Higher Ed Delivery Evolution Initiative August ISM 2011

Initiative Rationale PARITY WITH COMPETITORS AND PARTNERS – Prevent a margin-eroding shift from direct channels to distribution partners. – Protect HE business by preparing content for new platforms and devices. INCREASED DELIVERY OPTIONS AND MORE POWERFUL DRM – Ability to introduce new delivery modes and experiential pricing options. – More DRM options and better sell-through. EVOLUTION OF CONTENT AND PEDAGOGY – Address the revolution in expectations for interactivity and engagement. – Set the foundation for future product development. TRAVERSING BARRIERS TO ENTRY – Address powerful eBook platform/content aggregation vendors and their exclusive ties with schools requiring proprietary content formats. – Focus on enabling our content to satisfy customers’ platform and delivery choices.

Project Track Teams Delivery Evolution – “Experience team” (new focus for existing “Enhanced PCL” team) Heide/Ellen (co-leads) Jim D. (Tech) Nicole (Product/Editorial) Allison/Cynthia (Marketing/Sales) Denis/John G. (Services) Technology & Process – “Process team” (new team) PM TBD/Suzi Weber (co-leads) Carol/Caitlin (Ops) Jim D. (Tech) Ellen or designee (Marketing/Sales) Denis/John G. (Services) Jon Scheinbart (Enterprise IT) Coordination of two teams: Denis, PM TBD

Higher Ed strategy FORMATS PLATFORMS DEVICES  There is flux and convergence in formats, devices, platforms.  Focus on FORMATS – maintain content focus as our core competency.  Additional formats allow us to enable our content on customers’ platforms and devices.  Focus on how we facilitate delivery of new formats – via HBE web site, partners, etc.

Current HBP workflow: super simplified HBS Case Any Case Inspection & manual conversion PDF Partners Institutions Students WORD docs from HBS HE OPS Customer choice

The challenge of format complexity HBS Case Any Case Inspection & manual conversion PDF Institutions Students Customers Inspection & manual conversion EPUB Inspection & manual conversion HTML Inspection & manual conversion Partners Proprie- tary Format

In a complex world, the value of XML HBS Case Any Case Ingest Word files and output standard XML before transforms are applied to create … PDFs Institutions Students Customers EPUB HTML Proprie- tary format Partners

Relative process complexity Relative content agility Starting point – XML transition “Write once, read once” (single-format delivery) “Write once, read many” (supporting multiple formats and uses) Why XML? Content Agility.

Phase Approach Ingestion / Conversion Storage / Repository DeliveryExperienceAuthoring Truly will be an evolution over time in terms of rollout, but work on all phases will occur simultaneously

Phase 1: Enhance Current World Ingestion / Conversion Storage / Repository DeliveryExperienceAuthoring Make current experience as tablet-friendly as possible Recommend tools for PDF annotation and collaboration Provide guidance on how to get PDFs onto devices

Phase 2: Mobile-ize HBE Web Site Ingestion / Conversion Storage / Repository DeliveryExperienceAuthoring Increase options for tablet customers Create mobile-aware site Easier for tablet users to procure files for local use Experience enhanced via website even though content is still PDF

Phase 3: Classic Cases Online & Tablet Ingestion / Conversion Storage / Repository DeliveryExperienceAuthoring Deliver online/app experience for current case format Conversions of content begin in waves Workflow processes and ECM systems updated for multiple formats Online delivery of “classic cases” Provision of EPUB files for download onto tablets Ability to fulfill files to eBook platforms Ability to introduce experiential pricing

Phase 4: Enhanced Products Ingestion / Conversion Storage / Repository DeliveryExperienceAuthoring Augment products for online/tablet experience Enhanced case/product experience for faculty and students Not simply ‘print content online’, but products designed to accommodate and leverage new modalities Continue to evolve delivery options and features Focus on our content, products, and the PCL experience

Rationale Recap PARITY WITH COMPETITORS AND PARTNERS Web and downloadable file approach drives business direct to HBP. INCREASED DELIVERY OPTIONS AND MORE POWERFUL DRM Multiple formats, experience-based pricing, secure content. EVOLUTION OF PRODUCTS AND PEDAGOGY Foundation for new NPD. TRAVERSING BARRIERS TO ENTRY New content formats allow delivery across eBook platforms.

Next steps Complete Discovery Phase (mid-September) Begin conversations with HBS regarding Case Template Critical conversations and scoping with Enterprise IT Short-term push for additional market research (both customers and distributors/partners)