helping to bring technology to life in further education

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Helping to bring technology to life in Further Education

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Helping to bring technology to life in Further Education

Presentation Overview• Demonstrate why FE can be a good sector for new idea in technology • Discuss the sales cycle in FE and look at what some of the challenges are

• Look at a new model in EdTech sales that could deliver significant time & cost savings

• Provide case studies to show how effective and efficient this new model could be

• Discuss why Tech Stories experience could be well placed to play a role in establishing this kind of model

About the FE Sector

• 407 Further Education Colleges

• £6.6 Billion Budget

• Close knit community - Allows word of mouth about new ideas & good suppliers to spread

• A £3k service at 200 colleges = £600k

“No one ever got fired for going with IBM”

Technology in FE – Too Much Choice?

Education Specialists

High Growth Start Ups

Main Stream Which Area of Education?

1,268 edu Suppliers

.

• Disparity between exhibitors at edu events and the most used tools in the Classroom.

• Difference appear to be that services are either free and/or they enjoy growth through word of mouth.

Good products get bought... They don’t need to be sold!

42 of Top 100 edu tools

4-5 Years before SM was adopted

US InstitutionsUK Schools UK Further Ed UK Universities

Technology in FE – Different Perspectives?Innovators & Visionaries Vs Skeptics & Laggards

When discussing any emerging new technology, there are “early adopter” proponents as well as those that are more cautious about the latest technology.

“We’re going to use these tools anyway, we may as well get

an understanding of them sooner rather

than later”

“What difference has all this

technology made to teaching,

learning or exam results?”

“We can end up spending as much time debating views on technology in general than on the specifics of what the new technology will do once it’s in the classroom” Tech Story

Moore’s Competitive Positioning Compass

Typical FE Sales Cycle

Total New Customer Acquisition CostTime: 35 wks

Cost: £30k

Identify DecisionMakers

Cost/Time: 4-6 wks

Introduction to Key influencers

Cost/Time: 12 wks

Initial phone pitch

Cost/Time: 2-4 wks

Attend FE/EduConferences

Cost/Time: £10k

Initial MeetingCost/Time: £7k

Internal College Due Diligence

Cost/Time: 12 wks

Follow Up MeetingCost/Time: £5k

Identify/RecruitEdu specialist

Cost/Time: 4-6 wks

Source College ContactsCost/Time: 1 wk

Initial Meeting May include prospects who are:

• Making up numbers for quote• Not the decision makers• General interest• Conservative and risk averse

Initial Meeting May include prospects who are:

• Making up numbers for quote• Not the decision makers• General interest• Conservative and risk averse

Total New Customer Acquisition Cost

Time Saved: 35 wksCost Savings: £30k

Total New Customer Acquisition CostTime: 35 wks

Cost: £30k

Tech Stories Potential FE Sales Cycle

Introduction to Key influencers

Cost/Time: 12 wks

Initial phone pitch

Cost/Time: 2-4 wks

Attend FE/EduConferences

Cost/Time: £10k

Initial MeetingCost/Time: £7k

Source College ContactsCost/Time: 1 wk

Sales CallsCost/Time: 12 wks

Identify DecisionMakers

Cost/Time: 4-6 wks

Follow Up EnquiriesCost/Time: 2-4 wks

Conference EnquiriesCost/Time: 1 wk

Initial MeetingCost/Time: 1 wk

Internal College Due Diligence

Cost/Time: 4 wks

• 1,200 Edu Suppliers• Main Stream Suppliers• Other Start Ups

Identify/RecruitEdu specialist

Cost/Time: 4-6 wks

Cost of sales calls to the college

Time Saved: 35 wksCost Savings: £30k

Cost of sales calls to the collegeTime: 35 wks

Cost: £30k

Internal College Due Diligence

Cost/Time: 12 wks

Follow Up MeetingSupplier: £5kCollege: 1 wk

Supplier CostsCollege Costs

Technology Adoption Life CycleSupporters

Skeptic

Specialist Generalist

Technology

Enthusiasts

Product

Visionaries

Pragmatist

Laggards – Whole

Product Support

Crossing the

Chasm

Examples of Technology Adoption in FE

• At least 368 Colleges use these sites today• At least 232 Colleges have links to them on the college homepage• Initially most colleges blocked these sites

Date Established: Feb 2004 Feb 2005 March 2006

A New Tech Sales Model for FEWe believe there is a model that could reward the early adopters and, at the same time, aid the decision making process of colleges that prefer “whole product solutions”

We aim to make it easier for suppliers to connect with the early adopters in a more welcome and efficient way.

Company

Technology

Product

Market

Supporters

Skeptic

Specialist Generalist

• Benchmarks• Product Reviews• Design Wins• Initial Sales Volume• Visionary Endorsements

• Architecture• Schematics• Demos• Trial• Technology Press Coverage• Guru Endorsements

• Revenues & Profits • Strategic Partners • Top Tier Customers• Full Product Line• Business Press Coverage• Financial Analyst Endorsements

• Market Share• Third Party Support• Standards Certification• Application Proliferation• Vertical Press Coverage• Industry Analyst Endorsements

Innovators (2.5%)

Early Adopters (13.5%)

Early Majority (34%)

Late Majority (34%)

Laggards (16%)

New FE Tech

The Chasm

Adopt new technology because

they appreciate technology for its

own sake

Match emerging technology with strategic business

opportunity

Against discontinuous innovations,

believe in traditional methods

Learned the hard way that the “leading edge” is often the “bleeding edge”

How has technology improved exam results? Need to neutralise their influence so they don’t block the sale.

