In response to interest from the Higher Education Advisory Council and a mandate from the 1985 Minnesota Legislature, Higher Education Coordinating Board staff conducted a project with three major goals: (1) to assess and report on the uses of information technologies in Minnesota postsecondary education; (2) to initiate collaborative activities to share information and resources among systems; and (3) to provide opportunities for policymakers to review issues for policy development. The term information technologies was used to include all video, audio, and computer technologies used for instruction. The project included a survey of Minnesota's postsecondary institutions; discussion with informed persons on campuses, at system offices, state agencies, corporations, and state and national organizations; and a review of the pertinent literature. Analyses of the data indicate that the use of technology for instruction is at an early stage of development. The technologies are new to most potential users, and the capacity of the hardware (computers in particular) has far outpaced the availability of appropriate courseware for instruction. The use of information technology, however, is beginning to increase rapidly and will involve changes in instructional content, sequencing, and methodology. Students will have opportunities for more self-directed learning. During this period of change, it is recommended that the state encourage, support, and recognize efforts by systems and institutions to experiment with and develop new uses of information technology. This report provides background information and an executive summary as well as a detailed report of project activities and findings, with emphasis on the importance of information technology to the state's postsecondary education; the use of computer, video, and audio technologies in instruction; obstacles and issues involved in using these technologies; and implications for state policy. Seven recommendations resulting from the study are also presented together with statements of the rationale and impact of each. A glossary of terms, an outline of the requirements for funding a computer infrastructure in higher education, and a copy of the survey questionnaire are appended. (BBM)