Team Members

1

• Team Members

Julia Brazas Ben Lorch Achyuth Hassan
Matt Howard Ryan Malone Sean York
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Digital Divide

• By 2002, 92 of schools online
• K-12 spent 7.87B on technology in 03-04
• Infrastructure in placenow what?
• Of that, 1.5B went to
• Instructional Software
• Integrating Technology into Curriculum
• 61 of teachers said classroom internet access
  was essential to learning
• Fastest growing segment
• 24 CAGR in spending since 00-01 school year
• But, most dont use itWhy?

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Lack of Quality

• Most educators lack practical skills of what to
  do with the web
• 66 of teachers cite ease of use as a major
  problem
• Online materials are missing excitement, such as
  animation and sound
• Software does not provide proper evaluation
  techniques like quizzes and parental links

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How Do We Fit In?

• Online learning company
• Established web product
• Dynamic learning experience
• Experienced team
• Addresses the issues
• Lack of high-quality online content in schools
• Easy-to-use and incorporate for educators
• Delivers vast, unique resources from museums

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How Do We Fit In?

• Online learning company
• Established web product
• Dynamic learning experience
• Experienced team
• Addresses the issues
• Lack of high-quality online content in schools
• Easy-to-use and incorporate for educators
• Delivers vast, unique resources from museums

You neednt take our word for it ...lets hear
what the customers say!
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Sample Sales Video
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What is eFieldTrips?

• Online learning company
• Supplemental, web-based curriculum
• Subscription revenue model
• Popular subjects, relevant topics
• Established, tested product
• Successful CPS test bed
• Kids love the dynamic material
• Easy for educators to incorporate
• Credible content by teachers, for teachers
• Platform is a virtual field trip experience
• Strong museum partnerships

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How do we know all of this?

• University of Chicago WebDocent Pilot
• CPS test bed
• 100 hours of material
• Existing partnerships
• 8 renowned cultural institutions
• Letters of Interest
• Experienced management team
• Strong advisory board

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Management Team

• Benjamin Lorch
• Managing Director, CPS UC Internet Project
• Julia Brazas
• Director, Chicago WebDocent Project
• Sean York
• Creative Director, Chicago WebDocent Project
• Matthew Howard
• Senior e-learning strategist, web producer
• Achyuth Hassan
• GSB, focus on business, new product development
• Ryan Malone
• GSB, focus on sales, marketing

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Advisory Board

• Don G. York
• Professor of Astronomy and Astrophysics,
  University of Chicago
• Founder, CPS UofC Internet Project
• Tom Berkshire
• Chief of Staff, IL Dept. of Children Family
  Services (DCFS)
• Scott Clegg
• Former President, Nobel Learning Communities
• Mary Cullinane
• Technology Architect, Microsoft School of the
  Future
• Sharnell Jackson
• Chief eLearning Officer, Chicago Public Schools
• In progress the presidents of our eight partner
  Chicago cultural institutions

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So where do you come in?

• Stage 1 Investment 900,000
• Operational, start-up expenses through 2006
• Stage 2 Investment 900,000
• Continuation of Stage 1
• Grow to revenue positive
• So what does that buy you?

Great Company, Solid Strategy!
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Going-to-Market Strategy

• Revenues generated through subscriptions
• Quantity-discounted subscriptions to districts
• Individual subscriptions for home use
• Customers involved to reach student (3rd party
  buyer)
• Major metropolitan school districts
• Smaller school districts, individual public or
  parochial schools, classrooms
• Home schools, individual users, parents buying
  for children
• Slightly different processes for each

Lets take a look at the Unit Model
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District Purchasing Process
1-1 ½ Year Pilot Sell Build Relationship ?
Sales Presentations ? Buyers include
District Tech Coordinators, School
Administration, Principals, Teachers ?
Submit Pilot Proposal
Fall
Winter
Spring
Summer
Fall
Summer
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District Purchasing Process

