Abstract: Purpose: The paper focuses on the challenges for Faculty of Mathematics and Informatics (FMI) of Sofia University. It tries to provide an answer to the main questions – how to use the best practice of a leading universities in order to link the main research and academic faculty goals to specific problems to be planed and implemented; how to support the faculty executives for making better decisions, and resource allocation choices. The purpose of the paper is to present the FMI approach and the FMI strategy maps for research and education. Design/methodology/approach: The authors examined several scientific methods and techniques used in strategic management, and created their own approach for modeling, design and implementation in education and research environment, which is presented in the paper. Findings: The main findings of a SWOT analysis, modeling and environmental survey are given in the paper. It presents the strategic priorities and the challenges for FMI to keep its position as a leading research and education centre in ICT in Bulgaria and to compete in the global educational environment. Practical implications: The authors believe that the described model and strategy will support FMI and its staff to take strategic management decisions, to focus their efforts on the most relevant topics, and to create competitive educational and research environment. Originality/value: The paper shows how to develop the faculty strategy. It demonstrates clearly that academic research and education processes can achieve significant improvements in cost, quality and service using a strategic management approach. The added value of the FMI strategy is in integrating knowledge, experience, best practices and tools within one new master program design. The FMI approach described in the paper can be used for strategic management in universities and research organisations. Keywords— higher education reforms, challenges for researchers and organizations, collaboration with stakeholders I. INTRODUCTION NFORMATION and communication technologies (ICT) have a strong impact on all economic sectors and spheres of life. Computer technology is embedded in several appliances, in equipment, process control, business and decision-making processes, etc. The ICT development and the pervasive use of technologies have caused enormous changes in all companies and organizations world-wide, both at macro and micro levels, and have increased the requirements for the skills and competences of their employees. Faced with the rapid technology changes, special focuses have deserved world- wide research and technology, innovation and education [21]. Knowledge and information have become important assets and a factor for companies’ growth and competitiveness world wide. The GDP in most developed countries is increasingly generated by the sector of services and knowledge-intensive activities, whereas the service sectors account for more than 80% of the national incomes in most developed countries. The pace of change in the economy and society and the fast technological developments have raised essential challenges for research organisations and universities as well. The latter need, first, to ensure the proper skills supply for the economy and society, second, to strengthen their role as knowledge providers and finally, to integrate new tools in their internal processes. In order to attract and keep their students, universities need to develop a strategy for continuous improvement of the scope and quality of services they provide to the students, industry and society [25]. The new strategic framework should integrate the opportunities, which ICT provide for management of universities [41], for ensuring new effective learning solutions [6] and for knowledge sharing [5], to take also into account the cultural challenges for managers, professors and students [10], and consider the necessary actions. The transitional period in Bulgaria and the close-down of large enterprises negatively influenced higher education, and all universities have faced problems like ageing of staff and low interest by young people, lack of demand for research services by industry, and lack of investments in the material bases. This influenced the quality of education and reflected in low initiatives to change curricula for meeting industrial demands. In addition, the new private universities which are much more dynamic and entrepreneurial, the EU integration, and the emerging e-Learning global education market have increased the challenges to the state-owned Bulgarian universities and the need to change and adapt rapidly to the new highly competitive environment [23]. Sofia University (SU) is the first university in Bulgaria established more than a century ago, which is also an important resource bank of researchers for the country. Its Faculty of Mathematics and Informatics (FMI) has a leading position among Bulgarian research organizations working in the field of ICT [26]. It has achieved a number of successes in research and education, and is well integrated in a number of European research networks and project initiatives. However, FMI has experienced some serious problems closely related to the general socio-economic and research environment in Bulgaria. In order to overcome them and to strengthen its capacity, FMI has undertaken within the FP7 SISTER project several activities in order to determine its future strategy [24]. The paper is expanding the WSEAS conference report of the team [14] and presents the methodology of SISTER Strategic framework for IT education and research at Sofia University M.Nisheva, E.Gourova, P.Ruskov, Y.Todorova, A.Antonova I INTERNATIONAL JOURNAL OF EDUCATION AND INFORMATION TECHNOLOGIES Issue 4, Volume 2, 2008 213