CourseNet%20University%20Management%20Systems

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CourseNet University Management Systems
By James Esch For Dr. Landrum EM-4201   April
22, 2003
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CourseNet Systems Company and Overview
CourseNet Systems, coursenet.newknowledge.us, is
a Bonita, Florida based corporation and a
subsidiary company of Kent Technologies,
www.kenttech.com. CourseNet Systems provides
high-utility and high-value solutions for
managing an educational institutions enterprise
environment. Our focus is to develop easy to use
applications that are affordable and extend the
greatest levels of efficiencies and functionality
to both existing campus and emerging educational
settings. CourseNet Systems software
applications are in full production and servicing
thousands of students. Therefore, the value of
CourseNet products is well established and proven
in existing enterprise learning environments.
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Company Mission and Vision
Mission CourseNet Systems creates innovative
educational management applications and
communication solutions that collectively enhance
the success of our clients, employees, and
investors. We accomplish this goal and achieve
industry leadership through empowered, innovative
and well-compensated employees that are committed
to industry excellence. Our products bring value
to our clients by leveraging advanced technology
to maximize productivity and efficiency in
addition to simplifying the human processes.
  Vision Our goal is the continued evolution of
CourseNet Systems into a global solutions
provider, with internal departments dedicated to
providing innovative products and strategies that
span all aspects of an educational institutions
operations. In addition, CourseNet Systems will
continue to evaluate new venture opportunities
and explore the creation of new and innovative
product solutions. Our vision will culminate in
positioning CourseNet Systems as an industry
brand and leader with annual revenues approaching
7 million dollars within the next five years.
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Product Description
CourseNet Systems offers a variety of tools that
allow educational institutions to leverage
advanced technology to maximize productivity and
efficiency, in addition to simplifying the human
processes. These tools include internal
management systems, online expansion tools,
student relations and services applications,
course management solutions, course delivery
tools, and customized solutions. These products
are offered as a full-scale enterprise solution
or on a modular basis.   CourseNet Systems
flagship application, CourseNet Student Services
System (CNSSS), is a highly advanced university
management system that provides both intranet and
Internet services and allows for a higher level
of automation tuned to the needs of educational
institutions offering on-line degree programs.
CNSSS is a multi-platform, database independent,
and highly scalable application that provides
university staff members and students with an
intuitive and user-friendly user interface, and
may be accessed using a web browser on any
platform. This application includes
functionality for student management, student
relations, curriculum and institutional hierarchy
setup, advisors, tuition assistance plans,
financial aid plans, shipping, graduations, and
alumni relations.
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Product Description (continued)
To simplify the process of managing courses,
students, and student grades, the CourseNet
Course Management System (CNCMS) integrates
seamlessly with the CourseNet Student Services
System or can work as a stand-alone application
to allow for a higher level of control over
courses, students, assignments, and grades. The
CNCMS system functions as an assignment
repository system, interaction area, feedback
system, and academic honesty confirmation system.
An intuitive reporting area allows staff to
immediately gain a detailed status report of
their courses at any time. An interactive
threaded discussion area allows students and
staff to converse within the virtual classroom
environment by leaving voice and textual
messages. The CNCMS system optimizes all
workflows and processes associated with the
exchange, control and management of assignments,
grades, student feedback, and virtual classroom
collaboration.   CourseNet Systems also offers an
advanced and intuitive course material delivery
system named CourseNet Content Delivery System
(CNCDS). This application allows staff to
implement course materials into a configurable
template system to allow for rapid course
material implementation. In turn, the course
materials entered into the content delivery
system may be viewed online and/or copied to
media sources such as CD-Rs for distribution to
students.
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Market Segmentation
