Rohit Mittal

VERSION 1.0 DECEMBER 11, 2016 DIGITAL LEARNING MARKET OPPORTUNITY REPORT PRESENTED BY: ROHIT MITTAL Confidential DISCLAIMER Copyright ©2016 by Rohit Mittal-All rights reserved by the creator of the document. Publication Date: December 2016. Rohit Mittal reserves the right to change the contents of this document and the features or scope of the content at any time without obligation to notify anyone of such changes. The content has been adapted using secondary research from various data points via “Google Search”. Infographics used in the document are the property of the respective owners and have been used for indicative purposes only. The author reserves the right for authorization and usage of the Intellectual Property contained in the document. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 1 Confidential DOCUMENT STRUCTURE Content Description Executive Summary Global Market Latest Industry Trends Geographic Insights Business Development Approach Resource Requirements 90 Day Plan 12/11/2016 Page Number- Digital LEARNING MARKET OPPORTUNITY REPORT 2 Confidential Executive Summary: The objective of this document is to share insights about the understanding of How the eLearning market is structured globally. Which are the potential markets with insights into the adoption and continued use of eLearning including what might be the key drivers, challenges and growth avenues in these markets. What are the trends and forecasts in the eLearning market, social learning, mobile learning, microlearning, corporate MOOCs and more? The drivers for growth and development. A look at potential “Game Changers” and disruptive technologies and approaches to eLearning including game based learning, gamification and wearable technology. What will be the likely approach to developing new revenue models for the organization? The state of the eLearning market globally continues to shift, grow and evolve. This is illustrated by the increasing budget allocations for eLearning programs, the growing relevance of eLearning in various geographic markets around the world, new trends in emerging technologies and tools that support eLearning, and the swelling role of social learning as a top learning and development priority. The global L&D industry is complicated with many moving parts, disruptive technologies and shifting priorities. The Cloud is changing the way Organizations, Employees and Partners interact and collaborate. Within the Cloud solutions universe, Software-as-a-Service (SaaS) is playing a major role. Per Gartner, SaaS will continue to experience healthy growth. The SaaS model is also playing a major role in helping to increase the size of the E-Learning market. Small and Medium-sized Enterprises (SMEs), as well as large Corporations are making the adoption of a SaaS LMS a key priority. Large Corporations are switching to a SaaS LMS from in-house LMS solutions or they are now using a SaaS LMS as a secondary learning system for special training purposes. E-Learning is subjected to the influences of sales trends related to smart connected devices and the Internet megatrend (that is, the spread of the Internet in the world). Per IDC, the number of PCs will fall from 28.7% of the device market in 2013 to 13% in 2017. Tablets will increase from 11.8% in 2013 to 16.5% by 2017, and smartphones will increase from 59.5% to 70.5%. Presently, the U.S. represents the leader in the adoption of eLearning technologies and services. This fact supports the belief that North America will likely exhibit significant growth in this sector between 2016 and 2023. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 3 Confidential GLOBAL ELEARNING MARKET: The size of the eLearning market was estimated to be over USD 165 Billion in 2015 and is likely to grow by 5% between 2016 and 2023, exceeding USD 240 Billion. The U.S. eLearning market is likely to be valued at over USD 27 billion by the end of 2016, primarily because of the fact eLearning and related products and services have significantly expanded across the region in recent years. The industry clocked a total revenue of $46.67 Billion. Across three product categories “Packaged Content ($33.06 Bn)”, “Services ($6.49 Bn.)” and “Platform ($7.12 Bn)” respectively. ELEARNING MARKET (REGION WISE BREAKUP): North America – $23.33 Bn. Asia - $10.93 Bn. Western Europe – $7.97 Bn. Latin America - $2.10 Bn. Eastern Europe - $1.02 Bn. Middle East - .68 Bn. Africa - .60 Bn. GLOBAL CORPORATE ELEARNING MARKET (2020): The size of the market is expected to reach $31 Bn. In revenue by the end of 2020 with a CAGR of 11.41% during the period-. The corporate eLearning segment includes all forms of electronically supported learning and teaching tools used by firms and organizations to facilitate continuous learning and development (L&D) of their workforce. eLearning allows organizations to switch to more advanced learning and teaching models that use digital formats to integrate information. KEY GROWTH DRIVERS: Enterprises of different sizes have started considering eLearning as a viable solution to their budget and productivity-related issues, as changing business needs and technology improvements have encouraged the adoption of eLearning solutions at the expense of traditional teaching methods. The introduction of social, mobile, analytics, and cloud (known as SMAC) technologies has also facilitated the adoption of eLearning solutions. Dozens of new types of learning and training technologies were introduced in the marketplace in the last decade. Gamification, mobile learning and social learning have all become buzz words within the L&D community. These new technologies offer the advantage of being able to reach a wider number of trainees at a fraction of the cost of the traditional instructor-led classroom model. People’s growing attitude towards self-training for job-related purposes, based on personal initiative. Per a PEW research 73% adults consider themselves lifelong learners. 