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Virtual classroom business models


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CEdMA 2009 Presentation about Virtual Classroom business models.

CEdMA 2009 Presentation about Virtual Classroom business models.

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  • 1. Rock Your Virtual WorldSuccessful Business Models & MarketingPlans for Virtual Classroom (VC) TrainingTerry VyasBMC SoftwareCEdMA Fall Conference 2009
  • 2. Corporate Overview• $1.5B Revenue Software • Profit/Loss Driven Company specializing in • 36K Students Yearly Business Service Management • 150 Courses• Headquartered in Houston, TX • 30 Training Locations WW 2
  • 3. Why Virtual Classrooms? Revenue Retention Revenue/Profit Growth• Mitigating the risk of • Grow current modality students not attending due revenue streams to travel costs • New Modalities with higher• Ability to have flexible revenue/profit potential schedules to broaden • Reduce risk & expense customer audience associated with classroom setup • Reduce travel costs 3
  • 4. Virtual Classroom Infrastructure Web Telephone Virtual Conferencing Conferencing Servers Price Point Voice Quality Pay As You GoSelection Reliability Cost Unlimited Capacity Criteria Classroom Features Dedicated Network Performance Breakout Rooms WW Availability WW Availability iLinc AT&T Conferencing SurgientPotential WebEx Training Center Premier Conference ReadyTechVendors Interwise Skype IT Structures LiveMeeting Web Conf. Vendor - VOIP Hat Size Most vendors were similar VOIP was the most cost Unlimited capacityDecision in capabilities. effective option. with bare metal Point The dedicated VOIP network selected dedicated VOIP performance. was determining factor. network provider. Cost $12k - $30k /Year Telephone: 5¢ – 20¢ / min Fixed Capacity – VariesStructure 10 Seats VOIP: .01¢ - free/ min On Demand $25-$100/Day VendorSelected WebEx Training Center WebEx Training Center ReadyTech 4
  • 5. VC Enabled Modalities Instructor Led Private On-Demand Configured Lab Online On-Site Learning & Labs Environments • Public Classes • Private courses for a • Self-Paced • Pre-Configured Lab • Exact same course single company Education (WBT) utilized byDescription as our classroom • Traditionally Held blended with a live customers as test education On-Site lab environment environments     WebConferencing     TelephoneConferencing     Virtual Servers 5
  • 6. Value PropositionInstructor Led Online Customer Internal Reduced Travel Costs Allows for an offering in a tight economic environment Ability to Time-shift Removes GEO boundaries 24 hour lab access Removes hard classroom size limit Reduces instructor travel 6
  • 7. Execution Instructor Led Online Staffing Pricing Operations Taught by any qualified Priced exactly the same as Students sent WebEx logininternal or external trainer. a public class. information and reservations to lab before We provide technology All content is the same class. overview training to the (books, labs, instructors).. instructor team. so we see no need to Trainers manage discount price. classrooms by muting all microphones during Built in price break for lectures and utilizing most students due to lack breakout rooms. of travel expense. 7
  • 8. Financial ModelInstructor Led Online Instructor ILO ILO w/Tel ILO Led Training w/Producer Bridge w/VOIP Telephone Revenue $650 $650 $650 $650 Instructor $100 $200 $100 $100 Classroom $80 $0 $0 $0 Telephone $0 $25 $25 $24 $1 Virtual Labs $0 $50 $50 $50 Web. Conf. $0 $5 $5 $5 Total Expense $180 $280 $180 $180 $156 Profit $470 $370 $470 $494 8
  • 9. Marketing Plan Instructor Led Online Website Collateral Communications• Built Modality Pages with quick • Created datasheet describing benefits access to key resources (datasheet, and value to customer FAQs)• In order to mainstream concept, listed it as just another “location” on the public schedule E-Mail Campaign Datasheet Commercial 9
