introduction to radiant - market opportunity and value positioning

INNOVATION IN EDUCATION


C RE AT I N G NE W AP P R O A CH E S TO L E A R NI N G I N T H E 2 1 S T C E N T URY

We n d y C o l b y

INNOVATION IN EDUCATIONINNOVATION IN EDUCATION

The Time Is Now

Readying for a New Generation of Education Delivery


COMPREHENSIVE INSTRUCTIONAL SOLUTIONS

PROVEN CURRICULUM, ALIGNED TO STANDARDS

END TO END LEARNING DELIVERY

DATA MANAGEMENT & ASSESSMENT

BEST IN CLASS SERVICE & PROFESSIONAL DEVELOPMENT

OUR BUSINESS IS TEACHING AND LEARNING


PEER TO PEER INTERACTION

LEARNING ENVIRONMENTS THAT ARE RELEVANT

COMMUNICATION & COLLABORATION

VAST REPOSITORY OF DATA, RESOURCES, TOOLS

ACCESS TO WORLD CLASS INSTRUCTION

TECHNOLOGY ENABLES THE TRANSFORMATION


INTRODUCING …


RADIANT VISION

students to teachers to contentparents to administrators

teachers to professional developmentcontent to state standards

students to teachers to virtual schoolsadministrators to longitudinal data

and more

High quality pre-loaded content

Ubiquitous across devices

Seamless, modular integration Affordable Hassle-free and

robustly scalableOne-stop portal for

education

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Radiant connects

everywhere and anytime

FACILITATING CONNECTIONS


RADIANT VISION

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WITH A FOCUS ON THE LEARNER

“Technology needs to be a learning tool.”- Mr. Alvin Wilbanks, Superintendent, Gwinnett


CONTENT MANAGEMENT

STUDENTMANAGEMENT ASSESSMENT INSTRUCTION REPORTING & DATA

PROFESSIONAL DEVELOPMENT

Attendance Management

Grade Book Management

Discipline Management

Assessment Alignment

Assessment Management

Test Delivery

Scoring

Prescriptions

Lesson Plans

Instructional Alignment

Assignment Management

Instructional Delivery

Individual Learning Paths

Qualitative Reporting

Quantitative Reporting

NCLB Reporting

Standards Reporting

Usage Analytics

Training Guides

Training Roadmap

PD Delivery

Staffing

Budgeting

ROI

MEDIA ASSET MANAGEMENT COMMUNICATION & COLLABORATION

Calendars Event Scheduling Announcements Messaging Peer Review Mobile Services

Social NetworkingVirtual MeetingsFile SharingBlogging / WikisDiscussion Boards

Data Architecture Database Management Data Security Management Data Warehousing Data Mapping Services

DATA MANAGEMENT

CORE ELEMENTS OF THE RADIANT SOLUTION

Core framework aligned to current market drivers; new apps & capabilities can be added over time


RADIANT VISION

9

MARKET OPPORTUNITY

9

Commercial LMS System

35%

Home-grown solution

30%

No Current LMS System

35%

District Platform Use by Type

Source: NCES school district data; Americas Digital Schools 2008 Report; Simba K–12 Technology, Tools, & Trends 2009 Report

Approximately 65% of school districts currently home-grow their own platform or don’t use one at all

Huge

Opportunity


RADIANT VISION

10

ADDRESSABLE MARKET

2010 2011 2012 2013 2014 2015 $-

$100

$200

$300

$400

$500

$600

$391 $408 $425 $444 $464 $487

Commercial Platform Delivery * K-12 Market *

($Millions)

Source: NCES school district data; Americas Digital Schools 2008 Report; Simba K–12 Technology, Tools, & Trends 2009 ReportExcludes new content monetization delivery (upside)

New Platform Delivery is ONLY the foundation for new sales – opportunity grows significantly with

addition of content and services


LEAD USERS EMBRACING DIRECTION

RichmondGwinnettPuerto RicoChicago Public SchoolsOVER $50M IN CURRENT RFPS$$$ IN FUNDING MATCHES

Our new charter is to scale the model to districts large and small You are the team to make it happen!