63% of those who are working (or 36% of all Adults) are professional learners. They have taken a course or indulge in additional training in the past 12 months to improve their jobs skills or expertise connected to career advancement) 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 4 Confidential GLOBAL LMS MARKET (2020): The LMS market currently is $3Bn. And includes hundreds of platforms to help companies manage all aspects of their employee training. Globally the LMS market is expected to grow at CAGR of 19% - 24% by 2020. Per the deployment reports on-premise deployment dominated the market in 2015 especially in the Middle East, Africa and South America. This fact can be primarily attributed to the adoption of LMS by large enterprises. However, analysts predict that Hosted Deployment of LMS will surpass on-premise deployment by 2024. KEY GROWTH DRIVERS: IT spending is steadily shifting from traditional IT offerings to cloud services. The aggregate amount of cloud shift in 2016 is estimated to reach $111 Bn., increasing to $216 Bn. In 2020 (Source: Gartner 2016) More than $1 Trillion in IT spending will be directly or indirectly affected by the shift to the cloud during the next five years, said Gartner Inc. This will make cloud computing one of the most disruptive forces of IT spending since the early days of digital age. (Source: Gartner 2016) SasS addresses the issues of customization and integration with which so many organizations have struggled. SaaS and specifically Cloud are now the dominant delivery model in LMS today. Josh Bersin 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 5 Confidential GLOBAL ELEARNING PACKAGED CONTENT MARKET (2019): From Off-The-Shelf (Ready to use) to in-house bespoke courses (Specifically designed or tailor made to meet business requirements) adopted the market currently stands at $33Bn. With a CAGR of 9% KEY GROWTH DRIVERS: Most the purchases are happening in the corporate segment where L&D professionals are eager to buy eLearning content in the name of pursuing a variety of learning goals. Half of the L&D content is developed from scratch by internal/external L&D practitioners. Use of multiple providers at the same time to pursue different learning goals. Enterprises choose what to develop internally and what to get externally. Internal trainers are used to for topics that are core to the business or complicated to outsource. On the other hand, some topics lend themselves more to being outsourced than others. These are specific needs that companies do not believe are strong competencies internally. The top three areas of training content (within corporates) are – Managerial Capacity, Profession or Industry Specific, Mandatory and compliance. Typically, all put together over 40% of the training is jobspecific. Per Deloitte research MOOCs can expand corporate training options. Buyers pursue responsive design, increased video usage, user-generated content creation and management – all elements central to many content authoring tools. xAPI (Tin Can) compatibility is another emerging feature demanded of authoring tools. While it still represents a niche product in terms of adoption, it is expected to become a game-changer in the upcoming years. With xAPI, it’s possible to overcome understanding who took and completed a course to track experiences like: mLearning, Serious Games, Simulations, Informal Learning, Real-World Performance. TRAINING BREAKDOWN BY TOPIC: The major contribution comes from Job specific Technical Skills – 27% Job specific Soft Skills – 13% Compliances – 13% Leadership Development / Succession Planning – 11% Individual Competency Development – 9% Products & Service Knowledge – 9% Source: Brandon Hall Group Training Study 2015 COURSE DISTRIBUTION BY SUBJECTS: Business & Management – 16.8% Science – 11.3% Social Sciences – 10.8% Computer Science – 9.74% Humanities – 9.41% Education & Teaching – 9.36% Health & Medicine – 8.27% Programming – 7.44% Art & Design – 6.73% Engineering – 6.11 % Mathematics – 4.09% Source: Class Central 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 6 Confidential ELEARNING TRENDS: Broadly, the entire eLearning landscape around the globe is changing rapidly and new trends continue to emerge. Some of these trends are related to the eLearning industry itself, while others have been generated by the transformation of the human resources management across the enterprise. Additionally, several significant consumer trends that directly or indirectly impact the eLearning landscape have arisen. Learning and training leaders have also noted economic constraints, new technologies, and workforce re-skilling as influencers of future budget allocation, per the 2015 Training Industry Report by Training Magazine. Per Brandon Hall Group, L&D leaders will allocate future budgets to stay in line with company growth goals. In the