CVG - Education Technology Software - Second Thursday Event - July 2014


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As our educational system evolves new and improved software and innovative technologies become ever more necessary to allow teachers and administrators to continue to deliver quality education amidst budget constraints and increasing measurement requirements. At July's Second Thursday event, Trends in Educational Technology, entrepreneurs and experts presented their models, ideas, and thoughts on the rapidly evolving use of technology in all facets of education.

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  • Thank you ___ for the introduction. Good Afternoon everyone, I’m delighted to be here.
    My name is Christina, I’m the founder of 360Alumni. And with our private label online community and fundraising solutions, we are about to revolutionize the way colleges and universities stay connected with their alumni and cultivate their support.
    The challenge facing Alumni Relations for Higher-Ed today is that their institutions are facing incredible transformation and unprecedented economic challenges. Schools rely more than ever on their alumni for support.
    Although alumni gave $9b last year (up 17% from 2012), participation nationally is at 8.2% and declining.
    But it is possible to “buck” the trend, to not only survive, but thrive in this dynamic time. The top 10 performing schools had 52, 57, even 63.7% alumni participation in their fundraising programs.
    I’m about to show you a product that can help all schools achieve similar engagement results.
    But first, its important to understand the human elements of alumni giving, and that’s what these top performing schools do really well. They look beyond their fundraising goals and put alumni first. They activate nostalgia, offer channels to express gratitude and generosity, facilitate valuable connections and maximize the career networking potential. And when schools do this, they are fixing the broken equation in alumni relations and closing the engagement gap.
  • This is our solution. ECPI is a recently signed client with 28,000 alumni, and they love our full-featured, scalable SaaS product with the built-in alumni directory and interactive map, profiles and messaging, job listings, group and event management, email marketing and a fresh approach to fundraising.
    360Alumni is designed to help alumni connect with trusted people who share similar backgrounds, education, interests, and/or geographic proximity.
    Our platform facilitates alumni driven engagement, by letting alumni create their own groups and events, post jobs, and use the network the way they want. This not only relieves our clients from the arduous task of engaging an incredibly diverse constituency, but it actually builds alumni goodwill toward the institution.
    Our platform puts alumni needs front and center, and is first of its kind to do so.
  • When we look at the constituent pyramid, it’s easy to understand how 360Alumni can dramatically increase fundraising outcomes. Most schools invest their resources in cultivating relationships with their top tonors, but don’t do a great job engaging the alumni in the middle, or the alumni on the bottom who never gave at all.
    By enabling alumni-driven engagement, 360Alumni is designed to increase the size and frequency of donations as well as the participation rate, so several multipliers can have a big impact on our customer’s results as well as our own revenue.
  • Our team is ready but we can use your help.
    I’ve been an alumni coordinator since high school. I ran a web development company where I designed, built, marketed and sold a SaaS volunteer management product. And I’ve worked in finance, operations and business development.
    Our Marketing and Sales is headed up by Jim, who is here tonight (Say hello Jim!) spent years building brands at IBM, Intel & Hyperion.
    Stephanie leads operations and product development, and spent 14 years at Priceline, most recently as the head of customer conversion.
    We have a beautiful product with a compelling value proposition and best of all… we we have paying customers and a full pipeline with 119 schools registering for our very first webinar. We know there’s a huge potential here, We are going to change the way people think of alumni relations.
    360Alumni will become the market leader because we address the root of the problem and understand the broken equation in alumni relations.
    So if you’d like to take part in the alumni revolution, please come and see me after the presentations. Thank you very much.
  • The thing is, Andy has lots of friends just like him. - over 1 million new Veterans are expected to enter higher education in the next five years, and using their GI Bill, the colleges that recruit them will receive over $20,000/per year/per student  guaranteed to be paid by the federal government- this translates to $10B annually
    And if they don’t use it within 15 years the money is gone, so Veterans feel more driven to go to school so as not to waste the valuable education benefits they have earned. Thus, every veteran should be treated as prospective student 
     I asked Brad how to be more persuasive on the value proposition for reaching out to veterans, and I loved his response “Every veteran is a perspective student. Know they want to go to school, or could be easily persuaded to go to school.