Many 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 falling– Device maturity, school connectivity (broadband and power), and cloud-based content are

reducing the costs and access challenges of education technology

Key states are calling for comprehensive platforms

KEY MARKET TRENDS

Traditional Content Companies Technology Focused Companies Open-source organizations

PearsonHMH

McGraw

BlackboardSchoolNet

GlobalScholarMoodle

Sakai

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Kentucky, 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”

MARKET & COMPETITIVE DYNAMICS


Business Model Innovation

Pro

duct

/Tec

hnol

ogy

Inno

vatio

n

Open-Source(Moodle, Sakai,

etc)

HighLow

Low

High

Framework: Making Innovation Work, Davila, Epstein, Shelton: Wharton School Publishing, 2006

Competitive Mapping

Potential Heavyweights (e.g. Google)

• Free / Open Source

• End-to-End

• Open-content allowed• Pre-loaded HQ content• Easy to Use Traditional

Content Companies

High-quality content assets give content companies an edge over software-only

companiesTechnology

Focused Companies

(Blackboard, SchoolNet, etc)

Free open-source competitors have a compelling business

model, but don’t currently offer end-to-end

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HMH Legacy Platforms

HMH Radiant Goal

Technology companies have

slightly more end-to-end platforms

EVOLVING COMPETITOR LANDSCAPE

INNOVATION IN EDUCATION 14

What We Gain Where We Build Value Market Levers

Integrated Solution Framework

• Increased customer focus on choice of platform components, web based; connected

• Accelerates HMH market readiness through integrated platform and closes key gaps; taps into digital funding sources

Accelerate Personalized Learning

• True personalized learning builds value proposition around learning outcomes, using the integrated framework as a base

• Assessment, curriculum and learning management are fully integrated and aligned in a common framework

Increase PD & Out of School Opportunities

• Extends reach into home and larger education community through student and parent portals, online professional development

• One stop source for all education needs; drives mission-critical learning

OPPORTUNITY LEVERS


The key needs of our target market segments are reflected in the vectors of differentiation evident in the competitive landscape

Easy to use, robust, and scalable

Vectors Of Differentiation Evident In Assessment Of Competitive Landscape

Pre-loaded high quality content

Affordable

End-to-end - Comprehensive

Key Needs Of Target Market Segments

Robust, scalable system

Ease of use

Pre-loaded high-quality content

Mix of content sources and types

End-to-end

Integrated with other enterprise systems

Customized views

Modular pricing and bundling

Anytime, anywhere access

Open – content agnostic

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NEW VALUE POSITIONING


Teachers

Market Segment Needs Robust, scalable system for varying district sizes Integrated with SIS with ecosystem of support Choices in pricing and content bundling Standards-aligned where applicable

Primary Motivators Districts seeking seamless, hassle-free

information infrastructure Support accountability and compliance with

standards End-to-end reduces administrative overhead in

procuring and running multiple systems Modular and extendable ensures sale isn’t all-or-

none

Administrators

Market Segment Needs Platforms should be able to accept a mix of pre-

loaded/cartridge proprietary content and open content from many sources/providers

Include formative assessment, remediation, and Professional Development

Pre-loaded high quality content

Primary Motivators Readily understood and adoptable hassle-free

technology Teachers need flexibility in the content they

load

VALUE BY STAKEHOLDER GROUP

INNOVATION IN EDUCATION17

Students

Parents

Market Segment Needs Increasingly rich, multimedia content (vs. flat

text) Any place, any time access to personalized

content

Primary Motivators High quality content to ensure learning is

maximized Continuation of the learning environment at

home Discretion to augment the learner’s progress

with the right content at the right time

Market Segment Needs Ease of use; customized views for parents

Primary Motivators Timely access to information Continuation of the learning environment at

home Engagement with teachers and administrators

on student’s learning progress

VALUE BY STAKEHOLDER GROUP


Customers have high switching costs and expect to see content presented through a platform

Upstream from basal platform HMH will need to establish ecosystem of suppliers,

integrators, and partners to help sustain platform

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

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

HMH focus on core value-added services to fight off commoditization and open-source trends

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

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

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

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

Radiant can offer further end-to-end value not currently in enterprise platforms (e.g. Professional Development)

Sustainability

Lo Hi

Relevance

CredibilityUniqueness

Lo Hi Lo Hi

Lo Hi

MARKET DIFFERENTIATION


VALUE CHAIN POTENTIAL

Stage 1

Stage 4Integrated, Full-Service

Solutions Provider

Stage 3Targeted Solutions

ProviderStage 2“As Needed”

Service Provider

Sell new products and charge for services

Product-Centric

Offer full range of integrated solutions to deliver differentiated customer economics

