Vocational education in Germany : Vocational education in Germany Wilmar Diepgrond Managing Director Education Germany/Austria Karl Kaz Business Unit Manager Amsterdam, 25th November 2003


Content: Content Part 1: How we manage vocational business Part 2: Market, products and how products are developed


Bildungsverlag EINS : Bildungsverlag EINS Key figures Bildungsverlag EINS Revenues € 38 m Titles 3.200 Employees 170 Ebita-margin above average WKE


Part 1: : Part 1: How we manage vocational business


Educational Germany: Educational Germany Technology Customers: Corporates Digital spirit Educational solutions Content Customers: Schools


Strategic objective : Strategic objective Strategic objective in core business is operational excellence Operational excellence enables us to realise: High innovation rate Profitability (EBITA average WKE) Growth of market shares


Market share growth with high innovation rate: Market share growth with high innovation rate Innovation Rate in % Market Share Development in %


Business centralisation: education Germany 2000 : Business centralisation: education Germany 2000 Wolf Kieser Gehlen Stam Konkordia


Business centralization - situation 2000 : Business centralization - situation 2000 6 companies at 6 places with 10 brands Each location with own infrastructure Internal competition Different culture, difficult communication, lack of efficiency Fragmented market positions Many titles with small print runs Different systems in place Product development at all locations Few back office integration


Business centralization: Business centralization Strong cost savings in all areas New organisation aligned to customers Reduction of FTE from 220 to 170 Many new employees with new skills Strong new brand, strong market position Competitors feel themselves niche players Strong improvement innovation Implementation of one integrated back office system SAP/Klopotek


Why are we successful? : Why are we successful? High innovation rate in core business Sustainable profitability Stable, standardised environment Organisation specialised on flexible and quick reaction Focus Improvement marketing/sales activities Strong focus on process management Dedicated project managers Market orientation, using buy-in process Signed project plans for all projects Delivering on time Financial control


Part 2 : Part 2 Market and Products


Market educational Germany: Market educational Germany Market educational Germany € 330 mln Competitors vocational


Market characteristics vocational Germany: Market characteristics vocational Germany Target group 16 years+ Decision makers teachers, students, corporate Purchaser schools, students, corporate, government Lifecycle 9 years locked in customers, new edition every 1 – 2 years Market stable, high fragmented (400 professions, each with 10 subjects in 16 states) Trends high innovation, increasing private spending; concentration


Vocational Germany: an attractive market : Vocational Germany: an attractive market Many changes in the market, high innovation Increasing private spending in education Strong market position Locked in customers like subscriptions, long cycle (9 years) Low price elasticity, fix price law Local competition Strong local network in place Improving attention on quality of education Market expansion: students, corporate


New product development – process control: New product development – process control Project idea Market check Draft project plan Acquisition authors Customers Project manager Authors, washing machine Interviews Financial check Market volume Project description Schedule Financial (Gross margin) Test chapter Market buy in Project manager Marketing/Sales Project manager Marketing/Sales Finance Project manager FD Project manager Development process Involved Month 1 1 - 2 1 -2 1 - 6


New product development: New product development Project idea Market check/ buy in Draft Project plan Signed Project plan Product 100 % 70 % 55 % 40 % 30 %


New product development – process control: New product development – process control Project idea Market check Draft project plan Acquisition authors Customers Project manager Authors, washing machine Interviews Financial check Market volume Project description Schedule Financial (Gross margin) Test chapter Market buy in Project manager Marketing/Sales Project manager Marketing/Sales Finance Project manager FD Project manager Development process Involved Month 1 1 - 2 1 -2 1 - 6


New product development – process control: New product development – process control Final Projectpass Manuscript realisation Content factory Technical realisation Sales expectation USP Calculation Schedule Design Signing contract Continuing process Correction loops Editing Designing Drawing Printing Binding Signed by: BU-Manager FD, MD Marketing Project manager Project manager Editor Production External 1-4 6-24 1 3-5 Input in Klopotek-system Strong project management Start marketing sales Development process Involved Month


New product development – process control: New product development – process control Marketing/Sales After sales review Sales reps Free copies Promotion Fairs etc Direct marketing Review sales actions New actions After sales actions 6 6 Marketing/ Sales, Project manager Marketing, Project manager, controlling Development process Involved Month New edition in Klopotek


Example 1 “Banking”: Expanding the market: Blended learning: Print combined with online testing tool Example 1 “Banking”: Expanding the market Education market banking (school and corporate) Contract publishing Surface indicates total market size


Example 1 “Banking”: Expanding the market: Example 1 “Banking”: Expanding the market High quality products Best- and long sellers, high market share Core title “Wirtschaftslehre des Kreditwesens”: Yearly revised edition Enhanced market: Contract publishing with leading banking houses (Dresdner Bank, Deutsche Bank) Next step in preparation: Blended learning concepts in banking (combining print, testing tools on an internet platform)


Example 2 “Hairdresser”: Competitive advantage as market leader : Example 2 “Hairdresser”: Competitive advantage as market leader


Example 2 “Hairdresser”: Competitive advantage as market leader: Example 2 “Hairdresser”: Competitive advantage as market leader Example for solution packages for teachers High market share Full colour student text book Many workbooks as additional offers Teacher material for any purpose Exam preparation Software Solution (administration tool)


Example 3 “Retailer”: Standardisation and spin-off: Example 3 “Retailer”: Standardisation and spin-off Cost reduction can be combined with customer focus As a market leader we will be the first using consequently CMS/data based publishing


Example 3 “Retailer”: Standardisation and spin-off: Example 3 “Retailer”: Standardisation and spin-off Using same cover layout in different colour versions Using same layout/page design in different books Using the same content in different products (often 70-80% can be used twice) Often in the different editions only the sequence of the chapters is different CMS/Data base will help us to optimise this processes


Example 4 “Automotive”: Product differentiation: Example 4 “Automotive”: Product differentiation


Example 5 “HOT”: Workflow Tools for Teachers: Example 5 “HOT”: Workflow Tools for Teachers An extraordinary success story High number of subscribers (20% of all teachers in vocational economics), up front money Teacher material (facilitating the preparation of lessons, direct use in the classroom, up to date) USP: we sell teachers additional time for their work Additional spin offs


Example 6 “HOT”: Print and Online: Example 6 “HOT”: Print and Online Last year started the additional Data base solution (Search function, down loads, modification, more and quicker actualisation) with high acceptance in the younger teacher generation Additional sales with compilations (updates of older material, 6 Volumes)


Example 6 “HOT”: Print and Online: Example 6 “HOT”: Print and Online


Slide31: Thank you for your attention