Friday, 28 August 2009. 1. Financial Performance Financial Performance 2. Student Enrolment Student...

INSTITUTE FORUMFriday, 28 August 2009

Sequence of Presentation

1. Financial Performance2. Student Enrolment3. Initiatives (Grouped under the 4

Strategic Themes of the “AIT Strategy 2013”)

4. AIT: Realities, Challenges and Opportunities

5. New Possible Financial Model for AIT:Public-Private-Partnership (PPP)

6. Q & A

1. Financial Performance

2006-2009 Actual v 2009 Budget

FUND 10


FUND 10

Higher (Non-Operating) Expenditures in Budget 2009 - Key Items Include:• Strategic Investments 34 M• Termination Package to Staff on Account of Outsourcing 28 M • Contingency for Retroactive Salary Adjustments 7.6M and Salary Increase 18.46M• Net Effect from Outsourcing to Sodexo 4 M higher costs• Charter Promotional Activities 5 M• Salary for Vacant / Additional Faculty and Employee 26 M (budget higher than

2008) • Subscription of e-Book 5.15 M• AIT Branding 2 M• General Increase in Materials in 2009 budget (from 2008) about 20M


SET


SERD


SOM


FUND 21


FUND 30


FUND 21


FUND 30

2. Student Enrolment

Aug 06 Aug 07 Aug 08 Aug 09

APPLICATIONS 1662 1907 2028 1578

OFFERS 1438 1497 1442 1297

ENROLMENT 562 645 648 512

FULL-FEE EQUIVALENT 439 535 531 412

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AIT: Enrolment Trends


APPLICATIONS 750 719 875 587

OFFERS 628 520 578 476

ENROLMENT 221 211 228 158


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SERD: Enrolment Trends



OFFERS 521 742 620 591

ENROLMENT 197 314 270 239


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SET: Enrolment Trends



OFFERS 289 235 203 202

ENROLMENT 144 120 133 105


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tSOM: Enrolment Trends

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AIT SERD SET SOM

Some Observations Application Drop. The overall decrease in enrolment in Aug 09 by

about -17% seem to reflect the institute-wide reduction of -21% in applications.

Decrease in Donor-Funded Scholarships. Of the schools, the most affected is SERD which rely primarily on full scholarships since most of its programs target disadvantaged sectors.

For example, 45 Netherlands scholarships were available in 2007 but no longer available in 2008 and 2009; CIDA, France, Austria ADA, STARR Foundation full master's scholarships are also no longer available in 2009. We also received a reduced number of Norwegian and Sida scholarships in 2009 as compared to 2007 and 2008.

Decrease in Sponsored Scholarships from HEC Pakistan, UOB Pakistan, MOAC Thailand, MOET Vietnam, IFP-Ford Foundation, EVN, PetroVietnam, etc.

Decrease in Externally-Funded Students, for example from NSTDA, Rajamangala University of Technology-Thailand, Department of Highways – Thailand, Indonesian Agency for Agricultural Research & Dev't (IAARD) – Indonesia, etc.

3. Initiatives (Grouped under the 4 Strategic Themes of the “AIT Strategy 2013”)

AIT Strategy 2013

Four Strategic Themes

1. Internationality as Regional Network Institute

2. Excellence and Relevance in Education Research and Outreach

3. Positioning and Branding4. Development and Resources

Management

1. Internationality as Regional Network Institute

New AIT Charter ASEAN MDG Center of Excellence Yunus Center at AIT Asian Center for CSR at AIT (with CSR Asia) Collaboration with Finnish Ministry of Foreign

Affairs on Energy Environment Partnership in the Mekong Region

Planned AIT Project Offices in Shanghai and Kathmandu

New Regions – New Opportunities and Possibilities

2. Excellence and Relevance in Education Research and Outreach

EuroAsia Partnership Projects (Erasmus Mundus)

Center for Learning Innovation and Quality (CLIQ)

Professional Programs Undergraduate Programs that build on AIT

strengths and institutional networks Summer Program AIT Consultancy Service Technology Licensing and Venture Capital Office AIT City Campus Conference and Launching of Center of

Excellence in “Sustainable Development in the Context of Climate Change”

Sponsored & Contracted Projects

Year No. of Initiated Projects

Total Project Budget

Overhead + Payroll Recovery Budgets

OH + PR + Degree Surcharge Budgets

PI Honorarium Budget

2009 132 234.87 54.74 61.84 13.712008 204 531.30 81.01 85.67 20.632007 224 443.33 81.89 91.9 27.552006 179 333.11 67.4 67.4 3.942005 113 202.8 28.17 28.17 1.13

Ongoing Projects 2009 369 1525.39 200.43 217.96 52.662008 461 1,831.21 211.56 224.47 46.242007 425 1,490.65 176.92 186.94 32.312006 383 1,259.83 133.82 133.82 5.082005 227 946.97 69.56 69.56 1.13