The Chasm10 55 Colleges 138 Colleges 138 Colleges 65 Colleges

Tech Stories Potential FE Sales Cycle

Total New Customer Acquisition CostTime: 35 wks

Cost: £30k

Identify DecisionMakers

Cost/Time: 4-6 wks

Introduction to Key influencers

Cost/Time: 12 wks

Initial phone pitch

Cost/Time: 2-4 wks

Attend FE/EduConferences

Cost/Time: £10k

Initial MeetingCost/Time: £7k

Internal College Due Diligence

Cost/Time: 12 wks

Follow Up MeetingCost/Time: £5k

Identify/RecruitEdu specialist

Cost/Time: 4-6 wks

Source College ContactsCost/Time: 1 wk

Total New Customer Acquisition Cost

Time Saved: 35 wksCost Savings: £30k

• 1,200 Suppliers with a £3k service would be £3.6m at 1 college.

• 1,200 suppliers at 407 colleges = £1.5bn

• 65 Colleges @ £3,000 = £195k

• 200 Colleges @ £2,000 = £400k

• Working with early adoptersin this sector would make solutions more bespoke and facilitate growth

• A result of Twitter in FE Report was that I was if I’d like to contribute to a Social Media Risk Report that CrowdControlHQ was putting together for Further Education

• Sent this report out to FE contacts

• Asked if colleges would like to be involved with a pilot • 55 Colleges expressed an interest Time & cost savings enabled CrowdControlHQ to offer a 75% discount to “Innovators and early adopters”

Market Research – Pilot Project

Market Research - Customer ValidationGiven that the Further Education is a small tight knit community, customer validation is key to engaging with the sector

• A survey was sent out to people who had requested my reports

• 46 Colleges provided some input

• The feedback was extremely positive

Yes

Yes

Yes

Yes

Yes

Tech Stories – Background• 12 Years experience in Higher & Further Education

• Achieved 50% market share in 3 years

• Helped get project recognised & recommended by

Association of FE Student Services Healthy College Scheme Learning Skills Improvement Service

•Tied our solution into government policy – ECM, NI Healthy Colleges, Ofsted

• Established on of the first UK pilots based on “social norms”

• Successful handover by training team of 6 in newly established London office

• Generated over £2 million over 3 years for a company with annual turnover of £1 million.

Tech Stories – In-Bound, Permission BasedIn 2009 understood there was a shift from out bound sales calls to in-bound marketing

• Explored social media and concepts of in bound marketing

• Collaborated with industry experts to share my findings with the FE sector

Twitter in Further Education Tech Story Business Development Ideas for FE “i-Don’t Smoke” Intro to Social Norms Culture in Education

Tech Stories – Social Media Followers Job Title # Job Title #Principals 375 SMT PA’s 139Marketing 284 Bus Dev 98Vice Principals 184 IT 78Student Services 183 Other 178

Summary

• FE Colleges can be a good sector for start ups with a strong value proposition

• However internal and external factors it can make it a complex and time consuming sales process

• Working with Tech Stories could help identify the crucial early adopter market and reduce the sales cycle

• Tech Stories is committed to in-bound, permission based sales & marketing practices

Innovators (2.5%)

Early Adopters (13.5%)

Early Majority (34%)

Late Majority (34%)

Laggards (16%)

New FE Tech

The Chasm

Adopt new technology because

they appreciate technology for its

own sake

Match emerging technology with strategic business

opportunity

Against discontinuous innovations,

believe in traditional methods

Learned the hard way that the “leading edge” is often the “bleeding edge”

How has technology improved exam results? Need to neutralise their influence so they don’t block the sale.

The Chasm10 55 Colleges 138 Colleges 138 Colleges 65 Colleges

The Competition

InefficenciesEconomies of ScaleInternal employeesEmployee churnThe ChasmWasteCost freeLarger MarketsHelp small tech companies to apply the kind ofsales principles and approaches that Microsoft,Google & Apple use

Tech Stories Potential FE Sales Cycle

Cost of sales calls to the collegeTime: 35 wks

Cost: £30k

Sales CallsCost/Time: 12 wks

Follow Up EnquiriesCost/Time: 2-4 wks

Conference EnquiriesCost/Time: 1 wk

Initial MeetingCost/Time: 1 wk

Internal College Due Diligence

Cost/Time: 4 wks

Follow Up MeetingSupplier: £5kCollege: 1 wk

Identify/RecruitEdu specialist

Cost/Time: 4-6 wks

Source College ContactsCost/Time: 1 wk

Cost of sales calls to the college

Time Saved: 35 wksCost Savings: £30k

Introduction to Key influencers

Cost/Time: 12 wks

Identify DecisionMakers

Cost/Time: 4-6 wks

Initial phone pitch

Cost/Time: 2-4 wks

Attend FE/EduConferences

Cost/Time: £10k

Initial MeetingCost/Time: £7k

Internal College Due Diligence

Cost/Time: 12 wks

• 1,200 Edu Suppliers• Main Stream Suppliers• Other Start Ups

Total New Customer Acquisition Cost

Time Saved: 35 wksCost Savings: £30k

College CostsSupplier Costs