The document discusses creating new approaches to education through innovation and technology. It introduces Radiant Vision, an integrated instructional platform that facilitates connections between students, teachers, parents, and administrators. Radiant Vision provides comprehensive solutions including content management, assessment, instruction, reporting, and professional development. The platform represents a significant market opportunity as most school districts currently do not use such integrated systems. It has the potential to differentiate HMH education and transform it into a full-service solutions provider.

1. Innovation In EducationCREATING NEW APPROACHES TO LEARNING IN THE 21ST CENTURYWendy Colby

2. The Time Is NowReadying for a New Generation of Education Delivery

3. Our business is teaching and learningCOMPREHENSIVE INSTRUCTIONAL SOLUTIONSPROVEN CURRICULUM, ALIGNED TO STANDARDSEND TO END LEARNING DELIVERYDATA MANAGEMENT & ASSESSMENTBEST IN CLASS SERVICE & PROFESSIONAL DEVELOPMENT

4. Technology enables the transformationACCESS TO WORLD CLASS INSTRUCTIONVAST REPOSITORY OF DATA, RESOURCES, TOOLSCOMMUNICATION & COLLABORATIONLEARNING ENVIRONMENTS THAT ARE RELEVANTPEER TO PEER INTERACTION

5. Introducing …

6. Radiant Visionstudents to teachers to contentparents to administratorsteachers to professional developmentcontent to state standardsstudents to teachers to virtual schoolsadministrators to longitudinal dataand more6Facilitating connectionsRadiant connectseverywhere and anytime

7. Radiant Vision7With a focus on the learner“Technology needs to be a learning tool.”- Mr. Alvin Wilbanks, Superintendent, Gwinnett

8. Core elements of the radiant solutionCONTENT MANAGEMENTSTUDENTMANAGEMENTASSESSMENTINSTRUCTIONREPORTING & DATAPROFESSIONAL DEVELOPMENTAttendance ManagementGrade Book ManagementDiscipline ManagementAssessment AlignmentAssessment ManagementTest DeliveryScoringPrescriptionsLesson PlansInstructional AlignmentAssignment ManagementInstructional DeliveryIndividual Learning PathsQualitative ReportingQuantitative ReportingNCLB ReportingStandards ReportingUsage AnalyticsTraining GuidesTraining RoadmapPD DeliveryStaffingBudgetingROIMEDIA ASSET MANAGEMENTCOMMUNICATION & COLLABORATIONAnnouncementsMessagingPeer ReviewCalendarsEvent SchedulingMobile ServicesVirtual MeetingsFile SharingBlogging / WikisDiscussion BoardsSocial NetworkingDATA MANAGEMENTData ArchitectureDatabase ManagementData Security ManagementCore framework aligned to current market drivers; new apps & capabilities can be added over timeData WarehousingData Mapping Services

9. Radiant Vision9Market opportunityDistrict Platform Use by TypeHugeOpportunityApproximately 65% of school districts currently home-grow their own platform or don’t use one at allSource: NCES school district data; Americas Digital Schools 2008 Report; Simba K–12 Technology, Tools, & Trends 2009 Report9

10. Radiant Vision10Addressable market Commercial Platform Delivery * K-12 Market *($Millions)New Platform Delivery is ONLY the foundation for new sales – opportunity grows significantly with addition of content and servicesSource: NCES school district data; Americas Digital Schools 2008 Report; Simba K–12 Technology, Tools, & Trends 2009 ReportExcludes new content monetization delivery (upside)

11. LEAD USERS EMBRACING DIRECTIONRichmondGwinnettPuerto RicoChicago Public SchoolsOVER $50M IN CURRENT RFPS$$$ IN FUNDING MATCHESOur new charter is to scale the model to districts large and small You are the team to make it happen!

12. Key Market TrendsMany players are entering the market, although they are split across several categories and none hold a dominant position:Many players are extending their modules to become end-to-end platforms (e.g. Pearson K-12, Blackboard Learn)Barriers to technology are fallingDevice maturity, school connectivity (broadband and power), and cloud-based content are reducing the costs and access challenges of education technologyKey states are calling for comprehensive platforms12Market & competitive dynamicsKentucky, April 2010 RFP: “The purpose […] is to incorporate into one central portal, common core standards-based resources, including assessment banks, learning targets, curriculum mapping, lesson planning, instructional tools, professional development, and others”

13. Evolving Competitor landscapeCompetitive MappingHMH Radiant GoalHighOpen-content allowed

14. Pre-loaded HQ content

15. Easy to UseTraditional Content CompaniesPotential Heavyweights (e.g. Google)Technology companies have slightly more end-to-end platformsHigh-quality content assets give content companies an edge over software-only companiesTechnology Focused Companies (Blackboard, SchoolNet, etc)Product/Technology InnovationHMH Legacy PlatformsOpen-Source(Moodle, Sakai, etc)Free open-source competitors have a compelling business model, but don’t currently offer end-to-endFree / Open Source

