1. © Zurich Financial Services 0 Bruno M. Schmid Corporate IT / Global Head of Consulting & Education Services +41 1 625-2394 Zurich Financial Services Email: bruno.schmid@zurich.com Global Executive MBA (GEMBA) at Duke University, Durham, NC, USA An example of a high-level Virtual University program

2. © Zurich Financial Services 1 BusinessWeek, October 20, 1997 “The Hottest Campus on the Internet: While most schools have incorporated the Internet and other technology into their educational offerings, few come close to matching the arsenal of cutting-edge applications Duke provides.” GEMBA: The Difference

3. © Zurich Financial Services DUKE: The Market Position Duke’s Fuqua School of Business is rated number 3 in Executive MBA programs (U.S. News and World Report) Fuqua is ranked No. 7 worldwide for its MBA programs by ‘Business Week’ More information at ‘www.fuqua.duke.edu’ Duke is one of the world’s leading research universities, ranked number 3 in North America according to ‘U.S. News and World Report’ (March 1998).

4. © Zurich Financial Services GEMBA: The Innovation Allows participation by executives from around the globe while they continue to contribute to their companies; Emphasizes a strong, (global virtual) team-focused, discussion-oriented learning model; Provides daily, working experience with cutting-edge technologies for managing global enterprises. GEMBA represents an entirely new paradigm of graduate business education. GEMBA is an Executive MBA program, enabled by new computing & communication technologies that:

5. © Zurich Financial Services GEMBA: The Student Body (GEMBA98) ~500 Applications 45 Students selected; 38 graduated Participants from all continents Large & small companies & entrepreneurs Average age was 39 Average work experience was 14 years

6. © Zurich Financial Services 20 months, 5 Terms, 15 Courses Each of the 5 terms consists of: –Three weeks of pre-class study (Pre-Reading) –Two-weeks of intense on-site instruction Duke University (3 weeks) Europe Asia South America Duke University –Twelve Weeks of “Internet-Mediated Learning” Individual Work and Team Projects (~25 hours/week) Assignments (50% team based; 50% individual; weighting factors: 70% individual; 30% team based) Exams (100% individual) GEMBA: The Program Structure

7. © Zurich Financial Services 6 GEMBA Curriculum Managerial Effectiveness for the Global Executive International Financial Statement Analysis Decision Models; Complex Management Problems Global Managerial Economies Interpersonal and Group Relationships in the Global Organization Statistical Models and Forecasting Marketing in a Global Environment Global Economic Environment of the Firm Financial Management in a Global Economy Cost Management and Control in Global Organizations Global Operations Management Technology, Globalization and Competition Strategy Design and Implementation Global Restructuring of the Firm Global Business Simulation

8. © Zurich Financial Services GEMBA: Internet-Mediated Learning Technology Instructional Delivery, Communication & Collaboration via: A highly-customized, integrated WWW environment A suite of focused bulletin boards for discussion Fuqua-produced, CD-ROM-based video material Real Audio and Video synchronized media presentations Text and voice-based real-time “Chat” Team and course file submission/retrieval via FTP Leading Information Services (DowJones, OneSource, Knight-Ridder, UMI Proquest, EIU Country Reports...) ICQ Online Checker E-mail as back-up

9. © Zurich Financial Services Virtual classroom: Download of files and lectures that include sound, video, and graphics at any time Calendar: Course details and assignments Discussion: An electronic bulletin board for frequent, topic-related asynchronous exchange of information Library: contains reference material and links Contact: Get in touch with other students and school staff Survey: includes databases GEMBA: Internet-Mediated Learning Technology

10. © Zurich Financial Services IBM ThinkPad and GEMBA Software provided Everybody needs a global Internet Access Service Software-upgrades each residential module (every 4 months) The GEMBA program offers the unique ability to study, learn, understand, and translate academic concepts into the workplace in a relevant way while continuing working 100% on the job. GEMBA: Internet-Mediated Learning Technology

11. © Zurich Financial Services 10 (Preparation) Selection Evaluation Pre-Reading Workshop Distance Teaming Selection Evaluation Pre-Reading Workshop Distance Teaming GEMBA model used for IT Knowledge Exchange Zurich developed a five-step process to introducing and setting up technology-empowered global virtual teams grouped around disciplines:

12. © Zurich Financial Services 11 Cultural / Behavioral Characteristics Organizational & Process Framework Technical Enabling Platform The Zurich solution combines the three important aspects for Global Knowledge Exchange: –Technical Enabling Platform; –an Organizational & Process Framework; –and Cultural / Behavioral Characteristics. GEMBA experiences included in IT KE Solution

13. © Zurich Financial Services Virtual University programs There would be much more information about GEMBA … Time is too short today … … but much more important:

14. © Zurich Financial Services Virtual University programs Time is very critical in keeping and sustaining the only real resource we have in Switzerland (and in other countries): –people’s KNOWLEDGE –people’s CAPABILITIES While the “old” university model is not obsolete (yet) … What is done (resp. needs to be done) to sustain our countries’ competitiveness in the “knowledge age” and in the fast changing global economy?

15. © Zurich Financial Services Virtual University programs QUESTIONS?

16. © Zurich Financial Services Virtual University programs THANK YOU

17. © Zurich Financial Services 16 GEMBA: Additional slides

18. © Zurich Financial Services 17 Relatively high cost for initial development and for ongoing adaptations Gain: when multiple delivery of "static" subjects Independent of place: no travel, no hotel, no other expenses Server infrastructure: initial investments required Network transfer costs: low Access infrastructure: exists already; easy to use Low administration costs; individual charging High potential for ReUse of trainings components Internet based learning (Costs)

19. © Zurich Financial Services 18 When needed; what required Independent of time: no classroom/infrastructure schedule, no instructor assignment, employees not away for extended periods Self paced Most learners complete faster (than in classroom) Ongoing progress testing and tracking Internet based learning (Time)

20. © Zurich Financial Services 19 Consistent delivery Centralized updating Critical Success Factor are the additional support offerings that are required: - Knowledge subject (Coaching) - IT infrastructure (Help-line) Password protection; access restrictions Internet based learning (Quality)

21. © Zurich Financial Services 20 Prepare for (next) residential session Books, Texts, Examples, Cases Individual or Team Assignments The Pre-Reading Phase

22. © Zurich Financial Services 21 Important at beginning of learning program Get to know the other people Build global virtual teams Absolute prerequisite for subsequent interactive distance learning Important also at the end of learning program: final cases/examples/simulations (and celebration) Base for ongoing, strong people network relationships Individual and team assignments Individual exams The Residential Sessions (“Workshop”)

23. © Zurich Financial Services 22 Use of information technology for collaborative work Team-oriented learning Cross Cultural Global Virtual Teams Global orientation (management, leadership, regional and cultural issues) Individual and team assignments Individual exams Highly Interactive Distance Learning