Final UTS Report For Data Science Institute 2017-1-3

January 3, 2017
Mr. Paul Hobby, Co-Chair

Ms. Carin Barth, Co-Chair
The Chancellors Houston Task Force
cc: Dr. Randa Safady
Subject: University of Texas Data Science Institute Viability Assessment Deliverable
Dear Paul and Carin,
Booz Allen is pleased to submit our report regarding the research requested under our contract. We
have enjoyed the opportunity to support the Task Force in its important charge to provide
recommendations to The University of Texas (UT) System Chancellor and Board of Regents on a course
of action for the use of the Houston property.
We structured our research report to answer five key questions as determined by the Chancellors Task
Force. For completeness, we also included an appendix to capture research findings or background
information that might provide additional context.
We wish the UT System, in concert with the greater Houston community, every success in this game
changing, ambitious journey.
Sincerely,
Gary Rahl
Executive Vice President
Booz Allen Commercial Solutions

901 15th Street, NW
Washington, DC 20005
Tel 202-346-9470
www.boozallen.com
VIABILITY OF
UNIVERSITY OF
TEXAS DATA
SCIENCE INSTITUTE
January 3, 2017
Prepared for:
This document includes Booz Allen Hamilton Inc. Sensitive and Confidential information that shall not be disclosed outside of Booz Allen
Hamilton Inc. and/or the University of Texas System and shall not be duplicated, used, or disclosedin whole or in partfor any purpose
other than to evaluate these discussions.
Table of Contents
EXECUTIVE SUMMARY ..................................................................................................................................... 1
UNDERSTANDING AND OBJECTIVE ............................................................................................................. 3
FINDINGS .............................................................................................................................................................. 3
1.0 DATA ANALYTICS AND THE FUTURE .............................................................................................. 3

1.1 Establishing Definitions ......................................................................................................................................... 3
1.2 Industry Adoption of Data Science ......................................................................................................................... 4
1.3 Looking Forward: Healthcare ................................................................................................................................. 6
1.4 Looking Forward: Energy ....................................................................................................................................... 7
1.5 Looking Forward: Education .................................................................................................................................. 8
1.6 Additional Industries for Consideration: Manufacturing and Logistics ................................................................... 8
1.7 The Importance of a Data Science-Focused Institute for Texas and the U.S. ........................................................ 10
1.8 Potential Topics of Focus for the Institute............................................................................................................ 10
2.0 VIABILITY OF AN INSTITUTE IN HOUSTON................................................................................ 12

2.1 Local Area Assessment......................................................................................................................................... 13
2.2 Industry Alignment Assessment ........................................................................................................................... 15
2.3 Feasibility of a Research and Academic Center in Houston .................................................................................. 17
2.4 Potential Risks ..................................................................................................................................................... 20
2.5 Lessons Learned and Considerations ................................................................................................................... 21
3.0 PARTNERSHIPS ANALYSIS ............................................................................................................... 24

3.1 The University of Texas System Value Proposition as a Partner ........................................................................... 26
4.0 ADDRESSING LOCAL NEEDS............................................................................................................. 28

4.1 Enabling Core Strategies ...................................................................................................................................... 28
5.0 INCREASING INTERN/CO-OP EMPLOYMENT ............................................................................. 32

5.1 The Value of Co-Ops ............................................................................................................................................ 32
5.2 The Demand for Co-Ops ....................................................................................................................................... 33
6.0 APPENDIX .............................................................................................................................................. 34
Booz Allen Hamilton Inc. Sensitive and Confidential Information January 3, 2017 Page i
EXECUTIVE SUMMARY
Importance of data analytics in the future of healthcare, energy, and education: A
Data Science Institute (Institute), focused on applying advanced analytics techniques to massive
data sets in healthcare, energy, and education to answer hard questions and solve intractable,
global problems, is a daring and inspiring goal. Data science is a growing field of focus and
continues to change and evolve rapidly. This is especially true in the areas of healthcare, energy,
and education where companies are early in their data science journey.
Viability of an Institute in Houston focused on healthcare, energy, and education:

The field of data science will be relevant and impactful for the foreseeable future. Although other
universities have data science institutions, the Chancellors Houston Task Force vision for the
Institute represents something that is unique in scale and scope. Location choice is vital for an
Institute of global reach and significant scale.
As one of the nations largest cities, Houston has a clear competitive advantage in the areas of
healthcare and energy because of the existing strength of these industries not only in Houston
but also in the world. There is a critical need in the area of education, with a population that
lags other major metropolitan cities in terms of educational attainment, and the Institute could
provide much needed analytics research to improve education outcomes.
Houstons economy is able to draw from, contribute to, and help sustain the Institute over time.
Effective application of data science will have a catalytic effect on the industrial base in the
Houston region. Data science is accretive to the core mission of existing companies,
universities, institutions, and research centers and will enable these crucial economic
generators to be competitive on the world stage for future generations.
Although the Institute is an attractive proposition, there are several key considerations to enhance
the viability of the Institute:
Developing a repository and pipeline for data will foster a competitive advantage relative to
other institutes, as well as serve as an attractive value proposition for partners and research
talent.
Creating a viable business model for a world-class Institute takes time, and intensive
socialization with potential partners and stakeholders is essential. Ambitious partnerships
such as Cornell-Tech and TMC3 had strong leaders and a robust planning team working over
a multiyear timeframe to develop and launch a detailed plan.
Identifying select, high-end research talent to join and evangelize the Institute will help the
Institute meet its goals. Industry wants to partner with the best, proven academic research
minds in the world in exchange for their talent, challenges, data, and funding. To support elite,
world-class talent, the Institute should deploy a mix of research scientists and teaching faculty,
and, at a minimum, provide graduate education in data science.
Potential partners and relevance of the data assets: Broadly, partners have the potential
to bring a combination of data, critical problems to solve, talent, expertise, and funding to the
Institute.
Booz Allen Hamilton Inc. Sensitive and Confidential Information January 3, 2017 Page 1
Organizations interested in participating are an incredibly diverse mix, ranging from industry,
universities, and government to nonprofits. Feedback from industry through our research
process indicated that there is interest and value in an Institute, but more dialog and specifics
are needed.
Given the scale and scope desired for the Institute, it will be important to cultivate global
partners. For example, Singapore is rapidly becoming a hub of data analytics talent and
activity because of the regulatory environment. Synergies exist in healthcare and energy hubs
around the world. Rapidly developing economies in the Asia Pacific region have deep talent
pools embracing analytics. The Institute needs to look to capitalize on strengths of the UT
System (UTS) and Houston community as well as partners around the globe.
Those with the most data will have a strong competitive advantage in the data science game. While
the data assets referenced in the Scope of Work (SOW) serve as a starting point, the Institute will
need to build significantly on this solid foundation to be successful.
UTS should not underestimate the value or difficulty of collecting and making vast arrays of
data sets available for analysis. Data collection and storage require overcoming impediments,
ranging from privacy and security to the proprietary nature of the data. UTS should focus on
collecting as much UTS data, public domain data, and partner data as possible. For healthcare,
partnering with institutions in TMC immediately establishes highly compelling data sources
and a partner community from which the Institute could accelerate discoveries from the data.
UTS should make data contribution, security, and curation a priority for the Institute and
collaboration partners and create modern data governance guidelines as well as data storage,
access, and platform architectures. Doing this well from the inception will give the Institute a
strong value proposition and competitive advantage.
Identify ways that the Institute may be able to address needs of the local Houston-
area community: Data science has fostered a strong notion of social good among its cohort of
professionals, perhaps due to the strong influence of the millennial generation. Regardless, data
science is aggressively being applied to help solve needs regarding congestion, poverty, under-
performing public schools, and access to basic healthcare that are endemic to most large cities
including Houston. The Institute will positively impact the citys economy and provide needed
analytics research to improve outcomes that impact local individuals. The Institute aligns well
with Houstons vision and goals, particularly Support a Global Economy and Champion Learning.
Assess regional employers to incrementally increase their available intern/co-op-

type positions pertaining to data sciences and fee structures: Not surprisingly,
companies recruiting on college campuses have strong intern and co-op hiring programs because
these serve as key pipeline and success indicators for junior talent hiring. As companies look to
hire more data scientists at all levels, intern/co-op positions should expect to increase, but it is
unclear if this is net new hiring or if hiring in other fields will decline. The economic cycle
appears to be the strongest predictor of industrys overall intern/co-op hiring numbers. Salaries
for technical fields range from approximately $3,000 to over $3,800 per month.
UNDERSTANDING AND OBJECTIVE
The University of Texas System (UTS) has purchased more than 300 acres in a critically important
central area of Houston, the nations fourth largest city, home to the nations energy hub and home
of the worlds largest medical center. The land is situated less than 3 miles from the Texas Medical
Center (TMC) and is considered one of the last remaining large tracts of free space centrally
located in this large urban community. UTS is interested in inviting potential strategic partners
to have access to the land and other assets for collaborative purposes in the data sciences arena.
The UTS contracted with Booz Allen Hamilton to assess the viability of a proposed Institute.
Specifically, Booz Allens objective was to focus on five key areas regarding this proposed Institute:
1. Assess the importance of data analytics to the future of healthcare, energy, and education;
determine why having such an Institute in Houston is important to Texas and the U.S.;
and identify potential topics in each category that could be addressed through
collaboration at the Institute
2. Assess the viability of a research and academic Institute in Houston, identify opportunities
and risks associated with a Houston location, and note any potential considerations for
the development process
3. Assess potential entities for partnerships locally in Houston, and in the larger state,
national, and global markets
4. Identify ways the proposed Institute may be able to address the needs of the local
community
5. Determine the ability and desire of regional employers to increase available intern/co-op
positions with the development of the Institute.
FINDINGS
The findings detailed below are organized according to the research results for each key question
listed above. These results include input from select UTS stakeholders, open-source research,
Booz Allen subject matter expertise, and industry interviewsall of which are non-attributable.
1.0 DATA ANALYTICS AND THE FUTURE

Assess the importance of data analytics to the future of healthcare, energy, and education;
determine why having such an Institute in Houston is important to Texas and the U.S.; and
identify potential topics in each category that could be addressed through collaboration at the
Institute.
1.1 Establishing Definitions

