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Table of Contents
Evidence-based Methodology
Ambient Insight provides market revenue forecasts using our
proprietary Evidence-based Research Methodology (ERM). The
Evidence-based Research Methodology is an iterative process based
on predictive analytics that identify revenue opportunities for
suppliers. There are four key components of the ERM process:
Product Types
Supply-side Analysis of Major Suppliers
Demand-side Analysis of Major Buyers
Consumer
PreK-12 academic
Higher education
Local and state government
Federal government
Corporations and businesses
Associations and non-profits
Healthcare
Ambient Insight breaks out the healthcare sector to provide clarity for
suppliers. The healthcare sector is very unique and it is not a
monolithic vertical buyer segment.
Consumer
Ambient Insight defines consumers as individual buyers that purchase
products directly. The consumer segment is the only buying segment
in which the buyer and the user are identical. In all other segments
the buyers and the users are not the same.
PreK-12 Academic
The Prek-12 academic segment includes both non-profit and for-profit
organizations and firms. There is a steady commercialization of both
the PreK and K-12 education market in the US. There are over 52
Virtual Schools
Charter Schools
Private Schools
Home Schools
Public Schools
There are over 3.3 million teachers in the US and school systems
spend about $5.4 billion every year on teacher development. The
largest institutional buyers are the suppliers in the Supplemental
Education Services (SES) industry, estimated to be a $7 billion
industry in the US. While many school systems function as SES
suppliers and are indeed buyers, the SES industry is dominated by
corporate for-profit tutoring suppliers that function as resellers in this
segment.
There are about 27 million students that are formally enrolled in the
post-secondary system at any given time. These include students in
non-profit institutions, for-profit degree-granting institutions, trade
There are 27 million
schools, and vocational schools. The demographic is much larger
students formally
enrolled in tertiary
considering that up to 80 million adults in the US also participate
education programs, every year in some kind of educational experience.
but there are up to 80
million people that The for-profit schools are growing much faster than the non-profits
take part in some kind and are the best revenue opportunities for third-party content and
of adult education services suppliers. Two-year for-profit schools now make up 31% of
every year. the two-year college market compared to 17% twelve years ago.
Four-year for-profit schools now make up 10-11% of the market
compared to 1% twelve years ago.
Federal Government
There are two major sub-segments in the US federal government
segment: civilian and military. There are 2.6 million civilians
employed by the federal government. Of these 640 thousand are
civilian employees that work for the Department of Defense (DoD).
There are 1.4 million active personnel in the US military and another
890 thousand in the reserves. Both civilian and military agencies
purchase training for contractors and there are at least 4 million
additional individuals that are often provided training by the two sub-
segments.
Healthcare
The healthcare sector is a very complex, and relatively opaque,
supply chain. It is not a monolithic vertical, but rather an amorphous
cluster of buyers. The buyers in the healthcare sector are spread out
among corporate, academic, government, and association segments.
Discerning "who the buyer is" is the most difficult challenge for
suppliers in this segment. More often than not, the largest buyers are
not users.
Ambient Insight defines LMS products sold via the hosted SaaS model
as Technology Services in our market research. Access to the
products is sold as a service and customers do not actually own the
products.
The two largest test prep suppliers are the Princeton Review and
Kaplan (owned by the Washington Post) and they account for 45% of
all revenues so far. Yet their revenues for classroom products are
now in decline and they are trying to move to learning technology
products. There are hundreds of regional suppliers that compete in
local markets, usually by marketing to schools.
Collaboration-based Learning
Collaboration-based Learning is human-to-human collaboration and
mentoring. As a knowledge-transfer method, by definition,
collaboration requires the interaction between two or more people.
Consequently the use of synchronous collaboration and social
network platforms is the defining pedagogical characteristic of
Collaboration-based Learning.
Social Learning
There is a very new type of Web 2.0-based open learning product
that Ambient Insight refers to as Social Learning. The term "open
learning" was coined many years before Web 2.0 entered the lexicon.
In both, the locus of control is centered on the user.
The first four types are based on the definitions defined by Alessi and
Trollip in their seminal work entitled, "Computer Based Instruction:
Methods and Development." The authors compressed these into two
instructional strategies: learning about something (physical and
process), and learning to do something (procedural and situational).
Cognitive assessments
Cognitive and intelligent tutors
Cognitive fitness games and applications.
Even though several million people a year take the WPT or MBTI,
tests based on the five-factor model are the most widely used for
candidate screening. The five-factor model is also known as the
OCEAN model and is comprised of five personality dimensions:
Openness to Experience, Conscientiousness, Extraversion,
Agreeableness, and Neuroticism (OCEAN).
Over the last twenty years, one-to-one tutoring has been empirically
proven to be the most effective knowledge transfer method. There
are now Cognitive and intelligent tutors on the market that can
perform better than human tutors.
Disclaimer:
Ambient Insight analyzes the competitive landscape and supply chain
for Cognitive Learning products and is agnostic about claims or
criticisms surrounding the effectiveness of the products. We are an
integrity-based firm and we do not endorse specific suppliers or
products. We do not evaluate, compare, or rank the effectiveness of
Cognitive Learning products. We are interested in the on-going
research developments from a product marketing perspective and as
potential market catalysts and inhibitors, but our primary focus is to
track the buying behavior of customers and identify the revenue
opportunities for suppliers.
There are at least five types of handheld devices that are used for
Mobile Learning: branded multi-game devices, personal media
players (PMPs), personal digital assistants (PDAs), cell and
Product Sub-categories
For each learning technology product type, Ambient Insight breaks
out three sub-categories: content, services, and technology.
Packaged Content
When applicable, Ambient Insight breaks out content by eleven sub-
categories:
IT-related content
Language learning
Travel and tourism
Academic test preparation
General education and reference
Simulation and Game-based Learning
Medical, health, nutrition, and fitness
Business, sales, and finance
Handheld Decision Support
Continuing education (CE) and continuing medical
education (CME)
Professional training and development
Each one these can be further broken out to provide clarity for
content suppliers.
Financial and market data are subject to rapid change and Ambient Insight is
not responsible for loss caused by errors, or misinterpretation of the
contents. Ambient Insight disclaims any liability to any individual or
organization that has made business or investment decisions based on
reliance on the contents of our research.