1. The Educational Ecosystem Analysis
Threat of Substitution
• Blended learning solutions
• New Age open education
providers. Khan
Academy, Coursera , EdX
• Wikis & web based resources
Schools creating own content
• New service providers –
Managing employability/Career
advice
Threat of New Entrants
Industry Competitiveness
• Fast moving tech players can
scale rapidly
• Hardware suppliers integrating
content to provide complete
solutions
• Commoditized print products
lead to low margins, forcing
players to innovate
• High funding inflow allowing
rapid scaling
• Innovative add-ons to
traditional products have
become the norm
• Scarcity of high quality teachers
& content creators
• Technology professionals with
understanding of pedagogy hard
to find
• Schools/Distributors have a wide
choice of publishers .
• Largely price sensitive market
• Digital products lead to easier
direct access to consumers
Power of Suppliers
Power of Buyers

2. Value chain – goimg up the value chain- lets us partner and give the school all that it
wants content, assement, teacher training so that we can create content that is
measurable - “Vertical integration “ -- Later we manage a school “ May it is
horizontal integration
Commoditization of publishing
Power changing to distributor and Author -K 12
Break up of student fee
Teachers /Teacher
Training/Teaching pedagogy
development
Go up the Value chain
Analyse the value chain
Books
10 November 2013
Schools
Assessment
supports
Fees
2

3. We need to be able to incubate ventures that help us very quickly diversify and build alternate revenue
Streams by JV’s , acquisitions and new incubations
Technology based
personalized learning
solution
• Fast Innovation
• Direct access to
consumers
Print Books
• Distribution,
warehousing &
production
capabilities
• Legacy products
Managing School
• Infrastructure Heavy
• Long gestation

4. Impact of Technology on Education- Opportunity to
create disruptive offerings
EBooks
Infrastructure
Content
Cheaper Access
Devices
Conferencing
Adaptive Online
Assessments
Open Source
Learning
Digital Learning
Pedagogy
Distance Learning
Pedagogy
Machine Learning

5. Future Classroom
The Classroom Officially Has No Walls……
Students With Tablet PC’s in 1:1 Setting
Teachers have interactive whiteboard
Everybody collaborates via Tablet PC
Learning happens 24/7
Capability To Interact With Digital Content
and Activities
Confidential
Classroom in an App!

6. What makes the present book ready for a disruption – A
learning solution
Impact of digital on educational
content
• Content can be consumed in a digital
•
•
•
•
format
Comprehension of content after
consumption can be measured and
hence an immediate feed back is
available
Content can take more forms , be
interactive and engaging – Video,
Audio, games etc
Video based lectures or synchronous
lectures can be created and beamed
across countries
Content can be packaged and
distributed in more customized ways
with ease.
Strictly Private & Confidential. India Proposal
Business Impact
• Digital impact creates opportunity and
challenges to Macmillan. Emergence
of technology companies, digital
aggregators in the value chain
• Emergence of standards in terms of
reader formats, and sticky ness of user
inertia
• Customized courses can be build
and electronically distributed .Creating
a need for digital distribution, royalty
management

7. Need for innovation
Need to Innovate
Opportunities
• School Textbook business
(even with minor digital
add-ons) becoming
commoditized
• Higher Education growth
without injecting strong
titles almost impossible
• While Macmillan is at a
very early stage of
technological innovation,
the industry itself is
innovating fast.
More Books
This is some thing we
will need to analyze to
see fitment to market,
capability in the team.
As we don’t have a
back list and an
adoption market –this
will be positioned as a
disruptive product !
Digital content
authoring tool/SCP
Assessments: UNSW
JV & PrepU
First priorities
Learning Management
System
• Necessary innovation
to sustain textbook
business and further
build on into other
services
Engineering Courses:
New Market
Macmillan Academics
Homework Solutions:
Sapling
MOOC Add-ons
Employability
Employability !
Help students get aware of the job
market !
Help students reach out for
internships and Jobs !
Help employers reach out to
fresher's
Train and assess fresh graduates to
make them aware of the job
fitment

8. Opportunities
Disruptive
Innovation
MOOC
Add-ons
Engineering
Courses
Homework
Solutions
Assessments
Incremental
Digital
Content &
Platform
Sustaining
Macmillan
Academics
More
Books
??? Size of bubble
proportional to dollar value
Internal
Partnerships & Joint Ventures
Capability Building
External

10. The Vision: Learning Cloud
Content
Assessment
New Age Pedagogy
Personalized learning solution – providing a
blended learning platform to schools

11. Where is the hidden Value lying and why we are in the
best position to create a learning platform….
Content available freely
Think about it:
10 M books sold
Millions of
students
Thousands of
Teachers
What if we could capture
these Millions of
interactions to make our
content richer??

12. The Products-to-Solutions Transformation:
Business Model Innovation
Product: EBook
Valued
Customer
Solution: Learning Cloud
•
Almost all customers
•
Segment Focus
•
“Better” products with service
•
End-to-end solutions that reduce customer costs
and risks or increase revenues
•
•
•
New technology focus
Stand-alone products
Proprietary products
•
•
•
Customer problem focus
Modular products
Open, standards-based
Operations
•
•
In-house manufacturing of products
Limited supply chain complexity
•
•
Partner with best providers & be product agnostic
Many independent partners requiring high coordination
Service
•
Cost center, bundled free with products
•
Profit center, unbundled from products
Marketing
•
•
•
•
•
•
Cost-plus product pricing
Product sales & Volume based
commissions
Salesperson as order taker
Geographical coverage
•
•
Value -based pricing
Multiyear service contracts, service-based
commissions
Salesperson as consultant
Industry Experts
•
Products sold through many channels
•
Become a value-added reseller (VAR)
Value
Proposition
Value Network
R&D
Distribution