ITR/EW Development and Evaluation of a Model Information

							Information Technology Training
  and Employment Program for
       Rural Communities
                          Presented by
                           Mel Ustad
                  Associate Dean of Research

                  University of South Dakota




Strengthening & Building Partnerships for Workforce Development
                         March 5, 2003
                        Orlando, Florida
Rural Information Technology
Employment (RITE) Link
   National Science Foundation Information
    Technology Research/Workforce
    Development Project
   Objective
       Develop and test a model IT
        education/training/economic development
        program for rural communities utilizing distance
        education and telecommunications technologies
        for education and employment of IT workers.
Project Partners
   University of South Dakota
   Sitting Bull Community College
   Consortium of K-12 Schools
   IT Businesses & Entrepreneurs
   Economic Development Organizations
   University Researchers & Technology
    Entrepreneurships Programs
RITE Link Process
   Recruit rural communities & participants-Six
    rural communities & over 700 participants
   Create community IT profile
   Screen participants-150 participants
   Provide IT training to selected participants
   Recruit IT business partners
   IT business partner employs IT training
    participant
Findings
   Rural community interest is high.
   Existing education and IT skill level of 700
    rural residents interested in the program was
    high. (70% Post Secondary Ed)
   81% of the 150 training participants have
    post secondary education.
    77% of IT training participants are female.
Findings Continued
   Infrastructure is adequate in most rural Midwest
    communities.
   With the tech sector slowdown large IT business
    interest has declined remote employees but
    outsource more work.
   The business focus has sifted to entrepreneurial
    development and alternative partners, smaller IT
    companies.
   Facilitating a change in the IT business culture and
    structure is difficult.
New Initiatives
   RITE Team Association—Organized by
    participants to market IT skills.
       Non-Profit Membership organization
       RITE Link Participants
       Communities interested in IT based
       economic development.
 RITE Resource, Inc. (RRI)
Something Was Still Missing
   The RITE-Team Association to date has had limited
    success.
   It is apparent that several key elements are missing
    from their efforts:
       A full-time sales and marketing effort to win large scale
        consulting bids and build business partner relationships
       People to form and manage the project teams delivering the
        consulting services
       The infrastructure necessary to support these teams whose
        members may be distributed in rural areas
RITE Resource, Inc. (RRI)
Our Mission
   Provide clients world-class e-Business consulting,
    application development and hosting services
   Provide employment and consulting opportunities for
    USD, DSU and RITE-Link program graduates
   Provide higher-paying jobs for these individuals who
    chose to live in rural communities
   Provide solid earnings to our shareholders while
    being a good corporate citizen
RITE Resource, Inc. (RRI)
Target Markets
RRI will go to where the business is:
   Initial markets of Sioux Falls, Sioux City & Omaha
    have a population base of 1.5 million. RRI must
    prove its model in these markets in its first year
   Then we can expand to markets within a one-day
    drive including Kansas City, Davenport, Des Moines,
    & Minneapolis (5.5 million people)
   Then to markets within a two-day drive including
    Madison, Milwaukee, Chicago, St. Louis, Denver and
    Colorado Springs (16.5 million)
RITE Resource, Inc. (RRI)
Services Offered
   Software application development for e-
    Business using Java
   Architecture, design and business analysis
   Project management services
   Web-based application hosting services
   Quality Assurance testing services
   Telephone customer support services
RITE Resource, Inc. (RRI)
Funding Needed
   RRI stock allocated to three groups:
       RRI Management & employees (40%),
       reserved for future needs (20%)
       initial investors including USD, RITE-Team Association and
        five communities (40%)
   GOED Future Fund grant dollars match community
    investments.
   Existing facilities used in many communities.
   Low infrastructure costs.
University Research and
Technology Entrepreneurs
   N2TEC partnership links university research
    and technology entrepreneurs to rural
    communities to identify and explore IT and
    technology based opportunities.
   Internet based venture presentations by
    technology entrepreneurs
   Expose rural communities to technology
    based entrepreneurship
   Provides university based technology
    entrepreneurs to additional funding and
    support opportunities.
Unique Features of Project
   Communities collaborating rather than
    competing.
   Large research universities involved in rural
    development efforts.
   Entrepreneurial Economic Development
       Communities & universities have equity
       Employees have equity
   Focus on building 21st century technology
    high paying jobs rather than attracting 20th
    century declining industries
   Focus on quality of life in rural communities
K-12 Project Activities
   TechTown—IT use and career
    exploration website & lesson plans for
    elementary school students
   CyberSpace Camp—Internet based
    summer and after school program that
    allows students to explore IT advances,
    their community and IT
    entrepreneurship opportunities.
Additional Information
Mel Ustad
Principal Investigator
Associate Dean of Research
University of South Dakota
Vermillion, SD 57069
605-677-5370
Gustad@usd.edu

Project Website: www.ritelink.dsu.edu