Education a $3b business opportunity

1. Educationa $3b business opportunity Voice of the Customer

2. The Education Challenge Price Knowledge Education Price 125M

3. Which business model goes next? “There is little or no standardization and only minimal attempts to collect evidence that could be used to improve [the business]. New developments are slow and costs go up every year. New online providers will challenge the model, developing standard [products], high quality delivery and more effective [metrics]. The online mantra – better, faster, cheaper – is coming to [this industry] and no one knows where it will end. One thing is certain… …[businesses] had better start preparing now.”

4. Which business model goes next? “There is little or no standardization and only minimal attempts to collect evidence that could be used to improve delivery and assessment. New developments are slow and costs go up every year. New online providers will challenge the craftmodel, developing standard courses, high quality delivery and more effective assessment. The online mantra – better, faster, cheaper – is coming to academeand no one knows where it will end. One thing is certain… …universitieshad better start preparing now.” Professor Steven Schwartz, VC Macquarie University

5. Australian Childrenhave $1,886 of equipment 60% own an MP3 player Trend 50% own a smartphone 42% own a laptop 30% own sports/music IT in the Toilet – 2012, 11mark.com

6. Total education ICT spend 1.0 2012 $2.8 billion 2.1% growth 2013 Education ICT is 6% of Australian IT spend 2014 2015 $3.2 billion

7. Total education ICT spend 1.0 2012 $2.8 billion 2.1% growth 42% spent on hardware 2013 42% spent on hardware Education ICT is 6% of Australian IT spend 1.0 2014 2015 $3.2 billion 42% spent on hardware 42% spent on hardware

8. Where does the revenue land? 1.5x $1 $20+

9. Business Challenges

10. Recruiting students 1.0 60,000 Applications 30,000 Offers Grab their attention 10,000 Start

11. Recruiting students Recruit 1%?

12. Recruiting students 1.0 60,000 Applications 30,000 Offers And then they’re off 1.0 10,000 Start 2,000 drop out

13. Recruiting and retaining students Recruit Retain Worst 34.2% 1%? 1%? Worst 23.3% Average 18.1% International Student Attrition Domestic Student Attrition Average 8.7% Best 7.4% Best 3.3%

14. Educationa $3b business opportunity Voice of the Customer

15. Brisbane Grammar School Michael LowbridgeDirector of ICT & Information Systems Derek McDowallHead of eLearning

16. SAMR Model

18. Brisbane Grammar School Michael LowbridgeDirector of ICT & Information Systems Derek McDowallHead of eLearning

19. Microsoft Education TeamGovernment State Education Departments NSW DEC Jane Mackarell Microsoft Education Director George Stavrakakis VIC DEECD Trudi Grant QLD DET

20. Microsoft Education TeamNon-Government Education Catholic Education Vanessa Gage Microsoft Education Director George Stavrakakis Private Education Ken Rankins

21. Microsoft Education TeamHigher Education Joseph Alvarez Microsoft Education Director George Stavrakakis Lucy Segal Ken Rankins

22. Priorities ahead Student experience Windows 8, apps and devices Education Solutions CRM and BI Agility through the Cloud Office 365 and Windows Azure Improving Value Deployment

23. In the next decade… “The teacher’s role will change – advocacy and mentoring will become more important than subject specialism and knowledge.”

24. A glimpse into the future Creating immersive learning experiences

25. Education Partner Briefings29/30 Oct – Melbourne31 Oct - 1 Nov – Sydney Education Blog - blogs.msdn.com/education Fortnightly newsletter - ray.fleming@microsoft.com