Tag Archives: Digital

Organising for the digital transformation in Belgium

de boeck blog

I’m really happy that we have acquired the educational publishing activities of De Boeck in Belgium. Welcome to our new colleagues! Click here for a short vlog about it.

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De Boeck is a trusted brand with a good market position, making about € 17 m of revenues in 2015 and employing about 80 professionals. They share our passion for education and learning and there’s a very good fit with our mission of helping teachers to develop the talents of our children.

mission

Why?

Demand for multi-channel learning solutions is increasing. Our customers tell us that digital can support learning impact: improved engagement and higher learning outcomes for pupils and better workflow efficiency for teachers. A great example of using multi-channel to enable learning impact is bingel. So we made this acquisition to enable the digital transformation of learning and teaching in Belgium. We are working hard to organize ourselves effectively for this.

How?

We intend to combine the complementary high quality portfolios and well-developed learning design capabilities of Van In and De Boeck.

This will bring more scale to our significant investments in digital across these high quality portfolios.

We can realize synergies in our operations as we create a new organization ready for the future.

Looking forward >>

Bringing together two great companies, Van In and De Boeck, will help us to better fulfil the needs of our customers, today and in the future. Good luck to the new team in making this a success!

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Sanoma Learning 2015: taking the right steps to prepare ourselves for the future

the-story-of-sanoma-learning-image

Following the announcement of Sanoma’s 2015 financial results earlier this week, I would like to share with you some of the operational highlights from Learning.  There is a short video summary of it here too.

Engaged customers and colleagues

We engaged with about 10 million pupils and 1 million teachers across Northern Europe, helping pupils to develop their talents and teachers to excel as professionals. We invested heavily to strengthen our position as a leader in the digital transformation. Thank you to our customers for your trust in us, and also to our people for your good work throughout the year!

Good progress on the (digital) transformation

We made good progress on the digital transformation and achieved 15% organic growth in new media sales in our footprint compared with previous year, showing new media sales growth in all of our footprint markets. The number of users and time spent per user increased significantly across our digital offerings. Also we took great steps forward with our co-development program including exporting bingel from Flanders to Wallonia, Sweden and Finland. We realized double-digit growth in market share in Poland with an excellent performance from the team at Nowa Era. The profitability of our core markets was solid, although overall profits were impacted by cleaning up legacy positions at YDP.

Making a positive impact on learning

In 2015 we introduced Sanoma Learning’s Impact Framework which helps us to measure the benefits our solutions bring to our customers. Through the SLIF, we have learned:
95% of teachers reported that our materials help them in enabling pupils to achieve their learning goals
85% of teachers reported that our methods help them with engaging pupils with learning
Teachers typically save about 8 hours of working time each week by using our solutions
I believe this is excellent evidence of the value we bring to education.

Van In realized an outstanding performance across a broad range of indicators including higher sales, market share, digital sales and digital usage. Great job by the team at Van In! Bingel prospered and won the prestigious “International Educational Learning Resources Award 2015” in London and together with Diddit “ICT Project of the Year 2015” in Belgium. New platforms Diddit and Wazzou have been launched in Flanders and Wallonia. Together with SchoolOnline and bingel, they have helped us to win in the market. YDP is now starting to look at taking bingel into new international markets.

Nowa Era achieved double-digit growth in market share, driven by the new business model and a strong operational performance. I am super proud about how the team has dealt with the extremely difficult market conditions resulting from the new legislation. In addition to this, winning in new segments such as exam preparation has brought us access to new markets. Vulcan has performed well and shows good potential for cooperation with Nowa Era in creating new offerings for schools.

Malmberg had a solid year. Good progress was made on the digital transformation, especially with the adoption of new offerings from VOoruit in secondary education. Bureau ICE made an excellent overall performance and it was brilliant to see their success in winning more than 30.000 customers for the IEP Eindtoets. Great job! Our first adaptive course JUMP! – created in cooperation with Knewton – has now gone to market and the early results are promising. I also very much appreciate the important role Malmberg plays in our co-development agenda, including the Editorial Tooling Suite Sanoma Learning (ETSL), Testing and Assessment platform (TEAS) and Edubase. Thank you!

