Business Models, Process and MarketsWP6

1
Business Models, Processand MarketsWP6

• NoE Prolearn
• Madrid
• November 14-15, 2005

2

• Gunnar MARTIN, DFKI
• Katrina LEYKING
• Jacques DANG, HEC
• Yann DENOUAL
• Michel KLEIN

3
WP6 status

• Workplan deliverables
• Reviewer comments in Luxembourg and JPA 2 update
• Additional reviewer comments and JPA3 update

4
ProLearn Scope
WP 8 PROLEARN Virtual Competence Centre
Horizontal Integration Activities
WP 9 PROLEARN Academy
WP 13 Management
Management Activities
WP 14 Quality Assurance
WP 5 Brokerage Systems and Learning Managements
WP 1 Personalized Adaptive Learning
WP 2 Interactive Media
WP 3 Online Experimentation
WP 4 Learning Objects, Metadata Standards
WP 6 Business Models, Processes, Markets
WP 7 Knowledge Work Management
WP 10 Dissemination
Activities to Spread Excellence
WP 11 Cross-Network Coordination
WP 12 Roadmap
Joint Research Activities
5
WP6Timeline review
D6.1 draft
D6.1 final
D6.2 draft 1
D6.2 draft 2
D6.2 final
D6.3 draft
D6.3 final
D6.4 draft
D6.4 final
D6.5 draft
D6.5 final
D6.6
D6.7 draft
D6.7 final
3
6
9
12
15
18
0
6
WP6overall methodology

• Define a coherent market framework for analysis
  (segmenting the offer and the demand into
  comprehensive sub-divisions)
• Gather as much information as possible desk
  research and clients interviews in order to
  understand how the  market  is organized,
  stressing out local specificities, if any (D6.2)
  getting the big picture
• Use previous results and providers interviews to
  draw conclusions for
• market needs (D6.1 what is expected?)
• finding out possible business models guidelines
  for providers (D6.3 how could it be done?),
• how to implement e-learning in companies (D6.4),
• how to increase market dynamics through market
  regulation (D6.5)
• Focus on dissemination to foster discussion and
  validate results

7
WP6 deliverables scheme
D6.2 overall data collection
D6.1 market needs
D6.3 providers guidelines
D6.5 Market regulation
D6.4 implemen-ting e-learning
8
WP6 market framework for analysisand methodology

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.2 overall data collection
D6.1 User needs
D6.3 Providers business models
9
E-Learning markets and challenges ProLearn
coverage D6.2

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Publishers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.2 market analysis and structure within the
partner countries and beyond
Country A
USA
Europe
10
D6.2 Joint report on market analysis and
structure within the partner countries and beyond

• Exhaustive  Market  analysis
• Volumes, values, drivers, hindrances, forecasts
• Content, technology, services
• Students, Higher Education Institutions
• Private people (employed or unemployed),
  Employers Corporations (all size, all sectors),
  Governments, Armies, professionnal training
• Market structure pave the way for D6.1 and D6.3
• Players, strategies, clients classification,
  possible evolution
• Geographical scope
• Europe (per geographical market segment), North
  America, Asia
• But also Africa, South America

11
D6.2Methodology and current state

• Share partners' available information and
  resources from other projects
• Define and apply questionnaires in and outside
  the consortium
• Desk research on studies, researches, articles,
  annual reports
• Updating existing market researches
• Next deliverable month 30

12
D6.2Findings

• Main target audience e-learning actors that will
  get an overview of different markets and a global
  understanding of e-learning  markets  issues
• There is not a single e-learning market but a
  collection of niches, initiatives and players
• Both demand and offer are in constant evolution,
  questionning the relevance of the classical
  segmentation
• Country differences in terms of infrastructure
  are shrinking, local specificities (cultural,
  legal) remain
• Country specific monographies will be published

13
E-Learning markets and challenges ProLearn
coverage D6.1

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Publishers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.1 User needs
D6.1 User needs
D6.1 User needs
14
E-Learning markets and challenges ProLearn
coverage D6.1

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Publishers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.1 Economical approaches
D6.1 Economical approaches
D6.1 Economical approaches
D6.1 Economical approaches
D6.1 Economical approaches
15
E-Learning markets and challenges ProLearn
coverage D6.1

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Publishers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.1 Market Requirements
D6.1 Market Requirements
D6.1 Market Requirements
16
D6.1 D12.2 Joint report on economical
approaches, user needs and market requirements
for technology enhanced learning

• Economical approaches
• RD financing
• Risk sharing
• Return on investments
• User needs
• Corporations (SME's and large)
• HEIs
• Needs in term of technology, content,
  services(what, at what price, why)
• Market requirements
• Economic conditions needed for the penetration
  and growth of TEL