upcoming years, they are expected to consult more and more C-level executives to ensure their learning strategies are aligned with future business objectives. “Today’s learning and training departments define themselves as the gatekeepers of productivity and performance improvement with nine out of ten survey respondents citing ‘improved productivity and performance’ as a major goal of their learning and development department. These leaders also emphasize the importance of showing the real-world applications of the knowledge they provide workers, with nearly 70% of respondents selecting ‘converting knowledge into business outcomes’ as their department’s goal. Rounding out the top three is ‘education and growth of employees,’ which two-thirds of respondents named as a goal of their department.” While most companies that need learning management already have LMS products, there is a significant churn trend, as they can now easily switch to another supplier. As a matter of fact, Longterm contracts for LMS products are now quite rare and switching vendors are relatively painless for buyers. TOP 5 L&D Priorities 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 7 Confidential TOP 5 Reasons for LMS CHURN SOCIAL LEARNING: “Social learning,” as it is often considered to be, is nothing entirely new. Though many new modalities of social learning have emerged in recent years, in many ways it has been around for a long time. But if social learning has long been present, why has the focus on it increased recently? Some believe the answer is related to the fact technology is now mature enough to address the most common concerns regarding social learning in the workplace, such as tracking, recognition, and security. Additionally, as more Gen Y (millennial) workers enter the workplace, the needs and demands for a more social learning experience will increase exponentially, as such tools and modalities have been a part of this generation’s DNA. Social learning technologies have a huge impact on several enterprise core processes, from recruiting to training and developing talent. And there’s more: results are quickly measurable because social technologies have a direct and obvious effect on performance. The route from social learning to informal learning is very short. Per recent research by Deloitte, companies tend to be focused on issues like revamping performance management, improving the capabilities of leadership, improving engagement and retention, and creating an employee-centric learning environment. Currently, employee engagement solutions stretch across many categories. Primarily, most employee engagement technology solutions fit within well-known categories, like talent management and employee recognition. However, we are seeing employee engagement as a significant focus in many other categories, including wellness, engagement measurement, learning, and benefits. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 8 Confidential The future of social technology can be summed up in one word: “engage.” If social is viewed in terms of how it can engage employees, then its role becomes less about delivering content and more about helping employees. The future of social technology lies not in any single platform or tool, but in how these technologies lead to interactions within the workforce and how they are used within common processes. TOP 5 LEARNING TECHNOLOGY PRIORITIES 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 9 Confidential MOBILE LEARNING: MarketsandMarkets forecasts the Global mobile learning Market to grow from $7.98 billion in 2015 to $37.60 billion by 2020, at a Compound Annual Growth Rate (CAGR) of 36.3%. North America is expected to be the largest market in terms of market size, while Europe and Asia- Pacific are expected to experience an increase in market traction during the forecast period. Per Ambient Insight’s Analyst, the US was the top buying country for mobile learning in 2014, followed by China. Spending on mobile learning in China will start to outpace US expenditure amounts in the- timeframe and China will be the top buying country by 2019, followed closely by the US. In January 2015, the China Internet Network Information Center (CNNIC) reported that the number of mobile Internet users in 2014 increased by 57 million people compared to the previous year. Per CINNIC, 195 million people in China use their phones to access mobile learning content monthly. Also, by 2019, the aggregate expenditure of China and the US will account for 31% of all mobile learning expenditures on the planet. Asia is the most vibrant and unique mobile learning market on the planet. Mobile learning revenues in Asia reached $4.5 billion in 2014 and will increase to $7.7 billion by 2019. “Asia is also unique in the proliferation of native mobile learning tools and platforms. While most of the legacy eLearning tools and platforms can now output mobile-ready content, users in Asia prefer native mobile learning products; new tools continue to come on the market.” 