Sanoma Pro faced a smaller market in advance of the broad-based curriculum reform starting in 2016. A big part of the plan for 2015 was to prepare ourselves for this new curriculum. We’re looking forward to bringing our new generation of multi-channel methods, including TEAS and bingel, to the market this year!

At Sanoma Utbildning our positions in secondary education and Swedish for immigrants performed well. Bingel is getting good traction with customers. Through the investments we are making in new learning platform Fox (built on Edubase and populated with content created with ETSL), we believe we are taking the right steps to re-position ourselves for future growth.

At YDP we hired an excellent new Managing Director who has formed a strong new management team which has addressed legacy issues and has made a financial clean-up. This team is now building a new product offering, a new commercial approach, and a leaner organization structure, to prepare ourselves for future growth. As a result of these actions we are optimistic that we will be able to improve performance and profitability at YDP in 2016 when compared with 2015.

2016: focus on winning in challenging markets

Last year we have taken the right steps to prepare ourselves for the future. We are using technology to bring more value to our customers. We will continue investing in new multichannel methods across our markets. And we’re bringing together content and workflow functionalities, to help pupils and teachers in ways that really work.

Proud of the teams

I’m proud of what our teams have achieved in 2015. I want to thank you for your good and hard work and look forward to working together with you in 2016!

Sanoma’s digital transformation gains momentum

Sanoma House in Helsinki

Sanoma House in Helsinki

Last week Sanoma announced the FY2013 results. To be frank they were mixed, with online and mobile sales growing but print media in decline. The vocabulary turned classical: annus horribilis, Utopia, and per angusta ad augusta, could be heard in English, Finnish and Dutch conversations during the week. As is often the case with mixed signals, the good news has been somewhat drowned out by the more negative headlines throughout the year.  Yet Learning had a good 2013. And after a slow start to the year the overall digital platform has gained momentum and performed particularly strongly in the final quarter.

I always find it tricky blogging about financial results given that Sanoma is a listed company. But now that we have announced the results, I’d like to call out a handful of highlights on digital in Finland, The Netherlands, Learning and early stage innovation at Sanoma in 2013, drawing on the published materials.

As a reminder, the core strategy of Sanoma rests on three pillars: i) connecting consumers with content and brands, anywhere, anytime; ii) delivering powerful marketing opportunities to advertisers through our reach and consumer insight; and iii) providing personalized digital learning solutions to pupils and teachers.  Digital is clearly an integral part of that strategy.

Finland

Our share of the online media market grew by 5%-points to almost 40%.  Our online advertising revenues grew by 18% over the previous year and digital consumer sales grew by almost 30%. Digital subscriptions at Sanoma’s single biggest brand, the newspaper Helsingin Sanomat, grew by almost 40% to 160,000 (on a total of about 355,000). Furthermore, digital sales at our second biggest brand Ilta-Sanomat grew by about 40%, whereby digital revenue gains now appear to be exceeding print losses; this terrific performance also secured a lead for Ilta-Sanomat over Iltalehti in terms of visitors. We also saw early success at magazines with the Donald Duck library reaching 12,000 subscribers.

Our market-leading position in recruitment got even stronger and we regained leadership in terms of visitors in real estate.  Finally, we made a great start with e-commerce service MSO.fi with more than 120 retailers already on board.

We have seen strong growth in usage via mobile devices and of online video and this is where we have registered our fastest growth.  By the end of 2013, over 50% of all pageviews on our Finnish network came from mobile devices, with mobile visitors growing by over 100% and pageviews by close to 150%.  Correspondingly, mobile advertising sales grew by around 180%Online video advertising sales grew by over 30% and the weekly reach of video platform ruutu.fi by 25%.

The Netherlands

comScore ranks Sanoma #4 of the big 5 in The Netherlands with 8.1 M unique visitors (MUV) in December 2013  – behind Google, Microsoft and Facebook (12.7, 10.7 and 9.9 MUV, respectively), but ahead of eBay (6.6 MUV). Other Dutch media groups are also represented in the top 20, but lack the reach of Sanoma. The state-subsidised NPO, and privately run TMG, De Persgroep and RTL Groep, registered a reach of 6.2, 5.3, 4.7 and 4.4 MUV respectively in December.

