Sibling Group Holdings is looking to overhaul our broken education system here in America, fusing together a severely fragmented industry, which is highly fractured both on the tech side and on the nonprofit/for-profit education management end of things. The idea of a portfolio strategy for the education space, where, instead of centrally planned and run school districts, we move towards a configuration where individual schools are seen more as performance contracts and the emphasis shifts from compliance to performance management and continuous improvement, is something which ultimately serves students better and helps restore healthy free market principles to the sector.
The K-12 market, sizing up all accoutrements from textbooks, to digital content and technology, represents around a $27.8B market ($18.3B, $2B, and $7.5B respectively from leading surveys of educators and education firms). The broader e-learning market across various industries, which encompasses education, is expected to grow to a whopping $49B by 2014 alone, with new facets like massive open online courses and other innovations gaining increased prominence.
Sibling Group has devised a two-pronged strategy (updated Feb 25) for mastering the complex and constantly changing 21st century education market, with the first prong focused on the education management organization (NYSE:EMO) side of the equation and the second prong specifically dedicated to the education tech side. These two entities, The Teaching Alliance and Education Innovation, will cover all the bases from logistics management and specialized curricula, to teacher training and deployment of new computer-based education methodologies, as well as learning management and testing/assessment solutions designed to actually validate learning proficiency.
Teaching Alliance will acquire EMOs from the pool of some thirty or so in the U.S. (biggest of the bunch manages approximately 100 schools) focused on the charter school space, ultimately becoming involved with both private institutions and tutoring organizations in the global market. Tightening up operating margins via implementation of newer content and methods, especially digital content, will allow SIBE to wring greater profit and performance from the resulting education network.
Whether we are talking privately-owned and run schools, publicly-funded schools, or the corporate education and training layer of the sector, this is a target rich environment where a technology-driven solution set that can handle all three segments simultaneously will dominate.
The company has a courseware and curriculum e-commerce portal/exchange system that is managed internally called The Schoolhouse Warehouse, but SIBE is squarely focused on acquiring profitable businesses with readily quantifiable education results that can be packaged and distributed to other markets. Scalability and transportability are as key in the education market as they are in software development, but SIBE is intelligently gearing towards the leveraging of existing/prevailing software and an emphasis on modular, proven operational momentum. The second facet under Education Innovation's umbrella is a fully integrated proprietary LMS (learning management system) that handles assessment, grades, and testing, in addition to leveraging The Schoolhouse Warehouse app store to provide educators with the ultimate curriculum building engine.
This is a strategic model already tested to great success by companies like Knowledge Universe, Inc., who is teamed up with K-12, Inc. (NYSE:LRN), enjoying tight virtual online education integration with its own operations as a major investor. A modular framework that can collect any size of institution or operation, resulting in a nodal network of performance-driven entities, is more than just efficient logistically; it is the ultimate solution to generating better real returns on America's education dollar. SIBE is dedicated to transforming a disparate and even (to students in particular) detrimentally inefficient educational system with a clear vision for a bridged operational and distributed-learning matrix.
By creating a formula that can be applied to the entire spectrum of learning from youth through to adulthood in the corporate workspace, SIBE has its hands on the nascent potential of all of this digital, internet-driven, and mobile technology that has come down the pipe in recent decades (and they are intent on using it to reshape the education landscape). Computer-based education is a huge part of the overall solution set and operations like Rocketship Education clearly demonstrate the potential for capturing not only K-12, but the teacher training spectrum as well, something which is becoming increasingly nebulous as complexity increases. Indeed, the new demands of a 21st century educational environment have, in and of themselves, redefined the role of the teacher and will continue to do so to a greater extent moving forward. Individualized learning will not only become more and more possible, demand for it will inherently start knocking on the door of a fundamental paradigm shift to "school-as-a-service."
SIBE is poised to capture the stored kinetic energy of that paradigm shift and is currently mustering significant troop strength, while executing small STEM (science, technology, engineering, and math) training education groups outside the public school space with summer camps and the like (see Dec 6 acquisition report on Funutation Tekademy LLC), as this army of professionals also provides consulting fee-based services to all grade levels.
Low-cost, high-value online delivery of education and distributed education is the future; you can have the very best teachers teaching everyone with a lightweight generation and distribution method. SIBE understands the change and has designed an appropriate strategy for generating significant shareholder ROI as consumers upgrade to better, more modern education systems.
For additional info, visit the Sibling Group Holdings website at NewCo4education.com
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