  • 10. Measuring Success Instructor Led Online% Of Public Classes Held As Instructor Led Online Avg. Fill Rate is 62% Higher Instructors -1% Statistical Dead Heat Between Course Evaluations ILO vs. ILT Materials +3% Classroom and Virtual Classroom Education Overall -1% 10
  • 11. Value PropositionPrivate Virtual Classroom Customer Internal Eliminates Classroom Eliminates Instructor Setup Costs Classroom Setup Reduces risk of classroom Eliminates shipping configuration issues of portable classroom hardware Supports Geo Distributed Reduces instructor travel Employees (Private –ILO) 11
  • 12. Execution Private Virtual Classroom Staffing Pricing Operations Taught by any qualified Priced exactly the same as Customer providesinternal or external trainer. a private class. Base classroom environment or bring We provide technology Charge for VC Lab laptops to classroom to overview training to the environment is equivalent connect to VC lab instructor team. of Traveling Classroom environment charges 12
  • 13. Financial ModelPrivate Virtual Classroom Private Private On-Site w/Virtual Labs Revenue $6000 $6000 Instructor $1000 $1000 Computer & Shipping $200 $0 Telephone $0 $0 Virtual Labs $0 $500 Web. Conf. $0 $0 Total Costs $1200 $1500 Profit $4800 $4500 13
  • 14. Measuring SuccessPrivate Virtual Classroom Course Evaluations Private Classes with Portal Lab vs. Private Classes with Virtual Classroom Lab Classrooms Equipment +2% Made a seamless transition to the VC technology stack 14
  • 15. Value PropositionOn-Demand Learning & Labs Customer Internal Self-paced education Grows revenue stream with a real lab environment for standard Web Based Training (WBT)Effective replacement of ILT training Increases profit Corporate over ILT lab test bed 15
  • 16. Execution On-Demand Learning & Labs Staffing Pricing OperationsNo instructors necessary. Priced as a combination of Requires tight integration WBT content and self- with VC Lab provider. paced learning. Provide 2.5x lab time as WBT prices $100/hour. necessary to complete labs Self-Study Content at in order to allow for $50/hour. flexible time management by customers 16
  • 17. Financial ModelOn-Demand Learning & Labs WBT ODL 3-Day Class Revenue $600 $1200 Instructor $0 $0 Classroom $0 $0 Telephone $0 $0 Virtual Labs $0 $150 Web. Conf. $0 $0 Total Costs $0 $150 Profit $650 $1050 17
  • 18. Marketing Plan On-Demand Learning & Labs Website Collateral Tutorial• Built Modality Pages with quick • Created datasheet describing benefits • Built an Articulate WBT to show access to key resources and value to customer students how to register and request (datasheet, FAQs) the virtual lab Datasheet 18
  • 19. Measuring SuccessOn-Demand Learning & Labs Post Course Survey for ODL Would you attend another (ODL) 80% class? Yes Did the live lab exercises aid in the 93% learning process? Yes I used the Remote Lab Environment 47% for further research by testing and Yes performing tasks not identified in the Lab Guide. 19
  • 20. Value PropositionConfigured Lab Environments Customer Internal Pre-Configured Lab New revenue stream Environment with to derive from classroom image base product install builds Provides a test bed for a variety Looking into “migration” bundles of learning and testing needs that includes pre-packaged training and lab time Customers often utilize it to validate migration to new versions 20
  • 21. Execution Configured Lab Environment Staffing Pricing OperationsNo instructors necessary. Still determining Handles request Market pricing individually in association with the Virtual Lab Currently priced provider since each at $100/day for lab access request can be different 21
  • 22. Conclusion • A Solution not a Band-Aid • Beyond mitigating revenue risks associated with a bad economy, view Virtual Classrooms as a way to grow revenue and profit • Go with Less Talk more Action • Lots of discussion about marketing Virtual Classrooms, but very little was required • Customers are ready to fully embrace VC technologies • Fully exploit VC technologies across ModalitiesCEdMA Fall Conference 2009