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1 Session Sponsor

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1

Session Sponsor

2

The Age of Human Capital

Partnerships and Alliances To Deliver Technology-Based Education

Learning Sciences The Internet

3

An Investment in Knowledge Pays the Best Return

4

Wealth Today Resides in Human Capital

• Becker and others estimate that roughly 70% of a nation’s wealth today is in the form of human capital rather than physical capital.

• The pecuniary returns to knowledge, education and skill are very high in the United States and even higher outside the most developed countries.

5

Growth Depends on Recruiting and Retaining a Skilled Group of

Knowledge Workers

6

The Costs of Recruitment Are Staggering

7

Retention Is Critical: Hiring Costs Are Sunk Costs

8

Knowledge Worker “Age-Wage” Gradients Are Steep

9

Investment in Human Capital as a Percent of GDP

17 – 25+Percent

9 - 11%

4 – 6%

4 – 8%

???

Schooling

On the Job Training

Health

Adult Education

10

Raw Labor and Human Capital as a Percentage of National Income

0%

5%

10%

15%

1936 1946 1956 1966 1976 1986 199660%

65%

70%

75%

Raw Labor

Human Capital

Raw Labor Human Capital

11

Post-Secondary Education Premiums 1967-1997

12

College Entry in the United StatesPercentage of High School Graduates That Continue

To College

13

100

110

120

130

140

150

160

170

180

190A

ustra

lia

Cana

da

Fran

ce

Ger

man

y

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Uni

ted

Stat

es

Earnings of Tertiary Education as a Percent of Earnings of Upper Secondary Education

Men University-level Education

Non-university Tertiary Education

14

Earnings of Tertiary Education as a Percent of Earnings of Upper Secondary Education

100110120130140150160170180190

Aus

tral

ia

Can

ada

Fran

ce

Ger

man

y

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Uni

ted

Stat

es

Women

Non-university Tertiary Education

University-level Education

15

Post-Secondary Education is not Common Outside of the US

6 4

32

3

14

44

8

54

3

0

10

20

30

40

50

60

Bra

zil

Chi

na

Indi

a

Japa

n

Mal

aysi

a

Mex

ico

Sout

hK

orea

Spai

n

US

Percent of 20 – 24 Year Olds Enrolled in Post-Secondary Education

16

18

33

-2

4640

16

1

2116

-10

0

10

20

30

40

50

Bra

zil

Chi

na

Indi

a

Japa

n

Mal

aysi

a

Mex

ico

Sout

hK

orea

Spai

n

US

Growth Coincides Precisely with Limited Supply

Anticipated Percentage Population Growth 1997 - 2020

17

MBA Programs Have Grown Dramatically

0

50,000

100,000

1956

1966

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

3,280

102,171MBA Degrees Granted 1956 to 1998

18

People Come From Everywhere To Attend Business School in the US

16%Non-resident Alien

84%U.S. Citizen

16,294

85,877

19

Approximately 420,000 Students Currently Are Enrolled in US MBA

Programs

Full Time Students105,000

Part Time Students315,000

Degrees Conferred102,171

20

Learning Platform Version 1.0

21

Version 1.1

22

Version 1.2

23

One way communication

24

Universities Have Content Knowledge but not Internet or Pedagogical Knowledge

25

The Creation of New Learning Technology

• Only active learning works.• Collaboration is essential.• Problem-based learning is active and

engaging.• To make all of this work,UNext has

created a “knowledge studio” that implements new learning in education and instantiates it in an Internet delivered structural environment

26

The UNext Consortium

STANFORDUNIVERSITY

THE UNIVERSITY OF CHICAGOGRADUATE SCHOOL OF BUSINESS

27

Facilities-Based MBA Programs Provide Unique and Immutable

Advantage• Compaction and congregation provide

community and focus• Networking and in-person mentoring are

fundamental advantages• Technology-Based Learning however will

transform these programs

28

UN2U• In this century, schools must economize on the time of

busy professionals and must find ways to use faculty much more efficiently (to facilitate research and deal with the increasing difficulties of hiring and retaining faculty).

• Programs on a “per-use” or wider basis that mix physical delivery with technology-based learning will be the predominate form of instruction in this century.

• Only those schools that combine these deliveries will survive.

• The UN2U Program addresses this concern by combining physical delivery and state of the art technology based learning.