    A regular person has to decide they want to go to school to make contact, but veterans may not even know they want to go to school but if the school can convince them to use their benefits here then they would sign up. College should be targeting active duty individuals two years before they get out. “
  • Ideas:
    We move from horses to the cars
    Nothing is fundamentally change since invention of the printing press
    Public education is relatively new thing – it was introduced just 100 years ago
    Idea about the individual tutor for children of rich people applied in public education in a new fashion in the era of science and technology
  • Ideas:
    We move from horses to the cars
    Nothing is fundamentally change since invention of the printing press
    Public education is relatively new thing – it was introduced just 100 years ago
    Idea about the individual tutor for children of rich people applied in public education in a new fashion in the era of science and technology
  • The confluence of a number of trends has produced an environment conducive to innovation in education, attracting new entrepreneurs and motivating more investment in the sector.
    Initiatives to increase accountability for educational outcomes, such as the Common Core standards, are enabling a much more “national” market for educational products and services in the U.S.
    The proliferation of e-readers, tablets, and laptops and wide-scale adoption of social media for collaboration have accelerated the shift from physical to digital delivery of education content
    Stakeholders in education of all stripes face extreme cost pressure, but it is increasingly possible for technology to serve the education sector economically as development and usage costs have fallen dramatically
    Digital learning and assessment tools are also enabling personalized learning
    Globalization has opened up new avenues for educational delivery at scale
  • Here you can see some of the largest transactions by strategic buyers over the last three years
  • CVG - Education Technology Software - Second Thursday Event - July 2014

    1. 1. Education Technology Gregg Lallier Welcome:
    2. 2. Education Technology Joe DeMartino Event Co-Chair:
    3. 3. How well did they communicate their idea? • Steps to access pitch-card: – Use Mobile/Tablet/Laptop devices – Click on Web browser – Type-in Link Address: – Give feedback during ‘Pitches’
    4. 4. Christina Balotescu Founder Contact
    5. 5. $9B Donated 8.2% Participation Declining Up 17% National Alumni Support Up to 63.7% Participation Alumni Support at the Top Ten Christina Balotescu (203) 253-5860 Nostalgia Gratitude Generosity Connections Careers
    6. 6. Christina Balotescu (203) 253-5860
    7. 7. The Constituent Pyramid Top Donors: Very Engaged Avg gift of $1,206 (overall) 30,000 Alumni 10% give $50 / yr = $150K 2x frequency = $300K 2x participation = $600K Christina Balotescu (203) 253-5860
    8. 8. Jim Jarvie Marketing Stephanie Covino Dev / Ops Christina Balotescu Founder Head of Customer Conversion, Priceline IBM, Hyperion, IntelExperienced Entrepreneur Alumni Coordinator Technologist, Marketing, Strategy 360Alumni, Inc Stamford, CT Christina Balotescu (203) 253-5860
    9. 9. Ryan Schwartz Co-Founder & CEO Contact CAMPUSCENE
    10. 10. CAMPUSCENEConnecting Student Engagement to Enrollment
    11. 11. 22% decline in yield over last 10 years Fit Rankings Revenue
    12. 12. Boost & Track Engagement Predict & Grow Yield Consolidate Interactions1 2 3 CAMPUSCAMPUSCENECENE
    13. 13. 85% say improving yield is a top priority $23B spent on admissions & marketing
    14. 14. Charlotte Creech Co-Founder Contact
    15. 15. Investor Pitch Deck – rev. 7.7.14 AS SEEN IN: PROPRIETARY AND CONFIDENTIAL 16
    16. 16. Product Overview For $3,500/per year/per program, colleges can license a turnkey recruitment tool to convert prospective students from site visitor to enrolled student GI BILL TUITION CALCULATOR Simple Net Price 6 simple inputs yield immediate output to show Veterans the net cost to attend the school on the GI Bill Direct Contact Veterans can submit their calculator results & contact information to the school. Our software tracks metrics on usage to measure conversion rates. ◉ ◉ PROPRIETARY AND CONFIDENTIAL 18 COLLEGE SEARCH Customized Search, Transparent Data ◉