Before evaluating the importance of data science to the future of key industries such as healthcare,
energy, and education, it is important to establish an understanding of the term, how the field has
evolved thus far, and where it is headed.
At its core, data science is a multidisciplinary approach to collect and analyze massive amounts of
data, and to extract actionable insights from them. Data science is a powerful, innovative
approach to making discoveries in all areas of intellectual inquiry. Combining statistics, computer
science, applied mathematics, and visualization, data science can turn the enormous amounts of
data that the digital age generates into new insights and knowledge.
Data science depends on a

diverse set of skills, as shown
in Figure 1. Mathematics
provides the theoretical
structure in which data science
problems are examined. A rich
background in statistics,
geometry, linear algebra, and
calculus are all important to
understanding the basis for
many algorithms and tools.
Computers provide the
environment in which data is
captured and data-driven
hypotheses are tested, and
therefore, computer science is Figure 1: The Three Primary Facets of Data Science
necessary for data storage and
data manipulation and processing. Finally, domain expertise contributes to an understanding of
what problems actually need to be solved, what kind of problems or opportunities exist in the
domain, how the problem space may be instrumented and measured, and how the analytic results
should be interpreted.1
1.2 Industry Adoption of Data Science

Data science is a field of focus that continues to change and evolve rapidly. As companies and
individuals learn to interpret the
information and turn that vast
amount of data into actions,
demand will continue to grow
exponentially. Big data
technologies have accelerated the
rate of success for companies that
have been early adopters. Major
digital players, including Facebook,
Google, Amazon, and Apple, have
long been pioneers in embracing
the opportunities of big data, and,
as a result, have experienced
exponential growth and
profitability, as seen in Figure 2.
Figure 2: Impacts of Data Science
1https://www.boozallen.com/content/dam/boozallen/documents/2015/12/2015-FIeld-Guide-To-Data-Science.pdf
Facebook for example has become one of the worlds largest repositories of personal data, and
monetization of its data is now at the core of its business strategy.2 Other industry sectors, unlike
the digital media industry, face higher risks and barriers. As a case in point, a marketing analysts
algorithms incorrect targeting of an ad might result in wasted marketing dollars, whereas a
machine-driven misdiagnosis of a patient case may mean the difference between life and death.
This has contributed to legacy industries that operate with higher stakes, including healthcare,
energy, and education, adopting data science more slowly. If we look at a report that evaluates
data scientist penetration by industry based on LinkedIn profiles, as shown in Figure 3, we can
see the relative low rank of healthcare while energy is not even represented.3
Figure 3: Data Scientists by Industry, Top 20
Once there is significant penetration in these industries, competition for data science resources
will accelerate, similar to banking and financial services, digital marketing, and advertising
industries where companies are aggressively hiring data scientists to embrace the future. This
reality creates a clear future demand for improved data science technology, analytics, and,
importantly, for data science skill sets that support industries vital to the economic future of
Houston.
A second dimension of assessing the importance of data science to the future of any industry
requires looking beyond how data science is applied today, but rather what role it might play in
the future of these industries, a future that will look markedly different. While numerous trends
are shaping our world of tomorrow, depicted in Figure 4, three stand to have a particularly large
impact on the three industries of focus for the Institute:
Continued population growth, combined with longer and higher quality of life, is leading
toward 10 billion people on our planet by 2050, largely living in sprawling megacities in the
developing world.
2 http://www.forbes.com/sites/bernardmarr/2016/01/13/big-data-60-of-companies-are-making-money-from-it-are-you/#494b7e614387
3
https://www.stitchdata.com/resources/reports/the-state-of-data-science/?thanks=true
The advent of robotics and autonomous technologies is driving the ability of computers to learn
and make decisions previously requiring humans, leading to the augmentation or replacement
of dirty, dangerous physical work.
Constraints on natural resources have necessitated rapid innovation to increase capacity and
efficient use of energy, water, and food sources.
Figure 4: Where Data Science Is Headed
It is within this environment that the vision for the Institute should look to design and build an
ecosystem of startups, industry, and academia to nurture and empower tomorrows leaders.
Businesses, economies, and societies must adjust to these changes or risk being left behind. From
influencing energy production, to improving public health and safety, or to enhancing learning
for all, data science presents the potential to tap into and also generate previously unattainable
value. In many ways, data is our new currency and data science is the mechanism by which we tap
into it.
1.3 Looking Forward: Healthcare

The healthcare industry has traditionally lagged behind other industries in the use of big data and
the application of data science to drive insights. It is not necessarily due to a lack of data, as data
products from the U.S. healthcare system alone reached 150 exabytes over five years ago. A series
of converging trends are just beginning to break down structural barriers that have kept the
industry from adopting data science wholesale. Escalating healthcare costs, technological
advances to ensure patient privacy, and the embrace of evidence-based medicine have stimulated
the demand for big data in healthcare. In the future, implementation and use of big data analytics
will be rapid and widespread across the healthcare industry, to improve care, save lives, and lower
costs. Below is a sampling of the range of healthcare topics that a collaborative Institute in
Houston could address:
Precision Medicine: Data science will enable genomic and proteomic researcha complete
understanding of the microbiome and lead to transformation in the practice of medicine.
Reduction of Hospital-Based
A Possible Future
Infection: There will be a reduction
THE PATIENT EXPERIENCE
in hospital-based transfer of Technology will continue to transform healthcare, not only
resistant bacteria as Internet of improving patient health but also further empowering the
Things (IoT)-infused hospitals patient, transforming healthcare to a consumer-centric
become the norm. Every action and business.
administered treatment will be No More Waiting: Detailed tracking of provider movements

subjected to data analysis to draw will tell patients exactly when to arrive.
direct correlation to the reduction Virtual Doctor: Consumer health technology will prompt to
of infection. note symptoms when changes in health status or behavior are
detected and request the information to issue prescriptions.
Automated Diagnosis: Digital
Single Scan: A single scanning device will offer metabolic,
pathology and automated image functional, and structural detail, combining the physics of
recognition of things such as X- spectroscopy, magnetic resonance, and radiation.
rays, MRIs, and EKGs will greatly Organs on Demand: Organs, tissues, and supporting
increase the accuracy of diagnosis. structures like bones or ligaments will be biologically 3D-
printed on demand.
Machine-Driven Pharmacists:
Advanced scraping methodologies will enable the collection of information on all patients and
leverage text mining to advise regarding interactions that clinical studies do not uncover,
providing insights and life-saving information from trials in the wild that are not supervised.
1.4 Looking Forward: Energy
Certain barriers to full adoption of data science in the energy industry still exist. Poor data quality
and integration, fragmented use of analytics, and inconsistent ownership of data across processes
have created a missing middle for energy companies. Below are some near- and long-term
energy topics that a collaborative Institute in Houston could address:
Near-Term as companies fight to maintain current positions:

Sensor-based technologies and remote monitoring to enable predictive maintenance in the
field (e.g., pump jack maintenance)
Advanced optimization models to analyze pricing structure, maintenance, and performance
The application of advanced analytics (e.g., natural language processing and machine learning)
to improve internal business operations and deliver cost savings.
Long-Term as the industry evolves and new leaders emerge:
With alternate energy solutions increasing in the industry, data science will be used to hedge
energy portfolios.
Retail operations will be leveraged as there is a move to microgridsrequiring the use of
analytics to optimize the use of energy.
Analytics and data-driven predictive maintenance on transformers will support load leveling
from small to large-scale power generation.
Many integrated oil companies will gain advantage by increasing emphasis on chemical
production as products are repurposed to drive up the bottom line based on analytics insights.
1.5 Looking Forward: Education
To date, the education industry has only scratched the surface of the potential of data science. The
industry lacks much of the infrastructure, tools, resources, and capacity needed to gather and
analyze large data sets. In addition, schools encounter privacy, safety, and security risks when
collecting student data. These barriers have stymied large-scale adoption of analytics in schools.
Big data has begun to be used for decision making in higher education, but practical applications
in higher education instruction are rarely used.4 The industry is taking steps to overcome the
privacy issues. President Obama recently proposed the Student Digital Privacy Act, which would
prevent companies from selling student data to third parties for purposes unrelated to the
educational mission and from engaging in targeted advertising to students based on data collected
in school. Although only in initial stages, such regulations are beginning to address privacy
concerns and fears regarding the misuse of data intended to improve student learning. As
adoption of data science increases in the industry, it will ensure better, more impactful
educational outcomes.5
An important distinction for the Institute is that education can be viewed as both an industry/
domain that can benefit from research and the application of data science and advanced analytics
and as a service provided by the Institute. In this context, we have examined education as an
industry.
Education as an Industry: Traditionally,

education has been a lagging indicator, A Possible Future
reacting to triggers within society (such as THE STUDENT EXPERIENCE
new technologies or job titles) that drive The experience of the student and the role of the teacher
will be significantly different in the future.
the need to adjust curricula and fields of
study to close workforce gaps. The Adaptive Classrooms: Classroom spaces will be easily
adaptable to fit whatever activity or pedagogical method
application of data science provides the
the teacher chooses on a given day
opportunity to position education as a
Are You Listening: Biometric tracking combined with
leading indicator. Data science predicated
student responses will drive dynamic analysis allowing
on cheap computation power can help to teachers to understand how students absorb and
understand, diagnose, and reveal insights understand learning content
about the individual learner and develop Teachers Assistants: Artificial intelligence (AI) will
targeted ways to deliver desired outcomes, replace many repetitive tasks such as grading, freeing up
allowing for the optimization of the student educators to dedicate more time to students
experience and leveraging each
individuals potential. This is typically referred to as precision learning and could be a high-impact
topic of choice for the Institute in Houston.
1.6 Additional Industries for Consideration: Manufacturing and Logistics

