Articles Tagged with publishing

image020EdNet 2009 starts this Sunday in Chicago. This is one of the three most important events of the year* for networking and professional development in the education industry. I’ve been attending since the early 90’s with only a couple of absences.

Nelson Heller, EdNet’s founder, has also been a friend and mentor – as he has so graciously been to many of us across the industry. This year the conference is under MDR‘s aegis – and it will be the same top-notch opportunity to expand your consciousness it has always been

Why is this event important? In a nutshell it is all about conversational efficiency. You can talk to more people about partnerships, recruiting, selling, or just “gettin ta know ya” in a few hours at EdNet than you could in two months on the road.

card2160Special Education appears to be the first K12 market segment seeing the education stimulus dollars flow in volume.

At PCI Education we saw our numbers start to move up towards the end of May. By August we were roaring on all cylinders. As a private company we don’t report out our details, but July was up over prior year and orders booked in August were more than double what we saw in 2008. I’ve heard through the grapevine that Cambium is in the same boat.

What is particularly stunning for us is that according to the reports on the USDOE’s site by the end of August only about 15% of wave 1 of the IDEA ARRA funds had been committed. This handy report shows all the stimulus buckets for education and how much each state has already spent – bookmark it if you don’t have it.

StoneHenge.jpgAt 35,000 feet, with a steaming Starbucks and a purring iPod I read my Grandfather’s memoirs last Wednesday. I’d already put in several hours of work when I decided to crack the sheaf of Xeroxed reflections written three years before he passed in 1964.

Ninety eight years ago in the summer of 1911 he was young Officer in Training in the English Army. Then poetry happened.

“I was on a march across Salisbury Plain in full regalia because we were going to sleep out that night. It turned out to be the hottest day on record and out of 600 more than 200 collapsed on the way. We were not a happy company, but we managed to bathe in the river when we reached out destination and that revived us. At night we lay down on the ground near the old ruins of Stone Henge, the oldest and most astonishing group of temple stones in England…The evenings are very short in England in summer and I think it was shortly after 4 in the morning when I was stamping around trying to get some circulation in my cold feet that I noticed the sun starting to rise over the old temple stones. At the same moment there was a racket and over the stones came one of the earliest aeroplanes in the world, the first I had seen and about 1,000 feet up. I was looking at a combination of the oldest and newest in the world. While I stood transfixed the motor of the plane conked out and the plane wobbled all over the place, but finally landed right side up. We rushed over and there was the pilot strapped in but shaking so hard he couldn’t do a thing. We unstrapped him and laid him on the ground to carry on his shaking because he had had a close brush with death.”

139391_a_boy_a_girl_and_a_bookThe Consumer Products Safety Improvement Act (CPSIA) is punishing the children’s publishing industry. Go over to Publishers Weekly to read their summary of the disruption caused by the mandate that all products targeted at children under 12 be tested for lead and phthalates.

The law was passed in response to issues with Chinese toys – but it was written in such a broad fashion that it is sweeping into its net products that have never included lead or plastics (like paper and cardboard).

The problem is that the industry just found out in November that it applies to books and they have to be in compliance by February. Violations carry stiff fines which could bury small publishers.

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Are you Twitter curious? For the past few months I’ve been on the fence about Twitter – lurking but minimally engaged. Like all new technologies as people play with it they are discovering what it is best for. Recently I’ve watched as my friend Charlene Blohm has begun leveraging it to help drive her business.

Twitter seems to be following a similar path to other new technologies. The enthusiasm of early adopters misrepresents what the technology is really capable of. Think LaserWriters/Postcript and flyers with 23 different fonts on them (circa 1986) or web pages cluttered with frames (circa 1998). Once the dust settled and a “grammar” of usage emerged we all benefited. But every new technology has to pass through a stage of wild and random experimentation to get there.

Twitter is passing out of this stage right now so it is a good time for the rest of us to engage with it.

highway-rainbow-nicklen-696533-xlWhat are the prospects for raising capital for education technology companies in the current financial meltdown? Last week at the SIIA Ed-Tech Business Forum a panel of investors tackled this question. The panelists presented some solid and detailed advice for investors and companies seeking capital during the recession.

