Vocational education in Germany

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Vocational education in Germany

• Wilmar Diepgrond
• Managing Director Education Germany/Austria
• Karl Kaz
• Business Unit Manager
• Amsterdam, 25th November 2003

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Content

• Part 1 How we manage vocational business
• Part 2 Market, products and how products are
  developed

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Bildungsverlag EINS

• Key figures Bildungsverlag EINS
• Revenues 38 m
• Titles 3.200
• Employees 170
• Ebita-margin above average WKE

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Part 1

• How we manage vocational business

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Educational Germany
Digital spirit
Educational solutions
Content CustomersSchools
TechnologyCustomers Corporates
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Strategic objective

• Strategic objective in core business is
  operational excellence
• Operational excellence enables us to realise
• High innovation rate
• Profitability (EBITA average WKE)
• Growth of market shares

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Market share growth with high innovation rate
Market ShareDevelopmentin
Innovation Ratein
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Business centralisation education Germany 2000
Stam
Wolf
Gehlen
Kieser
Konkordia
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Business centralization - situation 2000

• 6 companies at 6 places with 10 brands
• Each location with own infrastructure
• Internal competition
• Different culture, difficult communication, lack
  of efficiency
• Fragmented market positions
• Many titles with small print runs
• Different systems in place
• Product development at all locations
• Few back office integration

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Business centralization

• Strong cost savings in all areas
• New organisation aligned to customers
• Reduction of FTE from 220 to 170
• Many new employees with new skills
• Strong new brand, strong market position
• Competitors feel themselves niche players
• Strong improvement innovation
• Implementation of one integrated back office
  system SAP/Klopotek

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Why are we successful?

• High innovation rate in core business
• Sustainable profitability
• Stable, standardised environment
• Organisation specialised on flexible and quick
  reaction
• Focus
• Improvement marketing/sales activities
• Strong focus on process management
• Dedicated project managers
• Market orientation, using buy-in process
• Signed project plans for all projects
• Delivering on time
• Financial control

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Part 2

• Market and Products

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Market educational Germany
Market educational Germany 330 mln
Competitors vocational
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Market characteristics vocational Germany

• Target group 16 years
• Decision makers teachers, students, corporate
• Purchaser schools, students, corporate,
  government
• Lifecycle 9 years locked in customers, new
  edition every 1 2 years
• Market stable, high fragmented (400 professions,
  each with 10 subjects in 16 states)
• Trends high innovation, increasing private
  spending concentration

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Vocational Germany an attractive market

• Many changes in the market, high innovation
• Increasing private spending in education
• Strong market position
• Locked in customers like subscriptions, long
  cycle (9 years)
• Low price elasticity, fix price law
• Local competition
• Strong local network in place
• Improving attention on quality of education
• Market expansion students, corporate

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New product development process control
Project idea
Market check
Draft project plan
Acquisition authors
Developmentprocess
Customers Project manager Authors, washing
machine
Interviews Financial check Market volume
Project description Schedule Financial (Gross
margin)
Test chapter Market buy in
Project manager Marketing/Sales
Project manager Marketing/Sales Finance
Project manager FD
Project manager
Involved
Month
1
1 - 2
1 -2
1 - 6
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New product development
Project idea
Market check/ buy in
Draft Project plan
Signed Project plan
Product
100
70
55
40
30
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New product development process control
Project idea
Market check
Draft project plan
Acquisition authors
Developmentprocess
Customers Project manager Authors, washing
machine
Interviews Financial check Market volume
Project description Schedule Financial (Gross
margin)
Test chapter Market buy in
Project manager Marketing/Sales
Project manager Marketing/Sales Finance
Project manager FD
Project manager
Involved
Month
1
1 - 2
1 -2
1 - 6
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New product development process control
Final Projectpass
Manuscript realisation
Content factory
Technical realisation
Developmentprocess
Sales expectation USP Calculation Schedule Design
Signing contract Continuing process Correction
loops
Editing Designing Drawing
Printing Binding
Signed by BU-Manager FD, MD Marketing
Project manager
Project manager Editor Production
External
Involved
Input in Klopotek-system
Strong project management
Start marketing sales
1-4
6-24
1
3-5
Month
20
New product development process control
Marketing/Sales
After sales review
New editionin Klopotek
Developmentprocess
Sales reps Free copies Promotion Fairs etc Direct
marketing
Review sales actions New actions After sales
actions
Involved
Marketing, Project manager, controlling
Marketing/ Sales, Project manager
Month

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6
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Example 1 Banking Expanding the market
Education market banking (school and corporate)
Blended learning Print combined with online
testing tool
Contract publishing
Surface indicates total market size
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Example 1 Banking Expanding the market

• High quality products
• Best- and long sellers, high market share
• Core title Wirtschaftslehre des Kreditwesens
• Yearly revised edition
• Enhanced market Contract publishing with leading
  banking houses (Dresdner Bank, Deutsche Bank)
• Next step in preparation Blended learning
  concepts in banking (combining print, testing
  tools on an internet platform)

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Example 2 Hairdresser Competitive advantage as
market leader
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Example 2 Hairdresser Competitive advantage as
market leader

• Example for solution packages for teachers
• High market share
• Full colour student text book
• Many workbooks as additional offers
• Teacher material for any purpose
• Exam preparation
• Software Solution (administration tool)

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Example 3 Retailer Standardisation and spin-off

• Cost reduction can be combined with customer
  focus
• As a market leader we will be the first using
  consequently CMS/data based publishing

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Example 3 Retailer Standardisation and spin-off

• Using same cover layout in different colour
  versions
• Using same layout/page design in different books
• Using the same content in different products
  (often 70-80 can be used twice)
• Often in the different editions only the sequence
  of the chapters is different
• CMS/Data base will help us to optimise this
  processes

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Example 4 Automotive Product differentiation
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Example 5 HOT Workflow Tools for Teachers

• An extraordinary success story
• High number of subscribers (20 of all teachers
  in vocational economics), up front money
• Teacher material (facilitating the preparation of
  lessons, direct use in the classroom, up to date)
• USP we sell teachers additional time for their
  work
• Additional spin offs

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Example 6 HOT Print and Online

• Last year started the additional Data base
  solution (Search function, down loads,
  modification, more and quicker actualisation)
  with high acceptance in the younger teacher
  generation
• Additional sales with compilations (updates of
  older material, 6 Volumes)

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Example 6 HOT Print and Online
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• Thank you for your attention