17
D6.1 Methodology and current state

• Share D6.2 available information and resources
  from other projects
• Define and apply questionnaires and interviews to
  define users schemes and their needs
• Initial focus on SMEs, now a broader scope
• Disseminating and challenging of main
  findings,Online Educa, EduExchange, workshop
  with Le Préau
• Next deliverable month 30

18
D6.1Findings

• Main target audience mostly providers and public
  authorities looking for explanation of clients
  needs and expectations
• SMEs have specific needs not answered correctly
  by the market today
• RD investments can hardly be self financed by
  private actors
• Customers satisfaction with e-learning is rather
  low (satisfaction rate around 50)
• ROI calculation not satisfactory
• Technology more flexibility wanted
• Price transparency is lacking
• Ease of use keep it simple and stupid best
  practices are rare and never assured

19
E-Learning markets and challenges ProLearn
coverage D6.3

• Offer
• Technology Content Service

• Demand
• Functional needs
• Academic Market
• Students
• Teachers
• Publishers
• Corporate Market
• Employed people
• Unemployed people
• Operating needs
• Implementation
• Delays
• Costs
• Technology
• Use
• Ease of use
• Content Quality
• Payment model

D6.3 Business Models for Providers
D6.3 Business Models for Providers
D6.3 Business Models for Providers
20
D6.3Business models for providers

• Analyse economic models of providers to classify
  them within a limited number of "profiles"
• Define Possible Business Models
• Use D6.1 and D6.2 to define profiles
• Studying and ranking the business models(several
  other value-chains)
• Next steps dissemination and challenging

21
D6.3Findings

• Main target audience providers and researchers
  wanting to put their development on the market
• Profiles definition (positionning)
• Niche stars
• Gold seekers and shovels salers
• Training professionals
• E-learning experts
• Profiles comparison
• Profitability
• Added-value perception
• Development axes and strategies (sales,
  production, partnerships)

22
D6.4 D12.4 Reference models for TEL scenarios
at the workplace

• Theoretical approach has been finalized
• Next steps practical case studies (Explain
  project) with SMEs and industry partners (Festo,
  Hager, Schwarz Pharma)
• Provision of the result via the virtual
  competence center

23
D6.5 Policy recommendations and tools

• In-depth case study of impact of IPR issues
  within both HEIs and companies on educational
  content and services creation
• Analysis of necessary ecosystem for the launch of
  new online educational contents and services
  commercial ventures

24
WP6 comments by the reviewers

• Positive
• The WP6 leaders have good experience in business
  analysis and modelling and at the review
  indicated growing awareness of the problems
  overall in this market
• Negative
• Apparent lack of much prior knowledge in TEL
  market analysis business models
• No attempt to connect with other experts in
  Europe (with the notable exception of France)
• Much of the literature is misleading. The
  studies, while fairly recent, present a picture
  which experts believe now to be significantly
  over optimistic
• Lack of distinction between training, learning
  and developmental activities, as well as lack of
  emphasis on learning at the workplace
• Lack of clarity of integration with the other
  workpackages

25
Comments by the reviewers on the deliverables

• There are no major problems with the content of
  the draft deliverables
• Largely drawn on published reports, which, while
  relatively recent, are largely out of date
• Gives insufficient attention to questions around
  failures of TEL systems at the workplace
• Information on French market provides a good
  addition to currently publicly available
  information
• At the review focus too narrowly French 
• US data rather out of date
• Favors the idea of  commodity markets  based
  around of economies of scale rather than service
  paradigms
• Fails to examine the  cottage industry 
  character of the majority of providers
• The objective of legal analysis should be made
  clearer, for fear that the exercise be made in
  isolation to the needs of the NoE
• Integrate the Saarbrucken model approach into
  D6.1 and D6.2
• Study more active  communities of practice 
  approaches and activities for Open Portal
• Reconsider the number of deliverables and the
  need for each of them
• Re optimism    This is a matter however of
  conjecture and based on subjective opinion, so
  they (WP6 leaders) are entitled to reject this
  view should they choose
• Integrate additional sources for a more critical
  analysis
• The current structure of the value chain and of
  the markets, criticl success factors is not
  described

26
RE Comments by the reviewers on the
deliverables

• As all deliverables, except D6.6 (Open portal
  specifications) are in draft format, comments and
  observations by the reviewers can be integrated
  into the forthcoming versions
• D6.4 will be translated from English into German
  and resubmitted
• It is difficult to definitively address the issue
  of existing data, which,  while relatively
  recent, are largely out of date . The only way
  to do this is to correct, through qualitative
  analysis, the seemingly overly optimistic
  forecasted evolutions and trends. This is what we
  are trying to achieve through a good analysis not
  only of the volumes and the value of each
  regional market, but also of the drivers and the
  hindering factors.

