The Missing Link: Our strategy for LinkedIn’s Future Success · Credible, respected...
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The Missing Link: Our strategy for LinkedIn’s Future Success QUT CONSULTING
Transcript of The Missing Link: Our strategy for LinkedIn’s Future Success · Credible, respected...
The Missing Link: Our strategy for LinkedIn’s Future Success
QUT CONSULTING
Your current challenge
How will LinkedIn promote, integrate, monetize Lynda.com’s online video courses into its current offering?
Where are the synergies?
How does LinkedIn create sustainable value for shareholders and customers?
Imagine this future…
Imagine this future…
Credible, respected qualifications
132% growth in revenue
Trusted career advisorLinkedIn is the
new age learning and
development platform
worldwide
Our solution
Credibility for learning and developmentBetter utilization of big data
Dynamic pathways – learning and career
What is the missing link: Leveraging Lynda.com
Introductions
QUT’s Senior Consulting team: Justin Bindman Arbess Balbarais Sarah Goulding Cameron Jones
Today’s presentation overview
Your key issues and consequences External factors Internal capabilities Options Recommended Strategy Implementation Plan Financial Analysis
Your current situation
LinkedIn is the world’s largest network of professionals –467M members / 7000 countries
Continuous acquisition strategy, most recent of which has been Lynda.com
Issues & Consequences
Employment landscape is changing – uncertainty of
future jobs
Uncertainty of ROI on acquisition of Lynda.com
Redundancy of particular subjects
Loss of shareholder value
Significant growth in eLearning
High risk of no differentiation
External Influences
Market Drivers
Technology Economic Social
Increasing access to more affordable devices
New technology requires new specific skills
User interfaces becoming more accessible to all age
Education in the top industries global –Australia Top 3
Disruption is effecting economies globally
Jobs for life on significant decline
Between 10-20 years traditional jobs will disappear
Skills gap is a leading social issue
Growing market for non traditional micro-credentials
Upskilling for: keeping a job, advancing career, pursuing hobbies
External Influences
Influence Importance Impact
Generation of big data Quantitative market analysis
Significant potential to create additional value through product offerings
Changing millennial priorities
Market segment growth Identified the need for tailored learning
Recent collage graduates and students – fastest growing demographic
Market potential Potential to capitalize on skill gaps
Internal capabilities analysis
LinkedIn Lynda.com
Brand recognition
Dominant player in the industry
Multi-functional userbase
Product development ability
Brand recognition
One of many
Learners
Production development
Connect at marginal transaction costs Learning/ development
Product sophistication
Customer value
User base
Industry positioning
Brand value
Options Analysis
External factors Internal
capabilityProblem
statement
Key focus areas:Maximizes synergies
Enables sustainable value
Focus on early & young learning
market
Options Analysis
Partner with universities for accreditation
capability
Develop internal accreditation system
and learning pathway
1 2 3
Focus on early & young learning
market
Options Analysis
Partner with universities for accreditation
capability
Develop internal accreditation system
and learning pathway
1 2 3
Leverage connections –parents; childcare centers; schools
Synergy
Technology will continue to grow
Smaller market
Sustainable Value
Focus on early & young learning
market
Options Analysis
Partner with universities for accreditation
capability
Develop internal accreditation system
and learning pathway
1 2 3
Leverage connections –parents; childcare centers; schools
Synergy
Technology will continue to grow
Smaller market
Sustainable Value
LinkedIn has strong customer base
Fails to create the right synergy
Open up a large market segment for Lynda.com
High cost outlay
Focus on early & young learning
market
Options Analysis
Partner with universities for accreditation
capability
Develop internal accreditation system
and learning pathway
1 2 3
Leverage connections –parents; childcare centers; schools
Synergy
Technology will continue to grow
Smaller market
Sustainable Value
LinkedIn has strong customer base
Fails to create the right synergy
Open up a large market segment for Lynda.com
High cost outlay
Leverages Lynda.com’svalue
Creates overall brand value
Low cost option – “in-house”
Potential high returns
Recommended Approach
Develop internal accreditation system
and learning pathway
3
Build internal capability for accredited courses
Use data to create client Learning Pathways and Career Pathways
Increased customer base
Increased revenue
Increased revenue through premium
membership
Key Features
Predictive learning and career needs
More, happier customers
Value chain – Conquering the global talent pipeline
Attract and pool candidates &
employers
Create networks
Train and develop Employment
Value chain – Conquering the global talent pipeline
Attract and pool candidates &
employers
Create networks
Train and develop Employment
DynamicLearning Pathway
DynamicCareer
Pathway
Accredited learning
Enhance big data capability
Customer value – Profiles
Name: RahulAge: 46Prof.: Tradesman –manufacturing (full time)Issues:Factory moving towards automation; limited IT skills; worried for his job
