoming intelligent universities. They must use the tools provided by the knowledge-based economy to capitalize on market opportunities and turn them into customer value. In response to market pressures, universities must perform cultural, strategic, and operational changes as a prerequisite for achieving agility, innovation, and alignment with European Union (EU) standards. Hereof, this study identifies the main technological implications of the knowledge economy on higher education, both at managerial level and in the education and research & development processes. In addition, the study places the theoretical aspects into a specific context, presenting an integrated technological solution in higher education, applied in the Academy of Economic Studies, Bucharest. The solution merges the use of process management (Mircea, in press), knowledge and Business Intelligence (Mircea, Ghilic-Micu and Stoica, 2010), service-oriented architecture and the Cloud solutions (Mircea, 2010; Mircea and Andreescu, 2010) in order to improve agility and achieve innovation, while supporting university in cutting expenses. The last part extends the solution with the SharePoint 2010 platform to improve university management and harmonize the content, teaching, and research & development methods with the EU standards. The SharePoint 2010 platform has been implemented and tested within two departments (Networks and Public Acquisitions) and first year Master’s Degree Computer Economics Course (131 students). The research methodology consisted in rigorous analysis of IT trends, of EU universities gained knowledge and experience merged with the authors’ practical experience in IT, education, management, and procurement. The research used theoretical documentation, direct observation and practical documentation in the specified areas, survey, data analysis and synthesis of information. AE Knowledge Based Economy – Technological Perspective: Implications and Solutions for Agility Improvement and Innovation Achievement in Higher Education Amfiteatru Economic 406 The survey used a 20-question questionnaire, distributed during "Virtual organization of activities" subject tutorial. The students’ ranges of age and work experience in the sample were age between 21-23, ca 44%, 0 years experience, 11% less than 1 year experience, 41% between 1-3 years, 1 student aged 45 counted 25 years experience and 1 student aged 32 counted 10 years experience. The survey aimed at assessing AES students’ perception regarding use of ICT (Information and Communications Technology) and SharePoint 2010 platform regarding the user interface and utility of integration. 1. The technological impact of Knowledge Economy on higher education The transition to knowledge-based economy requires the use and creation of knowledge in higher education as a decisive factor for social, economic, cultural and technological transformation. Achieving this goal necessarily involves the use of technology, particularly high technology, which would allow knowledge transmission and create new areas for education, research and development. The impact of knowledge-based economy has attracted researchers and countries attention all over the world, especially due to technological implications of and open access to knowledge. Thereof, we would like to mention the Berlin Declaration (2003) with regard to open access for all to higher education and the European Commission directives that integrated the Bologna process with the European research policy in order to influence education development in EU countries. In order to effectively promote the development of knowledge-based economy, governments need to facilitate economic change and modernization processes, create new opportunities and generate income (Pacesila, 2006). Education should be recognized as the number one priority, and ICT as an important investment area. The general infrastructure for providing conceptual and operational integration of ICT in all activity fields and daily life areas translates, in the case of higher education, into management, education and research (Figure no. 1). Thus, the conceptual framework of integrating ICT in higher education is reflected in aspects concerning: policy, objectives and incentives; resources and facilities; specialists with pedagogical skills; computer resources; teaching and learning activities; processes of performance monitoring and evaluation (Figure no. 2). Web Web Technology Technology Development Development Quick and Quick and easy access to easy access to the Internet the Internet Increased Increased use of use of ICT ICT Web Web Technology Technology Development Development Quick and Quick and easy access to easy access to the Internet the Internet Increased Increased use of use of ICT ICT ICT Education Education Management Management Research Research Education Education Management Management Research Research Figure no. 1: General infrastructure “knowledge society – higher education” The rapid evolution of technology provides many opportunities but it also creates tensions that are difficult to manage as well as changes that are often difficult to implement. The Knowledge - Based Economy: Implication for Higher Education in Economics and Business AE Vol. XIII • No. 30 • June 2011 407 Technological challenges are related to university management, learning spaces creation (e.g. fostering intuitive learning, flexible learning, combining physical/virtual environments, smart learning content) and learning no matter where, no matter when, no matter how, particularly within lifelong learning. ICT in education: policies, objectives, incentives ICT resources and facilities for universities ICT specialist teachers – educational opportunities Use of ICT in teaching and learning Resources for digital content and curriculum development Monitoring and evaluation of learner performance New paradigm in higher education Figure no. 2: Conceptual and operational framework of ICT integration 1.1 Impact on university management In order to respond to the pressures generated by knowledge economy requirements, higher education institutions must achieve cultural, strategic and operational changes, while dealing with internal barriers (e.g. traditions, limited resources). Without management changes, the European universities can not cope with demographic, economic and technological changes (see Brătianu and Nistoreanu, 2008). According to (Meek and Davies, 2009) the effectiveness of management models is to be evaluated based on universities’ contribution to the knowledge society and the knowledge-based economy. Currently there are several trends in defining higher education management models. Some European countries have abandoned the state control model. In Germany, 33 universities are free to decide on the teachers they hire and the courses they provide (Fielden, 2008). In the U.S. (Gumport, 2000) universities are seen as social institutions or as part of the national economy (at least 10% of the Senate members are representatives from industry, business or development partners). The second model provides actual changes in industry and business, sources of funding for education and research, but restricts the independence of universities. In Figure no. 3 are presented the main types of governance structures in European higher education. According to Mthembu (2009) a good solution for governance is the university management carried out by academic entrepreneurs (academically oriented business people). Analyzing the advantages and disadvantages of different university management models, it was concluded that the optimal use of space and types of agents will transform the universities of the twenty-first century into an engine for social development and innovation. Thus, in 2005 the European Commission will support the modernization of European universities, creating a new type of arrangement (contract) with the society, where universities are responsible for educational programs, resources, personnel, while public authorities focus on the strategic direction of the overall system. AE Knowledge Based Economy – Technological Perspective: Implications and Solutions for Agility Improvement and Innovation Achievement in Higher Education Amfiteatru Economic 408 Dual structure with external members in main governing body Dual structure with external members in consultative body Dual structure without external members Unitary structure with external members Unitary structure without external members Varies Figure no. 3: Governance structures Source: Estermann, 2009, p.14 Universities (both within and outside EU) are characterized by heterogeneity in the organization, governance, operating conditions and “social contracts”, which define the political option. Given recent developments in the governance of universities in Belgium, Denmark, Germany, Estonia, France, Ireland, Latvia, Lithuania, Hungary, Netherlands, Austria, Portugal, Finland and the United Kingdom, the following trends have been observed (Hinfelaar and Polzin, 2006): reduced state involvement, while universities become more autonomous (Figure no. 4); increased power of university management, while the academic profession loses a degree of self-governance; state influence on academic development through performance-based contracts of funding; enhanced cooperation with industry and society. Figure no. 4: Academic structures Source: Estermann, 2009, p.10 • Universities are largely autonomous in the design of their administrative structures • Restrictions affect more the design of the academic structures (name & number of faculties isted by law, guidelines) • Universities may freely decide: AT, BE/F, BE/W, HR, CZ, DK, EE, FI, GR, HU, IS, IE, IT, LV, LT, MT, NO, PL, RS, SK, SI, SE, UK • Universities may decide within certain limits: BG, CY, FR, DE, LU, NL, PT, RO, ES, C, TR The Knowledge - Based Economy: Implication for Higher Education in Economics and Business AE Vol. XIII • No. 30 • June 2011 409 The analysis at management level must be carried out from different perspectives (Table no. 1). Table no. 1: ICT prospects and implications on university management Perspectives Implications - relationship between the national economy and teaching & research; - teaching and research internationalization; - management restructuring in all university sectors; - use of technology in management; - the power of the university in financing its own operations; - multiple instruments administration; - evaluation on specific knowledgebased economy indicators - a secure, reliable and manageable ICT environment; - computer presentation skills; - cooperation with private and regional organizations; - transparent information infrastructure and ICT governance; - free access to services; - SURF (Ubiquitous Robotic Serviceoriented Framework) initiatives in areas where they are profitable. Source: Boezerooy, Cordewener and Liebrand, 2007; Blackmore, Brennan and Zipin, 2010 1.2 The impact of adjusting the tuition, research and development process to EU requirements Like other industries, education and research are affected by globalization trends (see Roşca, et al., 2008; Condrea and Stanciu, 2008). ICT access does not provide a response to all challenges of knowledge-based economy. In order to provide a solution to these challenges, the EU pursues a policy of aligning the education systems (educational content and methods) in Europe and of creating the European higher education area (under the Bologna reform), in accord with the principles of autonomy and diversity of national systems (Punie and Cabrera, 2006). This policy is intended to stimulate the development and dissemination of the European elearning CMS (Content Management Systems) as well as the access, based on ICT, to the European learning curricula. The changes generated by ICT require changing university curricula and accreditation as well as the assessment mechanisms. Moreover, ICT can be considered a cross-curricular activity, as students should be encouraged to use technology in all possible ways. ICT supports the education system harmonization with EU requirements as perceived through its implications for all types of users (Table no. 2). Table no. 2 Impact of ICT on education, research and innovation processes Users ICT Implications Students Open, computer-based educational offers Custom Digital Learning Environment Educational methods with personal portfolio Web-based self-service Experiential learning in immersive environments Experiential learning with "what if" analysis Intelligent objects in pedagogy and learning AE Knowledge Based Economy – Technological Perspective: Implications and Solutions for Agility Improvement and Innovation Achievement in Higher Education Amfiteatru Economic 410 Users ICT Implications Cognitive repair and support (for people with special needs) Audio-visual content Web Blog sites for collaboration and knowledge building Intelligent environments of synchronous and social learning LCMS (Learning Content Management Systems) Teachers Computer-based, integrated and flexible teaching systems Training facilities for educational innovation Easy access to educational and research content Blog Web sites for collaboration and knowledge building Use of presentation software and of digital content LCMS Researchers Collaboration and transparent sharing of research infrastructures Quality review without copyright transfer Access to digital data and information Knowledge of the economic demands and carrying out research in accordance with these demands Source: Punie and Cabrera, 2006; Boezerooy, Cordewener and Liebrand, 2007; UNESCO, 2008 ICT should be seen as a tool for changing traditional course content so that students become more innovative. Users must have basic knowledge of ICT and integration skills with other areas in order to make major changes and further economic innovation. Achieving academic goals depends on important factors such as funding policies and different actions taken by the university. Regarding research, there should be a balance between privatization (restrictive intellectual property rights), mainly due to financial problems, and free access to knowledge, as a prerequisite for economic innovation. Therefore, public funding for research and development is essential to maintain/increase the level and quality of research results publicly available. The involvement of students/graduates in the research activity will lead not only to knowledge creation, but also to the creation of routines in search, research, initiative, and entrepreneurship. The result consists in strengthening the link between academic research and teaching/industry, which is an important goal for universities in the knowledge-based society. Regarding the adjustment of educational content and methods, a correlation has to be made between curriculum standards and available software packages/applications and the inclusion of appropriate ICT activities in teaching plans. They must allow knowledge creation and transmission as well as encourage end users to acquire specific ICT skills. It is also important to identify social arrangements that can be used with different technologies. In conclusion, higher education institutions (especially those of Economics and Computer Technology) must become centers of knowledge, innovation and application of results to address society needs. A modern ICT infrastructure is a basic tool for the success of this initiative. Acquiring ICT knowledge is necessary in the knowledge-based economy, because a workforce that understands how to use technology is a tool for increasing productivity and innovation. The Knowledge - Based Economy: Implication for Higher Education in Economics and Business AE Vol. XIII • No. 30 • June 2011 411 2. Solutions for improving agility and achieving innovation in higher education The use of a service-oriented approach provides flexibility in the application of ICT facilities in higher education institutions. SURF identifies and disseminates best practices in education and a generic model of service-oriented architecture for universities. At the same time, an effective management of changes in universities is necessary, which involves the use of business process management (BPM), with implications on process automation and SOA (Service Oriented Architecture) governance. Knowledge determines the market performance of each university and it is to be found in all university processes (education, research & development, and support). The existence of intensive knowledge-based processes entails that only a subset of activities within the processes can be automated. The existence of collaborative processes, involving complex interactions between participants and the need to use knowledge lead to a complexity that many BPM systems are unable to support. Thus, the present context requires a different approach, such as Case Management (Ghilic-Micu, Stoica, Mircea and Sinioros, 2010) which meets the needs of dynamic institutions. The high costs of ICT in conjunction with the current financial crisis and universities limited resources require finding alternatives to the use of ICT, such as Cloud Computing. This is one of the most significant trends in ICT evolution, the second on Gartner’s priority list from 2010. Cloud computing enables universities to focus more on teaching and research, rather than on complex IT systems and software configurations against payment. From a financial point of view, migrating to Cloud does not make sense for universities without SOA and BPM. Government involvement in organizing a centralized Cloud for higher education may stabilize the academic field and lead to fast results in research and innovation. The potential and efficiency of SOA, BPM, Case Management and Cloud Computing use in higher education have been recognized by many universities and researchers in this field (see Mircea and Andreescu, 2010). In this paper we aim to expand the use of knowledge, process management, Business Intelligence, SOA architectures and Cloud solutions with the SharePoint 2010 platform in order to improve university management and to harmonize the teaching, research and development contents and methods with those of the European Union. This is done based on the authors’ previous research on ICT with implications in higher education, detailed in the following four approaches and on issues still unsolved in the institution: • an approach on how knowledge can be combined with business processes and intelligence so as to achieve agility in the collaborative environment with a case study on using agile BI solutions in AES. • an approach on the use of Cloud Computing in higher education, highlighting its main benefits and limitations, with emphasis on data security. A strategy of adopting Cloud Computing in higher education is also proposed, which would promote its adoption, improved practices and innovation. • the adjustment of BPM to SOA to achieve agility and a perspective on serviceoriented BPM exemplified on the procurement department of AES. • an integrated approach on the use of SOA, BPM and Cloud Computing mix in higher education, with emphasis on the need for implementation and its potential benefits. 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