CEdMA 2009 Presentation about Virtual Classroom business models.

1. Rock Your Virtual World
Successful Business Models & Marketing
Plans for Virtual Classroom (VC) Training
Terry Vyas
BMC Software
CEdMA Fall Conference 2009

2. Corporate Overview
• $1.5B Revenue Software • Profit/Loss Driven
Company specializing in • 36K Students Yearly
Business Service Management • 150 Courses
• Headquartered in Houston, TX • 30 Training Locations WW
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3. Why Virtual Classrooms?
Revenue Retention Revenue/Profit Growth
• Mitigating the risk of • Grow current modality
students not attending due revenue streams
to travel costs • New Modalities with higher
• Ability to have flexible revenue/profit potential
schedules to broaden • Reduce risk & expense
customer audience associated with classroom
setup
• Reduce travel costs
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4. Virtual Classroom Infrastructure
Web Telephone Virtual
Conferencing Conferencing Servers
Price Point Voice Quality Pay As You Go
Selection Reliability Cost Unlimited Capacity
Criteria Classroom Features Dedicated Network Performance
Breakout Rooms WW Availability WW Availability
iLinc AT&T Conferencing Surgient
Potential WebEx Training Center Premier Conference ReadyTech
Vendors Interwise Skype IT Structures
LiveMeeting Web Conf. Vendor - VOIP Hat Size
Most vendors were similar VOIP was the most cost Unlimited capacity
Decision in capabilities. effective option. with bare metal
Point The dedicated VOIP network selected dedicated VOIP performance.
was determining factor. network provider.
Cost $12k - $30k /Year Telephone: 5¢ – 20¢ / min Fixed Capacity – Varies
Structure 10 Seats VOIP: .01¢ - free/ min On Demand $25-$100/Day
Vendor
Selected WebEx Training Center WebEx Training Center ReadyTech
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5. VC Enabled Modalities
Instructor Led Private On-Demand Configured Lab
Online On-Site Learning & Labs Environments
• Public Classes • Private courses for a • Self-Paced • Pre-Configured Lab
• Exact same course single company Education (WBT) utilized by
Description as our classroom • Traditionally Held blended with a live customers as test
education On-Site lab environment environments
   
