Progress Report on A New IEEE Product: Expert Now IEEE Business Plan

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Progress Report on A New IEEE ProductExpert Now
IEEEBusiness Plan

• James M. Tien
• Chair, Expert Now IEEE Task Force
• February 17, 2006

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2006 Expert Now IEEE TASK FORCE

• Gozde Akar
• Tamer Basar
• David Hodges
• Jim Leonard
• Moshe Kam (Ex-Officio)
• John Scott
• Roger Sudbury
• Friedolf Smits
• Jim Tien (Chair)

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Expert Now IEEE Scope Technical Considerations

• Background Conference tutorials/short courses
• (from IEEE Societies/Councils, Standards
  Sections)
• Number over 800 per year
• Require extra payment (100-800) by conference
  attendee
• Only remaining IEEE IP not packaged and marketed
• Process
• Technical units, through education liaisons, help
  EAB select timely, cutting-edge and high quality
  conference tutorials/short courses and enlist
  subject matter experts (SMEs)
• Create on-line 1-hour learning modules from
  3-hour courses by SME Material Instructional
  Design Learning Module
• Original plan delivering learning modules on the
  IEEE Xplore platform for anytime, anywhere access
• New partnership delivering on Thompson NETg
  platform for organizations and on an IEEE Xplore
  platform for members.

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Expert Now IEEE Scope Goals

• Expert Now IEEE underscores IEEEs commitment to
  engineering and scientific education and enhances
  IEEEs global recognition and presence
• Builds bridges to industry also useful to
  academia and government
• Enables more engineers and scientists including
  IEEE members to have access to IEEE conference
  IP through online education
• Leverages existing IEL customer base, especially
  those in industry, academia and government
• Provides a new revenue stream for IEEE technical
  units

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Expert Now IEEE PHASE I (2003) Highlights

• Started with a 2003 out-of-cycle initiative
  funding of 125K, matched by 112K from EAB
  budget prioritization, to establish proof of
  concept for Xplore-Enabled Learning Library
  (XELL)
• Vendor (Apex) developed 4 modules based on SME
  presentations at EDS, LEOS, EMS and Computer
  conferences
• SME guidelines, SME contract and production
  process developed
• IEEE Xplore decided that it could not serve as
  the XELL delivery platform for several years
• IEEE Marketing Sales engaged to develop
  Business Plan for Expert Now IEEE

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Expert Now IEEE PHASE II (2004) Highlights

• Continued with 2004 initiative funding of 200K,
  matched by 117K from EAB budget prioritization,
  to produce and test modules
• Switched to new production vendor
  (Thomson/Knowledge NETg) in mid-year
• Inventory of 25 modules produced
• XELL product name changed to Expert Now IEEE
• Expert Now IEEE determined to be within the
  province of Corporate Librarians and/or Chief
  Engineers, not Training Departments
• Continued development of additional Expert Now
  IEEE features (CEU requirements, SME honorarium
  structure, single module/member sales, etc.)

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Expert Now IEEE PHASE III (2005) Highlights

• Continuing with 2005 initiative funding of 300K,
  matched by 120K from EAB budget prioritization,
  to continue module production, marketing, sales
  and initial distribution in partnership with
  Thompson NETg
• Additional 25 modules produced for an inventory
  of 50
• Boeing and GM completed module testing positive
  feedback
• Knowledge Net acquired by Thomson NETg in Fall,
  2005
• Since 1) IEEE Xplore platform not ready for 2005
  Expert Now IEEE distribution, and 2) IEEE
  Marketing Sales is bandwidth limited, EAB
  searched for a turnkey partner (including
  production, marketing, sales and distribution)
  selected Thomson NETg in February!
• First Pro-Forma developed in February, 2005
• An Expert Now IEEE business plan to be developed
  by February 2006, based on marketing, sales and
  cost experience under an initial 1 year
  IEEE-Thomson NETg contract (9/29/05-9/28/06)

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Expert Now IEEE PHASE IV (2006) Highlights

• Expert Now IEEE Business Plan
• Completed and presented at February Board Series
• 2 sales already for 408K
• A First Check on 2/1/06!
• Technical Units
• Several entities set aside in their 2006 Budget
  for production of 1 or 2 Expert Now IEEE modules
  _at_20K thus far, 25 new modules will be produced
  in 2006
• Establish process to select those SMEs who give
  the best (timely, cutting-edge and quality)
  tutorials and short courses an annual technical
  unit-based best short course award?
• Assist EAB with product (content/delivery) review
• IEEE Sales/Marketing, IT, Xplore, CS should
• Support EAB/Thomson partnership
• For Help
• Direct all questions and comments to Donald
  Miklas, Director of Continuing Education, at
  [phone] or d.miklas_at_ ieee.org

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Expert Now IEEE Status Business Considerations

• Like PSPB, EAB will be paid by technical units to
  convert selected SME material to on-line learning
  modules (currently _at_ 20K)
• Like IEL Enterprise Model, Expert Now IEEE
  pricing may eventually be usage based, but is
  now user based
• Like PSPB, EAB will determine related costs
  (e.g., SME honorarium of 2K, infrastructure,
  etc.) that must be netted against IEEE Expert
  Now IEEE revenues to determine amount of Expert
  Now IEEE net revenues to be distributed
• As for IEL net revenues, TAB Products Services
  Committee will recommend EAB suggested Kam
  distribution formula of Expert Now IEEE net
  revenues to technical units reflects both
  contribution usage (similar to IEL distribution
  model)

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Expert Now IEEE Status Other Considerations

• Thomson project name changed to Expert Now IEEE
  from XELL defining the product (LMS for Expert
  Now IEEE, AI metadata, CEU, link to IEL, etc.)
  market segments defined renewal of current
  (9/05-9/06) contract
• EAB support Thomson Marketing/Sales provide IEL
  contacts IEEE versus Thomson responsibilities
  being defined (e.g., Thomson handles
  organizations and IEEE handles its own members)
  determine related costs (e.g., RD, EAB,
  infrastructure, etc.) that must be netted against
  IEEE Expert Now IEEE revenues business plan
• TAB identify best SMEs (e.g. best short course
  awards) help establish quality control process
  develop internal distribution of net IEEE Expert
  Now IEEE revenues fund modules development
  (currently _at_ 20K)

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Business Plan Outline

• Executive Summary
• The Partnership
• The Motivation
• The Product
• The Strategy
• The Financials
• The Risks
• The Distribution

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The Partneship Considerations

• Expert Now IEEE is an on-line educational
  product of the IEEE Educational Activities Board
  (EAB) that is offered in partnership with the
  Thomson Corporation (Thomson NETg)
• Expert Now IEEE library of modules complements
  the IEEE Xplore-distributed IEEE Electronic
  Library (IEL) of over 1.3 million articles
• While e-learning clearly includes both training
  and education, e-education is just entering into
  the market Expert Now IEEE is one of the first
  such educational products
• Individual missions of the IEEE EAB and the
  Thomson NETg subsidiary are complimentarily
  aligned through the Expert Now IEEE product
• Critical issues
• Difference between training and education
• Marketing (as a single package or as sub-packages
  or as a combined product with other Expert Now
  training modules) and pricing (per organization
  or per user or per access) of Expert Now IEEE
  modules remain to be detailed and agreed upon
• All Thomson and IEEE costs remain to be detailed
  and agreed upon netting these costs against
  gross revenues will define the net surplus that
  can then be appropriately shared between the two
  partners

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The Partnership Who is Thomson? The Thomson
Corporation is a leading global provider of
integrated information solutions to business and
professional customers.
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The Partnership Who is Thomson NETg?

• About 2,000 Corporate Customers
• 900 Hosted Learning Sites

2,000 Corporate Customers 900 Hosted Learning
Sites Enterprise, Inside, Channel International
Sales
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The Motivation Background (1/2)

• The Start Opposite Viewpoints
• IEEE Expert Now IEEE is an IEEE-only branded
  product, with Thomson like IHS providing
  turnkey (production, marketing, sales
  deployment) services on contract
• Thomson Expert Now IEEE is a Thomson/IEEE
  co-branded product with IEEE like Wiley/IEEE
  Press receiving a royalty
• The Reality Complementary Needs
• IEEE needs an established global partner
• Thomson wishes to enter new engineering education
  market with a marquee content provider

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The Motivation Background (2/2)

• The Process Extensive Negotiations
• 4 meetings (12/15/04, 1/18/05, 5/19/05,
  12/15/05), 38 telecons (12/04-1/06)
• IEEE Volunteers (M. Kam, F. Smits, J. Tien)
  Staff (Bagley, Catis, Dahl, Gallus, Hawkins,
  Merchant, Miklas, Stoler, Williams)
• Thomson Joe Dougherty (President, NETg), Larry
  Falls (Regional Account Mgr), Mike Fowler (Senior
  Director, Marketing), Randy Morris, Stuart White
  (Regional Account Manger), Nate Golan (Director,
  Southeast District), Don Larcinese (Custom
  Account Manager), plus 130 Sales Professionals
  and Learning Consultants
• The Result A Win-Win Partnership
• Expert Now IEEE remains an IEEE-only branded
  product distributed by Thomson, and, based on
  preliminary Pro-Forma, with tentative net
  revenues (after Thomson expenses) split of 0.67
  to IEEE (from which IEEE costs must be deducted),
  0.33 to Thomson

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The Motivation Considerations

