CEdMA Conference, 2nd – 3rd November, 2011

Lingfield Park Marriott

Global IT Training Trends

Philip Bourne – Chairman CEdMA Europe

High Level Business Trends

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Main business objectives assigned to

Education Services

• 60% companies applied a bonus plan

•Regarding specific bonus plans - Revenue, Profit and CSat predominated

• Education Services that reported directly into Sales was 16% , Services 57%; rest evenly amongst Marketing and HR

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10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Responsibility for training and charging

Responsible to train

Charge for training

• Post sales partner training is chargeable ~ 90% by all that provide training

• Presales training partner training is chargeable ~ 60% by all that provide training

• Less than 10% charge for internal training

• Of those that charged for internal training 86% charged at cost

High Level Business Trends

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40.00%

60.00%

80.00%

100.00%

120.00%

Functions included as part of

Education Services •70% purchased LMS, 30% developed

• 10% are ISO 9000 compliant

• 14% developed training for all products, 55% for 75% of products & 22% for 50% of products

• Approximately 50% have other groups developing training ( Fairly split across R&D, PM and Support )

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5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

0-5% 6-15% 16-25%26-35% > 35% Didn't

have a

goal

FY10 Margin goal versus Actual

goal

FY10 Margin Goal

FY10 Actual Margin

•85% implemented no change to their business model

• Of those that did 2/3rds switched to P&L

• Of the companies surveyed 67% run a P&L, 23% a cost centre and 10% a hybrid model

Measuring satisfaction & training impact

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10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Customer Satisfaction

3.5 or less

3.6 to 4.2

4.3 to 4.9

5.0 to 5.6

5.7 to 5.95

6.0 to 6.3

6.35 to 6.65

Greater than 6.66

Not measured

• 93% companies measure CSat

• 81% measures CSat themselves and 18% use outside vendors

• NPS measured only by 15%

• 82% contact customers direct when a CSat issues arises

• 25% offer refunds and 58% a credit note

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30.00%

40.00%

50.00%

60.00%

Subsequent

product sales

Number of

support

tickets

Overall

customer

satisfaction

Product

adoption or

use

Product

instal time

Customer

renewals

None of

these

Measuring the impact of training

•On the sales front 55% via bookings data base & 33% anecdotally

•On the support side 57% via number of support calls & 28% anecdotally

•On overall CSAT 51% via standard processes / tools and 22% via LMS

Revenue

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5%

10%

15%

20%

25%

30%

35%

< 1M 1-3M 3-5M 5-10M 10-50M 50-100M >100M

Total Education Services Revenue in

US$ •23% of companies re-classified 5% of product revenue to Education Services

• 47% had no re-classification

• 63% saw revenue grow in 2010, 14% static & 12% decreased

• 41% anticipate revenue to remain flat or decrease in 2011, with 59% seeing growth

75.00%

11.00% 7.00%

2.00% 1.00% 1.00% 1.00% 1.00% 1.00%

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10.00%

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30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Revenue stream distribution

• 20% - 30% revenue comes from training partners

• 70% - 80% revenue comes from training customers

• 75% revenue generated from public ILT

• 25% revenue generated from private / onsite

• 58% companies sell training credits

Revenue

0%

5%

10%

15%

20%

25%

<0.5% 0.5-1% 1-2% 2-3% 3-4% 4-5% 5-6% 6-7% >7%

Education revenue as a percentage

of company revenue

• Education was attached on average to between 11%-15% of actual product sales deals & 5% of support deals & 31% support contract renewal deals

•73% of companies adhere to VSOE

57%

12%

13%

7%

5% 2%

3% 1%

Budget allocations ( average )

Compensation/Payroll

Outside Services

Travel and expenses

Materials and Equipment

(non-CAPEX)

Corporate allocations

Miscellaneous (office

supplies and so on)

•55% of companies increased budget, 36% flat & 9% decreased

• Payroll increased across 57% of companies, outside services across 43% & materials across 38%

Training Credits & Subscriptions

25%

32%

3%

11%

6%

0%

5%

10%

15%

20%

25%

30%

35%

Worldwide North America Central and

South America

Europe; Middle

East and Africa

Asia/Pacific

Training Credits as a percentage of

overall revenue ( Average ) • 58% companies sell training credits

• 39% companies manage training credits by LMS & 43% directly by training admin staff

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5.00%

10.00%

15.00%

20.00%

25.00%

Worldwide North America Central and

South America

Europe;

Middle East

and Africa

Asia/Pacific

Subscription Services as a

percentage of overall revenue (

average ) • 28% companies sell subscription services

Sales

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100.00%

Who sells Education

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60.00%

Average Education Services Deal

size

Sold with product

Not Sold with product

• 33% companies mandatorily attach Education to product sales, 8% to support service sales, 5% to renewal sales,

• 33% of Education sales reps measured on Bookings and Revenue

• 24% on bookings only

Marketing

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Most successful marketing

programs • 49% had a formal Education marketing strategy

•72% of the Education Services departments had direct responsibility for developing marketing programs and 43% had funding.