Key Points:

  • Many investors are seeing Education as a safe harbor in a turbulent market, it is seen as relatively recession resistant. Education’s profile is rising as a marquee investment arena for the next 10 years – it is a good time right now for education.
  • Take in as little as possible at as light a valuation you can get because valuations are going to be low for a while.
  • The strong are going to win big in this downturn. Access to capital is going to be an important differentiator in this market.
  • Most venture firms are not looking at new deals, they are focused on down rounds and propping up existing investments. They are also all moving up the deal chain to safer investments than they make in normal times. If you are raising money be aware of this.
  • It is all about being profitable per customer in this market. Hope isn’t a strategy – go get paying customers and drive a lifetime revenue model
  • Focus down on the core of what you have to provide and strip the organization down to doing just that. Have a crystal clear picture of who your customers will be, how they will find the money, and what are the essential features.

The panelists were:

Chris began with an overview of the market trends. Many investors are seeing Education as a safe harbor in a turbulent market, it is seen as relatively recession resistant. He noted that there is a huge capital overhang – investors have lots of funds but are making few investments. In education fundraising is actually up this year but we are seeing deals that are over capitalized. Later on Frank made the case that this is a bad deal from the entrepreneur’s side.

Most investment groups are setting the bar higher for new deals. Investors are looking for $10m Revenue and $2m EBIDTA which leaves out most K-12 Ed-Tech companies. Companies at this size need capital to invest in Sales and Marketing to scale up. Lots of education companies with good products in the last 10 years have failed because they couldn’t get past this hurdle.

His slides include a list of the private equity investors in education and a list of 100 deals that have been done in the education space in the past two years.

Follow below the fold for details on each panelists comments and the audience Q&A.

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NFImageImportThis panel is made up of seasoned veterans of the M&A markets for Education Technology companies. They addressed the K12, Higher Education / Post-secondary, and general M&A climate.

The panelists are:

It is sponsored by Empirical Education.

Key insights:

  • Look to the UK market – it is an 18 month leading indicator of what is going to happen in the US market.
  • Professional Development is now mandatory for all solutions in the UK. Are publishers using this to hold open source at bay or is this a real switch taking place?
  • The US market is contracting – there are fewer strategic buyers because they have all merged and the Private Equity guys are sitting things out for a while.
  • Buyers don’t want to take any risk right now – only companies with proven business models, strong teams, and organic growth need apply.
  • For profit higher ed is growing – the economy is actually helping with this as people look to expand their skill base.
  • Expect to see many buyers looking for bargains over the next couple of years. Don’t expect to see much in the way of IPOs.
  • In K12 multiples are higher (almost double) for companies that have a strong technology component – but it has to be integrated well – it can’t be a bolt on.
  • Multiples are higher for Higher Ed than K12.

For my more free form notes follow below the fold.

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Great marketing infuses a brand promise into everything a company does. It isn’t about the slogan – it is making the promise come alive for your customers in every small detail.

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In honor of a Thanksgiving traipse down the tryptophan trail enjoy the images below from the Heart Attack Grill. They make a very simple promise and then drive it into every single thing the company does with quality and humor. They are also unabashedly politically incorrect.

They have done something remark-able – people will talk about it. TV news has covered it, blogs have been covering it, and radio is in on the act.

In education – where at least 50% of everyone’s sales come from referrals – this ability to be remark-able is essential. Yet we are saddled again and again with conservative copycat sample brochures and catalogs that could have been printed 15 or 20 years ago. What are you doing to make your products, services, and company remark-able?

I’m not suggesting that you mock 50 years of public health announcements – but just look at how they made a big promise and then delivered on it.

I don’t think this translates directly into the education publishing market – institutional sales have to be politically correct as anyone who has tangled with the California Legal and Social Compliance guidelines can attest to. The reason I’m highlighting it is that it is a stark example of driving the brand promise into the operations – taking messaging beyond empty slogans that no one believes or pays attention to.

First the menu:

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When you are done get wheeled out to your car by a “nurse”

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Follow below the fold for more hilarity.

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618869_glass_ballAs print and technology products in education blend together the distinctions between textbook publishers and ed-tech providers are blurring in some very interesting ways.