16. End-to-EndLowLowHighBusiness Model InnovationFramework: Making Innovation Work, Davila, Epstein, Shelton: Wharton School Publishing, 200613

17. 14Opportunity levers

18. The key needs of our target market segments are reflected in the vectors of differentiation evident in the competitive landscapeNew value positioningVectors Of Differentiation Evident In Assessment Of Competitive LandscapeKey Needs Of Target Market SegmentsRobust, scalable systemEasy to use, robust, and scalableEase of useAffordableModular pricing and bundlingMix of content sources and typesOpen – content agnosticPre-loaded high quality contentPre-loaded high-quality contentAnytime, anywhere accessEnd-to-endEnd-to-end - ComprehensiveIntegrated with other enterprise systemsCustomized views15

19. Value by stakeholder groupAdministratorsMarket Segment NeedsRobust, scalable system for varying district sizes

20. Integrated with SIS with ecosystem of support

21. Choices in pricing and content bundling

22. Standards-aligned where applicablePrimary MotivatorsDistricts seeking seamless, hassle-free information infrastructure

23. Support accountability and compliance with standards

24. End-to-end reduces administrative overhead in procuring and running multiple systems

25. Modular and extendable ensures sale isn’t all-or-noneTeachersMarket Segment NeedsPlatforms should be able to accept a mix of pre-loaded/cartridge proprietary content and open content from many sources/providers

26. Include formative assessment, remediation, and Professional Development

27. Pre-loaded high quality contentPrimary MotivatorsReadily understood and adoptable hassle-free technology

28. Teachers need flexibility in the content they loadValue by stakeholder groupParentsMarket Segment NeedsEase of use; customized views for parentsPrimary MotivatorsTimely access to information

29. Continuation of the learning environment at home

30. Engagement with teachers and administrators on student’s learning progressStudentsMarket Segment NeedsIncreasingly rich, multimedia content (vs. flat text)

31. Any place, any time access to personalized contentPrimary MotivatorsHigh quality content to ensure learning is maximized

32. Continuation of the learning environment at home

33. Discretion to augment the learner’s progress with the right content at the right time17

34. Market differentiationCredibilityUniquenessRadiant is a natural extension of Learning Village and HMH’s other platform assets, and will leverage proven Global Scholar technology

35. HMH has already begun shift to Radiant (HMH Integrated Platform) in naming, technology licensing, and RFP responses

36. HMH emphasis on aligning and leveraging core teams for full K-12 push

37. HMH can offer pre-loaded content on Radiant that big platform-only companies (Blackboard, etc) can’t

38. Radiant can offer further end-to-end value not currently in enterprise platforms (e.g. Professional Development)LoHiLoHiRelevanceSustainabilityCustomers have high switching costs and expect to see content presented through a platform

39. Upstream from basal platform

40. HMH will need to establish ecosystem of suppliers, integrators, and partners to help sustain platform

41. Maintains a critical position in the end-to-end platform market to sustainably enable HMH content sales

42. Positions HMH for additional growth in extensions and supplementals delivered through the platform

43. HMH focus on core value-added services to fight off commoditization and open-source trendsLoLoHiHi

44. Value chain potentialPotential Long-term GoalStage 4Integrated, Full-Service Solutions ProviderSolutions Revenue as % of Total Revenue 2011 GoalHMH2010Stage 3Targeted Solutions ProviderOffer full range of integrated solutions to deliver differentiated customer economics HighStage 2“As Needed”Service ProviderSolve selected customer problems and make money doing itStage 1Help business by providing customers with pre and post sales servicesFull capability to develop and deploy solutions for unique customer needsSolution revenues become primary business focusOrganization and incentives fully restructured around solutionsOverall solution quality and performance becomes primary business metricProduct-CentricSolutions defined for select sets of customer needs Solution revenues seen as significant growth contributorDedicated teams organized around solutions with ability to influence product combination salesOverall solution quality and performance measured and important to businessSell new products and charge for servicesSoftware and services as ‘necessary support’ for product salesRevenue tracked but not a growth driverService organization focused on after-sales support Service performance measured and more consistentProduct sales are paramountLimited service portfolioInconsistent service qualityLowLow MediumHighSolutions Maturity levelHMH is in early phases of “solution” value chain; commitment to integrated platform opens new commercial opportunities

45. HMH in the new worldNurture communities of learningExpand to education related areas that leverage core competenciesGive educators more insight and more timeExtend the reach of quality educationEnable relevant, personalized and engaged learningLearning NetworksIntensive InterventionOpen Source NetworkHigh Quality ContentNew Apps(ie credit recovery)Targeted RemediationUser ContributionSocial & MobileData MiningInteractive Classroom for Teachers/ParentsJob embedded PDIntegrated/Adaptive Delivery Platform (Mobile, Hosted, Etc.)20