Low

Medium High

Lo

wH

igh

Solutions Revenue as % of Total Revenue

Solutions Maturity level

Help business by providing customers

with pre and post sales services

Solve selected customer problems

and make money doing it

HMH2010

2011 Goal

Product sales are paramount

Limited service portfolio

Inconsistent service quality

Software and services as ‘necessary support’ for product sales

Revenue tracked but not a growth driver

Service organization focused on after-sales support

Service performance measured and more consistent

Solutions defined for select sets of customer needs

Solution revenues seen as significant growth contributor

Dedicated teams organized around solutions with ability to influence product combination sales

Overall solution quality and performance measured and important to business

Full capability to develop and deploy solutions for unique customer needs

Solution revenues become primary business focus

Organization and incentives fully restructured around solutions

Overall solution quality and performance becomes primary business metric

Potential Long-term Goal

HMH is in early phases of “solution” value chain; commitment to integrated platform opens new commercial opportunities


HMH IN THE NEW WORLD

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High Quality Content

Intensive Intervention

Extend the reach of quality education

Enable relevant, personalized and engaged learning

Give educators more insight and more time

Nurture communities of learning

Expand to education related areas that leverage core competencies

Open Source Network

Targeted Remediation

Integrated/Adaptive Delivery Platform (Mobile, Hosted, Etc.)

Interactive Classroom for Teachers/Parents

Learning Networks

User Contribution

Data Mining

Job embedded PD

New Apps(ie credit recovery)

Social & Mobile


Creation of the Digital Solutions Team

• Launch Team for Radiant -- Getting the Word Out• Enterprise Sales Teams – Taking the Lead in Phase 1• Infusing New Knowledge Base in Cross Functional HMH K-12

Teams• Partnering with Global Scholar for Success• Formalize Alignment for Full Sales, Product, Market, Pre- and

Post- Implementation Support

BUILDING MOMENTUM



• Market Launch / PR Activity• New Sales Tools / Microsite Next Week• Web Ex Training Schedules to Come• Demo Sites• Core RFP Support & Enterprise Support

AND ON THE HORIZON


Creating a Spark for Learning


THANK YOU


STRATEGIC PARTNERSHIPS

A l l e n B u r g t o r f



“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).

21ST CENTURY LEARNING



• SUPPORTING QUALITY CURRICUUM AND INSTRUCTION • Integration of the existing tools with HMH resources• Promote anytime, anywhere access to Essential Curriculum • Expanding on dynamic repository/library of rigorous digital

content

• ALIGNMENT OF ASSESSMENT WITH INSTRUCTION • Align short-cycle & benchmark assessments to digital resources /

prescription• Provide prescriptive digital resources that support differentiated

instruction in reading, English, mathematics, science, and social studies

• PROFESSIONAL DEVELOPMENT • Support Web-based learning modules for PD

• PARENT, FAMILY OUTREACH • Complement the Take Home Libraries with digital resources,

electronic books • Incorporate technology and web-based solutions for Extended Day

COLLABORATION & INTEGRATION


• “Schools should use more of the technology that student and teachers use in their personal life”

• “We shut kids down when they come to school”• Technology needs to be a learning tool, not a teaching tool.

– 60% teachers -- use technology to teach– 26% students -- use technology to learn

• “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.”

• “Core strategic partners are essential for our long term success”

FROM THE DESK OF ALVIN WILBANKS



A 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.

FEDERAL DEFINITION OF INSTRUCTIONAL SYSTEMS

INNOVATION IN EDUCATIONINNOVATION IN EDUCATION *Multi-Lingual Support*

FOLLOWING THE CYCLE OF EDUCATION



• The Department of Education, Puerto Rico• Chicago Public Schools• Richmond County Public Schools, Georgia• City College, Fort Lauderdale

EARLY ADOPTERS


Saves 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

• Improved communication, collaboration and accountability• Total Cost of Ownership at least 30% lower costs to alternatives

Improves user experience for parents and students:• Proactively know what is going on in the classroom everyday• Get informed on ‘exception based’ behavior changes (attendance, grades, etc.)• Access to online lessons, supplemental resources and On-Demand Tutoring

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Solutions focus on the two important aspects of student performance: Teacher effectiveness and Curriculum and instructional practices

RADIANT CORE VALUES


“….. 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 District

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CUSTOMER TESTIMONIALS


Who Says Elephants Can’t Dance?

Louis V. Gerstner, CEO IBM

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DEFINING A STRATEGIC ALLIANCE

introduction to radiant - market opportunity and value positioning

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