Outside Collections, Brief Cases, Curriculum Mapping and Core Notes UpdateSales Meeting Heide Abelli

August, 2011

2

Outside Collections Update

0

1,000

2,000

3,000

4,000

2011

2,964

82%

18%

2010

2,316

83%

17%

2009

1,762

82%

18%

31.4%

28.0%

$(000’s)

Percent of Sales Represented by Top 5 Collections

$775$678

$531

0

200

400

600

800

1,000

20112009 2010

27.7%14.3%

$(000’s)

Note: Top 5 cases collections are: Ivey, Stanford, Darden, UHK, Kellogg

Outside Case Collection Sales

Outside Article Collection Sales

3

Outside Collections Update

5%7%21%

36%42%43%

83%

120%

337%

0%

100%

200%

300%

400%

Darden

SEKN

Thunderbird Stanford

UHK

Kellogg

IMD

InseadIvey

5%

Babson

3%3%

Other

IMDStanford

23%6%

Kellogg12%

UHK12%

Darden13%

Ivey23%

Breakdown of 2011 $ Sales by Collection Case Collection Growth Rates 2010–2011 (based on $ sales)

Outside Case Collection Breakdowns

Thunderbird

4

Outside Collections Update

6%

14%18%

65%

0%

25%

50%

75%

Cal Management Review

Business HorizonsRotman Review MIT Sloan Management

Review

30%

4%

Rotman Review

Business

Horizons29%

MIT Sloan

Management Review

Cal

ManagementReview37%

Breakdown of 2011 Sales by Collection Article Collection Growth Rate 2010–2011

Outside Case Collection Breakdowns

5

Outside Collections Update

Highlights

• Ivey has surpassed Stanford as top-selling outside case collection

• Both Darden and Ivey showing impressive growth

• Thunderbird gaining traction — now $100K collection

• Small, niche collections (SEKN) showing steady growth

• Small revenue from outside press chapter collections – continue to invest in building out

Collections Added in 2011

• IIMB

• Iese Insight Magazine

• Harvard Kennedy School

• Nacra

• Tsingua

Collections Under Review / Pending

• Dartmouth Tuck

• USC — Marshall School

6

A few notes on Brief Cases…..

Trend worth noting: more international settings for BCs An international business case set in China and a marketing title set in India Will continue this progress where possible

Keep BCs in mind when speaking to profs who teach undergraduate courses at the junior/senior level

These reading assignments are short—always a virtue to UG instructors

The program is seriously in need of new BC reviewers in the following disciplines: Finance, Service Management, International Business Please keep this in mind as you visit faculty this fall

Brief case sales should be stronger in Europe - additional support there would be valuable

•Finally…thanks for all you have done to support our brief case program

• Brief Case sales revenues increased nearly 50% in FY11!

7

Curriculum Mapping: FY2011 Review

Second editor added to build capacity• Despite increased volume -- maintained turnaround times

• Greater topical knowledge, more efficient repurposing of existing research and broad use of all available offerings

• Area now seems well-supported

•Increasing service popularity: volume of total requests up 43%

• 715 map requests in FY2010 to 1,024 map requests in FY2011

•Top 50 accounts well-represented in the mix

• 31.7% of all FY2011 requests (325 maps vs. 163 in FY2010)

•Reflected and supported international sales growth

• 23.4% of all FY2011 requests (240 maps vs. 101 in FY2011)

•Reflected and supported for-profit market:

• 72 maps requested in FY2011 (double the 37 in FY2010)

8

Curriculum Mapping: FY2011 Trends

•Less predictable seasonality (more non-U.S. schools) & shorter deadlines (for-profit

sector)

• Harder to plan time available for other tasks

•Increased request scope/time: curriculum design, not case mapping

• Kaplan (Marketing pilot), Aspire (India)

•Sample multi-topic (syllabus) maps:• Int’l Business (U Maryland): cases since 2008

• Economics (Copenhagen Business School, Denmark)

• Seminar in Finance (Southern New Hampshire)

• Financial Reporting (Willamette)

• Corporate Finance School (Cass Business School, UK)

• Industrial Organization (Carnegie Mellon)

• Marketing has all Curriculum Mapping searches – available on site

9

Curriculum Mapping: FY2012 suggestions for improvement

RSMs: The more (specific) information RSMs provide in the requests, the more efficiently

and accurately the team can work

RSMs: Customer feedback on value of the service

RSMs: Manage and educate new customer expectations about turnaround times and scope

of service (all case maps must be further read and evaluated in depth by the faculty expert).