Fund 30 Academic ProgramsYear No. of Initiated

Programs Total Project

Budget Overhead +

Payroll Recovery Budgets

OH + PR + Degree

Surcharge Budgets

PI Honorarium Budget

2009 9 92.52 19.53 26.62 12.332008 9 84.44 15.74 20.36 14.462007 10 120.8 19.78 29.8 23.112006 2 27.54 4.58 4.58 -

Ongoing Programs 2009 24 264.45 53.35 70.85 41.82008 19 207.5 38.14 51.02 33.962007 12 148.34 24.36 34.37 23.112006 2 27.54 4.58 4.58 -

OVERVIEW OF RESEARCH ACTIVITIES FOR 2008

SCHOOL/FoS

SPONSORED & CONTRACTED PROJECTS

TOTAL PROJECTS

PUBLICATIONSTOTAL

PUBLICATIONSCompleted On-going Refereed

JournalsConference Proceedings

Refereed Books/Chapters

Other Publications

SET 46 103 149 100 137 9 63 309CS/IM 2 7 9 10 15 1 - 26CEIM 3 4 7 4 4 - - 8IME 7 6 13 17 22 3 23 65GGE 5 11 16 18 18 - 23 59Mech/Mic 7 12 19 19 28 3 3 53RSGIS 10 16 26 11 21 2 3 37StE 3 17 20 2 6 - 2 10TC 1 2 3 7 11 - - 18TrE 4 7 11 3 5 - - 8WEM 4 21 25 9 7 - 9 25ICT - - -OTM - - -

SERD 81 88 169 136 87 28 47 2981 6 7 13 - 4 2 19

AARM 6 4 10 12 4 1 19 36E 12 3 15 20 10 1 1 32EEM 17 30 47 51 45 6 15 117FEBT 7 11 18 8 - - 6 14GDS 4 10 14 4 20 5 - 29NRM 3 10 13 18 6 5 2 31

PPT - - - 4 - 5 - 9

RRDP 7 2 9 6 2 1 2 11UEM 24 12 36

- - -GTD - - -

SOM 5 10 15 44 8 11 3 66Initiated

intERLab 9 9 4 22

Ext 74 23 - 97

Institute-wide 3 4 7

TOTAL 459 673

3. Positioning and Branding

“AIT Strategy 2013” and “Vision 2030”

Strengthening Alumni NetworksEngaging Professional Consultants

for Fundraising, Positioning and Marketing

Appointment of Full-time Vice President for Resource Development

Strengthen Media and Communications Unit

4. Development and Resources Management

Salary Rationalization and Reclassification of Positions

Responsibility Center Management (RCM) and Results Based Management (RBM)

Integrated Facilities Management Contract with Sodexo

Possible Outsourcing of IT Functions and Other Non-Core Functions for Increased Efficiency

Public-Private-Partnership (PPP) Model

4. AIT: Realities, Challenges and Opportunities

Governments

Private SectorAIT

- Political support : new linkages- Support education / research- Scholarships

- Need- based orientation

Demand approach

- Innovative ideas- Research/ education facilities- Joint program education/ research- Scholarships- Competencies / experience- Internship- Employability- CSR

Market contact ==== > Continuous Improvement

Challenges

Complex Environment

AIT CHALLENGES

Rapid ChangeTight Competition

Monopoly

Correlation(Expenditures Performance)

Productivity / Efficiency

No Core Funding

Input- based Planning of Activities

High Technology

No Clear Ownership

“It is our collective obligation to face the situation with the right balance of short-term focus and long-term ambition, for ourselves and for the generations whose opportunities will be shaped by our choices…

….For Harvard, as for many other colleges and universities, our challenge is to confront the new economic realities and intelligently adapt ourselves to them, while at the same time affirming and strengthening the enterprise of learning and discovery that lies at the heart of what we do.”

Drew Faust, President of HarvardFebruary 2009

The Valley of Death

No Core funding

AIT at PresentAIT Future Development

AIT in the 21st Century

Answer : Not donations BUT Business ThinkingConcept : Not donorship BUT Partnership / Networking

Efficiency / Innovation Driven Institute / Value Creation

Industrial / Private Sector Relations / Flexible and Responsive to Change

AIT at PresentAIT Future Development

New Landscape forHigher Education Marketing

Mature Students & Lifelong Learning (education for professionals)

Enhancement (education as personal enrichment)

Target Countries (one size does not fit all; select target markets and ensure product meets needs)

Unlikely to recruit in a big way from Europe or N. America

Emerging markets (e.g. Africa) Greatest growth in Asia

from Olsen 2002 p3, after IDP

5. New Possible Financial Model for AIT:Public-Private-Partnership (PPP)

“We need to rebuild and strengthen our economies as well as regenerate sustainable growth and development. ASEAN is well placed to do this, but it will have to be a collective effort on the part of governments and all sectors of society. The private sector in particular has an important role to play”.