While no industry will be left untouched by the wholesale adoption of data science and data-
driven decision making, our research suggests that Houstons characteristics and local ecosystem
position it for greatest realizable impact from the industries of healthcare, energy, and education,
and these should therefore remain at the forefront as focus areas for an Institute. Adjacent and
4 http://www.centerdigitaled.com/news/4-Big-Data-Challenges.html
5
http://er.educause.edu/articles/2016/8/big-data-analysis-in-higher-education-promises-and-pitfalls
related industries should be considered only once a firm foundation has been laid for the Institute
in these three industries.
Advanced manufacturing and logistics are examples of industries of focus that might be
considered by the Institute in the future because they are likely to see significant data science-
driven advances in the coming decades and are relevant to Houston.
Considering the future impact of data science to manufacturing, entire economies will need to
adapt as new and innovative processes such as additive manufacturing completely transform how
products are built. Workforce requirements and business models in manufacturing will be forced
to evolve as disruptive technologies further infiltrate the industry. Some of these potential
disrupters include:
The number of connected devices will increase five-fold to 25 billion by 2025. Sensors will
monitor even the smallest step and provide machine-to-machine communication that enables
real-time optimization of performance characteristics.
Additive manufacturing and 3D printing will continue to evolve and exceed traditional
manufacturing methods in their ability to produce any product. Metal, plastic, mixed materials,
and now even human tissue can be 3D printed. This will in effect make any 3D printer a virtual
manufacturing factory.
As robotics and automation proliferate the industry, robots will handle more than a quarter of
manufacturing tasks within the decade.
The City of Houston is home to 6,063 manufacturers who employ almost a quarter of a million
skilled workers.6 Houston also represents one of the largest concentrations of industrial space in
the nation, with the capacity to meet future demand. This presents a large opportunity for the
application of data analytics to innovate in this industry.
Considering the future impact of data science to logistics, the new norm of e-commerce business
and advances in technology-enabling automated logistics have already begun to transform the
industry and will continue to do so for the foreseeable future.7
As machine-learning algorithms address complexity, cost, and uncertainty almost
instantaneously, products and services will be created, moved, and delivered faster than people
can keep up with.
Human-based economies and flows of products and services will see a significant expansion as
digital economies give rise to self-governing logistics systems.
The Port of Houston has made the city a gateway and transportation hub for trade to Mexico,
Canada, and Latin America. With the numbers of businesses in Houston engaged in international
trade nearly doubling from a few decades ago, leveraging data analytics, specifically as it pertains
to supply chain and logistics, will be key in maintaining this growth.
6 https://www.houston.org/business/industry-sectors.html
7 http://www.apics.org/sites/apics-blog/think-supply-chain-landing-page/thinking-supply-chain/2016/07/21/will-the-next-15-years-be-a-
logistics-golden-age
1.7 The Importance of a Data Science-Focused Institute for Texas and the U.S.
A data science-focused Institute is important for Texas, the U.S., and the world for three primary
reasons: 1) delivering on the growing data universe spearheaded by UTS, 2) accelerating the
contribution of three pivotal industries that have already begun to feel the influence of analytics
and data, and 3) training the next generation of data scientists and leaders who will operate in a
data-driven environment.
Delivering on Data Growth: The switchover from

analog to digital technologies, as well as the rapid Case Study: Finding Genomes
Leveraging an open-source predictive
increase in data generation by individuals and analytics language, a biotech company
corporations, has driven expansion in the recently sorted through data on 42,000 blood
production of data that suggests a 4,300 percent samples, 50,000 genes per sample, and 12
increase in annual data generation by 2020. It will
8 million pieces of genetic information per
sample, to isolate 23 genes and create the first
become increasingly important for Houston, Texas,
gender-specific diagnostic test for heart
and the greater U.S. to not only collect but also disease.
connect the expanding pipeline, diversity, and flow
of data. Data science-focused institutes will serve as centers of excellence in leading this charge.
In addition, UTS has a strong advantage given its unparalleled breadth and scale of attractive data
and intellectual resources.
Multiplying the Impact: Houston and Texas have a natural center of gravity in key industries that
will shape the future of our world. An Institute that cross-pollinates among industries will see
innovation at common intersections (such as image processing or streaming analytics) that can
unleash new and bold insights and lead to groundbreaking advances and outcomes. In addition,
because of the reach of UTSlocated in many major metropolitan areas in Texasinsights
uncovered from the Institute will be more easily disseminated to a large portion of Texas.
Workforce Implications: While harnessing the computational power and source data is essential,
the third component is identifying data science professionals to analyze the data and uncover
insights. Across many industries, a common barrier to further proliferation of data science has
been the lack of talent. As with many growing industries or technologies, a considerable gap exists
in the workforce needed for the future. A recent Massachusetts Institute of Technology (MIT)
Sloan Management Review found that 40 percent of the companies surveyed were struggling to
find and retain data analytics talent.9 Within the next two years, the International Data
Corporation (IDC) predicts a need for 181,000 people with deep analytical skills as well as five
times that number for jobs in data management and interpretation. An Institute not only serves
as a center for research in important industry fields but also serves to educate and influence the
next generation of the workforce with data science.
1.8 Potential Topics of Focus for the Institute

Selecting topics of focus for the Institute at this stage of the process is difficult because these topics
will depend heavily on the partnerships that might be forged as well as the scale and sizing of the
Institute itself. However, a representative sample of topics from ongoing work in similar
8 http://www.csc.com/insights/flxwd/78931-big_data_universe_beginning_to_explode
9
http://www.business.com/recruiting/big-data-big-problem-coping-with-shortage-of-talent-in-data-analysis/
institutions and based on the industries of focus is informative. For example, the Center for Data
Science at UMass Amherst has the following ongoing research:
Health and biomedicine:

Collaborating with multiple hospitals on methods for analyzing electronic medical records
Instrumental in developing next-generation wearable health sensors and data analytics
through Mobile Data to Knowledge Big Data Center of Excellence, sponsored by the National
Institutes of Health
Collaborated with hospitals nationally, using data to develop new techniques for detecting
errors and safety vulnerabilities
Developed competition-winning natural language processing methods for bioinformatics.
Energy, sustainability, and climate:
Instrumental in assisting Holyoke Gas & Electric to increase efficiency with smart grid
technology
Developing state-of-the-art methods for conservation decision making and sustainability using
terabytes of data from weather radar and bird migration
Developed new sensors and analysis methods that revolutionize our ability to predict tornadoes
using collaborative distributed computing.
Education:
Collaborating with Apple, Microsoft, and the Gates Foundation to build electronic tutoring
systems that adapt to students' needs for personalized learning
Developed interactive online teaching materials for introductory programming.
Further refinement of the specific topic space for Houstons Institute will be best achieved by
requesting that potential partners provide candidate use cases for collaboration with the Institute
and evaluating these use cases with the final vision of the Institute.
2.0 VIABILITY OF AN INSTITUTE IN HOUSTON
Assess the viability of a research and academic Institute in Houston, identify opportunities and
risks associated with a Houston location, and note any potential considerations for the
development process.
The idea of an Institute dedicated to data science is not new, but it is far from mature, and there
is significant opportunity for a newcomer to quickly become a frontrunner in this emerging field.
While many universities are standing up data science institutions, the vision for the Institute
represents something that has not been attempted on the scale proposed. Further, while there are
data science institutions that focus on healthcare, energy, and education, none have access to the
concentration of domain expertise and data that a UTS Institute in Houston would have. The
Institute is not only a big idea, it is a worthwhile idea for the following reasons:
Lasting Relevance: The field of data science not only will stay relevant but also will be crucial
to industries attracted to Houston for the foreseeable future.
As more data is created and collected in the future, more emphasis will be placed on gaining
actionable insight from that data, using advanced analytics. Further, because of the data-heavy
nature of companies in the healthcare and energy industries, the importance of data science will
continue to grow. Simply put, data science is the future for key industries that call Houston home
(namely healthcare and energy). A large-scale Institute dedicated to aggregation and exploration
of data and the development and application of data science techniques, skills, tools, and
methodologies is necessary to solve these industries most complex challenges.
Catalytic Effect: Effective application of data science will have a catalytic effect on the local
industrial base in the Houston and Texas region.
Over time the Institute should foster the creation of an ecosystem around data and advanced
analytics in a village-like environment. This ecosystem will have the added benefit of developing
and attracting a workforce primed for the future, as well as ensuring Houstons critical industrial
base continues to maintain its competitive advantage into the future. Further, as the citys
workforce increases its overall technical competency in this area, other industries that are heavily
dependent on data science will likely be attracted to the region and expand the ecosystem. In
addition, the Institute, through the collaboration it aims to achieve, may spawn new industries.
Accretive, not Competitive: An Institute focused on data science would be accretive to the
existing Houston area companies, universities, institutions, and research centers.
A data and analytics focused Institute is accretive to existing activity in Houston and the region
and fills a gap in the number of public tier-one universities and in-class masters programs in data
science when compared to other major metropolitan areas in the country. Given the collaborative
nature of activities and research that would be carried out, the Institute would not compete with
but rather have an additive effect across the wide variety of industries and educational institutions
that exist today. For example, data science is an additive component to TMCs robust ecosystem
of clinical practice of medicine and laboratory research and development (R&D).
2.1 Local Area Assessment
When assessing the viability of establishing an Institute of this nature, the location is a vital
component. For an Institute to scale up quickly and have a global impact, several attributes are
desirable when considering a location. The location must be able to take on the enormous task of
creating the Institute, its economy must be able to draw from and sustain the Institute over time,
and it must have a strong global presence. Houston excels in these key areas, making it a viable
choice for an Institute.
Houston has a history of tackling big problems: Houstons success at forging ventures
that change Houston, Texas, the country, and the world aligns with the mission of the Institute.
The spirit of Houston is one that embodies ambition, hard work, and tackling extraordinary
problems. This spirit is supported by Houstons proven track record of pioneering ideas and
succeeding at revolutionary endeavors such as:
The Port of Houston: Following the Galveston Hurricane of 1900, Houstonians saw a need for
an inland port, which has since grown to one of the largest and most significant in the country
and helps keep Texas the number one exporting state in the U.S., with $289 billion in exports
in 2015.10
The Texas Medical Center: Since its first member institution in 1942, UTs MD Anderson
TMC has grown to the largest medical complex in the world with more than 9,200 patient beds
and has developed some of the most significant advances in health history.11
National Aeronautics and Space Administration (NASA) Johnson Space Center: In 1961,
when President John F. Kennedy announced the intention to put a man on the moon, Houston
was chosen as home and mission control center for the U.S. human space flight program.
Johnson Space Center opened in 1963 and on July 20, 1969, the United States met its goal of
being the first and only country to have a human mission to the moon.
Since its inception, Houston has focused on solving some of the worlds hardest engineering and
human challenges. As a result, it has cultivated the largest population of engineers in the U.S. with
more than 58,000.12 The hard problems of tomorrow will center on data, algorithms, and
software; Houstons tenacious character and existing engineering workforce will serve it well as
industries become more reliant on a quantitative workforce.
Houston has a strong economy: Houstons thriving economy presents an ecosystem ripe
with potential partners as well as industries well positioned to ensure the Institute is able to
flourish.
Houston has a stable economy that has steadily prospered over many decades. In the last 10 years
gross metropolitan product (GMP) has increased more than 34 percent to the fourth-largest GMP
in the United States.13 In fact, with more than $470 billion in economic output in 2015, if the city
were an independent nation, it would rank as the worlds 25th largest economy, right ahead of
10 http://porthouston.com/portweb/about-us/economic-impact/
11
http://www.tmc.edu/wp-content/uploads/2016/08/TMCHistoryTimelinePDF_080916_v2.pdf
12 http://www.houston.org/newgen/16_Industry_NEC/16T%20W002%20Highest%20Concentration%20of%20 Engineering%20Occupations.pdf
13 http://www.bea.gov/regional/downloadzip.cfm
Belgium.14 Houston headquarters the third-largest concentration of Fortune 500 companies in
the country with 24. Many listed companies have large-scale operations based in the area (e.g.,
ExxonMobil [2], Chevron [14], ConocoPhillips [99]). The Houston area is also headquarters to
more than half of the 25 largest private employers in the region, many of which reside in TMC.15
An influx of large public companies and the proliferation of TMC have led to an employment
growth rate of approximately 68 percent since 1990.16 While Houstons economy is strongly tied
to oil and gas, stability has increased through diversification attributed to the growth of TMC,
expansion of petrochemical processing facilities in the area, and Houstons increasing presence
in international trade.
Houston is an international city with a global reach: Houstons large, diverse, and
international ecosystem provides the Institute with the necessary perspective and visibility into
universal challenges and a commanding platform to implement revolutionary transformations
on a global scale.
The Houston we see today is not the same Houston we saw in the eighties during the energy crisis
recession. Not only has the size of its population changed significantly since then, so has its
demographic makeup. Since 1990, the Houston area population has grown more than 75 percent
to approximately 6.5 million people in 2015.17 With the massive influx of people came major
changes to the racial/ethnic demographics of the city. Where Harris County was 54 percent Anglo
in 1990, the 2010 Census showed Anglos now account for 33 percent of the population, making
Houston one of the most racially/ethnically diverse cities in the United States. In fact, the Houston
metropolitan area is the most diverse of the 10 largest metropolitan areas in the United States18
and has strong ties to multiple international communities. These include Latin America because
of the legacy Hispanic heritage, as well as Europe, the Middle East, and Asia because of Houstons
leading role in the global energy sector.
Houstons transforming population can be attributed to its ever-increasing role as a city of