    17. 17. CONTACT US Join us in connecting Veterans and higher education 1-800-984-4582 PROPRIETARY AND CONFIDENTIAL 19
    18. 18. Michael Rachkovsky Founder & CEO Contact
    19. 19. 17-year old students Early 1970s 2008 The reading test average 285 286 Math Score 304 306 *Robert J. Samuelson. School reform's meager results. The Washington Post, Sep. 6, 2010 The ‘Inconvenient Truth’ 21 Since the 1960s the US government’s waves of "reform“ in public education haven't produced achievement gains at the national scale.*
    20. 20. Intelligent Educational Suite (IES) Reform Based on Artificial Intelligence (AI) and Cognitive Science 22 Major component of IES: - The Intelligent Tutor - The Parent Support System - The Teacher Support System - The School Administrator Support System IES Demonstration Sites in Connecticut World market for IES – 1 billion students
    21. 21. (1)Identifies root causes of knowledge gaps and misunderstandings (2)Provides precisely focused remedial intervention, guarantees success (3)A personal teacher for every student – in school and at home (4)Feeds other support systems The Intelligent Tutor Effectiveness and Justice in Public Education New Haven Student Jackie is doing her homework 23
    22. 22. Use of Proceeds and Projections 24 We seek $10 million series A investment. First installment, $1 million will allow us to finish development and testing the beta version of software and proving the concept – 12 months. Second $9 million installment will fund development and testing of the first commercial product as well as initial marketing – 12 months. Projected revenue in 2020 (the 4th year of sales) – $4.4 billion
    23. 23. Solving the STEM problem… Yvonne Kielhorn, PhD Founder & CEO Contact
    24. 24. What is Why Science? 1 • Currently in use in schools • Supports teaching & learning through stages of inquiry • Meets Common Core requirements • Can be used for all grades • Provides continuous, real-time metrics based monitoring of student progress. • Provides assessments to help teachers increase teaching effectiveness. • Provides learning modules customizable by teachers or allows them to develop new modules themselves. Stages of Inquiry Online platform and methodology for teaching and learning
    25. 25. Why Science AdvantageWhy Science Advantage 2 No other system or content provider provides content, inquiry methodology AND course management
    26. 26. Demonstrated Measureable Results 3 Sample size 250 students 22% improvement in test scores after 3 month’s use
    27. 27. Team Professional Management team with over 40 years combined experience in STEM education/management consulting and software development. Yvonne Kielhorn, Ph. D. •Founder and Interim CEO •Faculty at Rensselaer Polytechnic Institute, Chemistry & Chemical Biology •B.A. Physics & Chemistry (High Honors), Ph.D. Polymer Science & Engineering Peter Hagen •Interim CFO •Extensive investment and commercial banking experience with small business •B.S. USMA, MBA Stanford GSB Doug Schwan •Director, School & Customer Relations •Extensive experience with internal and external sales and operations mgmt. Lou Gasco, Marketing Partner •Principal of MüTō Performance Corp. 4
    28. 28. Why Why Science? 5 • Currently generating revenue • Demonstrated measureable student improvement • Empowers Teachers: Welcomed as an aid to teachers and teachers assistants • Empowers Students: Increases critical thinking, problem solving skills, science literacy and numeracy of students • Empowers Schools: Improves student performance on standardized tests • Proprietary cloud-based system currently in use in schools • No directly competing product • Highly scalable business with increasing margins • Potential for diversifying into similar, much larger markets
    29. 29. Jean Hammond Education Technology Keynote Speaker:
    30. 30. Trends in Edtech Industry and Investing Jean Hammond Launchpad, Golden Seeds, & Hub LearnLaunch
    31. 31. Education is at a Crossroads 34 Cost Pressure Personalized Learning GlobalizationAccountability Physical to Digital