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 10 Confidential THE INFLUENCE OF THE MILLENIAL WORKFORCE : - 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 11 Confidential CORPORATE MOOCS: The MOOC space essentially doubled this year. More people signed up for MOOCs in 2015 than they did in the first three years of the “modern” MOOC movement (which started in late 2011, when the first Stanford MOOCs took off). Per data collected by Class Central, the total number of students who signed up for at least one course has crossed 35 million—up from an estimated 16-18 million last year. Coursera, edX, and Udacity are normally known as the big three. FutureLearn1, which closed 2015 on a high, had a breakout year, and it now has more students than Udacity. This makes FutureLearn the third largest MOOC provider in the world currently. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 12 Confidential 5 BIGGEST MOOC TRENDS: The rise of Self-Paced Courses - Recently, MOOC providers have moved towards a self-paced model, meaning that courses are always open to sign up and users can complete a course at their own pace. No Free Certifications - The pursuit of revenues has meant that many MOOC providers have stopped offering free certificates. MOOCs Targeted at High Schoolers - Another growing trend among MOOC is more courses being offered to high school students. These courses mostly act like introductions or preparatory courses for college, essentially reducing the gap between high school and college studies. Big MOOC Providers Find Their Business Models - One of the big trends last year was MOOC providers creating their own credentials: Udacity’s Nanodegrees, Coursera’s Specializations and edX’s X series. For Coursera and Udacity, these credentials have become a main source of revenue. Big Funding Rounds to Accelerate Growth - In August Coursera announced a Series C round $61.1M USD. Soon after in November, Udacity announced a Series D funding round of $105M. The UK’s Open University has announced that it will invest £13M into its subsidiary FutureLearn over the next three years. LEARNING & TALENT MANAGEMENT: To be able to compete and win in business today, organizations need to address talent, talent acquisition, and/or talent management. While this is a topic that the HR industry has focused on for some time now, it is more and more also becoming a boardroom topic. Talent management is more than just attracting and retaining talent. It is about building and enhancing employee potential which automatically supports the organizations in meeting its goals and objectives. MarketsandMarkets forecasts that the global talent management software market is expected to grow from $5,270.3 million in 2014 to $11,367.0 million by 2019, at a Compound Annual Growth Rate (CAGR) of 16.6%. In the current scenario, North America is expected to be the largest market based on spending and adoption for talent management software. Per Brandon Hall “since the implementation of a talent acquisition technology solution, many organizations have seen an improvement of 10% or more in their organizations’ productivity, employee engagement and revenue”. L&D is the ‘Engine Room’ of an integrated Talent Strategy. This is because learning touches nearly every part of the talent cycle. Learning via induction is critical to onboarding new recruits and reducing time to competency. Learning opportunity is a critical factor in employee engagement and retention. Learning is a key tool for raising performance. Learning is core to developing existing staff and building future skills. Learning is central to individual career advancement and for building organizational capability. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 13 Confidential FUTURE DISRUPTIONS: GAME-BASED LEARNING People of all ages love games. Some 67% of American households play computer or video games – and while 26% of those are over the age of 50, it’s the 74% under age 50 that are moving into the workforce with their strong preference for games. Per Ambient Insight, worldwide revenues for Game-based Learning products reached $2.6 billion in 2016. The global five-year compound annual growth rate (CAGR) is a robust 22.4%. Revenues will surge to $7.3 billion by 2021. Gamification makes learning motivating and engaging. Gamification in eLearning is the use of game theory and game mechanics in non-game contexts to engage users in solving problems. The main goal of gamification is to motivate learners so that they can perform better. Gamification in eLearning follows exciting technologies and innovations within the gaming industry. Imagine an even more realistic learning experience potential using virtual and augmented reality. APAC is expected to become the major adopters of gamification techniques by 2020. MarketsandMarkets forecasts the global gamification market to grow from USD 1.65 Billion to USD 11.10 Billion by 2020 at a CAGR of 46.3% 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 14 Confidential WEARABLE TECH The U.S. market for wearable technologies in education is expected to grow at a rate of nearly 46% per year through 2020, per market research firm Technavio2. Much of the growth in the wearables market will take place at colleges and universities. This is a trend driven substantially by consumers. Per Global Market Insight, North America wearable devices market is expected to dominate global demand in the next five years. Asia Pacific is anticipated to exhibit substantial growth due to low production costs in India and China. UK and Germany are estimated to lead the European industry in this regard. Per a Vanson Bourne survey of 300 IT decision makers in the UK, 29% of UK businesses have some form of wearable technologies projects in practice. The main reasons for such projects are employee