29

Some People Desire a Fully Internet-Based Delivery

• Extremely busy executives• Those unable to accommodate to “calendarization”

because of the rhythm and beat of the conflicting demands of work and familial obligation

• Those located at distance from quality facilities-based providers

• Itinerant executives who can not realistically expect to live in one place for three or more years

• Cardean serves this group directly

30

Flash Back in Time: 1992

$4.1bn Facilities/ Overhead

9%

$2.6bn Seminars/

Conference6%

$2.1bn Hardware

5%

$1.4bn Outside Services

3%

$1.2bn Custom

Materials3%

$32.1bTraining Sta

Salaries71%

$1.5 bn Off-the-shelf Materials

3%

Total: $45bn

Dollars Budgeted for Formal Training (U.S. organizations with 100+ employees)

31

Flash Back in Time: 1992

92

90

62

51

46

43

41

27

1710

0 20 40 60 80 100

Videotapes

Lectures

Role Plays

Audiotapes

Slides

Films

Self-Assessment/Self-Testing Instruments

Noncomputerized Self-Study Programs

Multimedia

Video Teleconferencing

32

Flash Back in Time: 1992

RestructuredNon-PrivateAMA

Acquired by FT Knowledge

SubsidiaryForum

Acquired by Times Mirror

SubsidiaryZenger-Miller

Out of BusinessPart of IBMSkill Dynamics

Still PrivatePrivateDDI

Where Are They Now?

Public/PrivateLeading Training Vendors 1992

33

Evolution of Learning Departments: 2002

Companies in the Education BusinessYears in Education BusinessPublic/PrivatePublicly Traded Firms

2001PublicSun Microsystems1984PublicSmartForce

1999PrivateTHINQ1972PublicSAP1997PublicSaba1987PublicPeopleSoft1982PublicIBM1999PrivateKnowledgeplanet1997PublicDocent1973PublicApollo Group

34

Evolution of Corporate Learning

Training staff is 100% internal/HR

Tangible commitment to organization

Lack executive ownership of learning

Alignment to strategic goalsDeliver 90% classroom learning

Employer of choiceFocus on hard skills

Driver of cultural transformationDecentralized

Growth phase of corporate universities

Traditional training dept.

1994-19981980s-early 1990s

35

Evolution of Corporate Learning

Beyond 2002Metrics: focus on efficiency

Metrics: focus on linkage to business performance

Prescriptive learning

Learning as family benefitVendor management

Learning integrates with knowledge management

Customer education

Big gorillas emergeCompany-specific customized courses

Beyond 20021998-2002

36

Let’s Focus On Key Challenges Impacting Corporate Learning

• CLO Position• Metrics From Efficiency To Winning In

Marketplace• Better, Cheaper, Faster Learning Solutions• Vendor Management• Taking Partnerships To a New Level• Customer Education • Prescriptive Learning

37

From Trainer To Executive Level Learning Professional

– Funding of Learning Department– Skills and Competencies Required of CL

Evolution of Corporate Learning: 2002

Learning Visionary

Alliance Builder

Leadership Developer

Business Manager

38

Evolution of Learning Departments: 2002Dow Chemical Co.’s [email protected]

Growth of course titles: 15 !!!! 98 !!!! 426 in 2 years209,000 course completions (1999-2000)Offered in 7 languages

Scalability:

Savings of $9.1 million (excluding trainer salaries)- $844K manual record keeping- $3.1 million delivery- $5.2 million class materials

Business results after one year:

$1.3 million initially (1999) + $600,000 maintenance since

Investment:

CIO magazine’s Enterprise Value AwardRecognition:

39

Evolution of Corporate Learning:Company-Specific Certificate & Degree Programs

MA MechatronicsBA Business

MSEE Wireless

Long Island UniversityEmpire State CollegeSt. Joseph’s CollegeSuffolk Community

CollegeNankai University

Symbol USymbol Technologies

MA Supply Chain

Management

Georgia Tech North Carolina State

Milliken University

Milliken

AreaPartnershipsLearning Department

Company

40

Evolution of Corporate Learning: Company-Specific Certificate & Degree Programs

Fire Science/EMS

Consortium of 12 CollegesFDNY Corporate University

FDNY

Master’s Degree

Technology Management

Oregon University School of Science & Engineering

Microsoft Education

Microsoft

Masters Degree

Technology Comm

University of TexasLearning Center

IBM

AreaPartnershipsLearning Department

Company

41

Evolution of Corporate Learning: 2002

http://www.1800teachme.com/Telcordiawww.metlife.comMetLife

www.learningcenter.sbt.siemens.comSiemens

www.teradataeducationnetwork.comTeradatawww.codewarrioru.comMotorola

Customer Education Explodes

42

Website: Portal For Learning Solutions

43

Knowledge in the context of the company: link is built-inKnowledge in the context of the company: link is built-in@Work section applies theory to practice in real time@Work section applies theory to practice in real time

Real-time mentoring with in-house or outside coachesReal-time mentoring with in-house or outside coachesCases in easy-to-use 10-minute chunksCases in easy-to-use 10-minute chunks

Prescriptive Learning EmergesPrescriptive Learning EmergesEvolution of Corporate Learning: 2002

44

Where will Corporate Learning Be in 2010?

• Learning landscape• Learning Organization• Funding & Measurement• Alignment With Business• Opportunities For Us

45

Big Gorillas Emerge

Beyond 2002: Learning Departments

17%$4,379,000,000$25,296,000,000Microsoft

11%$2,000,000,000$18,200,000,000Sun Microsystems

10%$1,100,000,000$10,800,000,000Oracle

19%$320,000,000$1,700,000,000PeopleSoft

8%$145,000,000$1,800,000,000Siebel

23%$60,000,000$251,000,000SmartForce

R&D%(% of

Revenue)

R&D/Product Dev. Budget

(Approx.)

2001 Revenues

46

Beyond 2002: Learning Departments

e-Learning evolves from connecting learners with static PowerPoint presentation to integrating learners with knowledge sharing software

www.askmecorp.com

www.emmperative.com

Learning Integrates with Knowledge Management

47

E-Learning Will be a Sought After Family Benefit

http://edu.symbol.com http://www.ci.nyc.ny.us/html/fdny/home.html

Beyond 2002: Learning Departments

48

e-Learning Success Formula

= SUCCESSGRAVITATION FACTOR

= Individualization/MeasurementsVALUE OF CONTENT X

= Standards/Development CostAMOUNT OF CONTENT X

Interface/Infrastructure/PriceEASE OF ACCESS X

HOWWHAT

49

Experience Based LearningExperience Based LearningLearning Labs, Classroom, Mentoring, Role Playing, Coaching, Case Studies, Expert Presentations, Motivational Speeches

Learn from Collocation Get together, Build Communities & Relationships, Live it, Do it

Face-to-Face

Learn from InformationRead it, See it, Hear it

InternetWeb Lectures, Web Books, Web Conferences,Web Lectures, Web Books, Web Conferences,Web Pages, Videos...Web Pages, Videos...

Performance Support & Reference MaterialsPerformance Support & Reference Materials

CBT/WBT Modules, Self-Directed Learning Objects,CBT/WBT Modules, Self-Directed Learning Objects,Interactive Games, Coaching & Simulations Interactive Games, Coaching & Simulations

Learn from InteractionExamine it, Try it, Play it

Interactive Learning, Simulation, and GamesInteractive Learning, Simulation, and GamesCBT/WBT Modules, Self-Directed Learning Objects,CBT/WBT Modules, Self-Directed Learning Objects,Interactive Games, Coaching & Simulations Interactive Games, Coaching & Simulations

Multimedia

CollaborativeLearn from Collaboration Discuss it, Practice it with Others

CollaborativeLive Virtual Classroom, e-Labs, Collaborative Sessions, Real-time Awareness, Live Conferences, Teaming

Collaborative Learning Collaborative Learning

Copyright IBM

IBM 4-Tier Learning ModelTM

50

Tim

e Sp

ent L

earn

ing

2002 Year 2007

F2F Informal

F2F Formal

Collaborative InformalCollaborative FormalInteractive

Reference, EPSS,Video

Predicted Use of Delivery Methods

51

Self-service HR

Collaboration

Learning

Self-service Expense,

Procurement

Instant Messaging

Expert Directory

Content Management

Communications

52

Growth of the Service Sector

69%63%

57%61%62%

71% 72%76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

US UK Germany Japan

1989

2001

Share of Services in GDP, 1989-2001

53

Growth in Professional Employees

31

42

05

1015202530354045

1991 2001

US Professional Workers (Millions)

54

Increasing Globalization

Foreign Holdings of US Assets ($Trillions)

$2.3

$6.2

0

1

2

3

4

5

6

7

1991 2000

US Holdings of Foreign Assets ($Trillions)

$2.0

$8.0

0

1

2

3

4

5

6

7

8

9

1991 2000

55

Rapid Change is the Only Constant

• Information flows fast & freely

• Employees are increasingly mobile & connected

• Business pace continues to accelerate

56

Corporate Learning’s Response

• Learning centralized to gain efficiencies & effectiveness

• Transition from internal to external & local to global providers

• Migration from classroom-based to “virtual” learning