    32. 32. 35 Edtech = Digital Learning & Innovative Solutions • Digital learning is disruptive …and demanded by students, educators, and parents • Innovative solutions in education can create great growing and profitable businesses • Massachusetts and Boston huge education focus • Edtech employment sector: well suited to Boston 92% of teachers would like to use more edtech in the classroom Source: May 2013 Harris poll of teachers
    33. 33. Edtech Market Growing Fast 36 Source: GSV Advisors, Education Sector Factbook 2012
    34. 34. Edtech Market Growing Fast - US 37Source: GSV Advisors, Education Sector Factbook 2012 Edtech now less than 5% of U.S. education market U.S. Education Spending U.S. eLearning Spending 2012-2017 CAGR Education eLearning Other 6% — Corporate / Government 4% 5% Higher Ed 5% 18% K-12 4% 20% Total 5% 15% U.S. $ Billion U.S. $ Billion
    35. 35. Edtech Market Growing Fast - Global 38 Source: GSV Advisors, Education Sector Factbook 2012 Globally, edtech is growing at an even faster rate Global Education Spending Global eLearning Spending 2012-2017 CAGR Education eLearning Other 18% — Corporate / Government 8% 8% Higher Ed 8% 25% K-12 6% 33% Total 7% 23% U.S. $ Billion U.S. $ Billion
    36. 36. VCs and Angels Ramping Up Edtech Investment 39 Source: TechCrunch, based on CrunchBase data Edtech VCs & Angels topped $500 million in Q1 2014 Number of investment rounds, right axis 2009 2010 2011 2012 2013 2014
    37. 37. Many Recent Edtech Exits 40 Source: Capstone Partners
    38. 38. Leading Acquirers • Pearson Education – 2013: Learning Catalytics; ExamDesign – 2012: Global English ($90 million), Embanet Compass ($650 million) – 2011: Connections Education ($400 million) • Houghton Mifflin Harcourt – 2013: School Chapters; Tribal Nova; Choice Solutions • Rosetta Stone – 2013: Lexia Learning; Livemocha • McGraw Hill Education – 2014: Engrade – 2013: ALEKS – 2012: Key Curriculum • MacMillan New Ventures – 2013: Late Nite Labs • Desire2Learn – 2013: Knowillage; Wiggio, Degree Compass • Hobson’s – 2013: National Transcript – 2012: Beat the GMAT • Plato Learning – 2012: Archipelago Learning ($300 million) • Blackboard 41
    39. 39. Innovation Capital Available to Scale Venture Capital (# of edtech companies in portfolio) – Atlas (4), Bessemer (3), New Atlantic (3), Flybridge (1), Spark (1), Catamount (1), NextView (1) 42
    40. 40. Boston Accelerators: Key Role at the Seed Stage Silicon Valley 43 PhiladelphiaMidwest New York CityBoston Washington, D.C.
    41. 41. Characteristics of an Acquisitive Industry End user market wants changes End users can implement new products Solution architecture is understood Product review machinery exists Market size is large Established players have substantial turf to protect There are growing players who also can acquire There are aggressive attackers Innovation opportunities both incremental & disruptive Acquisition ecosystem (bankers etc. exist) Early stage investors exist, follow-on capital identified 44
    42. 42. Characteristics of an Acquisitive Industry End user market wants changes +++ End users can implement new products + Solution architecture is understood + Product review machinery exists + Market size is large +++++ Established players have substantial turf to protect ++++ There are growing players who also can acquire +++ There are aggressive attackers +++ Innovation opportunities both incremental & disruptive +++++ Acquisition ecosystem (bankers etc. exist) +++ Early stage investors exist, follow-on capital identified ++ 45 Edtech Market
    43. 43. Boston's only co-working space dedicated to edtech startups Campus Boston's edtech accelerator program Institute Expanding Boston’s education innovation ecosystem Non-profit dedicated to connecting and educating Boston's edtech community Accelerator
    44. 44. Boston’s Edtech Institute, Campus and Accelerator LearnLaunch is dedicated to connecting, educating, and growing New England’s ecosystem of edtech entrepreneurs, educators, investors, companies, and policy leaders to drive innovation and transform learning Jean Hammond LearnLaunch