NU.nl, the leading news site by visitors and strongest media brand in The Netherlands and a cornerstone of Sanoma’s digital network, further strengthened this position in 2013 delighting readers with more than 10.000.000.000 pageviews, almost exactly 50 per inhabitant per month! Pageviews have more than doubled in the last three years and in the meantime more than 75% of views are made from mobile devices.  NU-apps have been downloaded more than 5 M times so far.

In common with Finland, video also grew strongly (about 40%) totalling 152 M at video platform zie.nl.

Lindanieuws.nl – an extension of the highly successful magazine brand Linda. – came with a new version that resulted in a tripling of the number of visitors to 1.2 M and a doubling of advertising sales.

Digital sales via automated trading increased by almost 25% – a serious money-maker for our digital network.  Our performance-based business had a solid year. In particular, sales at the recently acquired FashionChick doubled, partly driven by international expansion. The introduction of curated search at directory Startpagina.nl has been a runaway success and one of the most rapidly growing digital product innovations we have made in recent years. Net sales of e-commerce service SBC grew by 25%, with sales of home deco performing particularly well with a growth of nearly 50%, And soft launches of new brands leef.nl (health) and yixx.nl (jewellery) and of the international launch of price comparison site kieskeurig.nl in France and Poland have helped to ensure a healthy pipeline of new business lines that we expect will support the growth of the performance-based assets in the coming years.

Learning

At Learning, there are also good data to evidence our progress to a more digital future. Much of this relates to bringing content to life by making it more functional through digital. For example, in The Netherlands, more than 1,000,000 pupils in primary education work with Malmberg’s software, reaching 60% of all schools.  In a single week in November, more than 1,000,000 exercises were made on homework platform Bingel.be in Belgium. And in Finland, teachers and pupils logged into Sanoma Pro’s new learning environment 1,900,000 times, with 768,000 hours of active use. In the meantime 800 e-books have been published in Sanoma’s five Learning countries on the BookShelf platform provided by Young Digital Planet.

In addition to transforming its core business, Sanoma Learning is working on providing learning services to the home market with a new online tutoring proposition for mathematics: StudySteps. This has been soft launched in Belgium and The Netherlands, tested in Poland and Russia, and the first results are promising, with 110,000 exercises made in the test period.

Furthermore, Sanoma Learning is exploring the possibilities to build a position in emerging markets and has amongst others made an agreement with the People’s Education Press to provide digital services to support the provision of e-learning in China. It’s early days, but there is clear demand for Sanoma’s high quality Learning capabilities abroad.

Innovation

SanomaVentures had an exciting year, receiving over 400 requests from external startups, which ultimately resulted in 9 investments, bringing the total to 15 to date.  In aggregate the business/financial performance of this portfolio has been promising and these ventures currently employ over 161 people. We expect to make a similar number of new investments this year.

Building on the success of the series of in-house innovation accelerators, we have now launched an Innovation Lab to foster the ventures that are borne out of the accelerators and as a test ground for new ideas from the core business.  We currently have a full pipeline of concepts, prototypes and early stage ventures and have set ourselves the goal to have established five ventures in the next 3-5 years that have an annual revenue potential of € 10 M+. In 2013 we ran four accelerators (Content, Commerce, Talent and NU-lab), two of which were open to external participation. Through these accelerators we trained about 500 Sanoma employees on the lean development methodology and created 15 functional prototypes, about half of which have been given seed funding for further customer validation.

Finally, we have significantly increased our investments and human resourcing on data science including hiring a team of 20 data scientists last year to boost our analytics and insights capabilities across Sanoma. We are currently working on developing the common “big data” enablers, as well as specific cases on consumer sales, online advertising and new business models. We expect to make a quantum leap in our insights capabilities in the coming years.

Good progress on the journey

Overall, reflecting on the three pillars of Sanoma’s strategy i) connecting consumers with content and brands, anywhere, anytime, and ii) delivering powerful marketing opportunities to advertisers through our reach and consumer insight and iii) providing personalized digital learning solutions to pupils and teachers, I believe the highlights above show that digital has made a big contribution in 2013 to progressing this strategy. Respect to the teams who have made this happen and thanks for your hard work!