• 50% had access to Corporate marketing and 33% contributed towards Education Services marketing

• Responsibility to identify new offerings 93% Education, 3% product management & 3% product development

Design & Development

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60.00%

70.00%

80.00%

90.00%

100.00%

Internal staff Partners (business

and channels)

Customers and/or

end users

Other

Who is the Content primarily

created for • 12% have a formal Education Course Development partner program

•63% have a formal documented development process

• 63% use contractors to augment design and development

• 47% use contractors to develop 10% or less of the content, 28% to develop between 11% - 20%

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120.00%

Time to develop in person hours per

one hour of lesson type

>100

51 to 100

36 to 50

26 to 35

16 to 25

<15

NA

• 54% of companies spend between 20% - 50% of budget on content development

Design & Development

8%

61%

23%

6%

2%

Stage at which Content Development is

engaged

Product feasibility/inception

stage

Product development stage

Beta product availability

stage

General/public product

availability stage

Other

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40.00%

60.00%

80.00%

100.00%

120.00%

When is Content Development

required to provide training

30-45 days after GPA*

GPA*

30-45 days before GPA*

Beta release

Alpha release

• 44% of companies use a CMS

• 23% use an internal KMS

• 46% of companies use less than 10% content from other groups

• 79% do not design for Web2.0 / collaborative technologies

• 70% companies develop SCORM 1.2 or later compliant content

•24% companies support disability requirements for e-learning ( US 508 Standards )

Design & Development

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30.00%

40.00%

50.00%

60.00%

70.00%

Main ways Content Development

gathers product information

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Languages Content Development

localises

• Less than 25% of courses are translated into French whereas French Canadian its 75%

• Japanese & Chinese approx 50% are translated

• The other languages are 25%

Delivery

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70.00%

Utilization of

resources

Revenue Profit Margin Number of

students trained

Student/Customer

satisfaction

Most important factors for Delivery

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60.00%

Biggest Obstacles to achieving

performance goals

Delivery

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120.00%

Delivery vechicles with formal

evaluation process

62% 11%

19%

8%

Instructor resources teaching

courses

Education Services

employees

Company/internal staff

Training Partners

Contracted instructors

•63% of companies set instructor utilizations target for the way they spend their time ( ILT, Prep, Course Dev )

Delivery

0

20

40

60

80

100

120

140

Billable time Preparation time Non-billabledevelopment

Travel time Overhead(training;meetings)

Average Instructor Utilization (

Days ) • Utilization based on 45 weeks per annum

• 60% achieved on average 100 day per annum billable time

• 65% spent between 60 – 90 days brining new instructors up to speed.

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Company

training

facility

Company

non-training

facility

Authorized

Partner

Customer

Site

Short-term

facility

rental

Virtual

classroom

Where majority of classes are

delivered • 87% mix audience attendance at VILT ( partner, employee and customer )

• 54% of classes are open enrolment

• 70% primarily dedicate their own training facilities to their usage only

Delivery

10%

33%

33%

12%

12%

Actual classroom utilization

< 25% utilisation

26-50% utilisation

51-75% utilisation

> 75% utilisation

Uncertain

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35.00%

At least

20%

21-30% 31-40% 41-50% > 50% Uncertain

Percentage Fill Rate to run a course

ILT

VILT

• If a course has low numbers:

• 24% advertise a discount

• 20% offer free or additional discount to partners

• 34% free seats for employees

• 82% provide virtual or remote lab access

• 32% set a lab utilisation target of 75% +, 24% set greater than 50%

Delivery

748 750 220 2178 403 2867

24713

262 0

5000

10000

15000

20000

25000

30000

Average total students trained

including via training parters

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Top Delivery Methods

• 60% companies provided 25% or less of customised content

• Average backlog for 70% companies was between 30 – 45 days for private courses

Delivery Partner Programs

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90.00%

Only meansof delivery

Extend reach IncreaseEducationrevenue

Reduce traveltime /

expense forEducationServices

instructors

Provide locallanguagesupport

Other

Primary goal of Delivery Partner

Program

• 64% offer a formal program

• Only 4% are identified / qualified by Channel partner organisations

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60.00%

Percentage of training provided by

Delivery Training partners

< 25%

26% to 50%

51% to 75%

>75%

• 66% of companies allowed VAR’s to be delivery training partners

• 52% allowed distributors and 78% allowed independant training partners

Delivery Partner Program

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Restrictions applied on becoming a

delivery traiing partner

• 55% provided lab rental program

• 35% Offered discount equipment purchase program

• 34% supported revenue share model

• 73% supported training kit model

• Only 31% set a revenue target

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Delivery Partner Percentage Revenue

generated & students they teach

Percentage revenue

Students taught

• 51% did not allow customers to redeem training credits through delivery partners.

• 34% have academic partner program

• 80% use it establish brand / product mindshare

Certification

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Primary Goals of the Certification

Program • 71% have a certification program

• 36% of certifications never expire

• 32% certifications expire after fixed term

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Intended audience for the

Certification • 18% have a 1 tier certification program

• 37% have a 2 tier certifications program

• 30% have a 3 tier certification program

Certification

Symantec Education &

Enablement Services

All Hands Meeting

21

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15.00%

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25.00%

30.00%

35.00%

Total Certifications that have been

issued • Only 11% remain valid this current fiscal year

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40.00%

50.00%

60.00%

70.00%

Proctored practicalexam(s)

Proctored computer-based exam(s)

Un-proctoredcomputer-based

exam(s)

Online/web deliveredcomputer-based

exam(s)

How Certification Exams are

administered

•34% companies have their own testing centres

• 58% use third parties

• 27% use the web

• 31% have a formal test security and fraud prevention program

• 42% apply an informal one

Certification

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60.00%

80.00%

100.00%

120.00%

Tasks that occupy most time in

Certification based roles • 50% offer access to personal profile and results

• 42% allow third parties to verify results

Thank you and trust this session was useful...