{"id":11136,"date":"2019-05-11T07:00:28","date_gmt":"2019-05-11T11:00:28","guid":{"rendered":"https:\/\/news.elearninginside.com\/?p=11136"},"modified":"2019-05-11T10:37:31","modified_gmt":"2019-05-11T14:37:31","slug":"should-companies-build-internal-digital-capacity-or-outsource-with-benchprep-mcgraw-hill-did-both","status":"publish","type":"post","link":"https:\/\/news.elearninginside.com\/should-companies-build-internal-digital-capacity-or-outsource-with-benchprep-mcgraw-hill-did-both\/","title":{"rendered":"Should Companies Build Internal Digital Capacity or Outsource? With BenchPrep, McGraw-Hill Did Both"},"content":{"rendered":"<h6><em>Disclaimer:\u00a0<\/em><em>McGraw-Hill Education has since announced it will <a href=\"https:\/\/news.elearninginside.com\/cengage-and-mcgraw-hill-enter-into-all-stock-merger-agreement\/\">merge with Cengage<\/a>. The reporting for this article occurred before the announcement was made.<\/em><\/h6>\n<p class=\"p1\"><span class=\"s1\">The topic of online program managers (OPMs) serving universities has recently become a huge area of focus in edtech. Universities and colleges bringing their courses online need to decide whether to partner with a third party or take care of the heavy lifting themselves. That choice, however, is not confined to online courses or higher education. Incumbents across the education industry now face a consumer base that demands an online presence in one form or another. Deciding whether one should make a huge investment to bring one\u2019s core products online or hire another entity to do it is not an easy choice. And there is potentially no better case to highlight this push and pull than that of McGraw-Hill and BenchPrep.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">McGraw-Hill Education, a company that traces its origins back to 1888, grew to be one of the world\u2019s largest textbook publishers in the 20th century, was facing a watershed moment in 2012. At the time, elementary and high school textbook <a href=\"https:\/\/www.reuters.com\/article\/us-mcgrawhill-apollo\/mcgraw-hill-sells-textbook-unit-to-private-equity-idUSBRE8AP0N120121126\"><span class=\"s2\">sales were down<\/span><\/a>, in part, due to reduced state education funding following the Great Recession. At the same time, it was clear to textbook publishers across the board that they needed to establish a digital presence as more and more education was going online.<\/span><\/p>\n<h2>McGraw-Hill Has Spent the Last Few Years Aggressively Adding Digital Capacity<\/h2>\n<p class=\"p1\"><span class=\"s1\">In 2013, McGraw-Hill Education was divested from McGraw-Hill Financial and sold to Apollo Global Management for $2.4 billion. David Levin was named CEO and he quickly went about aggressively developing McGraw-Hill Education from a textbook publisher to a learning science provider with a robust online presence. Levin expanded McGraw-Hill\u2019s dev team from a staff of 90 to over 500. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">But even so, McGraw-Hill remained a massive education company with four primary divisions: K-12, Higher Ed, Professional, and International.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">While K-12 and Higher Ed have built a huge amount of online capacity, Professional, McGraw-Hill\u2019s direct-to-consumer side, has not tapped internal developers to build out their digital offerings. The reason, in part, is that while digital test prep has become an important offering for students, print titles are still selling.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Bob O\u2019Sullivan works as an associate publisher with McGraw-Hill\u2019s Professional Group. He primarily oversees the company\u2019s test prep offerings.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cPhones and online stuff have a really important role in test prep and [that supplements] what we do in [print] books,\u201d O\u2019Sullivan said. \u201cBut as stand alone review, not so much. Free content online\u2014that was our biggest hurdle for quite some time. Everyone was saying five or ten years ago, \u2018Every kid has a phone now, you have to get on the apps. Every kid takes the SAT and every kid has a phone. Every kid is going to be studying 24\/7 for the SAT on their phone! Get on that. Monetize that.\u2019 In real life, that has proven to be not the case.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">So while internal McGraw-Hill developers have focused on Higher Ed and K-12, O\u2019Sullivan has contracted with BenchPrep to fill in the gaps.<\/span><\/p>\n<h2>BenchPrep Steps In<\/h2>\n<p class=\"p1\"><span class=\"s1\">\u201cWe are on a mission to help education and training companies make more revenue,\u201d said BenchPrep CEO Ashish Rangnekar. \u201cWe do that by enabling them to transform their learning product portfolio and deliver learning programs that fit the needs of today\u2019s learners. We help them create and deliver what we consider best-in-class online and mobile learning programs that leverage their existing content assets and enable them to generate more high-margin revenue.\u201d<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Besides McGraw-Hill, BenchPrep also counts ACT, the HR Certification Institute, and the American Association of Medical Colleges (AAMC), as clients, among others. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWhat we saw was all of these organizations were truly subject matter experts when it came to content in their respective domains,\u201d Rangnekar said. \u201cYou look at McGraw-Hill, they\u2019ve been around for more than 100 years.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWe felt that they were struggling to really engage today\u2019s modern learner. Today\u2019s learner is very different. For one, they are untethered. They\u2019re on the move all the time. They are distracted. They get too many text messages, Slack messages, emails. They are impatient, they can\u2019t watch a video for any longer than 10 minutes, and so on. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cYou can\u2019t engage this learner by giving them more content in the same modality. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cSo these organizations are sitting in a strange spot. They have a very strong brand, they have phenomenal content assets, they have an almost captive audience, but they don\u2019t have the right product to offer them. That\u2019s where we come in. We enable them to go through this transition and transform their learning business.\u201d<\/span><\/p>\n<figure id=\"attachment_11138\" aria-describedby=\"caption-attachment-11138\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11138\" src=\"https:\/\/news.elearninginside.com\/wp-content\/uploads\/2019\/05\/pj-accetturo-172481-unsplash-e1557155690973.jpg\" alt=\"a clerk stands behind the register at a book store\" width=\"1200\" height=\"798\" \/><figcaption id=\"caption-attachment-11138\" class=\"wp-caption-text\">PJ Accetturo, Unsplash.<\/figcaption><\/figure>\n<p class=\"p1\"><span class=\"s1\">To do that BenchPrep, offers their white label platform, digital tools, and managed services, such as digital-first instructional design. BenchPrep helped O\u2019Sullivan to create an online home for the test prep materials he was offering without taking away from their existing print business and without cutting into the company\u2019s existing development productivity. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWhen we first partnered with McGraw-Hill, their professional division was at an interesting cross-roads because their print business was doing fine,\u201d Rangnekar said. \u201cMaybe it wasn\u2019t growing so fast, but it wasn\u2019t going away. They also realized that 1) they are not providing the right product to their customers (and they needed a digital product) and 2) they needed to make sure that they had a good transition plan. So it wasn\u2019t \u2018shut down print, and then all go digital.\u2019<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cThat\u2019s where we came in to add to their capacity. We don\u2019t interact at all with their internal platform. Maybe there\u2019s an argument to be made that we should. But there was such a greater need on the professional side. They didn\u2019t have a platform. They had not made investments and they were leaving money on the table. They needed an out-of-the-box solution that would help them get to market quickly.\u201d<\/span><\/p>\n<h2>Outsourcing vs. Building Internal Capacity<\/h2>\n<p class=\"p1\"><span class=\"s1\">McGraw-Hill is one of the largest edtech companies in the world. But the conversations behind the hybrid decision they made to split their digital future between an internal team and an outsourced third-party are happening at companies and organizations of various sizes across the industry.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cI see that we\u2019re living in a very complex world where consumers are driving a lot of decisions,\u201d Rangnekar said. \u201cWhen that decision-making process is democratized, then we expect and want more and more. It\u2019s increasingly difficult for organizations to provide them with everything created internally. It\u2019s not specific to education. We see in every industry there is a renewed interest in focusing on core competency and then figuring out ways to complement those by partnering, outsourcing, using a vendor, or a variety of things. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cA good example is everything moving to the cloud\u2014AWS, IBM, Google Cloud, Microsoft Azure. A lot of technology companies have realized they don\u2019t want to be in the technology infrastructure business, so they just use a vendor. It\u2019s no different from what\u2019s happening in education. Education is one of those [sectors] where the traditional companies are so far away from technology capabilities, but it also has become a necessity to transform fast enough. A big way to do that would be to partner with companies like BenchPrep. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cHaving said that, I do believe that, if you are a large company and you truly believe that digital is your future and you\u2019re willing to invest in transforming the core-competency to go digital, you should do it. I believe that McGraw-Hill has done a really good job of that. It\u2019s still transforming. But if you\u2019re a billion-dollar company and you\u2019re willing to invest $300 million over three years to do this, that\u2019s the kind of commitment that is required. If you\u2019re not ready to make that commitment, you should work with a company like BenchPrep, and there are many. It\u2019s their job to stay at the forefront of what consumers want and deliver in them in the best possible way.\u201d<\/span><\/p>\n<p><em>Featured Image: \u8d1d\u8389\u513f NG, Unsplash.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Disclaimer:\u00a0McGraw-Hill Education has since announced it will merge with Cengage. The reporting for this article occurred before the announcement was made. The topic of online program managers (OPMs) serving universities has recently become a huge area of focus in edtech. Universities and colleges bringing their courses online need to decide whether to partner with a [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":11137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5,6,3],"tags":[],"class_list":["post-11136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-editors-picks","category-interviews"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Should Companies Build Internal Digital Capacity or Outsource? 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