international importance. While much of this transformation is due to healthcare and energy,
Houstons status as a global city19 is further supported by NASAs Johnson Space Center and the
Port of Houston, the second-largest port in the United States by tonnage and the largest by foreign
tonnage.20 These major components of Houstons economic base have large international
influences, a factor that has led Houston to become headquarters to more than 800 foreign-owned
companies,21 containing more than 3,250 companies engaged in foreign trade,22 and hosting 78
foreign consulates.23 Houstons global reach is a critical success factor in an ever-increasing
interconnected world.
14 http://data.worldbank.org/data-catalog/GDP-ranking-table
16 Bureau of Labor Statistics. Local Area Unemployment Statistics for Houston-The Woodlands-Sugar Land, TX Metropolitan Statistical Area
17 U.S. Census
18 https://kinder.rice.edu/uploadedFiles/Urban_Research_Center/Media/Houston%20Region%20Grows%20 More% 2
0Ethnically%20Diverse%202-13.pdf
19
https://en.wikipedia.org/wiki/Houston#Economy
20 http://porthouston.com/portweb/about-us/statistics/
21 gov.texas.gov/files/ecodev/ForeignCompanies.
23
http://www.houston.org/business/global/consulates.html
For innovation to thrive, physical interactions must take place. For those to take place with global
participants, the Institute has to be easily accessible. Houston has a geographic advantage given
its proximity to emerging markets in Latin America and its location in the middle of the
Americas. The city is the home to two international airports in Bush Intercontinental Airport
and Hobby Airport, which are major hubs for United Airlines and Southwest Airlines,
respectively. The central location within the Americas coupled with the size of the existing
Houston Airport System enhance the ease of participation from organizations not geographically
located in Houston.
2.2 Industry Alignment Assessment

To further evaluate Houstons ability to develop and sustain an Institute, we examined
characteristics related to each of the selected industries, including access to high-value intellectual
resources and data.
Houston is a clear industry leader in healthcare and energy: Houston is considered The
Energy Capital of the World because it comprises more than 5,000 energy-related firms,24 is the
worlds leading center for building oilfield equipment, and contains one of the worlds largest
concentrations of petrochemical manufacturing. Houstons leading position in the oil and gas
industry results in one of the largest hubs of energy professionals in the world. Proximity to these
industry professionals and access to their intellectual capital will be invaluable in building and
sustaining an Institute with a focus on energy. In addition, proximity to the companies data will
likely prove helpful to improving communication regarding the transfer and protection of data
sets to and from the Institute.
In addition to proximity to potential partners, Houston is the home to the UTS University Lands
(UL), which manages and analyzes exploration and production data on 2.1 million acres of land
in West Texas. This valuable data set can be leveraged to incentivize energy industry participation.
Further, companies that operate on this land are contractually obligated to share data with UL,
opening the possibility of attaining additional attractive data sets for analysis. In addition to oil
and gas information, UL has solar power on the lands it owns. As population and energy demand
continue to grow while natural resources become scarcer, the reliance on diversified sources of
energy will increase. This land could significantly contribute to the research on alternative energy
generation and delivery, and data science will be an important aid to accelerate this research.
In addition, Texas produces and consumes more electricity than any other state and is the only
state in the lower 48 with a stand-alone electricity grid. This fact makes Texas a prime research
area for smart grid analytics to seamlessly adapt to the addition of solar as a significant generating
source in the future.
Houston also is home to TMC, the largest medical complex in the world, giving Houston an
undisputed competitive advantage in healthcare. TMC comprises 21 hospitals, 13 support
organizations, eight academic and research institutions, six nursing programs, three public health
organizations, three medical schools, two universities, two pharmacy schools, and a dental
school.25 Annually, TMC has 8 million patient visits, performs more than 180,000 surgeries,
24 http://www.houstontx.gov/abouthouston/houstonfacts.html
25 https://www.visithoustontexas.com/about-houston/facts-and-figures/
delivers more than 25,000 babies, and has 750,000 ER visits.26 TMC also offers the following
benefits:
Home to the worlds largest childrens hospital and cancer hospital
More than 106,000 total employees
Construction projects valued at $3 billion in underway
A total of 21,000 physicians, scientists, researchers, and other advanced degree professionals
the highest concentration in the country.
The sheer magnitude of TMC and its access to patients and data could act as the ideal clinical test
environment for hypotheses primed by analytics and data science at the Institute. Recently, focus
has increased at TMC to drive innovation and collaboration across institutions and with
commercial companies. Access to TMCs world-class ecosystem of data, laboratory R&D
capabilities, and clinical environment should highly incentivize innovative companies to partner
with the Institute to drive significant advances in healthcare via the application of advanced
analytics. Some examples of TMCs initiatives include:
Increase in incubators: TMCx, JLABS @ TMC, AT&T Foundry for Connected Health@TMC,
Biodesign
TMC3 Innovation Campus
UTHealth's School of Biomedical Informatics (SBMI), the first school in the country devoted
exclusively to graduate programs in biomedical/health informatics, which could be leveraged
to provide access to high-quality data science resources.
Houston has an opportunity to improve its education: Although healthcare and energy
provide clear advantages, Houston presents a unique opportunity in education given the support
and scale of UTS and the need to improve public school education not only in Houston, whose
high schools rank 28th out of 50 states,27 but also in Texas as a whole.
Houston has one of the largest school % of

Education Level Rank
districts in the nation, and Texas has the Pop
second to lowest percent of residents over 25 Bachelor's or higher 31.50% 15
with a high school degree or higher.28 As seen HS or Higher 82.30% 18
in Figure 5, Houston ranks poorly in terms of Less than HS 17.70% 3
having an educated populace in comparison Figure 5: Houston Education Versus 20 Largest Metros
to the 20 largest metro areas.
While continued job growth is predicted, there is concern that an undereducated workforce could
hinder such growth. To remain competitive, Houston needs to greatly improve its high school
graduation rate (78.6%) and its percentage of the population with a higher education.
26
http://www.tmc.edu/about-tmc/facts-and-figures/
27 http://www.usnews.com/education/best-high-schools/articles/how-states-compare
28 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
The importance for Houston to increase the number of its citizens with educational attainment
above that of a high school diploma cannot be understated. In a 2014 report on requirements of
education by 2020, Georgetown University29 noted that by 2020:
The percentage of jobs in the U.S. that will require education beyond high school is 65 percent
The percentage of jobs that will require at least a bachelors degree is 35 percent
Jobs in healthcare, community services, and science, technology, engineering, and
mathematics (STEM) will grow the fastest among occupational clusters and have the highest
demand of education beyond high school.
These numbers represent a significant shift from those reported in 2010 and emphasize the
growing need for education and training beyond high school.
Although the stakes are high, UTS is uniquely positioned to raise the profile of the importance of
education with an Institute focused on educational science. Beyond its strong brand recognition,
UTS has a ready-made comprehensive set of resources including talent, infrastructure, and data
that will enable a strong, data-driven, analytics research program to advance education. This
spring-board coupled with a passion and desire to address a local need make a strong case to add
education as the third focus area for the Institute and gives Houston a strong advantage over other
cities looking to focus on education.
2.3 Feasibility of a Research and Academic Center in Houston

A number of indicators demonstrate the feasibility of a research and academic center in Houston,
pending the right conditions.
Houstons population is projected to grow substantially: Population growth managed

wisely can directly contribute to economic growth. Developed in the right way, the population
growth can supply the workforce needed to propel the Institute and its resulting ecosystem.
Projections for Houstons population show increases over the next three decades. According to a
report released by the City of Houston, under a moderate growth scenario Houston stands to add
4.3 million residents between 2010 and 2050, seen in Figure 6.30 It should be noted that the
projections predict an increase of population of 48 percent by 2030, signifying population growth
increases are frontloaded in the model. The Institute should serve as a broader catalyst to support
a growing workforce that will increasingly need to have stronger quantitative skills.
29 Georgetown University Center on Education and the Workforce, 2014. Recovery: Job Growth and Education Requirements through 2020.
30
https://www.houston.org/pdf/research/quickview/Population_Employment_Forecast.pdf
Metro Population (Millions)
12.000
10.274
10.000 9.685
9.117
8.557
8.006
8.000 7.465
6.935
6.422
5.920
6.000
4.000
2.000
-
2010 2015 2020 2025 2030 2035 2040 2045 2050
Figure 6: Houston Metro Population Forecasts 20102050
There is a need for access to public Tier-One Research Institutes: Houstons access to
Tier-One Research Institutions is noticeably lower than other cities.
In reviewing the geographic dispersion of public Tier-One universities across the U.S., there is a
significant opportunity in Houston as compared to other major metropolitan areas, as seen in
Figure 7.31 A Tier-One Research Institute would be a much needed draw to attract additional talent
and industry funding to Houston.
Figure 7: Public Top Tier Research Institutions in the U.S.
31
http://carnegieclassifications.iu.edu/ (Doctoral Universities)
Houston needs more data scientists: Houston needs access to graduate programs
dedicated to data science to build a local pipeline of data scientists.
When considering the implications of the shift to a data-driven economy, the requirement of an
educated, technology-savvy populace is at the forefront. Currently, local organizations interested
in hiring data scientists are unable to sufficiently attract the number of professionals with the
desired skill sets from other cities in the quantity needed. It is imperative to develop a local
pipeline of people with data science skills that will be needed in the future. This local pipeline
could be developed through a combination of certification programs and graduate programs
offered by the Institute, with graduate degrees being the main initial focus.
In looking at the geographic dispersion of in-class data science graduate programs in the U.S.,
sizeable clusters around other large metropolitan areas are apparent, but a noticeable gap in
Houston is evident, as shown in Figure 8.32 A concerted effort to increase the number of data
scientists in the area and train the current local workforce will best position Houston to continue
its economic growth well into the future.
Figure 8: Data Science In-Class Masters Programs in the U.S.
Although there are numerous data science programs across the country, healthcare, energy, and
education are three of the largest, most impactful industries of our world today, and the world of
the future. These areas are far too large for individual institutions to cover independently. The
Institute could act as a Center of Excellence in these areas to enable and accelerate research with
affiliated universities. Because of Houstons proximity to the worlds largest players in healthcare
and energy, Houston has a unique advantage over the other data science institutes in these key
areas. An Institute in Houston would be at the forefront of cutting-edge research and could quickly
become a leader for data science in healthcare, energy, and education.
32
https://github.com/ryanswanstrom/awesome-datascience-colleges
2.4 Potential Risks
Although the advantages to developing an Institute in Houston are extensive, there are significant
risks that need to be carefully considered.
The funding and development model proposed is unique. Asking partners to fully fund
construction of new facilities is atypical and will require extensive socialization to develop an
understanding of the value proposition. Traditionally, facility development is funded by a
combination of sponsoring institutions, individual donations, and city and state grants. Based on
the research performed, industry partnership donations are likely to be in the $110 million range
to fund specific research projects or partnerships. Further, the Houston economy is tied directly
to the price of oil, which is low at the time of this report, causing oil and gas companies to minimize
their capital expenditures for the foreseeable future, thus reducing likelihood of large donations.
Socialization of the concept behind the Institute will be a lengthy process. Socialization with the
city has not occurred yet; normally having the city championing such an effort enhances the
chances of success. The benefits to the city are clear, and strongly supported by historical
precedent from similar recent projects, but these must be effectively communicated to
stakeholders in city government and the community to ensure their buy-in and support. An
accelerated timeline increases this risk; socialization with all prospective investors, partners, and
stakeholders needs to occur before releasing any formal Request for Expressions of Interest
(RFEI).
The Institute will need to focus heavily on developing and maintaining a strong brand. Reputation
is extremely important and the Institute should strive to align itself with top-tier institutions.
Brand dilution of the Institute or the membership could negatively affect continued funding and
industry partnerships. From an academic standpoint, graduate/PhD programs may need to be
considered in the top 10 programs to be sought after by Fortune 10-sized companies around
the globe. While a certification program for data science is a valuable addition to the community,
there must be significant rigor regarding the curriculum and testing, to maintain a brand
associated with high quality. A similar example can be seen in Carnegie Mellon Universitys
development of the Capability Maturity Model Integration (CMMI) Institute and Certification.
The Institute will need to execute significant hiring to build the team of researchers, faculty, and
leadership for the center. Much of this hiring will be targeting top talent in some of the highest
demand fields in the world. This will be difficult and expensive. Mitigating this challenge
somewhat is that Houston already has a strong domain R&D workforce in the fields of healthcare
and energy. In addition, TMC is home to an extensive academic presence in healthcare R&D, and
the Institute might leverage UTHealths SBMI to address the healthcare component, while hiring
for energy and education. Regardless, the Institute will need an intentional hiring plan for global
luminaries in key fields.
Finally, there is the issue of competition. The Institute advances the concept of a collaborative
environment where partners can work together with leading academics on their hardest
problems. Although this is certainly possible and the goal, there is a risk of the natural competition
between industry partners, between partner universities, and even within UTS, undermining this
vision. Examples include:
Institute could cannibalize resources from other UTS assets if partnerships are not formally
formed (e.g., TMC3, UTs Advanced Computing Center [TACC], SBMI, UTs Institute for
Computational Engineering and Sciences [ICES]).
Oil and gas companies (in particular) may be unwilling to collaborate with companies they
deem competition; traditionally oil and gas supermajors prefer to grow their own capabilities.
Participating organizations or companies may be unwilling to share the data with the Institute
or with other partner organizations, hindering collaboration.
As seen in TMC3, TMC members have been fiercely competitive, making sharing common
space in a building difficult.
Universities are in constant competition for grants, students, and faculty, making finding
partnerships in academia difficult.
Addressing these risks will require strong and steadfast leadership from UTS to create the open
and collaborative ecosystem envisioned, while providing protection for partners intellectual
property and proprietary data.
2.5 Lessons Learned and Considerations

An Institute in Houston focused on applying advanced analytics techniques to massive data sets
in healthcare, energy, and education to answer hard questions and solve intractable, global
problems is a daring and inspiring goal. Although the benefits are many, the path to success
should be undertaken thoughtfully and collaboratively. In the long term, if successful, the
Institute will energize the innovation ecosystem in the City of Houston and be an economic driver
well into the 21st century and beyond. The Institute will be deeply engaged with the local, regional,
and global community, realizing its mission to solve the hardest challenges in healthcare, energy,
and education.
Based on our research,33 the following lessons learned will enhance the chance of success as UTS
evaluates what will be a multidecade journey:
A Clear Mission and Areas of Focus Are Necessary Foundational Elements: Initial
success will be enhanced by maintaining focus on the core effort: to successfully launch a
collaborative, elite global data science Institute focused on advanced research to answer complex
questions in the domains of healthcare, energy, and education. As the Institute grows, the
surrounding ecosystem will also grow and offer more opportunities to engage with a wider array
of partners engaged in complementary activities. This is natural and desired because the campus
is large and offers many possibilities. This will also strengthen the community and foster future
innovation. Deciding where to put the bounds in the initial phase is important in maintaining
forward momentum and managing risk.
33Research referenced includes a combination of primary research consisting of 20+ interviews and task force workshop as well as secondary
research including review of multiple reports: 1) Steel, K. Robert, Transforming New Citys Economy, Internal presentation to the ITS Task
Force, October 20, 2016; 2) Porter, Arthur, Creating Centers for the Performing Sciences; 3) Science Business Innovation Board (SBIB) Report,
Making Industry-University Partnerships Work, Corporate-University Partnerships.
A Champion to Lead the Charge is Essential: Ambitious partnerships such as Cornell-Tech
and TMC3 have strong leaders and a robust planning team that worked over a multiyear
timeframe to develop and initiate a detailed plan. UTS should identify and recruit an industry-
recognized, respected employee and enable this employee to form a team to lead the development
of this Institute. A fully dedicated employee is necessary to get an Institute of this nature funded
and running. This individual should focus and run all aspects of getting the Institute to a ready
state, including standing up the necessary academic centers.
Structuring a Plan for a World-Class Institute Takes Time and is a Multifaceted

Effort: Establishing a viable plan for a world-class Institute will not happen in a few months.
Creating and vetting an operational concept and associated business plan; identifying interested
local, regional, national, and global partners and reflecting their value proposition in the
operating model through substantive dialog; attracting top talent to Houston where needed;
envisioning a collaborative comprehensive facilities master plan; and assembling compelling
massive data sources is a complex undertaking. When possible during planning, UTS should
identify natural alignments with existing initiatives where the focus on advanced analytics is an
accelerator or is accretive to others missions. An example of this would be structuring the
healthcare academic program around UTHealths SBMI, or using ICES to provide high-end
computing or research resources for the Institute.
Targeting High-End Research Talent is Crucial: UTS should identify and incentivize select
high-end research talent to join the Institute. Industry wants to partner with the best, proven
academic research minds in the world in exchange for their talent, challenges, data, and dollars.
To support elite, world-class talent, UTS also needs to deploy a mix of research scientists and
teaching faculty, and, at a minimum, provide graduate education in data science.
The Design and Management of a Pipeline for Data Is Necessary to Maintain