    45. 45. 48 Edtech Investing Q1 2014 •$500 million •Seed/angel deals are 30% of money and 50% of deals Last few years: •$1.1 billion •~250 companies •Many VC players Large increase compared with 2003-2010 Words of Wisdom In most categories there are 5 -15 startups … Eco-system knowledge is key… Accelerators & a few leading players are getting a more complete view of playing field
    46. 46. For example: K-12 Marketing and Sales = Complex • Private and Charter: might move faster but – Less than 10% of students – Not a reference for a district • ELL and Special Needs are regulated • Size of district varies … MD vs. MA • Infrastructure … all over the map • 25% use tablets “some” – 10M iPad in US – One to one, blended, cart, flipped • Aps free for all – Teachers selling to teachers
    47. 47. K-12 District Count % of Total Districts District Enrollment Percent of Student Population 6,100 46% < 999 5% 3,510 25% 1000 - 2499 11% 2,073 15% 2500 - 4999 16% 1,039 7% 5000 - 9999 14% 819 4% 10,000 - 24,999 20% 338 2% >25,000 34%
    48. 48. Higher Ed Institution Size Institution Count Less than 5,000 3307 5000+ 994 4 Year Residential 629 Large For-Profit ~45 ?? • Hundred State and Land-Grant Schools represent 40% of Students
    49. 49. New England Edtech Economic Cluster Early Stage Companies (240 +) (sample) VC-backed Companies Growth Companies Social Enterprises Strategics Ed Consultants Recent Exits
    50. 50. 54
    51. 51. Boston’s Edtech Institute, Campus & Accelerator, Jean Hammond LearnLaunch
    52. 52. Christopher L. Curran
    53. 53. July 2014 Education Growth AdvisorsPresented by Christopher L. Curran Prepared for:
    54. 54. Current Market Dynamics in Higher Education
    55. 55. Pressure on Institutional Costs & Outcomes Market Introduction …as a result, institutions are cost- conscious and transitioning to outsourced services •Services are generally non-core to teaching and day-to-day instruction •They tend to focus on increasing student enrollment, student engagement, retention and improve graduation and employability Continued pressures on postsecondary education included increasing costs and lower enrollments… •Approximately $490 billion in expenditures, representing a 5% CAGR since 2000 •20.5 million enrolled students, down approximately 2% from 2011 Each bullet represents a significant monetization opportunityEach bullet represents a significant monetization opportunity •Lead Generation •Institutional Branding •Recruitment / Enrollment Management •College Readiness and Prep Services •Application Processing •Financial Aid •Academic Program Delivery •Online Curriculum & Content Resources •Retention and engagement •Social Platforms •Course Scheduling •Academic Records •Student Services •Financial Aid •Alumni Relationship Management •Fundraising Management •Continuing & Prof. Education •Academic Enrichment •Pre-hiring skills credentialing •Skills Assessment Higher-Ed Services for the Student LifecycleHigher-Ed Services for the Student Lifecycle 12 14 16 18 20 22 24 $200 $250 $300 $350 $400 $450 $500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Enrollment (millions) Expenditures ($ billion) Postsecondary Expenditures1 and Enrollment: 2000-2013 Expenditures Enrollment 1Postecondary expenditures represents total expenditures by postsecondary, degree granting institutions as defined by the NCES
    56. 56. Significant Growth in Online Education Market Introduction • Importantly, online courses have been shown to reduce instruction costs by 20% or more vs. on- ground courses1 • A shift has occurred where by 2020 almost 50% of students are projected to be enrolled either in fully-online programs or will take some form online courses1 • In 2013:  Almost 70% of educators now believe that online education is an important part of their school's long-term strategy (up from less than 50% in 2002)1  77% of academic leaders rated learning outcomes of online education as the same or superior to those of traditional instruction (up from 57% in 2003)1 1 The statistics on this slide are from the 2013 BMO Education and Training Report 22% 25% 53% Student Enrollm Fully Online Some Online No Online 3% 7% 90% 15% 17% 68% 22% 25% 53% Student Enrollment Fully Online Some Online No Online 2002 2013 2020 (proj.)