• Traditionally, high-quality and timely
  engineering-related educational content has
  primarily only been available through
  classroom-based tutorials, lectures, and
  continuing education courses, offered typically
  by universities or at technical conferences such
  experiences are costly for significant numbers of
  staff to attend (e.g., travel costs, time away
  from the job, high conference fees, etc.)
• According to several surveys, e-learning (i.e.,
  e-training and e-education) market is on a
  significant growth curve, although e-education is
  at the beginning
• Motivation for IEEE EAB
• Fulfill IEEE mission in regard to the
  development and delivery of continuing education
  products
• Conference tutorials were the only IEEE
  intellectual property that was not published in
  the same manner that IEL publishes the authored
  articles -- Expert Now IEEE library will consist
  of the absolute best of these tutorials only
  some 30 of the 800 (i.e., 4) tutorials will be
  annually selected to be included in the library
• Provide the IEEE technical entities with another
  strong stream of revenues, as is the case with
  IEEE IEL

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The Product Considerations

• Expert Now IEEE is an on-line educational product
  from the IEEE EAB and Thomson NETg
• As of February 2006, it consists of the following
  53 modules
• Expert Now IEEE modules are uniquely defined
• Subject Matter Experts (SMEs), who are esteemed
  in their fields of expertise
• Each module is selected and peer reviewed by its
  supporting and participating technical entity
• Qualified individuals review module content for
  technical accuracy
• Each 1-hour module contains about 4 hours of
  tutorial instruction, information About the
  Author, a studio-quality recording of the SMEs
  voice, a glossary, a table of references, and a
  link to IEEE Xplore for IEEE-referenced articles
• Each module provides a consistent navigational
  template, is 24x7 accessible with automatic
  book-marking, is supported by a telephone or
  web-based customer service point, and is under
  the control of a simple-to-use learning
  management system
• Each module, upon completion and the answering of
  at least 7 out 10 questions correctly, provides
  an appropriate number of Continuing Education
  Units (CEUs) endorsed by the International
  Association for Education and Training (IACET)
  they are recorded and retained by the IEEE for
  later reference and/or for maintaining
  professional licensure a course completion
  certificate is also electronically available.

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The Strategy Considerations

• Build customer base through
• Webcasts, podcasts, and seminars
• Mail and e-mail campaigns
• Regional user meetings
• Strategic Solution Council (SSC) meetings
• Annual NETg meeting
• Trade shows
• Sales tools (jointly developed with IEEE) to
  support account managers
• PowerPoint Presentation
• 2-Minute Drill
• Customizable Letter of Introduction
• Sales Brochure
• Plan is being launched with IEEE entities to
  deploy and sell Expert Now IEEE courses to
  members (a.k.a. single member sales).

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The Financials Considerations

• Table 1 provides a sample user/offering size
  price matrix for courses like those contained in
  the Expert Now IEEE offering it assumes an
  annual library subscription and is priced at a
  25 premium over Thomson NETg's existing
  IT-related training courses
• Table 2
• More up-to-date version of Thomson-provided
  February 2005 Pro-Forma it differs from the
  earlier one in that the current version reflects
  about a one-year delay a justified proposition,
  inasmuch as the IEEE/Thomson Partnership
  Agreement was not signed until November 2005.
• Thomson expenses include marketing, sales and
  deployment costs, and the direct IEEE production
  expense is at rate of 11,100 per module (or
  333,000 per year for the annual production of 30
  modules)
• Thomson net revenues are then distributed
  one-third to Thomson and two-thirds to IEEE
• Overall, IEEEs share ranges from 29.5 in the
  first year to 50.0 in the fifth year.
• Table 3
• As in the case of IEEE IEL, the Expert Now IEEE
  can be considered in two parts production and
  management/promotion
• At present, each module costs an IEEE entity 20K
  to produce however, when IEEE EAB does not need
  to advance the 333K amount to Thomson, then each
  entity need only advance 9.8K per module
• Assume that as the number of modules in the
  offering and the sales of the offering increase,
  so would the IEEE EAB and IEEE non-EAB expenses
  increase
• Increasing net revenues to be distributed to IEEE
  entities over time

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Table 2. February 2006 Pro-Forma
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Table 3. IEEE Expense and Income Projections
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The Risks Considerations

• A consistent pricing model (e.g., Table 1) must
  be adhered to if the price is set too low, the
  IEEE brand will be devalued.
• Large technical entities especially those who
  already subscribe to the IEEE IEL must be
  carefully and appropriately treated so that the
  IEEE brand remains a symbol of quality.
• As an educational product, the Expert Now IEEE
  holds little allure for the manager in charge of
  training it must be brought to the attention of
  the Chief Engineer or VP of Engineering.
• Selling Expert Now IEEE as a small fraction of a
  larger training package or super package (that
  is composed primarily of Thomsons diverse
  training products) is not a winning strategy and
  could compromise the value of the product.
• This first IEEE/Thomson Agreement expires at the
  end of September 2006 discussion of a renewal
  should commence by June 2006.
• As with any relationship or partnership, careful
  nurturing and attention must be focused on the
  IEEE/Thomson Partnership.
• The content and quality of the Expert Now IEEE
  modules must be continuously ensured the IEEE
  entities must only select the best SMEs (perhaps
  by identifying and awarding them with a Best
  Tutorial Award, akin to a Best Paper Award).

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The Distribution Considerations

• Presented by Moshe Kam