46. Creation of the Digital Solutions TeamBuilding momentumLaunch Team for Radiant -- Getting the Word OutEnterprise Sales Teams – Taking the Lead in Phase 1Infusing New Knowledge Base in Cross Functional HMH K-12 TeamsPartnering with Global Scholar for SuccessFormalize Alignment for Full Sales, Product, Market, Pre- and Post- Implementation Support

47. Creation of the Digital Solutions TeamAnd on the horizonMarket Launch / PR ActivityNew Sales Tools / Microsite Next WeekWeb Ex Training Schedules to ComeDemo SitesCore RFP Support & Enterprise Support

48. Creating a Spark for Learning

49. Thank You

50. Strategic partnerships Allen Burgtorf

51. Creation of the Digital Solutions Team21st century learning“The essential question facing us as we transform the U.S. education system is this: What should learning in the 21st century look like?” - (NETP 2010; USDOE).

52. Creation of the Digital Solutions TeamCollaboration & integrationSUPPORTING QUALITY CURRICUUM AND INSTRUCTION Integration of the existing tools with HMH resourcesPromote anytime, anywhere access to Essential Curriculum Expanding on dynamic repository/library of rigorous digital contentALIGNMENT OF ASSESSMENT WITH INSTRUCTION Align short-cycle & benchmark assessments to digital resources / prescriptionProvide prescriptive digital resources that support differentiated instruction in reading, English, mathematics, science, and social studiesPROFESSIONAL DEVELOPMENT Support Web-based learning modules for PDPARENT, FAMILY OUTREACH Complement the Take Home Libraries with digital resources, electronic books Incorporate technology and web-based solutions for Extended Day

53. From the desk of Alvin Wilbanks“Schools should use more of the technology that student and teachers use in their personal life”

54. “We shut kids down when they come to school”

55. Technology needs to be a learning tool, not a teaching tool.

56. 60% teachers -- use technology to teach

57. 26% students -- use technology to learn

58. “Emerging technologies bring us into exciting times. Coupled with the budget challenges, we need to find ways to make things better, faster, and easier for teachers.”

59. “Core strategic partners are essential for our long term success”Creation of the Digital Solutions TeamFederal definition of instructional systemsA technology-based tools and other strategies that provide teachers, principals, and administrators with meaningful support and actionable data to systemically manage continuous instructional improvement, including such activities as: instructional planning; gathering information (e.g., through formative assessments (as defined in this notice), interim assessments (as defined in this notice), summative assessments, and looking at student work and other student data); analyzing information with the support of rapid-time (as defined in this notice) reporting; using this information to inform decisions on appropriate next instructional steps; and evaluating the effectiveness of the actions taken. Such systems promote collaborative problem-solving and action planning; they may also integrate instructional data with student-level data such as attendance, discipline, grades, credit accumulation, and student survey results to provide early warning indicators of a student’s risk of educational failure.

60. Radiant product suite

61. Following the cycle of education*Multi-Lingual Support*

62. Creation of the Digital Solutions TeamEarly adoptersThe Department of Education, Puerto Rico

63. Chicago Public Schools

64. Richmond County Public Schools, Georgia

65. City College, Fort LauderdaleRadiant core valuesSaves Teachers Time and helps them be More Effective: Teachers get to manage students/ groups/ classes on an exception basis (watch list, performance based scheduling, differentiated instructions, assessments tied to standards, auto grading of assignments, sharing of curriculum / learning plans with other teachers, real time access to data etc.)Saves Time and Money for Administrators:Administrators can more effectively manage curriculum, district / statewide assessments, schedule based on performance, facilitate PD, supplemental tutoring, get access to real time data for informed decision making

66. Improved communication, collaboration and accountability

67. Total Cost of Ownership at least 30% lower costs to alternativesImproves user experience for parents and students:Proactively know what is going on in the classroom everyday

68. Get informed on ‘exception based’ behavior changes (attendance, grades, etc.)

69. Access to online lessons, supplemental resources and On-Demand TutoringSolutions focus on the two important aspects of student performance: Teacher effectiveness and Curriculum and instructional practices33

70. Customer testimonials“….. Bottom line, it is one of the most comprehensive Student Management solutions I have encountered and it is architected all under .NET” - Scott Futrell, CIO Gwinnett County“It is exciting to talk about all the development that is transpiring; we continue to be impressed with your attention to detail and that you are obviously listening to us.” - Nancy Larson, Manager IT, Bellevue School District34

71. Defining a strategic allianceWho Says Elephants Can’t Dance?Louis V. Gerstner, CEO IBM35