27
RE Comments by the reviewers on the
deliverables

• Agreed. We will integrate a case studies of
  failures in the final version of the deliverable
• -)
• -( We will definitely integrate the vision of
  the German market in the next release of D6.2
• Agreed. We will revise and update the US data
  when new information and surveys have been
  released

28
RE Comments by the reviewers on the
deliverables

• This is actually where our optimism currently
  falters. While we have quoted fairly recent
  surveys which exhibit positive trends, we believe
  that the reality check we have made on the French
  market highlights a disturbing trend towards
  commoditization of the market, in most of its
  segments. The sudden slowdown in the launch of
  new e-learning projects in companies we have seen
  in mid-2004 originates in very pragmatic
  approaches to e-learning procurement by
  companies. As the cost of face to face training
  has significantly dropped, so has the ROI of
  investment in e-learning, in the same proportion,
  while at the same time ROI has become the main
  criterion for purchasers. We do not believe
  this is a general trend in all regional markets
  and we accept it as it is ONLY for the French
  market. We expect the results from the German
  market, when we release them, to show a somewhat
  different picture. But this is an area where
  experts , as mentioned by the reviewers, may
  disagree.

29
RE Comments by the reviewers on the
deliverables

• Agreed. We will integrate the  cottage
  industry  dimension into our analysis
• Agreed. We will make clearer the goal of various
  legal analysis, in which we try to highlight a
  number of areas where there are hindering factors
  and where there should be improvements.
• Agreed. We will integrate elements of the
  Saarbrucken model into D6.1 D6.2
• Agreed. We will integrate more active
   communities  approaches into the Open Portal
• We definitely are interested in reducing the
  number of deliverables, without skipping an angle
  of analysis

30
RE Comments by the reviewers on the
deliverables

• re optimism see supra 7)
• Agreed. We will definitely integrate additional
  surveys and studies into the work for the
  deliverables
• Agreed. The work on the value chain and the
  industry structure is currently being integrated
  into the deliverables, especially D6.1 and D6.3,
  once the raw data has been agregated in D6.2

31

Major approaches for JPA3 (1/2)

• Emphasis on dissemination of current work and
  collection of critical feedback from industry
  stakeholders
• Large corporations
• SMEs
• Intermediaries and channels for SMEs
• Company case studies
• Consultancies (Accenture)
• Large companies (Volkswagen, Total, British
  Telecom, Coca Cola, Mc Cain, Ferrero, Procter
  Gamble)
• SMEs
• Networks of SMEs
• Networks sponsored by Chambers of Commerce and
  Industry, Professional unions

32

Major approaches for JPA3 (2/2)

• Integration of analysis of business models for
  brokerage platforms (inherited from WP5)
• Integration of the point of view of the
  individual professional learner, not associated
  with an educational institution or a company

33
Conclusion

• We are near the completion of the data collection
  and theoretical analysis phase
• Dissemination and feed-back collection begins by
  the consortium partners and external players
  (proving the concepts)
• ProLearn entrepreneurship day
• LMC Munich
• Online Educa
• Joint workshop with Le Préau
• EU-South East Asia ICT Co-operation event
• E-learning Africa
• HEC workshop on IPR issues
• Integration of WP6 in the ProLearn research
  structure has been extended and strengthened
• Integration of additional core partners im-C
• Integration of additional potential associate
  partners Accenture Learning Services

34

• Following a number of bilateral meetings and
  working sessions, the first Prolearn workshop on
  IPR issues and online courses was held in
  September, at the HEC campus in Jouy-en-Josas.
  This WP6 activity focuses on the analysis of the
  IPR issues related to the creation of online
  educational content and services across Europe,
  with an emphasis on Higher Education
  Institutions, as the legal issues within
  corporations have already been clarified, to a
  large extent, and its impact on the availability
  of content and services it is closely linked to
  the WP6 activity focusing on the business model
  of brokerage platforms and the issue of enabling
  the transfer of knowledge from the academic to
  the corporate world.
•  
• The participation in the workshop and the
  workgroup activities is interesting, as it has
  brought together partners from the core Prolearn
  membership, focused on technology, as well as
  external researchers focused on legal issues, to
  discuss jointly both the European and the
  national frameworks, but also to work together on
  the operational issues described in a jointly
  agreed scenario, taking into account the
  situation faced today when creating online
  educational content and services
•  
• Building on the results of the analysis of the
  frameworks and the joint scenario, the workgroup
  is expected to formulate recommendations, in
  cooperation with the brokerage platform business
  model workgroup, to increase the volume of online
  content and services available to companies.