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E-Learning and Knowledge Technology: Changing the Way We SunTrust Equitable Securities 7DEOHRI&RQWHQWV Technology & the Internet are Changing the Way We Learn............................................................................................ 3 The Power of the Internet ....................................................................................................................................................... 5 • Factors Driving Growth 5 • E-Commerce — The New Economy 5 • Computer and Bandwidth Growth 6 • The Result: A Growing User Base 8 The New Way of Learning ...................................................................................................................................................... 9 • The Education and Knowledge Market 10 • Learning Benefits Created by Technology and the Internet 12 • Which Business Models Will Prevail? 13 Content/Publishing — Providing the Information for Learning........................................................................................ 14 • K-12 Sector 15 • P2 Sector 17 • Corporate Training Sector 18 • Lifelong Learning Sector 20 Tools/Enablers — Providing the Platforms for Learning ................................................................................................. 21 • K-12 Sector 21 • P2 Sector 23 • Corporate Training Sector 24 • Lifelong Learning Sector 28 Learning Service Providers — Transforming Information into Knowledge.................................................................. 28 • K-12 Sector 29 • P2 Sector 31 • Corporate Training Sector 32 • Lifelong Learning Sector 35 Knowledge Hubs/Portals/Communities — Banding Together for the Common Cause ............................................. 36 • K-12 Sector 36 • P2 Sector 38 • Corporate Training Sector 40 • Lifelong Learning Sector 40 Educational e-Tailing — Targeting a Captive Audience................................................................................................... 41 K-12 Market.............................................................................................................................................................................. 42 • Market Opportunities Abound 42 • Home Connectivity is Key 43 • The Government’s Role 43 • Teacher and School Connectivity 45 • K-12 Distance Learning 46 • Homeschool Market Offers Sizable Opportunity 46 • Summary 47 Post-Secondary (P2) Market ................................................................................................................................................ 47 • Distance Learning 48 Corporate Training Market .................................................................................................................................................... 50 • Knowledge in the Workplace 50 • IT Labor Shortage 51 • Technology-Based Training 52 • Summary 53 Lifelong Learning Market....................................................................................................................................................... 53 Public Company Valuations.................................................................................................................................................. 54 e-Learning Participants.......................................................................................................................................................... 56 Company Profiles ................................................................................................................................................................... 57 Company Index ....................................................................................................................................................................... 191 E-LEARNING & KNOWLEDGE TECHNOLOGY — MARCH 2000 SunTrust Equitable Securities /LVWRI)LJXUHVDQG7DEOHV B2B e-Commerce ................................................................................................................................................................... 6 Worldwide PC Shipments ...................................................................................................................................................... 7 Broadband Vs. Dial-Up Hours per Week Online................................................................................................................. 8 Factors Users Say Will Increase Their Overall Internet Usage......................................................................................... 8 U.S. Online Trends.................................................................................................................................................................. 9 U.S. Education and Knowledge Projected Market Size..................................................................................................... 10 The e-Learning Value Pyramid.............................................................................................................................................. 11 Learning Benefits Created by Technology and the Internet.............................................................................................. 12 Content Builds More Discussion and More Content........................................................................................................... 14 Online Learning Methods ....................................................................................................................................................... 29 K-12 and P2 Education Expenditures .................................................................................................................................. 44 K-12 Public Schools Technology Expenditures .................................................................................................................. 44 Classroom Connectivity......................................................................................................................................................... 45 Teacher Connectivity ............................................................................................................................................................. 46 Post-Secondary Enrollments ................................................................................................................................................ 47 Distance Learning Students................................................................................................................................................... 48 Post-Secondary Distance Learning Technology Use ....................................................................................................... 49 U.S. Corporate e-Learning Revenue, 1997-2003E ........................................................................................................... 51 Delivery of Computer-Based Training ................................................................................................................................. 53 Public Company Valuation Table......................................................................................................................................... 55 e-LEARNING & KNOWLEDGE TECHNOLOGY — MARCH 2000 SunTrust Equitable Securities 7HFKQRORJ\ WKH,QWHUQHWDUH&KDQJLQJWKH:D\:H/HDUQ Technological advancements have improved efficiency learning market. As teachers and parents, it is our duty and productivity of businesses, leading to the longest to supply children with the tools necessary to succeed. period of peacetime economic expansion—nearly eight With the Internet playing an important role, that success years. The advent of the computer has forever changed could be well in-hand. our daily lives. Complementing the positive impact of the computer has been the value brought to the table by Technology is changing the landscape of the post- the Internet. In just over three years, the Internet has secondary marketplace as well. Distance learning dramatically transformed many industries. The first programs are increasingly becoming a necessity for both wave of the Internet related to real time two-and four-year colleges and universities as they strive communication—the widespread use of e-mail, and was to meet the changing demands of a student base that followed by many opportunities for B2C e-commerce. works in addition to attending classes. The significant Now many of the opportunities presented by the Internet shortage of qualified IT workers is also forcing change are beginning to take shape in the B2B marketplace. on our higher education system. Colleges and However significant the impact on the consumer and universities are realizing this opportunity by offering business markets, we believe that the Internet, as a tool, programs that prepare individuals for certification in will have the greatest influence on the process of various technologies—for example, Cisco, Microsoft, learning—e-Learning will change our lives. and Novell. The evolution to a working student base and the large demand for certified IT workers has led to We, as individuals, have a thirst for knowledge, and the substantial growth in post-secondary online learning. Internet is our oasis. Where previously an individual was We firmly believe that online programs will become an constrained to a local community (colleges, libraries, integral part of the higher education system over the newspapers) to acquire knowledge, now the world is a next five to ten years, as the technology-savvy student virtual local community. The Internet allows one to base expands. Companies to watch
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