    57. 57. Significant Growth in Online Education Online Courses and Mobile Learning • Over 6.7 million post-secondary students (32% of all students), were enrolled in at least one online course in 2011 (latest data available)1 • Over 3.2 million students were enrolled in fully- online courses in 20132 • Nearly 70% of educators believe online education is important to their institution’s long- term strategy1 • In 2013, nearly 40% of all post-secondary students owned a tablet, compared to 2011 when only 7% of students owned a tablet (an 6x increase)3 • Over 75% of college students now own a smartphone3 • Many institutions recognize that they do not possess the personnel or technological resources necessary to implement a successful online learning strategy and need to outsource Both students and educators are continuing to realize the benefits of on-demand and accessible online education. Significant opportunity to capitalize on this dynamic by enabling faculty to create, publish and deliver online content across platforms and on any mobile device. Both students and educators are continuing to realize the benefits of on-demand and accessible online education. Significant opportunity to capitalize on this dynamic by enabling faculty to create, publish and deliver online content across platforms and on any mobile device.1 Sloan Consortium’s 2012 annual survey tracking online education 2 Eduventures 3 Pearson’s 2013 Student Mobile Device Survey: National Report on College Students 1.6 2.0 2.3 3.2 3.5 3.9 4.6 5.6 6.1 6.7 7.6 0% 25% 50% 75% 100% 0 2 4 6 8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E %ofTotalEnrollment NumberofStudents millions Online Course Enrollment Interoperability is key…
    58. 58. StudentStudent Year of the MOOC and Open Education Resources Traditional Higher Education Institutions Are Seeing A Significant Transformation to Their Business Model Provide online learning platform and partner with postsecondary institutions to facilitate design and delivery of open and free postsecondary-level courses for global, large-scale user base Fully accredited postsecondary institutions employing competency-based and/or mastery-based learning models Deliver free or low- cost online courses and structured learning experiences Provide online learning platform to postsecondary institutions or content publishers; launching programs to help institutions create courses with MOOC-like attributes Deliver open and free online content and instructional resources; generally not structured as a course or inclusive of direct instruction Deliver low-cost or tuition- free online programs that carry sufficient recognition to be considered in place of, or alongside, tradi- tional postsecondary pathways Free Content Resources Affordable Courses Learning Platforms MOOC Players Economical University Competency-based Programs
    59. 59. OPM Services Are Becoming A Mission Critical Component for Institutions Online Program Management (OPM) Market Overview 1 EGA market research and proprietary estimates. Note: The Learning House includes much smaller partners/clients (e.g., community colleges); although they service over 250 online degree programs. Online Enablers # of Partners Illustrative Partner 100+ 40+ 35 26+ 20 14 10 7 5 4 2 1 OPM providers continue to expand their market presence and core capabilities: •OPM providers listed to the right offer services to over 250 partner colleges and universities (primarily all non- profit) •Comprehensive OPM capabilities include providing partners with everything from lead gen and enrollment management at the beginning of the value-chain, to career services and employability at the end •These services include, but are not limited to: ‑ Lead generation ‑ Enrollment management and marketing ‑ Retention services ‑ Academic support ‑ Online curriculum development and delivery ‑ Teaching and assessments ‑ Financial aid support and accounting ‑ Career guidance and counseling •OPM providers are becoming embedded into the work- stream and across the student lifecycle •Current OPM players are estimated to have generated $675mm in revenue in 2013, representing a 20% 10-year CAGR, and an accelerating 37% 4-year CAGR1
    60. 60. 1. The revenue share model is under pressure • Share percentages are shrinking over time • Firms seeking to lock University partners into expensive, long- term revenue-sharing contracts is not sustainable • Some universities reject the model outright 2. Based on this pricing pressure, OPM providers are spending more money and time on retention and enrollment, and some vendors are having trouble delivering high quality courses on schedule • Multiple reports of dissatisfied faculty, universities looking for additional help developing content, etc. • Content delivery is not compatible or mobile across all devices 3. Faculty members are struggling to work with today’s course authoring tools and develop their own content Problems and Opportunities within the OPM Market Online Program Management (OPM) Market Overview
