Institute for Distance and Distributed Learning

1
Institute for Distance and Distributed Learning

• Market Scan/Analysis, Pre-Assessment, Positioning
  and Strategic Action
• May 20, 2002

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Market Scan / Analysis
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Market Scan

• California Virtual University
• Created 1997
• University of California, California State
  University, and Community and Independent
  Colleges
• Clearinghouse for Existing Online Courses
• Western Governors University
• Created June 1996 by Western Governors
  Association
• State Funding, Federal Funding, Gates Foundation,
  and IBM
• Clearinghouse for Existing American Online Degree
  and Non-Degree Programs

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Market Scan

• Virtual Temple
• Created November 1999
• Temple University
• Wholly-Owned, For Profit Endeavor
• To Make Temple a Global University
• ECornell
• Created July 2000
• Cornell University
• Extend the Reach of Degree Programs in Industrial
  and Labor Relations

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Market Scan

• NYUOnline
• Created November 1998
• New York University
• Wholly-Owned, For Profit Organization
• Developing Course for Business and Other Clients
  out of the Universitys Curriculum
• eMBA
• Create November 2000
• SUNY Buffalo College of Business
• Online Masters Program

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Market Scan

• Fathom Consortium
• Created March 2000
• Columbia University, London School of Economics,
  University of Chicago, New York Public Library,
  et al.
• Offer Corporate Training and other Continuing
  Education based on Existing Curriculum
• Other Specialized Lifelong Learning Courses

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Market Status

• California Virtual University
• STATUS Abandoned April 1999
• Western Governors University
• STATUS Reconceived 2001 Teacher Training
• Virtual Temple
• STATUS Abandoned July 2001
• ECornell
• STATUS Reorganized March 2001 Medical and
  Hospitality
• NYUOnline
• STATUS Abandoned 2001 Invested over 20M
• eMBA
• STATUS Abandoned March 2002
• Fathom Consortium
• STATUS Reassessing Program Invested over 25M

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Market Analysis

• Cannot be Everything to Everybody
• Current Market Big Failures with Big
  Investments
• Non-Profit Companies Competing in For-Profit
  Arenas
• All Major Publicly Traded E-Learning Companies
  Losing Millions in the B2C Space
• Market Saturated
• Mass Consolidation
• Consumer Demands High Functionality, Low Price
• Insanity Watching Others Fail and Following in
  Their Foot Steps

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Program Pre-Assessment
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SWOT Analysis

• Process and Initial Feedback
• Program / Initiative Assessment is a Team-Based
  Project Requiring Active Dialogue from All
  Participants
• Seed of SWOT Analysis gathered through
  conversations with 6-8 team members
• Situational Analysis
• Aggregate and Analyze SWOT Findings

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Strengths

• Solid Production Team
• VT Brand
• E-Commerce Infrastructure
• 24/7 Support Infrastructure
• Network of World-Class Faculty
• Relatively Low Overhead
• Cohesive Leadership
• To be completed by team

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Weaknesses

• Efficiencies of Scale
• Production Model
• Fragmented Customer Focus
• Fragmented Product Line
• Lack Content
• Too Much Content Not Marketable
• Alumni Association Relationship
• To be completed by team

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Opportunities

• Vertical Markets
• Value-added Partnering
• Regional Businesses
• Prospective and Current Students
• Grants
• Partner on Government Contracts
• Enterprise Fund
• To be completed by team

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Threats

• Training Centers
• Most Universities have Courses Online
• Publicly Traded Companies
• Consortiums
• Internal Initiatives
• Online Credit-based Courses
• To be completed by team

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Positioning and Strategic Action
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E-Learning Business Models

• Selling Direct / Virtual Universities
• Individual providers offer e-learning courses
  directly to learners with no broker involvement
• Partnerships / Joint Ventures
• Two or more partners collaborate to provide
  e-learning courses with non broker involvement
• Brand Brokers
• An independent broker partners with famous
  name-brand educational institutions to compete
  based upon a recognizable credible promise

Source Standing Stones Consulting, Business
Models for Distributed Learning 2000
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E-Learning Business Models

• Mall / Aggregators Brokers
• Individual institutions register their offerings
  in an online yellow pages of e-learning courses
• Regional Consortia
• A group of learning institutions, typically
  regionally based, collaborate to provide learners
  with better learning and to share costs and
  services
• Channel Suppliers
• Individual institutions take advantage of an
  existing Web marketing channel to offer courses
  to a well-defined market segment

Source Standing Stones Consulting, Business
Models for Distributed Learning 2000
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Current Positioning

• VTalumNet Selling Direct
• Lifelong Learning
• Market Courses to VT Alumni
• Portion of Courses Co-Branded with MindLeaders
• Same Infrastructure as VTOnline
• VTOnline Selling Direct
• Non-Credit
• Currently Marketed through Mass Media
• Toeholds Sealants, Diseases, Architecture
• Portion of Courses Co-Branded with MindLeaders

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Initial Market Recommendations

• We cannot be everything to everybody!
• Capitalize on low-hanging fruit
• Maximize revenue from existing courses that are
  target marketable
• Align with strong industry partners, initiatives,
  brands, or faculty members
• Enable existing programs to become stronger
  players in their vertical markets
• Partner with World-Class brands
• Nothing less than the best
• Invigorate team with Entrepreneurial spirit

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Potential Market Opportunities

• Prospective and Current Students
• Facilitate the Skill Development of Students
  Interested in Attending, Currently Attending, or
  Recently Graduated
• Virginia Tech Faculty
• Enable VT Faculty Members to Expand Scope of
  Grant and Research Opportunities and Resources
• Enterprise Fund
• Create Awareness and Clarity Regarding Value
  Proposition to Faculty Members and IDDL

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Potential Market Opportunities

• Masters in Information Technology
• Chunk Static Content and Target Market
• Virginia Tech Centers and Institutes
• Value-Added Partner
• Align with Strong Markets with Need of Knowledge
  Transfer between Academia and Industry Partners
• Enable an External Consortium VBI Example
• Small Business Learning Network
• Build Regional Constituency
• Co-Brand Leadership and Ethics??

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Proposed Strategic Plan Process

• Market Research and Analysis
• SWOT and Situational Analysis
• Build Sunflower Model
• Program / Initiative Identification, Design, and
  Development
• Identify Key Stakeholders and Partners
• Turn into Program / Initiative Champions
• Collaborate on Strategic Plan development
• Focus and Execute
• Process / Order Critical Ready, Aim, Fire

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Next Step
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SWOT Data Collection

• C. Lattimer will email everybody on initial SWOT
  thoughts
• Add, Subtract, or Change given your opinions and
  experiences
• Anonymous Input
• Email clattimer_at_vt.edu
• Deliver Envelop to Dot Eaton addressed to C.
  Lattimer
• Aggregate findings will be assessed and presented
  to department next week

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Questions or Suggestions?

• Send Comments to
• Charles Lattimer
• clattimer_at_vt.edu