CourseNet Systems views their market largely
segmented by type and size of educational
institutions. The primary types of markets are
segmented by type of institutional learning
delivery programs. First are traditional brick
and mortar establishments that maintain resident
only (class room) courses and programs. Second
are a rapidly growing number educational
institutions seeking to extend and expand all or
part of their educational programs through
e-learning and Internet mediated offerings. The
third type of institution is the virtual
university or school that offer 100 percent of
their programs through e-learning and on-line
programs. These types of institutions can be
future segmented by the number of students they
serve. For purposes of this business plan, we
segment the size of institution as small (less
than 2,000), medium (2,001 to 10,000), and large
(over 10,000).
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Strategic Target Market Opportunity
The Statistical Abstract of the United States
(2003 Edition) reports that there are currently
5,010 postsecondary institutions and growing
1,680 of which offer distance-learning programs.
As new technologies develop, geared toward web
interaction, a strong raise in the demand of
on-line educational programs is evident. As of
2002, there are an estimated total of 1,661,100
enrollments in distance learning programs and
rapidly growing. With this hasty increase in
demand for on-line distance learning programs,
thousands of educational institutions are
deciding to expand their operations to the
Internet every year.   As of 1999, Goldman Sachs
reported that an estimated 233 billion were
spent in higher education -- 3.5 billion of
which was invested in e-learning. (Goldman
Sachs, 2000) We believe that by offering a wide
set of high-tech, yet simple to use, solutions,
we can easily gain more than a 10 market share.
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Target Markets
Our market breakout consists of the following
target markets   Primary - The primary market
and focus for CourseNet Systems is both the brick
and mortar with extended e-learning program and
the virtual universities and schools. These
institutions have the most immediate need and can
benefit most from CourseNet products.
Additionally, CourseNet System will target the
small to medium size institutions where the
purchasing decisions are most likely to be made
base on overall price and utility versus market
share.   Secondary CourseNet Systems will also
address the secondary market consisting of brick
and mortar institutions that have only resident
and class room programs. Although of less
consequence, we approach this market because
these institutions may still benefit from
offering resident students on-line tools,
collaboration resources, knowledge systems, and
on-line student portal services. Additionally,
many of the institutions will eventually extend
their programs in favor of e-learning.
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Target Markets (continued)
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Management Strategy
James Esch serves as president of CourseNet
Systems. James is an ambitious student and
computer programmer turned entrepreneur. At the
young age of 18, he hold three college degrees
consisting of an Associate in Arts, a Bachelor of
Computer Science, and a Bachelor of Business
Management and will complete his MBA in December
2003. Throughout his life, Esch has demonstrated
a need for achievement and shows a great passion
for his work. Through working full time in his
early teens as a computer programmer with 4What
Interactive and taking a project and business
management position in his later teen years, Esch
has gained a firm knowledge of both technical and
gestalt aspects of managing projects and
businesses.   Esch has displayed his abilities as
a determined leader through the management and
development of several successful large-scale
applications including but not limited to An
assignment repository and collaboration system
for an on-line university that allowed over 500
student growth a high-tech security system
dubbed the Web Access Key which has gained the
interests of parties as big as the New York
Transit Authority and a robust student services
system and internal management system for on-line
and traditional educational institutions.   James
also garners additional financial and
organizational support for this venture from the
parent organization, Kent Technologies. Kent
Technologies is a well-respected and prominent
company that emerged from the Kent Group that has
existed for over 50 years with 425 employees and
over 50 million each year in revenue CourseNet
Systems plans to receive adequate funding through
the Kent Technologies necessary to achieve
sustainable growth and stability as they emerge
in a competitive market.
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Competitive Analysis

• Internal Strengths
• Development and testing staff has considerable
  experience in management and
• teaching positions within academia.  
• Stable funding from parent company (Kent
  Technologies)
• High demand by educational institutions for
  internal management systems,
• course management systems, course material
  delivery systems, and student relation systems.
• Close ties with non-profit organizations that are
  well known by many educational institutions.
• Innovative designs allow educational institutions
  to gain more money by increasing
• capacity and efficiency with minimal increases in
  staffing.
• Advanced knowledge in the effectiveness of
  e-learning.
• Smaller size enables organization to be more
  agile and make rapid organizational
• adjustments necessary to track closely in support
  of strategy.
•  
• Internal Weaknesses
•  
• Name is not as well known as other competitors
  such as WebCT and Blackboard.
• We are new to the e-learning application
  industry.
• Not all skill positions have been filled yet.

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Competitive Analysis (continued)

• External Opportunities
•  
• Our software can be sold in the global
  marketplace.
• Application is in production and producing
  revenue from reference
• Clear pricing advantages over competition to gain
  market share.
• Applications can be used in the business
  e-learning industry as well.
• Joint ventures with other educational software
  development firms can introduce new revenues.
•  
• External Threats
•  
• Decline in demand for educational institutional
  management software.
• Introduction of alternative open-source solution
  with strong support.
• Severe software exploits that may hurt brand
  equity.

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Pricing Strategy
Unlike our primary competitors, WebCT and
Blackboard, the price for each of the CourseNet
Systems applications will be based on a
per-enrollment basis. WebCT and Blackboard offer
several yearly license plans ranging from 7,000
for the most simplistic of applications up to
approximately 150,000 (Calgary U., 2002). Our
plan is to offer educational institutions
licensing plans that grow with them. The initial
rate for the enterprise system (combination of
internal management system, course management
system, course delivery system, and student
relations system) will start at a fee of 5 per
enrollment. Over the course of time, prices may
increase as a result of new features, improved
compatibility, and enhanced user interfaces. The
pricing strategy in the first three years will be
approximately as follows
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Sales Distribution Strategy - Pro-forma Sales
Forecast
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Sales Distribution Strategy (continued)

• Direct and Indirect Channels
•  
• Direct Channel CourseNet Systems has two forms
  of direct channel programs First are the direct
  sales and support relationships. These are
  typically high volume, major corporations, which
  use CourseNet products for internal purposes
  including internal management, course management,
  course delivery, and student relations. These
  channels are managed and developed by in house
  sales and relationship managers. The second form
  of direct channel relationships consists of end
  users purchasing application packages on-line
  through e-commerce transactions.
•  
• Indirect Channel CourseNet Systems leverages a
  variety of indirect distribution channel programs
  including OEM, Sales Associates, and
  Licensee/Franchise agreements.
•  
• The OEM program is targeted at high volume
  educational institutions requiring CourseNet
  products as a component to fully service their
  clients (their students). CourseNet supplies the
  products and services through the OEM agreement,
  and allows the university to re-brand the product
  under their name. This agreement is offered as
  an exclusive relationship and does not permit the
  educational institution to use any other supplier
  for products or services that are provided
  through the OEM channel.
• The Sales Associate program uses sales associates
  and rep agencies to sell CourseNet products and
  services on a commission basis. These associates
  often rep multiple products that compliment
  CourseNets product line. Sales associates are
  trained in the CourseNet product line and are
  provided with necessary sales support. The Sales
  Associate program is used primarily to drive
  brand recognition and gain market penetration
  with large coverage area. Some of the most
  successful Sales Associates are offered licensee
  agreements.

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Sales Distribution Strategy (continued)

• Licensee and Franchise Agreements offer exclusive
  rights to a given geographical area and customer
  base. Under this agreement, the licensee must
  dedicate full time resources, support staff, and
  facilities for the promotions of 4What products.
  Licensees and their staff must be fully trained
  in the CourseNet product line. They are
  permitted to use the CourseNet name and brand for
  their business such as CourseNet Systems of
  Dallas. Licensees must maintain specified sales
  volumes or potentially lose exclusivity of their
  territory.
• CourseNets referral program compensates any
  individual or company that refers a client that
  results in a sale. These referrals are assigned
  to a local Sales Associate or Licensee.
•  
• By leveraging diverse channels of distribution,
  CourseNet Systems achieves national and
  international reach, both geographically and by
  market segment. These various channels also
  facilitate relationship selling and personalized
  service. Competing companies are generally
  regional or local focused with minimal market
  reach and penetration.
•  
• The balance and interrelationship between
  CourseNets distribution channels must be
  carefully managed to prevent channel conflict.
  CourseNet Systems accomplishes this through its
  Sales Force Automation system and internal
  channel managers.

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Promotion Strategy
CourseNet Enterprise Management System General
Release Launched   Naples, FL May 22, 2003
CourseNet Systems (coursenet.newknowledge.us), a
product line of Kent Technologies
(www.kenttech.com) announced that it will be
launching its general release enterprise edition
management suite effective May 28th, 2003.
Throughout the year-long development process,
multiple educational institutions have begun to
show their interest in adopting this highly
scalable, flexible, and user-friendly application
suite.   Partner and co-founder Tom Esch, PhD
stated This is a very exciting time for us as
well as the e-learning industry as a whole.
Weve spent much time developing and fine-tuning
these applications to fit the needs of both
on-line and traditional educational institutions.
We are looking to offer educational institutions
one of the best bangs for their buck.   The
CourseNet enterprise edition management suite
consists of several proven highly- successful,
platform neutral, and database independent,
applications to serve purposes including
internal management, student relations, course
management and collaboration, course content
delivery, and academic dishonesty detection
systems. Partner and co-founder James Esch noted
that Our goal is to provide educational
institutions with a full set of integrated
solutions tailored to their needs at a
competitive price.   The primary overlying goal
of this robust enterprise system is to allow
universities to increase capacity and efficiency
while minimizing the need to increase staff, thus
leading to larger profit margins for CourseNet
customers. CourseNet Systems flagship
application the student services system
provides an advanced and user-friendly interface
to allow administrative staff to more efficiently
perform their jobs to increase productivity.   Add
itionally, the course management and
collaboration system and the course delivery
system (included in the enterprise system)
integrate seamlessly with the student services
system to provide a singular yet highly scalable
solution to solve a set of complex business
problems. This eliminates the complex and
stressful issues that arise when multiple systems
from multiple vendors are used in unison.   For
more information concerning what CourseNet
Systems can do for your educational institution,
please contact one of the following partners  
Thomas Esch, PhD. Partner and Co-founder CourseNet Systems Phone (877) KENT TECH Cell [phone] tesch_at_kenttech.com James Esch Partner and Co-founder CourseNet Systems Phone (877) KENT TECH Cell [phone] jesch_at_kenttech.com
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Funding Strategy
CourseNet Systems is privately funded through its
parent company Kent Technologies and the Kent
Group. The Kent Group is a well-respected and
prominent company that emerged from the Kent
Group that has existed for over 50 years with 425
employees and over 50 million each year in
revenue CourseNet Systems plans to receive
adequate funding through the Kent Technologies
necessary to achieve sustainable growth and
stability as they emerge in a competitive
market.   In year one, CourseNet Systems will
internally transfer 69,000 from the Kent Group
for capital investments. The remaining years
capital investments will be adequately funded
from internal cash flows.
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Use of Funds

Plant and Equipment Pant and Equipment investment
will be limited to computers, office equipment
and personal communication equipment. (Cellular
phones, pagers, etc.) The financial model
assumes that 3000 will be sent to outfit each
application programmer with equipment. The
model also assumes 6000 to furnish each sales
resource with computing and presentation
equipment.   Office and Personnel Equipment
 
 
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Pro-forma Income Statement (5 yrs)
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Pro-forma Balance Sheet (5 yrs)  
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Bibliography
Course Management System Task Group Report to
UPC InfoStructure Sub-Committee University of
Calgary, June 2002, http//commons.ucalgary.ca/lc
portal/blackboard/CMS_review_0602.pdf Derman,
Parekh, Berquist, Elliott, and Chung (2000)
Internet e-Learning United States Goldman
Sachs Global Equity Research, http//www.almqvist.
net/johan/studfack/esib/emobility/go_sa_elearn.pdf
Meinhardt, Jane St. Petersburg College
embracing shift in instruction The Business
Journal, July 19, 2002, http//tampabay.bizjournal
s.com/tampabay/stories/2002/07/22/focus5.html
Statistical Abstract of the United States
U.S. Census Bureau, (2003 Edition),
http//www.census.gov/prod/www/statistical-abstrac
t-02.html
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Fin