Name: JessicaAge: 24Prof.: Law graduate (full time)Issues:Employer is looking at IBM Watson –(automated legal advice) – potential redundancy
Customer value – Pathways
Career 1 Career 2 Career 3 Career 4
Learning Pathway 1
Learning Pathway 2
Accred.1
Career 1 Career 2 Career 3
Learning Pathway 1
Learning Pathway 2
Customer value – Use of data for Pathways
Career 1 Career 2 Career 3 Career 4
Learning Pathway 1
Learning Pathway 2
Accred.1
Career 1 Career 2 Career 3
Learning Pathway 1
Learning Pathway 2
Career 4
Risk and Implementation Plan
Risk Analysis
# Risk Mitigation Tactic
1
LinkedIn Learning is unable to create credibility of certification High
Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Low
>$10
0M$5
0M-
$100
M$1
0M-
$50M
$100
k-$1
0M<$
100k
<5% 5-15% 15-50% 50-75% >75%Rare Unlikely Likely Possible Certain
11
Risk Analysis
# Risk Mitigation Tactic
1
LinkedIn Learning is unable to create credibility of certification High
Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Low
2
Key competitors such as Khan Academy launch accreditation High
Marketing campaign to leverage the synergy of Linkedin & Lynda. Low
>$10
0M$5
0M-
$100
M$1
0M-
$50M
$100
k-$1
0M<$
100k
<5% 5-15% 15-50% 50-75% >75%Rare Unlikely Likely Possible Certain
1
2
1
2
Risk Analysis
# Risk Mitigation Tactic
1
LinkedIn Learning is unable to create credibility of certification High
Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Low
2
Key competitors such as Khan Academy launch accreditation High
Marketing campaign to leverage the synergy of Linkedin & Lynda. Low
3Linkedin Learning uptake is slow High
Launch events, social media, and Linkedin marketing channels. Low
>$10
0M$5
0M-
$100
M$1
0M-
$50M
$100
k-$1
0M<$
100k
<5% 5-15% 15-50% 50-75% >75%Rare Unlikely Likely Possible Certain
1
2
3
1
2
3
Implementation Strategy
Valu
e A
dded
Integrate It
The 3 Horizons of Success
• Data Analytics• IT Platform Development
Implementation Strategy
Valu
e A
dded
Integrate It Promote It
The 3 Horizons of Success
• Data Analytics• IT Platform Development
• Marketing• Launch Events
Implementation Strategy
Valu
e A
dded
Integrate It Promote It Scale It
The 3 Horizons of Success
• Data Analytics• IT Platform Development
• Marketing• Launch Events
• Infrastructure upgrades• R&D
Implementation Plan
Strategy Tactic 2016 2017 2018
Integrate
HR Recruiting - Integration Taskforce $2,905 $3,105 $255
Data Analytics - Lynda & Linkedin $845
IT Platform Development $7,500 $9,500
Accreditation Internal Capability $750
Implementation Plan
Strategy Tactic 2016 2017 2018
Integrate
HR Recruiting - Integration Taskforce $2,905 $3,105 $255
Data Analytics - Lynda & Linkedin $845
IT Platform Development $7,500 $9,500
Accreditation Internal Capability $750
Promote
Career & Learnings Pathways Launch Event
$1,650
Marketing through Linkedin $355 $125
Other Social Media Marketing $1,890 $565
Implementation Plan
Strategy Tactic 2016 2017 2018
Integrate
HR Recruiting - Integration Taskforce $2,905 $3,105 $255
Data Analytics - Lynda & Linkedin $845
IT Platform Development $7,500 $9,500
Accreditation Internal Capability $750
Promote
Career & Learnings Pathways Launch Event
$1,650
Marketing through Linkedin $355 $125
Other Social Media Marketing $1,890 $565
Scale
Scale IT infrastructure to meet demand $2,250
V2.0 Platform R&D $305
Totals - In $1000's $12,000 $16,500 $3,500
Financial Analysis – Assumptions
Key Assumptions
Market Size• Linkedin has 467m members• Linkedin has 39M students• Lynda has 100m members
Revenue Streams
• Talent solutions are 64% of Linkedin Revenue• Marketing solutions are 19% of Linkedin Revenue• Subscription services are 17% of Linkedin Revenue
Price • Lynda charges $25 and $37.5 per month• LinkedIn premium is $29.99 per month
Financial Analysis – Overview
Metric - In Millions 2014 2015 2016 2017 2018Revenue As Is $2,219 $2,991 $4,038 $5,411 $7,196Revenue Proposed $2,991 $4,217 $6,220 $8,211Revenue As Is - Growth % 145% 135% 135% 134% 133%Revenue Proposed - Growth % 141% 136% 132%
Revenue Difference $179 $810 $1,015Talent Solutions $113 $502 $619
Marketing Solutions $29 $113 $132Subscriptions $38 $194 $264
Member Subscriptions 1.005 5.183 7.036
Expenses As Is $2,235 $3,157 $4,230 $5,584 $7,315Expenses Proposed $3,157 $4,211 $6,193 $8,156CAPEX $12 $17 $4
Profit As Is -$16 -$166 -$193 -$174 -$119Profit Proposed -$166 $6 $27 $54
Financial Analysis – Revenue & Expenses
$3
$4
$5
$6
$7
$8
2015 2016 2017 2018
Billi
ons
Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed
1M Members
Data Analytics
Financial Analysis – Revenue & Expenses
$3
$4
$5
$6
$7
$8
2015 2016 2017 2018
Billi
ons
Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed
1M Members
Data Analytics
5M Members
Marketing
Financial Analysis – Revenue & Expenses
$3
$4
$5
$6
$7
$8
2015 2016 2017 2018
Billi
ons
Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed
1M Members
Data Analytics
5M Members
Marketing
7M Members
132% Growth
Financial Analysis – Profits
-$200
-$150
-$100
-$50
$0
$50
2015 2016 2017 2018
Milli
ons
Profit As Is Profit Proposed
Reduced CAPEXIncreased Subscriptions
Financial Analysis – Profits
-$200
-$150
-$100
-$50
$0
$50
2015 2016 2017 2018
Milli
ons
Profit As Is Profit Proposed
Reduced CAPEXIncreased Subscriptions Twofold Profit
2.7 ROI
Call to action
Market drivers indicate the timing is right Huge opportunity to create value through data analytics Extensive and complimentary internal capabilities Significant revenue potential
Call to action
Credibility for learning and developmentBetter utilization of big data
Dynamic pathways – learning and career
Leveraging Lynda.com
