The Business of e-Learning

1. The Business of e-Learning Increasing Your Return on Education

2. TODAY’S DISCUSSION • History / Philosophy • Market Trends and Growth • Business Models • ESP Approach • Case Studies

3. HISTORY • Founded 1996, St. Gallen, Switzerland • Educator meets CBT Technologist • Explosive Growth across Europe 7 Countries • 1999 Open US Offices • We are in the Education Business... ..Changing the Way the World Learns!

4. EDUCATION FIRST PHILOSOPHY Education Communication Motivation Globalization Self-Exploration Customization Simulation

5. MARKET TRENDS • The Economy is Evolving to a Knowledge-Based Economy • Time-to-Market • Customer Priorities are Shifting • Consolidation and Merger Activities will Accelerate • Technological Barriers are Diminishing • It’s a Battle for Brand

6. WBE Forecasts: $11.4B By 2003 $6.2 $4.1 $3.9 $2.4 $2..3 $1..3 $1.1 $1.2 $0.8 $0.7 $0.5 $0.6 $0.2 $0.4 $0.1 $0.4 $0.2 $0.1 1998 1999 2000 2001 2002 2003 WHERE’S THE GROWTH? 7.0 6.0 5,0 4.0 3.0 2.0 1.0 0.0 Revenue ($ Billion) Tools/Technology Services/Hosting Content Source: International Data Corporation, 2000

7. WHAT ARE YOUR REQUIREMENTS? • E-Learning Business Unit • Validating Results and Increasing Education’s ROI • NEW Business Model and Opportunity (Adding a Revenue Channel) • Aligning Business Objectives and Learning Outcomes • Channel Extension of Learning to Partners, Customers, etc. • Increased Productivity by having Education Available - 24 by 7 • Increasing Demand for Certification and Skills Development

8. WHAT BUSINESS MODELS ARE THERE? • Portal Strategy (Offer everyone courses - take 20%) • Technology Strategy (Courseware and Tools to Build it yourself) • Horizontal Strategy (Targeting Sales & Marketing) • Vertical Strategy (K-12/Higher Education, Medical, etc.) • Consultant Strategy (Consulting Model - Pay for Expertise) • Full Service Strategy (Building True Business Partnerships) Risk, Reward, Relationship...

9. EVOLUTION OF “SERVICES PROVIDERS” Value Document Management Knowledge Management Education and Training ASPs Application Service Providers Hybrid ASPs ISPs (Hosting) Time

10. FULL SERVICE: EDUCATION SERVICE PROVIDER (ESP) 1. New Business Strategy to share the “Risks and Rewards” 2. Custom Design and Development of Dynamic Web-Based Education and e-Learning Solutions 3. Provide an Authoring and Delivery Platform for Education 4. Provide Additional Services: • Site Hosting and Technical Support • Content Expansion and Maintenance • E-Commerce Services & Community Development • Web & Traditional Marketing Services • Tutoring Services

11. ESP APPROACH

12. THINKTANX IS UNIQUE! • Supports “Education First” philosophy • Designed for rapid development and deployment of dynamic educational content and materials • Encompasses a set of tools and modules suitable for any educational scenario • Fully integrated authoring and delivery system • Open architecture approach to education supports the open standards of the Internet • Communications engine for interactive learning experience

13. THINKTANX OPEN PLATFORM

14. Content Analysis Educational Design Audience Analysis Course Development Partnership Model Community Development Assessment and Analysis Hosting and Support Services Delivery and Launch Marketing ESP LIFECYCLE Learning is PROCESS not an Event!

15. WE BUILD E-LEARNING SPACES

16. KNOWLEDGE COMMERCE Owned, Shared, Managed Risk, Reward, Relationship

17. SOME CURRENT ENGAGEMENTS...

18. Business Opportunity: To provide additional education to the German speaking after school market for students 11-17 years old. Expanding Klett’s dominance for education materials beyond German text books for schools. Solution: Subscription based education, providing over 400 learning modules, covering Mathematics, English and German. Successful completion of each unit provides the student credits towards the thought provoking gaming side of the community - - rewards to learning. Results: Up to one registration per minute. Klett Lerntraining Motto: “Better marks via Internet”

19. Business Opportunity: To provide education and training for their customers purchasing their services off the web. Their goals were to reduce the amount of customer service calls and support needed. Solution: Web-Based Education for customers providing implementation, support and Q&A training. Results: To reduce their support call volume and support costs.

20. Business Opportunity: To provide the defacto standard of Web-Based Education for Linux Users. To augment Linuxcare’s Enterprise Services by offering quality courses for Linux education and training that goes beyond ILT using the Web. Solution: To create the Linuxcare University community that provides complete suite of education and training courses. Results: Started with SAMBA course Adding 6 additional courses Additional 10 courses

21. CURRENT CUSTOMER LIST • Pervasive High Technology • Linuxcare High Technology • Stamps.com High Technology • httprint High Technology • Citrix High Technology • Cephren Construction/PM • IReturnIt.com High Technology • IPS Project Management • 3Com High Technology • TrainingScape Soft Skills • Carewide.com Healthcare • Advanced Internet Internal Training • Hycurve High Technology • Worldwide Clients • ABB Manufacturing • Volkswagen Manufacturing • Klett Publishing • Cornelsen Publishing • Spektrum - SAP Publishing/ERP • ZKB Banking

22. NEXT STEPS

23. ELEVATOR PITCH We increase your Return On Education! Viviance new education is the Global Online Education Service Provider (ESP) for Business, Consumer, and Student Markets serving the e-Learning industry. Delivering custom design and development of dynamic web-based education and learning solutions for unique companies seeking a competitive advantage and/or a new revenue channel. We help uniquecompanies, associations or learning institutions bring their "key content" to the web with an “education first” philosophy, experience-based learning environment and end-to-end services to create a new or additional revenue channel.