well-being (16%), instant access to important information (15%), and improved customer service (14%). The greatest perceived barrier to entry for wearable technology at work was having an IT infrastructure that could take advantage of the data being collected and analyzed (20%) 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 15 Confidential GEOGRAPHICAL INSIGHTS: INDIA Per IMF it will be the 6th largest Global Economy by 2020. There will be 500 Million Internet users by the end of 2017. The eLearning market in India is estimated to be around $1.29 Billion by 2018. Per industry experts, the future of education in India will depend on online courses. Currently half of the population is under 25 years of age and India is expected to be facing a shortage of 250 million skilled workers by 2022. As of 2015, India is already the second largest market for eLearning after the United States. However, in terms of revenue India is ranked fourth in the top seventeen eLearning buying countries in 2016. Corporate training market is disproportionately small, with estimated spends of only 1-2% of employee costs and a total outlay of less than $1 billion. Given the inadequacies of India’s current education system that does not adequately provide for vocational and employment-ready skills, a significant portion of organizational training budgets, even at leading IT services companies, goes towards entry-level skill building. Infosys, for example, has vast resources and an entire campus in Mysore, dedicated to training 25,000+ fresh recruits for 3-6 months every year. Even the government’s skilling initiatives are entirely focused on imparting employability-related skills for millions of working-age youth. There is an ambitious initiative underway to impart job skills to 500 million people by 2022 under the Skill India Mission. Mobile learning is going to have a massive impact on the training industry in India. Per Ambient Insight, by 2019 India will be the third top-buying country for mobile learning after China 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 16 Confidential CHINA Per Technode, more people are willing to pay for professional exam preparation and testing principally because China’s population is growing and there is increasing competition for reliable jobs. The online education market is growing at a fast rate to meet the increasing demand. In 2016 China was ranked 2nd by Ambient Insight among the top buying countries for self-paced eLearning. Total revenues clocked are $5.2 Bn. Which is nearly 50% of the total revenue of the region. Consumers in China are driving the growth of mobile learning market. Mobile penetration rates are overwhelmingly higher than PC penetration rates in China. MOX managing director and SOSV partner William Bao Bean tells Tech in Asia. “In China, one billion people will soon be online, first on mobile – the largest mobile-only population in the world. That’s the next billion.” Per Ambient Insight, there are two major trends in China’s eLearning market: the proliferation (and fail rate) of online education startups and the growing number of large Internet companies entering the market. Baidu, Alibaba, and TenCent are the largest Internet companies in China. They all entered the commercial eLearning and mobile learning markets in 2013 and 2014 and all of them are now adding mobile features or moving completely to mobile formats. Majority of online education users in China is professionals (77.2%), followed by junior college students (15.9%) and other users (6.9%). Per the EU SME Centre’s survey, companies that already adopt online tools in China are using them primarily for employees’ skill development (35%) and recruitment (20%) 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 17 Confidential USA Per Ambient Insight, the U.S. eLearning market size should be over USD 27 billion by the end of 2016. The North American region currently accounts for more than 50% of the total self-paced eLearning market share. Per the latest market study released by Technavio, the market size of the global corporate eLearning market is predicted to reach close to USD 31 billion in revenue by the end of 2020. Per GSV the Corporate segment of the US Education market was valued around $236B in 2015 and is predicted to reach $310B by 2020. US Education market was $1.6 Trillion in 2015 and is expected to be $2.6 Trillion in 2020. The biggest contributor segments to these figures are k-12, Life Long Learning (Non-Degree), Post-Secondary and Corporate. Per Ambient Insight, revenues for mobile learning products and services reached $1.6 billion in the US in 2014. Revenues are expected to reach $2.1 billion by 2019. Mobile learning revenues in the US are heavily concentrated in the consumer segment, while US corporations were slow adopters of mobile learning tools. A relatively recent trend is the focus on corporate buyers by AR (augmented reality) services and platform suppliers. The United States is also the top-buying nation of education-focused games, followed by Japan South Korea, China, and India. A corporate-facing Game-based Learning company called mLevel obtained $5 million in funding in July 2015. GamEffective also serves the corporate segment and garnered $7 million in private investment in June 2016. MarketsandMarkets forecasts that the global talent management software market is expected to grow from $5,270.3 million in 2014 to $11,367.0 million by 2019, at a Compound Annual Growth Rate (CAGR) of 16.6%. In the current scenario, North America is expected to be the largest market from the spending and adoption of talent management software point of view. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 18 Confidential EUROPE Per Ambient Insight, the self-paced eLearning market size in Western Europe eLearning market is around USD 8billion in 2016, while Eastern Europe market is around $1billion. The spur in the region can be subjected to increasing adoption of these solutions in medium and small sized businesses. The largest buying country in Eastern Europe is the Russian Federation. The UK is the largest buying country in Western Europe. Europe is a mature market where all the classic buyers (school, government, high education and corporate) for eLearning product and services are highly demanding. The rise of demand for continuous learning in Europe will increase the adoption of different learning methodologies and products. Market research analysts at Technavio have predicted that the corporate training market in Europe will grow at a CAGR of close to 9% between 2016 and 2020. “The corporate training market in Europe is one of the most dynamic markets because of the presence of several training solution providers and training professionals. The market has become more fragmented and specialized, where the players are designing solutions for specific requirements such as Problem-solving, behavior developing skills, and various other non-conventional IT skills. The market includes various new players as well as specialized providers that focus on specific business training requirements. In addition, the market is also witnessing the emergence of niche corporate training companies that cater only to specific industries.” 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 19 Confidential 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 20 Confidential AFRICA African public-private partnerships are fast-tracking education improvement from primary school to university, potentially leveling the playing field for millions of students worldwide. In the face of electricity shortages and overcrowding, African public-private partnerships are integrating technology in education to enhance learning. Broadband supports tablets, laptops, and online courses to reach students with poor or no access to education, improve teacher training, and lower costs, per a recent report by UNESCO Africa’s e-learning market has doubled from 2011 to 2016, reaching USD 513 million, per a report by market researchers Ambient Insights. South Africa is Africa’s largest e-learning market, along with Angola, Nigeria, and Tunisia. Meanwhile, Senegal, Kenya, Zambia, and Zimbabwe are posting 25 percent annual e-learning market growth. African education projects are seeing the power of partnerships with local and international NGOs. The Rumie Initiative, a Canada-based NGO, has produced the Rumie tablet that is in the hands of more than 3,000 children in Africa, including in Benin, Egypt, Ethiopia, The Gambia, Kenya, Liberia, Sierra Leone, South Africa, Tanzania, and Uganda. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 21 Confidential BROAD LEVEL BUSINESS APPROACH From the above information and various research data points the following analysis talks about how I proposed to help “Succeed Technologies” in exploiting the potential of the global markets for new revenue growth and what will be the business needs to achieve desired objectives and goals. KEY POTENTIAL MARKETS: NORTH AMERICA  USA  Canada  Mexico APAC  China (Including Hong Kong)  India  Australia  Japan  Indonesia  South Korea  Myanmar  SriLanka  Malaysia  Philippines  Bangladesh EUROPE  The Russian Federation  United Kingdom  Germany  Poland  France  The Nordics AFRICA  South Africa  Nigeria  Egypt  Algeria  Angola *Note*: Initially we can concentrate on top 2 or 3 countries in each of the potential geographies depending upon the Organization level “Strategic Roadmap”. The countries have been listed in order of their business potential. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 22 Confidential KEY POTENTIAL BUYER SEGMENTS: After analyzing various data points spread across geographies and respective countries following buyer segments were kind of universal in all the countries mentioned above with an exception of a couple of them depending upon the Political, Economic, Social, Technological developments in respective countries-. Corporates Consumers Federal Government Agencies Provincial/State/Government Agencies K-12 School Systems Higher Education Institutions INGOs / LNGOs What are they buying?         Self-Paced eLearning Collaboration Based Learning Digital Reference Ware mLearning Apps Game based apps mLearing VAS MOOCs Packaged Content What are they buying (Breakup)? IT related courses General Academic Courses Exam & Test Preparation Courses Hobby & Instructional “How To” Guides Vertical professional skills and professional development Channel Partner & Supplier Education Continuing Education, Continuing Medical Education Professional Certifications Internal & External Sales Decision and Performance Support Business Process Training Business & Finance OD & L&D Compliance and Mandated Learning Language Learning *Note*: Country specific segments and potential players in each one of them can be drilled down at a later stage. For the sake of understanding I have shared my thoughts about how to approach India as a market in the next section. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 23 Confidential INDIA SALES APPROACH Corporates: Following key industry verticals have been identified for prospecting and hunting based upon their Advertising spends, Contribution to the GDP, Demographics of their employees and customers, Future Potential and the Succeed Tech offerings-. FMCG Auto Education REAL ESTATE & HOME Improvement Life Style Retail E-Commerce Telecom/Internet/DTH BFSI HH Durables 10. Travel & Tourism 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 24 Confidential 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 25 Confidential KEY PLAYERS (SECTOR WISE – Partial List) FMCG: 1. Nestle 2. HUL 3. COLGATE Palmolive 4. ITC Limited 5. Parle Agro 6. Marico Industries 7. Procter & Gamble 8. Godrej 9. Amul 10. Patanjali Ayurveda 11. Usher Agro Ltd. 12. Pidilite Industries 13. Britannia 14. GSK 15. Kwality 16. REI Agro 17. KRBL 18. Hatsun Agro 19. Lakshmi Energy 20. LT Foods 21. Heritage Foods 22. Kohinoor Foods 23. Himalaya International 24. Vadilal 25. Emami AUTO:-. Tata Motors Mahindra & Mahindra Ltd. Maruti Suzuki Hero Motocorp Ltd. Bajaj Auto Ltd. Ashok Leyland Ltd. Hyundai TVS Motor Company Eicher Motors Force Motors 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 26 Confidential EDUCATION:-. Everonn Educomp Classteacher Eins Edutech Emergent Global Edu & Services Greycells Education Ltd. NIIT Pearson India Virtual Education Ltd. Jetking Infotrain REAL ESTATE:-. HDIL Sunteck Realty Kolte-Patil Developers Purvankara Prestige Group Brigade Group Oberoi Reality Sobha Developers Hiranandani Omaxe Supertech Godrej Properties LIFE STYLE RETAIL:-. Allen Solly Provogue Levi’s Van Heusen Wrangler PEPE Jeans Park Avenue Lee Cooper Mufti Numero Uno Future Retail Shoppers Stop Aditya Birla Group West Side Reliance Fresh 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 27 Confidential E-COMMERCE:-. Amazon India Flipkart PayTm Fashionandyou Snapdeal Dealsandyou Homeshop18 OLX Yebhi.com Caratlane ShopClues Tradus eBay India MakeMyTrip GoIbibo TELECOM/INTERNET/DTH: 1. Airtel 2. Vodafone 3. Idea 4. Reliance JIO 5. TTSL 6. Samsung 7. Lava 8. Micromax 9. Sony 10. Xiaomi 11. OnePlus 12. Oppo 13. Aircel 14. Karbonn 15. HTC 16. LG 17. Lenovo 18. Apple 19. LeEco 20. Motorola 21. TATA Sky 22. Dish TV 23. Videocon 24. Airtel 25. SunDirect 26. Reliance Digital 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 28 Confidential BFSI:-. SBI ICICI Bank AXIS Bank HDFC Bank Kotak Mahindra Bank Bank of Baroda Bank Allahabad Bank YES Bank IndusInd Bank Bank of India CONSUMER DURABLES:-. LG Philips Samsung Sony Whirlpool Bluestar Carrier Godrej Hitachi Videocon Voltas TRAVEL & TOURISM:-. Thomas Cook Cox & Kings Yatra SOTC Kuoni Expedia Travel Guru Cleartrip Akbar Travels 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 29 Confidential SALES PROCESS 1. Find the decision makers from the HR/L&D/OD of the universe mentioned above via online search, official websites, LinkedIn, WhatsApp Groups, Personal contacts and Industry specific online databases. Typical levels of people will be GM/VP/CHROs (Already have a database of 600+ contacts) 2. Drill Down a likely list of contacts. Initiate the dialogue via emails and after 3 periodic contacts use of the telephonic approach to filtering out the prospects using that ABC approach who have shown positive interest in Discovery Meetings. 3. Start having discovery meetings. The major cities for business are Bengaluru, Delhi-NCR and Mumbai. Understand their current setup, future and explore possibilities for Succeedtech. Travel plans for the others to be designed depending upon the maximum number of the prospects from a respective city which have shown interest and the same can be lined up for a discovery meeting via prior appointment. Further filter out the “ABC” list. 4. Follow up on the leads generated and filter out the ones that are not going to be suitable for many reasons such as they do not want to switch, do not have the budget, longer gestation periods and categorize them accordingly. 5. Line up 30-50 active conversations who have shown positive interest in doing POCs (Proof of Concept) within the first 180 days of working. 6. Collaborate with relevant internal stakeholders for the solution design as per the client brief and plan final delivery as desired. 7. Strategic Partner Development (Explained below separately) STRATEGIC ALLIANCES / PARTNER DEVELOPMENT: Based on the initial conversation and previous experience a parallel business development approach will entail building two-way partnerships with the following segment of partner channels 1. 2. 3. 4. Training Companies / Independent Free Lance Trainers / L&D/OD Practitioners. IT VARs / Tier 2 & Tier 3 IT SIs/ Software Resellers. HR Consulting Companies. Education Solution Companies like (Educomp, Edutech, Everonn, NIIT, Tata Interactive, Centum Learning) 5. Skills India Program (B2G). 