Competitive Advantage: The Institute should be seeded with as much data as possible because
it is all about the data, and those with the most data will have a strong competitive advantage in
the data science game. However, harnessing data is not easy. In an age where data is being
generated at an incredible pace, the value or difficulty in collecting and making vast arrays of data
sets available for analysis should not be underestimated. Data collection and storage require
overcoming impediments, ranging from privacy and security to the proprietary nature of the data.
UTS should focus on identifying, collecting, and making available as much of its data, public
domain data, and partner data as possible. It should make data contribution, security, and
curation as straightforward and standardized as possible for the collaboration partners. High
priority should be given to modern data governance guidelines as well as data storage, access, and
platform architectures. Doing this well will give the Institute a strong value proposition and
competitive advantage.
Although energy and education data referenced in the Scope of Work (SOW) serve as a starting
point, the success of the Institute will require continuing to creatively build on this solid
foundation in these domains. For healthcare, establishing the Institute as a centralized data
repository for all UTS medical institutions, as well as partnering with other TMC members, will
immediately establish highly compelling data sources and a partner community from which the
Institute could serve to accelerate discoveries from the data.
Data Science Is a Team SportPartnering and Collaborating Are Essential to
Success: Broadly, partners have the potential to bring a combination of data, critical problems
to solve, talent, expertise, and funding to the Institute. Organizations that would be interested in
participating range from industry, universities, and government to nonprofits. Within each
category, the organizations are an incredibly diverse mix. UTS should look across its existing
organizational relationships to refine and expand this list, to begin the socialization process of the
big idea to potential interested parties.
The importance of involving future stakeholders in the journey and the creative process should
not be overlooked. UTS should ensure there is time for significant consultation and shaping with
potential industry, government, and university partners (internal and external to UTS) to develop
a concept that partners understand and within which partners want to participate. For
perspective, the New York City (NYC) Mayors office planning team for Roosevelt Island
conducted more than 300 meetings and interviews with stakeholders and interested parties
before issuing its RFEI. This was necessary to shape an RFEI that respondents understood,
thereby managing risk and increasing the likelihood of participation. The result was a significant
response rate of more than 25 teams from around the world.
An analogy that resonated repeatedly with potential stakeholders about collaboration was the
TMC model. The Institute should consider fully partnering with high-value, top-tier universities
with the goal of having a centralized location that is occupied by numerous member-universities,
as well as industry and government partners. To mitigate the risk of a lack of university
collaboration, the Institute could introduce requirements for member-universities to incentivize
collaboration. For example, the Institute could require that each member contribute highly valued
faculty to the Institute on a rotational program that would not affect tenure. Further, each
member-university could commit to submitting an application for its top graduate students to
perform work at the Institute that counts toward their degrees.
Structure and Funding: As previously discussed, the Industry champion and planning team
will have the charge to shape the complex details behind the vision for the big idea in
collaboration with potential partners. However, some themes emerged that may be useful during
this visioning stage.
Both one time and annual funding opportunities should be explored in developing revenue
streams for the Institute. Industry partners are likely willing to provide a significant one-time
contribution in exceptional circumstances but are likely to be less inclined toward a high- dollar
recurring contribution. This is accentuated in the near term for the energy sector as a result of
the current down cycle. The value propositionhow this Institute is accretive or an accelerator
to industry partners current R&D initiativeswill be important in their participation decision.
Collaborative research centers between universities and industry focused on strategic
partnering most typically see industry partners contribute in the $1 million to $10 million
range per year, with long-term agreements (e.g., 510 years). The University typically invests
talent and facilities in the partnership along with the industry partner.
Based on feedback received by the planning team during the socialization process, it may be
prudent for UTS to consider multiple awards or whether the RFEI process itself will position
UTS to successfully launch the Institute. UTS should be open to industry and potential partner
feedback on their requirements and impediments and be creative in formulating solutions.
3.0 PARTNERSHIPS ANALYSIS

Assess potential entities for partnerships locally in Houston, and in the larger state, national,
and global market.
Partnerships are crucial to the success of the Institute, and as stated above, careful planning
should take place to attract and retain the right type of partners. A robust mix of partnerships and
collaboration types is important for a successful ecosystem and can generally be classified into
three types:
Strategic: Industry partners influence the Institutes research and the results influence the
companys strategy; a small number of strategic industry partnerships are fostered by senior
Institute and industry leaders. (<10 partners).
Operational: Operational partnerships involve a research project with a specific Institute
division or R&D lab and many operate for a few years (10100 partners/projects).
Transactional: Transactional partnerships are short-term collaborations such as an industry
member teaching a class, cooperative student employees, joint events (1000s of events).
Although all partnerships are valuable, special emphasis should be placed on developing strategic
partnerships within industry. These partnerships are the most impactful and will serve as a
foundation for dynamic growth.34 They are built around a shared research vision, establishing
deep professional ties, a deep reserve of human capital, with trust and shared benefits creating a
virtuous circle of interaction. Strong Institute leadership is vital to this type of partnership, and
the leadership must make the goals and benefits of this type of partnership clear to university
faculty.
Large Industry Partners: Large industry is the first type of partner the Institute should likely
pursue. The City of Houston is differentiated by an unparalleled concentration of corporate and
R&D leadership in healthcare and energy, two of the most important industries for the 21st
century. This, in turn, will enable differentiation of this Institute from similar endeavors by virtue
of deep connections to these industries, ensuring research is timely and relevant, and shortening
the cycle time from academic discovery to implementation in the field.
Industry partners likewise derive significant benefit from the collaborative effort. They have
immediate access to world-renowned experts in numerous fields of study, supported by teams of
graduate students available to work on their most pressing challenges. They can benefit from the
unique perspective and forward-leaning mindset of academia, ensuring that they have access to
the most current tools, technologies, and skills. And they receive a local hiring pipeline of skilled
graduates, who can enter the workforce with relevant domain knowledge and work experience on
Day One.
Major Non-U.S. University: The UTS brand and the industry concentration in Houston may
provide sufficient incentives to attract the second type of potential strategic partner: a major non-
34
Making Industry-University Partnerships Work, Science/Business Innovation Board AISBL, 2012.
U.S. university. A recent example of this type of partnership is New Yorks Cornell-Tech, which
includes a partnership between Cornell University and the TechnionIsrael Institute of
Technology. UTS leadership will need to actively seek out and develop a relationship with
potential partners for this to become a reality, but it has the potential to multiply the global
influence of the Institute and create a streamlined pathway for the best students from overseas to
contribute to the Institutes ecosystem and could provide a valuable source of funding for initial
startup and operating costs.
Local Universities: The City of Houston and the State of Texas are home to numerous
institutions of higher learning. The Institute should seek to complement and collaborate with
(rather than replicate) what is being done at other universities in Houston and throughout the
State of Texas (including within the UTS). The collaborative environment that Georgia Tech has
developed in the City of Atlanta with its Enterprise Innovation Institute, and North Carolinas
Data Science Initiative, an industry-university-state partnership that includes UNC Charlotte,
UNC Chapel Hill, and NC State University (each of which has strong data science programs in its
own right), are examples of what inter-university collaboration can achieve.
Government: Given its access to funds and grants, the Institute should seek to partner with
federal, state, and local government agencies. The third type of partner the Institute should pursue
is Government. The NASA Research Park35 (located at NASA Ames Research Center in Silicon
Valley) demonstrates the profound impact that can be achieved through government- industry-
academic partnerships. Houston is already home to NASAs Johnson Space Center and is an ideal
location to pursue enhanced partnerships with other federal agencies, including the National
Science Foundation, National Institutes of Health, Department of Energy.
In addition to strategic partnerships, the Institute will likely actively seek out and foster
operational and transactional partnerships. Strategic partnerships provide the foundation on
which the Institute will be built, but the shorter term partnerships help to build the dynamic
ecosystem, keeping the Institute agile.
Startups: As is frequently the case in new industries, startups have played an important role in
the development and implementation of data science. One of the Institutes most significant
contributions to the City of Houston will be its ability to energize the startup environment in the
city. An active startup community brings dramatic benefits to a region, including employment,
opportunities for entrepreneurs, and the flow of venture capital into the citys economy. A thriving
startup community is arguably one of the critical success factors for recognized innovation hubs
such as Silicon Valley and Boston.
The Institute can enable the Houston startup community in different ways. The simple presence
of a world-class data science graduate program will be significant. Graduates of the Institute will
have cutting-edge knowledge and skills in one of the fastest growing and dynamic fields, making
them ideally suited to found or work at a startup. In addition, the Institute can actively encourage
or incubate startups via a university-led or university-affiliated startup accelerator like Stanfords
StartX. With an estimated annual budget of under $10 million, StartX has facilitated more than
$100 million in venture capital funding to startups within its environment. Alternatively, the
Institute may seek to partner with an established startup incubator such as Y Combinator, Capital
35
https://www.nasa.gov/researchpark
Factory, or Galvanize. The Institute could also partner with local incubators such as the Houston
Technology Center, JLABS@TMC, SURGE, or member-university incubators. The Institute
campus could provide an ideal location and environment for such an enterprise in Houston.
3.1 The University of Texas System Value Proposition as a Partner

The motto for The University of Texas at Austin, the systems flagship university, is What starts
here changes the world, which perfectly aligns with the mission of the Institute. This mentality
transcends the flagship university and permeates throughout the system. Examples include
UTHealths creation of the first school dedicated to biomedical informatics, MD Andersons
reputation as the leading cancer center, The University of Texas San Antonios rank as the best
school for cybersecurity,36 and the creation of UTs TACC. These are just a few examples of what
has led The University of Texas System to have one of the strongest brands, nationally and
internationally, of any university system. This strong global brand, combined with strong
academics, a highly valued and experienced faculty, an extensive existing infrastructure, and an
impressive history has already enabled an extensive degree of trust with industry partners with
the university, which is paramount in building and sustaining the Institute.
Undertaking the development of an Institute of this magnitude takes an immense amount of