• 1-1 ½ Year Pilot Sell
• Build Relationship
• ? Sales Presentations
• ? Buyers include
• District Tech Coordinators,
• School Administration,
• Principals, Teachers
• ? Submit Pilot Proposal
• Gain Acceptance
• ? Facilitate Trials
• ? Teacher Acceptance Key
• Possible Training Session
• ? Refined District Proposal
• ? Board Budget Decision

Fall
Winter
Spring
Summer
Fall
Summer
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District Purchasing Process

• 1-1 ½ Year Pilot Sell
• Build Relationship
• ? Sales Presentations
• ? Buyers include
• District Tech Coordinators,
• School Administration,
• Principals, Teachers
• ? Submit Pilot Proposal
• Gain Acceptance
• ? Facilitate Trials
• ? Teacher Acceptance Key
• Possible Training Session
• ? Refined District Proposal
• ? Board Budget Decision
• Launch Pilot

Fall
Winter
Spring
Summer
Fall
Summer
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District Pilot Details

• Districts want to ramp up pilots
• Proves worth and eases into investment
• Y1 10, Y2 25, Y3 50, Y4 100
• Volume discounted pricing schedule
• Based on customer and competitive research
• Ex CPS, 500 schools 300,000
• 600 per school or about 1.20/student
• Ex Milwaukee PS, 150 schools 210,000
• 1,400 per school or about 2.80/student

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Gaining District Adoption

• Hire Sales Executive
• Prior textbook or edu-software sales
• Leverage existing content
• Sales video with CPS, student testimonials
• Loss leader, free trials
• Conference presentations, booth
• American Assoc. of School Administrators (AASA)
• Urban Superintendents Assoc. of America (USAA)
• Promote brand, product
• National Education Association (NEA) publication
• Capture sponsorships
• Email blasts, print advertising with National PTA

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The Individual Subscriber

• Largely scattered base
• Initial focus on Chicago-area individuals
• 2.2M students
• Subscription price of 29.99/year
• Higher willingness to pay
• Based on customer and competitive research
• Echoes desire for educational materials that kids
  will enjoy!

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Gaining Individual Adoption

• Teacher referrals, student take-home effect
• Tons of existing content
• Complimentary access to all future lessons
• Parent e-notifications, email blasts
• Sales video available online, via mail
• Loss leader, free trials
• Promote brand, product
• Discovery for Kids or National Geographic
  magazines
• Leverage sponsorships
• Email blasts, print advertising with National PTA

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And, the skys the limit!

• By subject
• History Henry Ford Museum, Industrial Revolution
• Science San Diego Zoo, zoological sciences
• Physics Indianapolis Motor Speedway, friction
  and acceleration
• Health Milwaukee Public Museum, dairy and
  nutrition
• By customer
• Teachers professional development credits
• Parents questions for the dinner table weekly
  emails
• Students Passport club membership
• Museums kiosk content that ties into curriculum

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Projected Earnings
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Total Competition
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Simplified Competition
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Recap of Investment

• Stage 1 Investment 900,000
• Operational, start-up expenses through 2006
• Refine online platform to accommodate sales
• Hire CEO and Sales Executive
• Fund CPS 2nd stage pilot
• Begin to gain suburban and regional adoption
• Support some new lesson development
• Stage 2 Investment 900,000
• Continuation of Stage 1 grow to revenue positive
• Ramp up pilots at new districts
• Transition efforts to individual subscriber
  market
• New content development
• National expansion of partnerships and focus

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In Summary

• Solves important problems
• Big technology investments
• Lack of meaningful learning experiences
• Has momentum and experience
• Successful CPS pilot, letters of interest
• Solid management
• Good investment
• 3M in year 5, 3-year breakeven
• Highly liquid edu-software market (500M)

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Questions?
Thank You!