6. CSR Programs where Education is the key area of involvement. (Microsoft “Shiksha” is one such example). The proven process to filter out a “Positive Prospective List of Channel Partners” is Access to target customer base: This is probably the most feature to look for in a new channel partner. Territory Coverage: What are the geographies they cater to and pedigree of the sales force they have? Synergistic Product Line: What product lines can they contribute to? Are they selling any competitive products? Are they ready to work exclusively? Technical Know-how: This is a necessary requirement for our range of products Support Services: How important is marketing, customer service and logistical capabilities? Strategic Alignment: What type of business do they target, how does this compare with our strategy? Experience: What is the minimum time they should be in business for? Financial Stability: A credit rating and references should be required before formalizing any agreement Interpersonal Rapport: Is this a person/team that you can work with? Do you believe they will be a flexible partner? Professional Impression: Do they present themselves in a professional way? *Note*: Identical approach for other geographies with tweaks for specific countries depending upon the local “Business Environment” will be replicated. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 30 Confidential RESOURCE REQUIREMENTS Marketing (Digital / Offline): 1. Digital – I understand that the organization has in-house capabilities for “Digital Marketing” 2. 3. 4. 5. 6. 7. initiatives. Country specific strategies can be deployed to target the desired customer segments. The data collected by sales efforts will also complement the efforts for lead generation. Webinars – Delivering discussions on industry specific subjects and solutions. Free Trials – For 7/10/15 days depending upon the service offerings and the client segment should be universally advertised across the marketing blitz so that a certain level of analytics is available with regards to feedback on key aspects like Content & its relevance Pricing Positioning Customization requirements Usage Patterns Feedback about the speakers Ease and use of convenience Experience Crowd Sourcing - For generation of traffic to the website, increase in “Online Eyeballs” and most importantly transitioning into being the users of the service. Some of the leading players in the domain are Capterra, Mechanical Turk, Poptent, oDesk (now Elance) Company News Letter – A monthly newsletter should be designed using curated content from industry relevant sources and in-house developed content should be circulated to the database. The database should be updated on a constant basis. Networking Events – Serious and relevant industry specific events both domestic and international should be used as a platform to showcase the strengths and capabilities of Succeed Technologies and generate leads. Memberships – Of industry bodies like CII, FICCI, NHRDN, ASSOCHAM, NASSCOM will also help and add to the efforts. Similarly, interaction and participation with International trade bodies in the identified countries can also help in creating business avenues. MANPOWER: Depending upon the strategic and tactical needs a structured team for “Inside Sales” and “Enterprise Sales” must be deployed. FINANCIAL: Following costs are imperative to make the effort successful     Marketing Costs Training Costs Salaries Expenses for (Travel including local, domestic and international + Mobile + USB Internet) *Note*: The above expenses have been accounted for considering the organization has strategically allocated the budget already. No insight into the real-time situation or plan of the company. The “Sales Projections” are also missing because I have no idea as to what are the expectations, existing sales turnover, pipeline, and structure. The same can be clearly demarcated, planned and presented once onboard or if given an insight into the above figures. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 31 Confidential 90 Day Plan First 30 Days (LEARN):        Understand the organization, its business philosophy, overall culture and the answers to the questions WHY, HOW, WHAT in that order. Identify and analyze (RCA-Root Cause Analysis) the gaps, based on the data which is available in-house Training, mastering product knowledge, learning corporate systems. Travelling to learn if required to do so. Understand the target audience and the industry. A skeletal framework to be designed about the short term and long term expectations from the role and plan the desired milestones. Develop an S.M.A.R.T goals plan for the success in the role broadly including answers to the questions like why are we here? Where are, we going? What are the performance requirements and objectives? How to achieve the desired goals? What are the values that guide decisions? 31 – 60 Days (CLARIFY):      Review the tasks accomplished in the first 30 days and assess the milestones reached. Upgrade and fine-tune the knowledge of the company’s products, systems and customers. Design and plan the tactical and strategic approach for business development for the whole year or a two-year plan if needed. Situational Analysis. Map and track what is getting done and tweak the approach wherever necessary 60 – 90 Days (ALIGN):      Review with the management as to the activity accomplished and what has been missing. What needs to be done to stay on course? Start executing the deliveries. Start networking with known prospects within the target audience industry. Review and determine if all the short-term plans were met or gaps identified. Execute to address the gaps if any. Plan a progress map for the whole year. Set a timeline for periodic review. 12/11/2016 Digital LEARNING MARKET OPPORTUNITY REPORT 32