resources, which is a barrier for entry for most universities. UTS is one of the only university
systems that has a strong position to initiate and scale an Institute quickly to become a world
leader. UTS brings considerable assets and insight necessary to ensure that the Institute is a
success.
Significant presence in Houston: This year UTS celebrates 125 years in the Greater Houston
Area with the establishment of The University of Texas Medical Branch (UTMB). The Greater
Houston area welcomed UTMB as the countrys first public medical school and hospital under
unified leadership in Galveston, Texas in 1891.37 The presence of UTS in the City of Houston began
in 1942 when the MD Anderson Hospital of Cancer and Research of The University of Texas
became the first member institution of TMC.38 This presence strengthened in 1972 with the
establishment of UTHealth.39 Today, UTMB employs more than 12,000 personnel;40 The
University of Texas MD Anderson employs approximately 21,000 employees and 1,700 faculty
members;41 and UTHealth has more than 13,000 students, faculty, staff, and residents.42 In
addition, The University of Texas at Austin offers a Houston-based MBA for working
professionals, and The University of Texas at Tyler has the innovative Houston Engineering
Center in the area. From an energy standpoint, the main offices for UL recently moved to Houston,
and the Texas Oil and Gas Institute (TOGI) was recently established in Houston to increase the
value of UL resources through research, engineering, and education.43
36 http://www.computerworld.com/article/2487907/it-skills-training/it-pros-rank-university-of-texas-san-antonio-best-school-for-
cybersecurity.html
37 https://www.utmb.edu/about/
38 http://www.tmc.edu/wp-content/uploads/2016/08/TMCHistoryTimelinePDF_080916_v2.pdf
39
https://sph.uth.edu/about-us/history-and-overview/
40 https://www.utmb.edu/facts/
41 https://www.mdanderson.org/about-md-anderson/facts-history/institutional-profile.html
42 https://www.uth.edu/
43
http://www.utlands.utsystem.edu/forms/pdfs/PartnerForum/20160303/TOGI_Strategy_and_Direction_ Spath.pdf
Access to valuable data: UTSs sizable presence in Houston and the development of local
partnerships over time give UTS unmatched access to highly valuable data sets across healthcare,
energy, and education. The access to patient information across its local health institutions,
UTHealth and UTMB, as well as The University of Texas MD Anderson, could prove to be one of
the most valuable healthcare-related data sets in the world. Further, oil and gas exploration and
production data gathered and analyzed by UL and TOGI could be valuable to those in the energy
industry. Finally, the Institute could centralize student data across UTSs eight academic
institutions as well as revolutionary educational resources such as the Institute of
Transformational Learning (UTx) to provide significant insight for the educational needs of
Texas.
Access to leading talent: Data science is not a new concept for UTS, which boasts some of the
leading institutions in the field. There are significant data science practitioners throughout the
system who could be leveraged to stand up the Institute and incentivize industry partnerships.
Local to Houston, there is UTHealth s SBMI, which has nearly 300 students working toward a
degree or certificate in informatics; UL and TOGI staff; and UTx personnel who work with UTS
academic and health institutions to support the future of education through the use of technology.
Beyond Houston, UTS has access to thought leaders at The University of Texas at Austin whose
master of science in business analytics ranks third out of 21 top schools with similar programs.44
In addition, the UTS is home to a world-renowned data science program at UT Dallas, a leading
cybersecurity program at UT San Antonio, and the award-winning TACC and ICES.
Strong brand and financial position: UTS has a long history that begins in 1883, in Austin,
with 221 students, and now educates more than 221,000 students annually across 14 academic
and health institutions.45 This long-standing history as one of the oldest public universities in a
prosperous state such as Texas has aided UTS in accumulating the largest endowment of any
public university in the U.S. and world, worth $25.4 billion.46 This financial position also enables
UTS to have a considerable yearly operating budget of $16.9 billion in 2016, and allocate $2.7
billion toward research within the system, which ranked second in the U.S. for higher education.47
As the largest university system in the state, UTS has an extraordinary responsibility as a leader
for public service in the State of Texas. The development of an Institute that not only fosters
collaboration with industry but also focuses on attracting and developing the workforce of the
future as well as transforming the delivery of PK12 education supports this responsibility of
public service. UTS is seen as a leader of transformative change in this world, and this world is set
to change dramatically through new applications of data science. UTS should seize the
opportunity to lead this revolutionary effort and fully support this mission.
44 https://www.mccombs.utexas.edu/Master-of-Science-in-Business-Analytics
45 https://www.utexas.edu/about/history-and-traditions
46 http://www.thebestschools.org/features/richest-universities-endowments-generosity-research/
47
http://utsystem.edu/sites/utsfiles/documents/strategic-initiatives/fast-facts-2016/fast-facts-2016-ql-2016-07.pdf
4.0 ADDRESSING LOCAL NEEDS
Identify ways the proposed Institute may be able to address the needs of the local community.
Data science has fostered a strong notion of social good among its cohort of professionals and is
aggressively being applied to help solve needs endemic to most large cities like Houston. Our
research indicates that the proposed Institute may be able to address the needs of the local
community by positively impacting the citys economy, and enabling the execution of core
strategies aligned with the communitys vision and goals, with a particular focus on education.
Positive Impact for Houstons Economy

The proposed Institute has the potential to positively impact the Houston economy in a variety of
ways, including temporary (construction) and permanent (operations) job creation at the
Institute, new student enrollments, growth of new local companies, and expansion of existing
firms (generation of additional jobs). Several case studies exist from similar institutes that have
been stood up, which demonstrate this assertion:
Cornell-Tech: Cornell-Tech is expected to generate $23 billion in economic activity

The applied sciences and over the next three decades.
technology campus is expected The campus will generate 20,000 jobs for construction and 8,000
to spur economic growth, job permanent jobs for operations.
creation, and high-tech Enrollment of 2,500 students, 300 faculty, and 2 million square feet of
entrepreneurship.48 state-of-the-art classroom and research space.
Stanford University:
The university's reputation as an Stanford alumni created 18,000 firms in California, generating $1.27
trillion annual worldwide sales, and employing more than three million
innovation epicenter draws people.
people from all over the world Companies formed by Stanford entrepreneurs have created 5.4 million
who often remain in the region; jobs since the 1930s.
one-quarter of entrepreneurs Stanford alumni and faculty have created 39,900 companies and more
who graduated after 1990 than 30,000 nonprofit organizations since the 1930s.
formed companies within 20 Of all alumni, 39% founded firms located within 60 miles of Stanford.
miles of the university.49
MIT: MIT alumni companies with sales of $164 billion are located in
The university plays a critical Massachusetts and represent 26% of the sales of all Massachusetts
role not only in fostering companies.
innovation and entrepreneurial Of the software, biotech, and electronics companies founded by MIT
growth but also in stimulating graduates, 38% are located in Massachusetts.
the much-needed recovery in the Alumni-founded companies headquartered in Massachusetts have
local regional economy.50 created an estimated one million jobs worldwide.
4.1 Enabling Core Strategies

To identify options for the Institute to address the needs of the local community, the Booz Allen
team leveraged the general plan developed by Houstons City Council in 2015 as a guiding
framework for focus areas, depicted in Figure 9. The plan describes a vision and goals for the
48
http://www.news.cornell.edu/stories/2011/12/nyc-chooses-cornell-technion-build-tech-campus
49 http://news.stanford.edu/news/2012/october/innovation-economic-impact-102412.html
50 http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2009/02/mit_impact_full_report.pdf
Houston community and identifies 12 core strategies that represent the Citys approach for
achieving the vision:51
CORE STRATEGIES ASSESSMENT

The City must manage the publics money wisely, using every means possible to
provide the best benefit for each dollar. Prudent fiscal management requires the
SPEND MONEY WISELY City to prioritize its investments and take advantage of cost-sharing opportunities.
Further, the City should anticipate long-term fiscal challenges and identify the best
strategies for overcoming them.
Houston is located in one of the fastest growing regions in the country. In order to
sustain the Citys vitality, the City must balance the benefits of growth with the
GROW RESPONSIBLY need to protect existing neighborhoods. The City should coordinate development
with transportation and infrastructure investments. Finally, the City should
encourage growth that supports the economy and quality of life.
Houston maintains vast infrastructure systems, including miles of streets,
SUSTAIN QUALITY sidewalks, and utilities, as well as other facilities. These systems help move people
INFRASTRUCTURE and goods, enhance safety, and support the economy. Keeping these systems in
good working order requires coordination, planning, and ongoing investment.
NURTURE SAFE AND Every Houstonian should have the opportunity to live in a safe and healthy
HEALTHY community. The City should support residents with well-coordinated public safety
NEIGHBORHOODS and social services and ensure its neighborhoods foster healthy lifestyles.
Mobility is a chief interest for Houstonians. Houstons rapid growth, however,
presents an ongoing transportation challenge. Supporting Houstons growth while
CONNECT PEOPLE AND
PLACES
preserving quality of life requires increasing reliance on creative transportation
solutions. These solutions should include safe and efficient roadways, an effective
transit system, and activity centers with housing, jobs and services.
Houstons economic success is increasingly reliant on the communitys ability to
reach a global audience. The City should partner with the corporate sector to
SUPPORT OUR GLOBAL
ECONOMY
support Houstons ability to compete for customers, businesses, and workers. The
City should also use its economic tools strategically to attract desired development
and jobs.
An educated, well-trained workforce is essential to thriving neighborhoods and a
healthy economy. The City should play a strong supportive role to education
CHAMPION LEARNING providers to ensure a well-educated community. The City should also seek out
opportunities to encourage innovation and broad use of technology by the entire
community.
A successful city should help provide access to quality housing for people of all
FOSTER AN AFFORDABLE income levels. Houston should sustain its historic affordability by encouraging
CITY mixed-income neighborhoods and enhancing access to quality affordable housing
options.
Great cities provide outstanding quality of life amenities, including opportunities
for recreation and experiencing nature. Additionally, Houstonians increasingly
PROTECT AND CONSERVE
OUR RESOURCES
support environmental responsibility and desire clean air and water. The City
should pursue opportunities to provide open space, conserve resources and protect
the environment.
The City communicates with Houstonians every day as a means to inform,
COMMUNICATE CLEARLY educate, and listen. The City should strengthen its ability to connect to diverse
AND WITH audiences and provide convenient ways for people to find accurate information
TRANSPARENCY quickly. Further, the City should engage in a dialogue with its residents in order to
develop policies that reflect the interests of the community.
Partnerships between the City and other organizations enable Houston to achieve
PARTNER WITH OTHERS, greater results. The City should strengthen ties to public and private partners as a
PUBLIC AND PRIVATE
means to share resources, expand programs, and enhance civic investment.
Houston is a unique and exciting city. The City should reinforce and highlight its
CELEBRATE WHATS distinctive elements, including areas of character and identity, historic resources,
UNIQUELY HOUSTON
arts, special attractions, and events.
Figure 9: Houston General Council 2015 General Plan
51
http://planhouston.org/
The proposed Institute has the potential to support and enable several of the core strategies in the
Houston Plan.
Opportunity Example 1 | Infrastructure: An inadequate transportation system costs Texas

residents a total of $23.2 billion every year in the form of traffic crashes, additional vehicle
operating costs (VOC), and congestion-related delays.52
Big data collected through ticketing systems, sensors attached to vehicles and traffic signals, and
social media can be leveraged to help create efficient transportation systems through increased
operational efficiency, improved customer experiences, reduced fuel costs/increased profits, and
enhanced service offerings. The McKinsey Global Institute concluded that, globally, $400 billion
a year could be saved by making more of existing infrastructure through improved demand
management and maintenance by leveraging digitization and big data.53
Impacted Core Strategies:

Spend money wisely
Grow responsibly
Sustain quality infrastructure.
Opportunity Example 2 | Workforce: In 2015, 402,800 workers in Texas were employed
part time because they were unable to find a full-time job.54 The number of individuals marginally
attached to the labor force (not working but would like to work and have looked for work in the
past year) was 126,200.55 In the future, underemployment is projected to increase in Texas as job
growth further declines in key industries because of outsourcing and automation.
Houston does not rank high when it comes to cities of choice for
college students with degrees vital to the Houston area. One report
shows that Houston does not rank in the top 10 of top intern/job city
choices among current students and recent graduates with STEM
degrees, shown in Figure 10.56 Attracting these students to Houston
is vital to the continued growth of the city.
Big data can be leveraged to improve the efficiency of the labor

market and reduce the countrys underemployment in a significant
Figure 10: Top Picks for STEM
way. Algorithms can take into account massive amounts of Students
information and give jobseekers a personalized assessment of their
unemployment situation and automatically recommend viable strategies to secure employment.
Data can be leveraged as an early indicator of unemployment, and real-time data can inform the
design and targeting of unemployment programs and policies. Further, increasing the availability
of highly desirable data science jobs in the area will drive new graduates to the area with the skill
sets required by local businesses and increase partnership opportunities.
52 http://www.tripnet.org/docs/TX_Transp_Challenges_Report_Jan_2013.pdf
53
http://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/big-data-versus-big-congestion-using-information-to-
improve-transport
54 http://www.bls.gov/regions/southwest/news-release/laborunderutilization_texas.htm
55 http://www.bls.gov/regions/southwest/news-release/2016/pdf/laborunderutilization_texas_20160209.pdf
56
https://www.looksharp.com/blog/wp-content/uploads/2015/06/State-of-College-Hiring-2015-Report.pdf
Connect people and places
Support our global economy
Champion learning
Partner with others, public and private.
Opportunity Example 3 | Education: As of 2014, the Texas Education Agency (TEA)
identified 1,199 campuses statewide as low-performing schools because of poor test scores or
unacceptable ratings on the 20152016 Public Education Grant (PEG) list. That translated into
more than 736,000 students who attend failing schools.57
K-12 school districts are collaborating with universities and businesses (IBM, Dell) at an
accelerating pace, using advanced analytics to create innovative new models and tools to advance
student performance. Enhancing classroom instruction, turning around under-performing high
schools, and introducing digital learning tools can boost student achievement and have the
potential to raise gross domestic product (GDP) by as much as $265 billion by 2020.58
The Institute could play a significant role in improving the state of education in Houston and
beyond because its mission would align with UTSs top Quantum Leap strategic priority of the
Texas Prospect Initiative, which seeks to improve the education pipeline and K12 relationships.
Falling within UTS, the Institute would be able to leverage extensive existing relationships with
state and federal agencies to source and combine data related to salary and wage data, educational
outcomes, and related areas to drive the development of higher fidelity education models. The
Institutes research would also serve to catalyze ongoing work within UTSs Institute for
Transformational Learning and UTHealths Childrens Learning Institute.
In addition to providing research and analysis to improve the science of education, the Institute
would have the potential to serve the local community by providing a focused curriculum and
certification in the field of data science, better positioning the future workforce to fulfill
opportunities that will arise in data analysis roles across multiple industries.

Connect people and places
Support our global economy
Champion learning
Partner with others, public and private.
57 http://www.breitbart.com/texas/2014/12/23/increase-in-number-of-failing-texas-public-schools/
58
http://www.mckinsey.com/global-themes/americas/us-game-changers
5.0 INCREASING INTERN/CO-OP EMPLOYMENT
Determine the ability and desire of regional employers to increase available intern/co-op
positions with the development of the Institute.
Not surprisingly, companies recruiting on college campuses have strong intern and co-op hiring
programs because this serves as a key pipeline and success indicator for junior talent hiring. As
companies look to hire more data scientists at all levels, intern/co-op positions should expect to
increase; however, it is unclear if this is net new hiring or if hiring in other fields will decline.
The economic cycle appears to be the strongest predictor of industrys overall intern/co-op hiring
numbers.
5.1 The Value of Co-Ops

Our research has shown that co-op opportunities are desired by students and employers and
viewed as a strong career success accelerator:
Among graduating seniors, nearly 64 percent reported some form of internship or co-op
experience while pursuing a bachelors degree.59
A reported 80 percent of employers view recruiting as a primary function of internships.
The percentage of job seekers with an experiential
Georgia Techs Co-op Program
education background receiving job offers grows In this 5-year undergraduate program,
considerably every year in comparison to those students alternate semesters of on-campus
who did not engage in an internship or co-op study with semesters of full-time work.
(approximately 12 to 15 percentage points With 4,100 students participating, it is the
largest optional co-op program in the U.S.
higher).
More than 700 companies in the U.S and
For the Class of 2014, 52.1 percent of job abroad currently hire Georgia Tech
applicants with an internship or co-op received at undergrad co-op students.
Co-op students typically earn $8,000
least one offer of a full-time position compared $10,000 per work term and pay no tuition
with just 38.6 percent of applicants without the for the 12-hour audit credit course
internship or co-op.60 ($2,700$3,300 per month).
The average hourly rate for co-op students in 2016 is $16.97 or about $3,000 per month:61
- Houston is already one of the top U.S. cities that offers paid college internships; about 70
percent of college internships in Houston are paid.62
- UTs Cockrell School of Engineering co-op average monthly starting salary in 20152016
is $3,875.63
- Co-op student earnings are not counted against a students federal need-based financial
aid.
59 http://career.sa.ucsb.edu/files/docs/handouts/2014-student-survey.pdf
60
http://career.sa.ucsb.edu/files/docs/handouts/2014-student-survey.pdf
Table Reference: http://career.gatech.edu/what-cooperative-education
61 http://www.engr.utexas.edu/ecac/coop/salaryinfo
62 http://time.com/money/3934046/paid-internship-best-cities/
63
http://www.engr.utexas.edu/ecac/coop/salaryinfo
5.2 The Demand for Co-Ops
Companies recruiting on college campuses have strong intern/co-op hiring:
Of companies recruiting on campus, 88 percent offered college students some form of
experiential or pre-professional experience, including apprenticeships, clinical rotations,
internships, practicums, professional practice, and other forms of work-integrated learning.
Employers hire an average of 36 interns and co-op students per organization.
About 50 percent of employers seek between one and six interns and co-op students. More than
40 percent will be recruiting between 10 and 2,000 interns and co-op students.64
The vision for the Institute aligns well with drivers for intern/co-op demand from employers. The
goals of the Institute include solving hard problems, fostering strong analytical thinking,
supporting Houstons world-class healthcare and energy industries to continue to be successful
into the data-driven future, and attracting and growing a high-tech workforce.
This aligns well with what research indicates about intern and co-op demands from employers:
The biggest triggers to increasing the number of internships are a strengthening of the economy
and impending retirements.
According to Recruiting Trends, 57 percent of companies indicated the primary purpose of
their intern and co-op program is to identify and develop talent for full-time employment and
workforce succession planning; 23 percent supplement staffing for special projects and
targeted assignments; 15 percent support the development of future talent.65
The composition of work duties for interns and co-op students has remained mostly unchanged
over the last several years: analytical/problem solving tasks continue to be the main focus,
followed by project management and communications.
In summary, trends indicate an increasing need for deep analytical skills as well as the need for
data management and interpretation skills. This demand and growing gap will indirectly drive the
growth of co-op positions, which can be characterized as focusing on data science. Although the
Institute itself will not directly drive the increasing number of these positions, it can serve to better
position local Houston talent to compete for these positions.
64 Ibid. Table Reference: Purdue University, Office of Professional Practice, Average Co-op Salaries and Employer Co-op Salary. Guidelines.
65
Reaction on Campus to the Unpaid Internship Controversy, Intern Bridge/2016 Intern and Coop Survey, NACE.
6.0 APPENDIX
Partnership Case Studies

Final UTS Report For Data Science Institute 2017-1-3

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Final UTS Report For Data Science Institute 2017-1-3

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January 3, 2017

Mr. Paul Hobby, Co-Chair

cc: Dr. Randa Safady

Subject: University of Texas Data Science Institute Viability Assessment Deliverable

Dear Paul and Carin,

Booz Allen Commercial Solutions

EXECUTIVE SUMMARY ..................................................................................................................................... 1

UNDERSTANDING AND OBJECTIVE ............................................................................................................. 3

1.0 DATA ANALYTICS AND THE FUTURE .............................................................................................. 3

1.2 Industry Adoption of Data Science ......................................................................................................................... 4

1.3 Looking Forward: Healthcare ................................................................................................................................. 6

1.4 Looking Forward: Energy ....................................................................................................................................... 7

1.5 Looking Forward: Education .................................................................................................................................. 8

1.6 Additional Industries for Consideration: Manufacturing and Logistics ................................................................... 8

1.8 Potential Topics of Focus for the Institute............................................................................................................ 10

2.0 VIABILITY OF AN INSTITUTE IN HOUSTON................................................................................ 12

2.2 Industry Alignment Assessment ........................................................................................................................... 15

2.3 Feasibility of a Research and Academic Center in Houston .................................................................................. 17

2.4 Potential Risks ..................................................................................................................................................... 20

2.5 Lessons Learned and Considerations ................................................................................................................... 21

3.0 PARTNERSHIPS ANALYSIS ............................................................................................................... 24

4.0 ADDRESSING LOCAL NEEDS............................................................................................................. 28

5.0 INCREASING INTERN/CO-OP EMPLOYMENT ............................................................................. 32

5.2 The Demand for Co-Ops ....................................................................................................................................... 33

6.0 APPENDIX .............................................................................................................................................. 34

Viability of an Institute in Houston focused on healthcare, energy, and education:

Assess regional employers to incrementally increase their available intern/co-op-

1.0 DATA ANALYTICS AND THE FUTURE

1.1 Establishing Definitions

Data science depends on a

1.2 Industry Adoption of Data Science

Figure 3: Data Scientists by Industry, Top 20

Figure 4: Where Data Science Is Headed

1.3 Looking Forward: Healthcare

administered treatment will be No More Waiting: Detailed tracking of provider movements

Near-Term as companies fight to maintain current positions:

Education as an Industry: Traditionally,

1.6 Additional Industries for Consideration: Manufacturing and Logistics

Delivering on Data Growth: The switchover from

1.8 Potential Topics of Focus for the Institute

Health and biomedicine:

Houstons transforming population can be attributed to its ever-increasing role as a city of

2.2 Industry Alignment Assessment

Houston has one of the largest school % of

2.3 Feasibility of a Research and Academic Center in Houston

Houstons population is projected to grow substantially: Population growth managed

Figure 7: Public Top Tier Research Institutions in the U.S.

Figure 8: Data Science In-Class Masters Programs in the U.S.

2.5 Lessons Learned and Considerations

Structuring a Plan for a World-Class Institute Takes Time and is a Multifaceted

The Design and Management of a Pipeline for Data Is Necessary to Maintain

3.0 PARTNERSHIPS ANALYSIS

3.1 The University of Texas System Value Proposition as a Partner

Undertaking the development of an Institute of this magnitude takes an immense amount of

Positive Impact for Houstons Economy

Cornell-Tech: Cornell-Tech is expected to generate $23 billion in economic activity

4.1 Enabling Core Strategies

CORE STRATEGIES ASSESSMENT

Opportunity Example 1 | Infrastructure: An inadequate transportation system costs Texas

Impacted Core Strategies:

Big data can be leveraged to improve the efficiency of the labor

Impacted Core Strategies:

5.1 The Value of Co-Ops