Michael Cairns
Managing Partner
Information Media Partners
EDTech Market Overview
Publishers Forum Berlin 2017
Introduction
Michael Cairns is a publishing and media executive with over 25 years experience in
business strategy, operations and technology implementation. As a business
executive, Mr. Cairns has successfully managed several troubled and under-
performing businesses, creating new business opportunities, developing new funding
sources and enhancing shareholder value for investors. His years spent as an
operating executive have largely been with brand-name publishing companies such
as Macmillan, Inc., Berlitz International, Wolters Kluwer Health, Reed Elsevier and
R.R. Bowker. As a consultant, Mr. Cairns has worked with clients as diverse as
AARP, Hewlett Packard, InterPublic Companies and Reed Elsevier with an emphasis
on business strategy, market development and corporate development.
His skills and experience include:
 Business and corporate strategy development and implementation
 Operations management and business transformation
 Traditional and digital publishing and operations
 Print-to-digital transformation and adoption of new business models
 Software development and software services
Mr. Cairns holds an MBA (Finance) from Georgetown University and a BA from
Boston University. He has served on several boards and advisory groups including
the Association of American Publishers, Book Industry Study Group and the
International ISBN organization. Additionally, he has public and private company
board experience.
2
Michael Cairns
Information Media Partners
Strategy Consulting
New York, London, Melbourne
Tel: 908 938 4889
Michael.cairns@infomediapartners.com
Find me:
LinkedIn Twitter Blog Flickr InstaGram
Information Media Partners
Michael Cairns established Information Media Partners in 2006 as a boutique strategy
consulting firm focused on the information and education publishing segment. The work
conducted by the firm includes product development, corporate development, sales
management and corporate reorganizations. We work with established businesses, private
equity owners and potential acquirers.
Examples of our work include:
 Reorganized and re-focused a $25 million software publishing company by aligning
business operations with client priorities; implementing internal collaboration tools and
project management standards; re-building executive team to focus on effective and
efficient management
 Defined a new business strategy for a large non-profit association and advocacy group,
expanding their business model into global markets to exploit their core knowledge and
expertise across a broader market
 Led an information technology capabilities review at a large international advertising
holding company. Completed over 200 interviews in 15 international offices and multiple
group focus sessions to define the operational ‘gaps’ between existing agency capabilities
and those necessary and important for client delivery by region
 Completed a sales management effectiveness review for a global software company and
defined six key project initiatives to improve sales effectiveness, market development and
account management
We approach our client engagements in a standardized, logical manner which creates the best
environment to identify key business drivers, administrative and logistical road blocks and/or
product or market definition issues. Our investigative approach leads to better insights into
your businesses and supports the development of workable solutions and recommendations
for success.
Visit the Information Media Partners website for more information.
Sample Client List
What is “EdTech”?
 The intersection of technology tools and
education content
 Data analytics platforms
 Content and other marketplaces
 User generated tools and applications
 To provide access to information and learning to
obtain skills and knowledge
 In other words – the application of technology to
support learning
4
Big Picture Trends – 2017 Horizon Report
One Year or Less
 Bring your own
device
 Learning analytics
 Adaptive learning
Two – Three Years
 Augmented and
virtual reality
 Makerspaces
Four to Five
Years
• Affective computing
• Robotics
Investment money has accelerated in the past five years
chasing start-up opportunities but may have reached
saturation.
5
Historic Increasing Investment – Recent Slowdown
6
Update: Q1 2017
7
Product Segments in EdTech
 Learning management
systems
 Early childhood education
 Broad online learning
programs
 Enterprise learning
 Next gen schools
 Tech schools
 Online to offline
 Testing & remediation
 Digital course materials
and courseware
 Test prep
 Curriculum production
 Search
 School administration
 Next gen study tools
 Language learning
8
Select Ed Tech Market Map
9
Edtech/Education Business Drivers
 The internet “network effect:” enables accessibility to
vast collections of education materials
 Technology has facilitated ‘new learning models’ which
had redefined how students integrate learning into work
and personal development
 Expanding life-time earning ‘gap’ of those educated at
higher levels supports the value of education
 Broader workflow automation is eliminating old-line
employment paths causing acceleration in worker ‘re-
education’ needs and requirements
 Rapid growth of non-English markets for education
content ‘technology leap’ embedding technology
10
Thoughts on Trends Impacting EdTech
 Traditional content
 Access models
 Platforms
 Accreditation
 New technology
11
End of Traditional Content?
 Open educational course materials
 Textbook form factor eroding
 Battle for attention
 “entrepreneur culture” forcing a rethinking of the
entire educational experience
 Online vs offline – generational shift
12
Access Models
 Flattening of supply chain – enabling direct relationships
 But, complicated with more platforms, distributors,
outlets, etc.
 Business model transition from “one off” sale to varieties
of subscription models is difficult
 Publishers need to rely on direct relationships wherever
they can
 Subscriptions/memberships assume higher engagement
with customer
 “On the verge of learning about your consumers
intimately. Need to wake up to this and learn from this”
 Institutional sales (B2B and B2B2C) more predictable
13
Platform Wars
 xml first workflows
 Mobile: Apple vs Android
 Bring your own device
 Functionality
 International markets
 Acquisitions and roll-ups: beach heads are
valuable
 Dependence on hardware and/or good
connectivity is likely to fail – lowest common
denominator may be very low
14
Changing Accreditation and Degrees
 Work experience
 Badges and certifications
 Changing test and assessment requirements
 On demand, in situ learning needs for career
advance
 Life long learning
15
New Technology
 Virtual reality
 Interesting for distance and/or remote users
 In class headset is potentially a distraction
 Augmented reality
 Significant opportunity in education and career
development
 Turning 2D drawings into 3D models which can be
played with
 Non-headset on the way?
 Makerspaces
16
Michael Cairns
Managing Partner
Michael.Cairns@InfoMediaPartners.com
908 938 4889
LinkedIn Twitter Blog Flickr InstaGram
17

Edtech 2017 Market Overview, Publishers Forum Berlin

  • 1.
    Michael Cairns Managing Partner InformationMedia Partners EDTech Market Overview Publishers Forum Berlin 2017
  • 2.
    Introduction Michael Cairns isa publishing and media executive with over 25 years experience in business strategy, operations and technology implementation. As a business executive, Mr. Cairns has successfully managed several troubled and under- performing businesses, creating new business opportunities, developing new funding sources and enhancing shareholder value for investors. His years spent as an operating executive have largely been with brand-name publishing companies such as Macmillan, Inc., Berlitz International, Wolters Kluwer Health, Reed Elsevier and R.R. Bowker. As a consultant, Mr. Cairns has worked with clients as diverse as AARP, Hewlett Packard, InterPublic Companies and Reed Elsevier with an emphasis on business strategy, market development and corporate development. His skills and experience include:  Business and corporate strategy development and implementation  Operations management and business transformation  Traditional and digital publishing and operations  Print-to-digital transformation and adoption of new business models  Software development and software services Mr. Cairns holds an MBA (Finance) from Georgetown University and a BA from Boston University. He has served on several boards and advisory groups including the Association of American Publishers, Book Industry Study Group and the International ISBN organization. Additionally, he has public and private company board experience. 2 Michael Cairns Information Media Partners Strategy Consulting New York, London, Melbourne Tel: 908 938 4889 Michael.cairns@infomediapartners.com Find me: LinkedIn Twitter Blog Flickr InstaGram
  • 3.
    Information Media Partners MichaelCairns established Information Media Partners in 2006 as a boutique strategy consulting firm focused on the information and education publishing segment. The work conducted by the firm includes product development, corporate development, sales management and corporate reorganizations. We work with established businesses, private equity owners and potential acquirers. Examples of our work include:  Reorganized and re-focused a $25 million software publishing company by aligning business operations with client priorities; implementing internal collaboration tools and project management standards; re-building executive team to focus on effective and efficient management  Defined a new business strategy for a large non-profit association and advocacy group, expanding their business model into global markets to exploit their core knowledge and expertise across a broader market  Led an information technology capabilities review at a large international advertising holding company. Completed over 200 interviews in 15 international offices and multiple group focus sessions to define the operational ‘gaps’ between existing agency capabilities and those necessary and important for client delivery by region  Completed a sales management effectiveness review for a global software company and defined six key project initiatives to improve sales effectiveness, market development and account management We approach our client engagements in a standardized, logical manner which creates the best environment to identify key business drivers, administrative and logistical road blocks and/or product or market definition issues. Our investigative approach leads to better insights into your businesses and supports the development of workable solutions and recommendations for success. Visit the Information Media Partners website for more information. Sample Client List
  • 4.
    What is “EdTech”? The intersection of technology tools and education content  Data analytics platforms  Content and other marketplaces  User generated tools and applications  To provide access to information and learning to obtain skills and knowledge  In other words – the application of technology to support learning 4
  • 5.
    Big Picture Trends– 2017 Horizon Report One Year or Less  Bring your own device  Learning analytics  Adaptive learning Two – Three Years  Augmented and virtual reality  Makerspaces Four to Five Years • Affective computing • Robotics Investment money has accelerated in the past five years chasing start-up opportunities but may have reached saturation. 5
  • 6.
    Historic Increasing Investment– Recent Slowdown 6
  • 7.
  • 8.
    Product Segments inEdTech  Learning management systems  Early childhood education  Broad online learning programs  Enterprise learning  Next gen schools  Tech schools  Online to offline  Testing & remediation  Digital course materials and courseware  Test prep  Curriculum production  Search  School administration  Next gen study tools  Language learning 8
  • 9.
    Select Ed TechMarket Map 9
  • 10.
    Edtech/Education Business Drivers The internet “network effect:” enables accessibility to vast collections of education materials  Technology has facilitated ‘new learning models’ which had redefined how students integrate learning into work and personal development  Expanding life-time earning ‘gap’ of those educated at higher levels supports the value of education  Broader workflow automation is eliminating old-line employment paths causing acceleration in worker ‘re- education’ needs and requirements  Rapid growth of non-English markets for education content ‘technology leap’ embedding technology 10
  • 11.
    Thoughts on TrendsImpacting EdTech  Traditional content  Access models  Platforms  Accreditation  New technology 11
  • 12.
    End of TraditionalContent?  Open educational course materials  Textbook form factor eroding  Battle for attention  “entrepreneur culture” forcing a rethinking of the entire educational experience  Online vs offline – generational shift 12
  • 13.
    Access Models  Flatteningof supply chain – enabling direct relationships  But, complicated with more platforms, distributors, outlets, etc.  Business model transition from “one off” sale to varieties of subscription models is difficult  Publishers need to rely on direct relationships wherever they can  Subscriptions/memberships assume higher engagement with customer  “On the verge of learning about your consumers intimately. Need to wake up to this and learn from this”  Institutional sales (B2B and B2B2C) more predictable 13
  • 14.
    Platform Wars  xmlfirst workflows  Mobile: Apple vs Android  Bring your own device  Functionality  International markets  Acquisitions and roll-ups: beach heads are valuable  Dependence on hardware and/or good connectivity is likely to fail – lowest common denominator may be very low 14
  • 15.
    Changing Accreditation andDegrees  Work experience  Badges and certifications  Changing test and assessment requirements  On demand, in situ learning needs for career advance  Life long learning 15
  • 16.
    New Technology  Virtualreality  Interesting for distance and/or remote users  In class headset is potentially a distraction  Augmented reality  Significant opportunity in education and career development  Turning 2D drawings into 3D models which can be played with  Non-headset on the way?  Makerspaces 16
  • 17.
    Michael Cairns Managing Partner Michael.Cairns@InfoMediaPartners.com 908938 4889 LinkedIn Twitter Blog Flickr InstaGram 17

Editor's Notes

  • #2 Talk about Edtech where we see the most direct intersection of content and technology occurring today Prime example of David W’s comments regarding the new meaning of what it is to be a ‘publisher’ Many of these edtech businesses represent service type businesses more than they do ‘publishers’ Many if not most are ‘new’ companies.
  • #3 EdTech, or educational technology, is the practice of improving the quality of learning through the application of technology To this point that ‘pubishing’ is only a part of the ‘edtech’ picture
  • #4 To gain a good understanding of the current intersection of technology and education in the US Higher ed market I recommend reading the annual Horizon reports. These are some of the important trends they are seeing in the years to come.
  • #5 One important indicator of the excitement in this market is the level of financial investment As the chart shows there’s been a big run up in monies invested in edtech companies mainly from private equity companies We’ve reached some level of saturation however and there will be a levelling in the coming years as we are seeing in 2016-17
  • #6 Each of these bullets describes market segments in Edtech Won’t explain them all as there are too many but they describe the breadth of offerings in this space If you heard the TES presentation yesterday you may recognize how a publisher can ‘rethink’ their business and launch new offerings in several of these segments
  • #7 There are many companies in each of these market segments and as noted earlier most of these are ‘new startup’ companies. It is a vibrant exciting marketplace.
  • #8 What are the big picture business drivers that are advancing edtech? Very similar to the themes discussed in David W’s presentation and TES Network effect enable accessibility Technology facilitates new applications and models Education is less time boxed And work of becoming a series of ‘small life careers’ rather than one long career Expansion globally – where some markets skip the hurdles traditional markets had to overcome. (Big challenge for providers is mobile access in developing markets.)
  • #9 Some thoughts on trends
  • #10 Traditional definition of content is changing generally in education. Immense structural changes for traditional publishers. OER – in US a big threat posed by some of the largest ‘customers’ of publisher content.
  • #11 Rapid growth of subscription models and direct selling. Fundamental shift in relationship of the publisher and the users. Enables virtuous feedback for publishers to rake advantage of. Development of larger recurring revenue streams and for institution level purchases. Content owners can focus on 1-2 important things like renewal rates and engagement.
  • #12 Xml – if content isn’t flexible you are going to have a very hard time competing in the future Need to think harder about design for example if your product doesn't’ perform well in low/poor wifi locations it will fail. Schools vary widely in technology capability. Responsive web design important for BYOB environments.
  • #13 More and more acceptance of ‘’degrees’ beyond the traditional education model. Education less time boxed Presents significant opportunities for life long learning offerings – often with repurposed content. Advantages of the multiple ’mini career’ model mentioned earlier and the changes which workforces in all industries are facing.
  • #14 These new technology areas will be advanced appreciable in the next few years. It is likely that your content will need to be able to benefit and participate in how these new technologies are rolled out into markets. If they can this may place you at an advantage as we see even more new companies and new business models evolve.