A recent report by the Pew Research Center for the People and the Press on how on-line and traditional news media are blending together raises some provocative questions for how this will play out in education.

Several years ago schools bought technology and print products from completely different budgets and with very different purchase processes. As educators have become more sophisticated about what technology can do and what it can’t do they are demanding that providers blend the best of technology with the best of print.

490819_ipod_videoInformation is expanding exponentially. Applying database concepts to your information diet can mean the difference between overload and sanity, chaos and productivity. Database fluency is mandatory in a digital world. Students and teachers should be practicing and refining this skill so that today’s learners can make the most of the sea of data they swim in.

Almost anything you encounter in digital format can be managed using database techniques. At their root Facebook (relationships), iTunes (music, movies, tv, books, etc.), del.icio.us (bookmarks), flickr (photos), Moodle (lesson plans, learning management), and We Are Teachers (referrals) share a common database DNA. Even blogs through their categories and tag clouds are databases.

Email is an example. Treat the sender’s address as a data point. Then set up rules (database queries) to have all your boss’s emails sent to a high priority folder and Aunt Mabel’s political ravings sent straight to the trash. This approach allows you to target the urgent items amidst a sea of dross.

The Education Need

Educators and educational publishers have a vital role to play in our move to a database driven world. Why?

  • Students need to develop database fluency if they are going to get the most out of their digital lives. Learning Management Systems (LMS), social networks, and on-line research are all core tools for 21st Century education. Database fluency should become part of the curriculum along with textual, numerical, and visual fluencies.
  • Teachers need access to networks of peers, experts, and content to be able to deliver on the promise of individualized instruction.
  • Administrators and Policy Makers need to measure results across groups and efficiently allocate resources.

Every one of these needs is best met by a database and fluent users.

The Goal

The end result should be personal growth, valued relationships, and effective organizations. But in the first flush of widespread adoption we are losing sight of this. Consider the statement “I “friended” 1,000 people on Facebook therefor I have 1,000 friends.” Wrong. Many people are confusing the database with their relationships.

A teacher could take the Facebook example above and build an interesting set of discussions around the meaning of friendship, how to find a small network of people who are interested in the same things you are, what you can do to contribute, and how to manage the relationships that emerge. It isn’t creating huge numbers of meaningless connections that matters – it is finding the needles in the haystack of humanity that you want to build bonds of friendship with.

Database Fluency

What is database fluency – what are the core skills proficient users need to master?

  • Ubiquity – See every digital file you touch as a potential data point. Emails, MP3 files, Word documents, student records, and your photos are all potential data points.
  • Searching – Understanding how to craft logical questions that return useful information takes ongoing practice (“and”, “or”, “greater than”, “before”, etc.). Learning to to harness the advanced search features almost all applications have is another part of this skill.
  • Homing – The ability to find what is meaningful and valuable in large data sets by asking the right questions at the right time. Is this a reliable source? How recent is the data? Does this address the question I set out to answer? Is it usable or a tangled mess? How does it compare with other results?
  • Tagging – Users tag data elements to personalize them. This can be through formal taxonomies provided by the database author (“Male, Female”) or informal folksonomies created on the fly by users (flickr tag clouds). Since tagging is so open-ended having some basic rules in place can help insure you are able to use the tag cloud later to search the data.
  • Cleaning – Any collection of data gets messy after a while – knowing how to clean your data just like you clean your room is an essential part of working with large data sets. Without maintenance your searching and tagging get bogged down.
  • Reporting – Creating clear usable reports that make the point you are after is an important part of turning data into information and eventually into wisdom. When is a table better than a bar chart? Should I focus on 5 or 500 names?

None of this involves database programming. That is a skill more akin to auto mechanics – I don’t need to know how to tune my engine to drive a car. I also don’t need to know SQL to use a social networking site. However, for driving and networking I do need to know the rules of the road and how navigate where I want to go.

How these elements appear in different applications varies widely – understanding the underlying dynamics helps harness their power across many environments.

RSS readers click through to see the full article – 3 detailed examples that bring these concepts to life and some suggestions on where to start.

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