Web
Conferencing
   
Telephone
Conferencing
   
Virtual
Servers
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6. Value Proposition
Instructor Led Online
Customer Internal
Reduced Travel Costs Allows for an offering in a tight
economic environment
Ability to Time-shift
Removes GEO boundaries
24 hour lab access
Removes hard classroom size limit
Reduces instructor travel
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7. Execution
Instructor Led Online
Staffing Pricing Operations
Taught by any qualified Priced exactly the same as Students sent WebEx login
internal or external trainer. a public class. information and
reservations to lab before
We provide technology All content is the same class.
overview training to the (books, labs, instructors)..
instructor team. so we see no need to Trainers manage
discount price. classrooms by muting all
microphones during
Built in price break for lectures and utilizing
most students due to lack breakout rooms.
of travel expense.
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8. Financial Model
Instructor Led Online
Instructor ILO ILO w/Tel ILO
Led Training w/Producer Bridge w/VOIP
Telephone
Revenue $650 $650 $650 $650
Instructor $100 $200 $100 $100
Classroom $80 $0 $0 $0
Telephone $0 $25 $25 $24
$1
Virtual Labs $0 $50 $50 $50
Web. Conf. $0 $5 $5 $5
Total
Expense
$180 $280 $180 $180
$156
Profit $470 $370 $470 $494
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9. Marketing Plan
Instructor Led Online
Website Collateral Communications
• Built Modality Pages with quick • Created datasheet describing benefits
access to key resources (datasheet, and value to customer
FAQs)
• In order to mainstream concept,
listed it as just another “location”
on the public schedule
E-Mail Campaign
Datasheet
Commercial
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10. Measuring Success
Instructor Led Online
% Of Public Classes Held As Instructor Led Online Avg. Fill Rate is 62% Higher
Instructors -1% Statistical Dead Heat Between
Course Evaluations
ILO vs. ILT
Materials +3% Classroom and
Virtual Classroom Education
Overall -1%
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11. Value Proposition
Private Virtual Classroom
Customer Internal
Eliminates Classroom Eliminates Instructor
Setup Costs Classroom Setup
Reduces risk of classroom Eliminates shipping
configuration issues of portable classroom hardware
Supports Geo Distributed Reduces instructor travel
Employees
(Private –ILO)
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12. Execution
Private Virtual Classroom
Staffing Pricing Operations
Taught by any qualified Priced exactly the same as Customer provides
internal or external trainer. a private class. Base classroom
environment or bring
We provide technology Charge for VC Lab laptops to classroom to
overview training to the environment is equivalent connect to VC lab
instructor team. of Traveling Classroom environment
charges
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13. Financial Model
Private Virtual Classroom
Private Private
On-Site w/Virtual
Labs
Revenue $6000 $6000
Instructor $1000 $1000
Computer
& Shipping
$200 $0
Telephone $0 $0
Virtual Labs $0 $500
Web. Conf. $0 $0
Total
Costs
$1200 $1500
Profit $4800 $4500
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14. Measuring Success
Private Virtual Classroom
Course Evaluations
Private Classes with Portal Lab
vs.
Private Classes with Virtual Classroom Lab
Classrooms Equipment +2%
Made a seamless transition to the VC
technology stack
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15. Value Proposition
On-Demand Learning & Labs
Customer Internal
Self-paced education Grows revenue stream
with a real lab environment for standard
Web Based Training (WBT)
Effective replacement of ILT training
Increases profit
Corporate over ILT
lab test bed
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16. Execution
On-Demand Learning & Labs
Staffing Pricing Operations
No instructors necessary. Priced as a combination of Requires tight integration
WBT content and self- with VC Lab provider.
paced learning.
Provide 2.5x lab time as
WBT prices $100/hour. necessary to complete labs
Self-Study Content at in order to allow for
$50/hour. flexible time management
by customers
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17. Financial Model
On-Demand Learning & Labs
WBT ODL
3-Day Class
Revenue $600 $1200
Instructor $0 $0
Classroom $0 $0
Telephone $0 $0
Virtual Labs $0 $150
Web. Conf. $0 $0
Total
Costs
$0 $150
Profit $650 $1050
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18. Marketing Plan
On-Demand Learning & Labs
Website Collateral Tutorial
• Built Modality Pages with quick • Created datasheet describing benefits • Built an Articulate WBT to show
access to key resources and value to customer students how to register and request
(datasheet, FAQs)
the virtual lab
Datasheet
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19. Measuring Success
On-Demand Learning & Labs
Post Course
Survey for ODL
Would you attend another (ODL) 80%
class? Yes
Did the live lab exercises aid in the 93%
learning process? Yes
I used the Remote Lab Environment 47%
for further research by testing and Yes
performing tasks not identified in the
Lab Guide.
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20. Value Proposition
Configured Lab Environments
Customer Internal
Pre-Configured Lab New revenue stream
Environment with to derive from classroom image
base product install builds
Provides a test bed for a variety Looking into “migration” bundles
of learning and testing needs that includes pre-packaged training
and lab time
Customers often utilize it
to validate migration
to new versions
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21. Execution
Configured Lab Environment
Staffing Pricing Operations
No instructors necessary. Still determining Handles request
Market pricing individually in association
with the Virtual Lab
Currently priced provider since each
at $100/day for lab access request can be different
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22. Conclusion
• A Solution not a Band-Aid
• Beyond mitigating revenue risks associated with a bad economy, view
Virtual Classrooms as a way to grow revenue and profit
• Go with Less Talk more Action
• Lots of discussion about marketing Virtual Classrooms, but very little
was required
• Customers are ready to fully embrace VC technologies
• Fully exploit VC technologies across Modalities
CEdMA Fall Conference 2009