• Contact Information

• Achyuth Hassan
• ahassan_at_ChicagoGSB.edu
• [phone]

• Ryan Malone
• rmalone_at_ChicagoGSB.edu
• [phone]

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Still Want To See More?

• More Details
• About Your Favorite
• Online Educational Company

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The School Product
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Technology Spending
(by Category, National Data for 2003-2004 School
Year)
Source QEDs 10th Annual Technology Purchasing
Forecast 2004-2005 Preliminary Data
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Student Computer Use Frequency
Source National Survey (n158 educators)
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Whats Missing?
Source National Survey (n158 educators)
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Museum PartnerInformation
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Current Partner Listing

• The Field Museum
• The Art Institute of Chicago
• The Museum of Science and Industry
• The Chicago Historical Society
• The Adler Planetarium
• The Newberry Library
• The Oriental Institute
• The DuSable Museum of African American History

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Museums Need

• Unable to leverage educational outreach
• Want lifelong relationship with younger visitors
• Need better exhibit asset utilization
• Desire to drive foot traffic to events

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Satisfying the Partners

• Supply us with content, underwrite some
  development costs
• We use that content in the schools
• Build curriculum around material
• Add significant value to the archives
• Return kiosk-ready content to partner
• Ties into classroom activities
• Passport promotions, drive foot traffic
• Fulfilling outreach obligations

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The Museum Product
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Timeline and RolloutInformation
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Timeline
YE 2006 Goals Content 80 total lessons Kiosks
1 completed, 1 in progress CPS 100 school pilot
in progress Pilots 2 major districts
begun Schools 100 smaller schools Individual
2,500 users

• Build Customer Base
• ? Chicago unit model
• ? CPS and suburban focus
• ? Existing content, testimonials
• ? Build team, relationships
• Expand the Base
• ? New district pilots
• ? Individual subscriptions
• ? New content, partnerships
• ? Expand team, relationships
• National Progression
• ? Move to national pilots
• ? Promote individual subscribers
• ? Leverage relationships
• ? National conference promotion

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Timeline
YE 2008 Goals Content120 total lessons Kiosks
1 per quarter Traveling 1 in progress CPS 100
adoption Pilots 6 major districts in
progress Schools 180 individual
schools Individual 25,000 users

• Build Customer Base
• ? Chicago unit model
• ? CPS and suburban focus
• ? Existing content, testimonials
• ? Build team, relationships
• Expand the Base
• ? New district pilots
• ? Individual subscriptions
• ? New content, partnerships
• ? Expand team, relationships
• National Progression
• ? Move to national pilots
• ? Promote individual subscribers
• ? Leverage relationships
• ? National conference promotion

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Timeline
YE 2010 Goals Content 175 total
lessons Kiosks 2 per quarter Traveling 1
completed, 1 in progress District 6 at 100
total adoption Pilots 6 new districts in
progress Schools 225 individual
schools Individual 75,000 users

• Build Customer Base
• ? Chicago unit model
• ? CPS and suburban focus
• ? Existing content, testimonials
• ? Build team, relationships
• Expand the Base
• ? New district pilots
• ? Individual subscriptions
• ? New content, partnerships
• ? Expand team, relationships
• National Progression
• ? Move to national pilots
• ? Promote individual subscribers
• ? Leverage relationships
• ? National conference promotion

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Value Proposition
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The Process
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The Process
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The Process
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The Process
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The Process
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The Process
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The Process
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Business Risks
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Minimum Hurdles

• Add some info here about our minimum hurdles in
  the revenue-neutral world of break-evenie, x
  schools or x individuals or x kiosks even

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Projected Gross Profit Details
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Projected Net Income Details
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Projected Revenue Detail
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Revenue Assumptions
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Projected Expense Detail
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Expense Assumptions

• Bulk in team compensation
• Low COGS, all development
• Clear team growth
• Internal support
• Sales
• Content development
• Yearly compensation increases

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Projected Cash Flows