Prime Minister Abhisit Vejjajiva6th ASEAN Leadership Forum

June 2009

National Progressive Index for ThailandUnveiled by Prime Minister Abhisit Vejjajiva on 22 August 2009 PROGRESSIVE

P - People R - Reconciliation O - Openness G - Good Governance R - Regional Integration E - Economic Recovery SS - His Majesty the King's Theories on Sufficiency

Economy and Sustainable Development I - Innovation V - Vision E - Education

The Benefits Thailand Receives from Joining as a Partner of new AIT Charter“To fulfill the government’s policy in promoting AIT to be a site of an international organization and to support AIT to be an organization that is able to expand its capacity in promoting international cooperation in higher education and human resource development; research and development in science and technology; assistance for Asian development which can benefit in the promotion of closer relations; as well as promoting economic and social development of Thailand and the countries in the region.”

“Elevating AIT’s status to be internationally recognized”Article published by the Ministry of Foreign Affairs Thailand

Matichon Newspaper, June 2009

Major transformation of the relationship between universities and Society that also affect the universities “publicness”

The increasing difficulty that governments experience in providing a level of funding sufficient to accommodate growing student numbers and support costly research facilities;

The increasing use of market or quasi-market mechanisms in the external and internal governance of universities;

The increasing expectations as regards “value for money”, relevance, as well as “excellence” in higher education and research;

The increasing global competition for students, academics and funding;

The rapid emergence of distance and cross-border education; and The rise of private non-profit and for-profit higher education

providers in certain regions and countries around the world.

The International Finance Corporation (IFC) of the World Bank Group Actively engaged in Private Education Cites the following Strategic Reasons for doing so:

To support socially responsible and sustainable development through for-profit and not-for-profit institutions.

To expand access to quality education to people from all income groups.

To introduce innovative means of financing and delivering education services.

To improve quality standards in education.

To help students and institutions obtain access to financial support.

To complement public financing and provision to achieve public education goals.

“Increasing private participation in the system could be beneficial by boosting investment and competition and encouraging knowledge transfers. Higher standards should continue to reinforce Thailand’s reputation”.

Thailand Outlook for the “Education Sector”

Thailand 2009 Report, The Oxford Business Group

Some of the Common Misconceptions about PPPs

Public private partnerships are the same as privatization;

By entering into a public private partnership, public sector loses control over the provision of services;

Public private partnerships apply only to infrastructure projects;

The principal reason for government entering into public private partnerships is to avoid debt;

Public sector employee will lose under public private partnerships;

The cost of service will increase to pay for the private partner's profit;

There are only two partners in a public private partnership

Proposed PPP Model for AIT Strategic Partnership

AIT Brand Name Would be Further Strengthened

Investments Towards Campus Upgrading New Investments Building of Endowment Fund Investments in 7-8 new Campuses Abroad

Management Expertise Marketing, Finance, HR Functions

Management Contract

Status Update on the PPP Concept

AIT has started informal discussions with some of the resident members of the Board of Trustees, Executive Committee, Institute-level Advisory Board, as well as School and AIT Extension Boards, and at the same time also written to several of AIT’s partner institutions, organizations and individuals in Asia, Europe and the US including alumni, former senior administrators, former faculty and staff etc. in seeking their views and comments on the PPP, as well as exploring whether they or organizations / institutions through the networks and contacts would be interested in entering into discussions with AIT.

Status Update on the PPP Concept

Letters were sent to : Presidents of Universities and Partner Institutions in countries including Japan, Korea, Singapore, Sweden, France, Netherlands, Thailand, Australia, US, China, Norway, Taiwan, India etc. Some companies like Sodexo; the Amata Corporation Public Company Limited; Charoen Pokphand Group; Lee Foundation; Tata Sons Limited etc. were also contacted

A lot of feedback has been received, in general expressing strong support for this concept, and citing it as being the right way or direction for AIT to proceed into the future.

Expressions of Interest from Laureate, Apollo Group, Siam Cement Group, Amata Corporation, Nanyang University of Technology etc.

“My hope is that by taking the steps we are taking today…… it will help speed the day that the government can get out of the way and let the private sector do what it does best - innovate, create jobs, and grow the economy.”

President Barack ObamaQuote from interview with Fortune Magazine

April 2009

Concrete Discussions with Laureate

20 Countries 43 institutions More than 100

campuses Nearly 500,000

students

6. Q & A

Friday, 28 August 2009. 1. Financial Performance Financial Performance 2. Student Enrolment Student...

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