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Description Rosetta Stone Foundation, a nonprofit entity of Rosetta Stone Preserves and revitalizes endangered languages Technology is highly interactive and teaches by immersion …language meaning is not lost

Mission …to promote language fluency in endangered language communities through appropriate and sustainable technologies and…to enable intercultural communication and understanding through innovative and effective language-learning solutions where they are needed most

Innovation & Differentiation Technology = “the missing link” Not just documenting endangered languages! STOPPING & REVITALIZING the spread of endangerment by creating teaching software! Collaborative Relationships = building on what has already been done!

Strategic Alliances When two organizations go after the same objective, helping each one to achieve their own goals

RSF Team Organization Governance – 2-3 members of RS board, other 5 members newly selected The Inside Team on payroll should be extremely committed to the mission, and the sustainability of it’s success. Diverse set of backgrounds, lead by someone with Non-Profit leadership experience

What is the Reward for the Funders? Tax incentives Pride of being part of something extremely different than many other non-profits Possibility of language revitalization trips to work with groups using technology Possibility of high profile events and name recognition (ie. Smithsonian, etc)

Strengths, Weaknesses, Opportunities, Strategy and Potential Threats Unique relationship with software developer 2 nd Order Innovation: Technology + Research Collaborative Relationships with other non-profit entities: SIL International and the Endangered Language Fund Soft Advertising & Brand Recognition

Strengths, Weaknesses, Opportunities, Strategy and Potential Threats Why is this important to investors? Collaborative Innovation = Reaching across small network line Pharmaceuticals, Bio-energy Shakespeare Reference

Competitive/Collaborative Advantage RS already demonstrates competency in language preservation with its ELP Assessing the environment through a competitive lens (Porter’s 5 forces) isn’t enough anymore Every company needs to watch the full stakeholder playing field carefully (Esty & Winston)

Collaborative Innovation Language extinction is happening at an exponential rate Preserving one or two languages at a time will have limited influence on the contextual environment in which RSF operates (Smith) Assess stakeholders for collaborative partnerships Serve as a network agent by connecting stakeholders interdependent on one another as they co-produce social change

“ Value is created with the experiential learning that comes from examining value chains and developing strategy within a collaborative network of external thought leaders.” Chris Laszlo, 2008

Target Market/Priorities Language Types: Type IAt risk w/ several million speakers Type IISeriously endangered w/ several thousand speakers Type IIINearly extinct w/ less than 100 speakers Where can RSF be most effective?

Target Market/Priorities RSF’s inclination to focus on mid-range communities is wise Trying to be all things to all people is a classic mistake that many businesses make Start on a small niche when entering the market

Target Market/Priorities Each new success will build the brand Collins says, “…persistent efforts will lead to unstoppable momentum where potential supporters not only believe in the mission, but also in the capacity to deliver on the mission.”

Cost Allocations “Take stock of the organizational capacity” (Oster, 2004) Including: –Resources –Staff –Management –Outsourced Resources –Profit vs. Mission –Timeline & Measures of Success

Economic Profitability and Sustainability Little contribution from communities “reframe the mission to reach across small network” (Smith, 2009) Language Learners = Sustainability

Sustainable Value Chain Business Context: Broaden spectrum to include intercultural communication technology and programs. In conjunction with language learning software. Brand/Culture: Develop software that is easy to use, and easy to teach with so that it will create a culture of “Learning Leaders” within communities. Build on brand already established by RS to be the best in big and small communities! Market: Look and Listen! Who needs the product the most? Who will be most likely to use it to help learn and teach, rather than just document and learn? Product: Creating a Product that is good for both Rosetta Stone AND the community members (especially the younger generation). Base products not only on what has always been sufficient for RS customers – but also for those who may not be used to technology. Process: Reducing “process costs” when developing software. Working to develop software in the most efficient way so that exhorbitant costs aren’t transferred to communities or foundation contributors. Risk: Adhering to IRS rules for allocating costs of services or resources from Rosetta Stone to the Foundation. Adhering to appropriate IRS reporting measures.

First Order Innovations First Order Already Completed Growing the “parent company” Rosetta Stone to 800+ employees and offices in 6 areas across the globe: BRAND RECOGNITION AND GROWING SIZE OF COMPANY Launching three endangered language programs from : CREATING A FOUNDATION & GROWING PROGRAM FROM 0 TO 3 Hiring 3 FTE’s to begin the process of starting the non-profit: INCREASED QUANTITY First Order to Complete Couple with more endangered language communities to create software for other languages: QUANTITIES Add more staff to the non-profit / couple with additional Rosetta Stone staff to create products in a more timely fashion: SPEED

Second Order Innovations Second Order Already Completed Launching 2 grant programs in 2007: WORKING WITH ALTERNATIVE SOURCES OF FUNDING / MULTI- DISCIPLINARY Thinking to use the parent software engineering company to create programs (and serve the mission of the non-profit): MERGING THE EFFORTS OF TWO SEPARATE ENTITIES / CROSS FUNCTIONAL Creating a dual mission statement: promote language fluency of endangered language communities through use of appropriate and sustainable technologies AND enable intercultural communication and understanding through innovative and effective language-learning solutions: POSSIBLY CREATING NEW ALLIANCES WITH PEACEBUILDERS ACROSS THE GLOBE.

Second Order Innovations Second Order to Complete Is there new technology that RSF can consider when bringing language teaching technology to those in areas of endangered language? Do they use the same computers? Are these computers reliable? Can we play software on smaller devices? What do these communities feel is the best way to learn? We need to “go out, to look, to ask, to listen” (Drucker, 1985, p135). Apply for more grants with foundations with similar mission statements (without language software piece). Could the competitors become allies? Could the source of innovation be a process need, redesigning the processes of other organizations (who are currently just recording the language) by supplying the missing link (the technology to teach the languages rather than let them go extinct) (Drucker, 1985, p69)?: QUANTITIES/SIZE Creating partnerships with communities and/or other organizations to make this cost-neutral for RSF: NEW ALLIANCES

References Bittinger, M. (2009, July 16). Rosetta Stone Foundation, EMU MBA 658. Harrisonburg, VA. Collins, J. (2005). Good to great and the social sectors. Boulder, CO Drucker, P. F. (1985). Innovation and Entrepreneurship. New York, NY: Harper and Row. Esty, D., Winston, A. (2009). Green to Gold: How Smart companies use environmental strategy to innovate, create value, and build competitive advantage. Hoboken: John Wiley. Laszlo, C. (2008). Sustainable Value, how the world’s leading companies are doing well by doing good. Stanford, CA: Stanford University Press. Oster, S. M., Massarsky, C., W., Beinhacker, S. L. (2004). Generating and Sustaining Nonprofit Earned Income. San Francisco, CA: Jossey-Bass. Smith, Anthony E. (2009). Stewardship Design Principals. Harrisonburg: Virginia: Eastern Mennonite University. Smith, Anthony. (2009). Shakespeare and the Spirit of Innovation. EMU MBA 658. Harrisonburg, VA.