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E-Education Is the New New Thing
In the 17 years since the publication of "A Nation at Risk" (National Commission on Excellence in Education, 1983), Americans
have grown steadily more anxious about the quality of their public schools. Business leaders have complained that high school
graduates are often unable to perform even rudimentary tasks, and parents have clamored in ever greater numbers for reform
longer school days, stricter disciplinary standards and a greater emphasis on traditional skills such as reading, writing and
mathematics.

Fortunately, as the late economist Herbert Stein famously observed, things that can't go on forever tend not to. And that is just
about to be proven again with education in America.

In the last few years, hundreds of companies have sprung up to compete for their piece of the $740 billion Americans spend
annually on education and training. Some companies are using Internet technology to overhaul the way schools procure books
and manage their financial records. Others are trying to build nationwide chains of private, for-profit branded schools. Still othe
rs are niche players, focusing on some small segment of the education industry (such as I.T. training), or devising new applicati
ons they hope to see embedded in the technologies of other companies' products (such as adaptive learning technologies).

But the most ambitious of these companies are the ones that want to create via the Internet a learning environment that might
actually dispense with the teacher - at least in the conventional, classroom sense of the word. The education industry provides a
perfect example of how the Internet is transforming the United States economy by enabling the birth and development of new
companies that could never exist without it

No one yet envisions a world where children or young adults are effectively taught by intelligent machines, but it is easy to
imagine how computers, audiovisual technology and the Internet will reshape the classroom experience. Think of how cellular
phone technology revolutionized telecommunications access in many third world countries, eliminating the financial burden of
extensive investments in wiring, stations, etc. In much the same way, Web-based content and technology are destroying the
barriers - fiscal and structural - to the reform of education and training at every level: K-12, college, post-graduate and professi
onal. Some of this reform will entail futuristic, gee-whiz technology still on the drawing board. And much of it is awaiting a furthe
r drop in the cost of computing power and an expansion of available bandwidth. But a big part of that future learning technolo
gy is already available in the most advanced tools and applications used to train I.T. professionals.

INTERNET PORTALS
Several education companies now use Internet portals to sell conventional products and services - desks and chairs, office and
classroom supplies, even payroll services. Cash-strapped schools with relatively fixed resources are increasingly outsourcing non
-educational services in order to retain dollars for the classroom. By using the Web to put the product squarely before the
customer, companies are able to compete nationally in an area that was previously balkanized along local or regional lines. A
school shopping for desks in California was once limited to four or five familiar furniture makers; soon, it will be able to choose
among a vast network of suppliers across the country.

A typical example is the Epylon.com Corporation, which is launching a "business-to-education" Web site to link buyers and seller
s of products and services in the K-12 market (textbooks, school furniture, food, etc.). The company will make its money by cha
rging the seller a transaction fee ranging from 2 percent to 15 percent, depending on the size of the purchase. Epylon.com, whic
h has financial backing from the Intel Corporation, is beta-testing its portal with 25 California school districts, and hopes to extend
its reach to the rest of the state's school districts - and perhaps others nationwide - within a year. If that works, the company
hopes to use the same approach to break into the market for state and local government purchasing.

courtesy: http://www.strategy-business.com/press/16635507/10578

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