    61. 61. 07/14/14 65 v b v b Alumni Management Instruction & Retention Retention & Student Services Graduation Market Research Creative Services Traditional Media Recruiting Analytics Interactive Marketing Course Design Course / Curriculum Development Faculty Training & Support Online Learning Tools Learner AnalyticsLearner Support Retention Analytics Referral EnginesCareer Services Online Learning Tools Post-grad Analytics Academic Advising Financial Aid Post-grad Career Services Online Program Management Process Overview Program Management Overview
    62. 62. DRIVER Institutional Pressures New Service Delivery Models Penetration / Saturation IMPACT ON NEW ENTRANT DETAILED FACTORS • Many institutions will continue to be capital constrained and will seek out financial partners to launch new programs • Postsecondary institutional market is experiencing declining enrollments, climbing student debt, lackluster graduation rates, and a tighter funding environment • These factors have impacted how how higher education leaders are managing their institutions – focusing on student engagement and outcomes, improving cost management, and evaluating recruitment and enrollment strategies 66 • Institutions are applying technologies and methodologies to expand access, decrease costs or grow revenue, and improve learning outcomes • A number of new service delivery models are emerging that require new competencies of institutions and support from their trusted partners • Institutions are, however, becoming more sophisticated in negotiating with OPM providers to ensure that contracts facilitate shared risk/return more flexibly • While the OPM market expands and institutional penetration increases, a question as to what “full market penetration” looks like must be answered • Market penetration of OPM was 5% in 2011 and 11% in 2013 – how much more is there that is addressable? Overview of Online Program Management Drivers Primary OPM Drivers Medium High High
    63. 63. Any Questions?
    64. 64. Appendix – OPM Market Size
    65. 65. Embanet (Pearson) Academic Partnerships 2U Bisk Deltak Learning House IPD Synergis Hobsons Other $- $100 $200 $300 $400 $500 $600 $700 $800 2003 2007 2011 Today Millions CAGR 30%+ CAGR 20% CAGR 14% $675 Sources: Parthenon; EGA analysis 69 Online Program Management Market, 2003-Today $360 $175 $105 Online Program Management Market Is Growing Rapidly and Estimated to Be More than $675M
    66. 66. 70 Online Program Management Strategic Planning Marketing Student Recruitment Course Development & Instructional Design Faculty Training & Support Retention & Advising Analytics & Reporting Program Delivery & Platform Learning • Provide training and support to faculty to help them acquire/im prove online pedagogy • Faculty/sta ff recruiting • Student support ranging from prior learning assessments, registration support, online learning training, identification of at-risk students, tutoring services, course completion strategy, career advising, and course/progra m evaluations and feedback • May include predictive analytics to identify at-risk students • Utilization of data for course, program, and enterprise level analysis • Report and analyze such metrics as student performance/e ngagement, enrollment, faculty/student satisfaction, and retention • May include predictive analytics • The more robust offering integrates findings into future strategy • Assess institutional readiness, i.e. infrastructur e in place to support higher enrollments • Plan and assess program readiness • Conduct market research, feasibility studies, and competitive analysis • Perform branding and marketing on behalf of the institution, program, and/or course • Pursue multi- channel outreach and lead gen • Conversion outreach • Application processing • Onboarding /Enrollment processes • May include predictive analysis for student success • Determine order of courses within program • Develop curriculum aligned to learning objectives • Provides content to students • Develops the structure, and type, of course component s • Provides in- house, or outsourced, host for course content delivery • Integrates with LMS OPM Providers Bundle Services across this Value Chain OPM Value Chain
    67. 67. • Limited differentiation among providers in delivery of courses • Most providers support various delivery methods and dynamics (e.g., synchronous/asynchr onous, social networking) • Course development and instructional design varies, with some players providing guidance on the conversion to online, and others offering comprehensive curriculum development support Manual; Limited Services Predictive Capabilities; Expansive Services Retention & Advising Open/ Agnostic Proprietary/ Prescriptive Platform/Delivery Model Low Touch High Touch Course Development & Instructional Design 71 Competitors Are Investing in Different Ways along the Learning Segments Investing in Learning Segments of OPM Value Chain
    68. 68. Q & A
    69. 69. Education Technology Gregg Lallier Closing Remarks:
    70. 70. Upcoming Events Three Summer Networking Parties! August 14, 4:30PM Hartford, New Haven, and Stamford! Social Media and Mobile Tech September 11, 4:30PM Stamford Technology Transfer October 9, 4:30PM Hartford
    71. 71. Sponsors