RSMs: Guide customers to standard maps and map-type products: HBP course modules &

textbook maps, HBS module notes, etc.

Self-service model

Tech/Marketing: ongoing “wish list” for improved search speed, accuracy, and management

of huge archive of searches

Core Notes Program – High Level OverviewSales Meeting

August, 2011

11

New Product Line: Core Notes Program Roll-Out

Largest Revenue Opportunity

Lowest HBP Market Share

Opportunity for HBP to launch core notes program in major disciplines for traditional MBA curriculum

Study of average MBA syllabus signaled interesting opportunity for HBP penetration of a new content area

12

New Product Line: Core Notes Program Roll-Out

Potential for Disruption Strategic Advantages for HBP

• Opportunistic response to 2 phenomena Disaggregation efficiencies generated by

digital technology Increasing dissatisfaction with practices

and culture of leading textbook publishers

• Ability for faculty to dispense with multi-vendor supply line

• Opportunity for customers to source all pedagogical content from HBP

• Offering in digital format only avoids high costs of physical production, inventorying and shipping allowing for low price point relative to traditional textbooks

• Exploiting HBS’ unparalleled brand power and HBP’s access to HBS faculty

• New revenue stream for HE

• Increased revenues from established products Liberates sizable share of student course materials

budget Facilitates adoption of more HBP content (cases,

articles, sims)

• Fortifies HBP’s reputation as dependable source of high-quality teaching materials serving widest range of pedagogical needs

• Addresses growing market challenges posed by aging HBS technical note collection

13

Primary Elements of the Core Notes Project

Ten Core Notes for the higher education market available for use for the fall semester

2012

The Notes will cover core conceptual material in Operations Management, at a level

typical of first year MBA courses at top business schools

The objective is to supplant the current use of textbooks and other conceptual

materials that business school faculty assign to complement cases in operations

management

The last critical element in the HBP family of learning objects for a typical

syllabus

Modular approach: Professors will be able to assign the full set of available Notes in

place of a text book, or just the individual Notes they need

“Micro-transactions”

 

14

Product Policy – Core Notes

Length: Approximately 15,000 words, or 30 pages

Some Notes will be shorter or longer, as required by the content

Accompanying Teaching Guide will be approximately 3-5 pages

Content: Approximately twenty pages of the note will constitute essential reading

The remaining ten pages will be optional material that the professor can assign

depending on student ability, interest, time, etc.

The essential reading will be as generic as possible, applicable to any type of

organizational context and international in perspective

Probable topics for short pieces of optional material are: optional side topics related to

material, more advanced math that supports the math in essential reading, sample

problems applied to real organizations, recent research trends on the topic, recent

business innovations on the topic

15

Product Policy (continued) – Core Notes

The accompanying Teaching Guide will recommend a few discussion questions for class, and

also HBS cases and simulations that reinforce the material

For each case and simulation listed, there will be a description of how it applies to the

material in the Note.

For each Note, there will also be an accompanying PowerPoint slide deck to use in class,

Length will be 3-5 slides

For each Note, there might also be one or several accompany calculator/tools

Tools will be very simple, individual-user based

Goal of tools is the build intuition behind the relationship between parameters in a

model discussed in the essential text.

Tools could be embedded in the text.

Pricing: tbd, but likely based on current pricing model for cases and HBR articles

16

Next Steps in Product Development Work

Release market research survey

Analyze survey data

Finalize detailed outline of topical coverage

From analyzed data and discussions with HBS faculty, develop a draft topic outline for each

Note

Recruit faculty authors for the Notes in addition to “Uber-editor” for the core note series

Recruit peer reviewers, expert teaching panel, and beta testers

Select interior designer and create a design template

A lot of work in a short period of time!

•

17

Tentative Note Topics

Introduction to Operations Management and Its Link to Strategy and Finance

Process Mapping and Analysis

Constraint Management and Capacity Planning

Quality Management

Lean Systems: JIT (for example)

Sources and Consequences of Variability

Inventory

Forecasting

Supply Chain Management

Innovation Management, Product and Process Design

18

Link to Educational Technology

Development of six supporting “concept labs” in operations management Potential topics include: quality management, constraint management, process

mapping Look and feel very similar to the operations management concept lab highlighting

process variability (car wash concept lab) Simulations will be authored by core note authors

Additional supporting educational technology in the form of calculators and tools Potential topics include: