1. Outside Collections, Brief Cases, Curriculum Mapping and Core Notes Update Sales Meeting Heide Abelli August, 2011

2. 2 Outside Collections Update 2011 2,964 82% 18% 2010 2,316 83% 17% 2009 1,762 82% 18% 31.4% 28.0% $(000’s) Percent of Sales Represented by Top 5 Collections 201120092010 27.7% 14.3% $(000’s) Note: Top 5 cases collections are: Ivey, Stanford, Darden, UHK, Kellogg Outside Case Collection Sales Outside Article Collection Sales

3. 3 Outside Collections Update Darden SEKN ThunderbirdStanford UHK Kellogg IMD Insead Ivey Babson 3% Other IMD Stanford 23% 6% Kellogg 12% UHK 12% Darden 13% Ivey 23% Breakdown of 2011 $ Sales by CollectionCase Collection Growth Rates 2010–2011 (based on $ sales) Outside Case Collection Breakdowns Thunderbird

4. 4 Outside Collections Update Cal Management Review Business HorizonsRotman Review MIT Sloan Management ReviewMIT Sloan Management ReviewMIT Sloan Management Review Rotman Review Business HorizonsBusiness HorizonsBusiness HorizonsBusiness Horizons 29% MIT Sloan Management ReviewMIT Sloan Management ReviewMIT Sloan Management ReviewMIT Sloan Management Review Cal Management ReviewCal Management ReviewCal Management ReviewCal Management ReviewCal Management ReviewCal Management ReviewCal Management ReviewCal Management ReviewCal Management Review 37% Breakdown of 2011 Sales by CollectionArticle Collection Growth Rate 2010–2011 Outside Case Collection Breakdowns

5. 5 Outside Collections Update Highlights Ivey has surpassed Stanford as top-selling outside case collection Both Darden and Ivey showing impressive growth Thunderbird gaining traction — now $100K collection Small, niche collections (SEKN) showing steady growth Small revenue from outside press chapter collections – continue to invest in building out Collections Added in 2011 IIMB Iese Insight Magazine Harvard Kennedy School Nacra Tsingua Collections Under Review / Pending Dartmouth Tuck USC — Marshall School

6. 6 A few notes on Brief Cases…..  Trend worth noting: more international settings for BCs  An international business case set in China and a marketing title set in India  Will continue this progress where possible  Keep BCs in mind when speaking to profs who teach undergraduate courses at the junior/senior level  These reading assignments are short—always a virtue to UG instructors  The program is seriously in need of new BC reviewers in the following disciplines:  Finance, Service Management, International Business  Please keep this in mind as you visit faculty this fall  Brief case sales should be stronger in Europe - additional support there would be valuable Finally…thanks for all you have done to support our brief case program Brief Case sales revenues increased nearly 50% in FY11!

7. 7 Curriculum Mapping: FY2011 Review  Second editor added to build capacity Despite increased volume -- maintained turnaround times Greater topical knowledge, more efficient repurposing of existing research and broad use of all available offerings Area now seems well-supported Increasing service popularity: volume of total requests up 43% 715 map requests in FY2010 to 1,024 map requests in FY2011 Top 50 accounts well-represented in the mix 31.7% of all FY2011 requests (325 maps vs. 163 in FY2010) Reflected and supported international sales growth 23.4% of all FY2011 requests (240 maps vs. 101 in FY2011) Reflected and supported for-profit market: 72 maps requested in FY2011 (double the 37 in FY2010)

8. 8 Curriculum Mapping: FY2011 Trends Less predictable seasonality (more non-U.S. schools) & shorter deadlines (for- profit sector) Harder to plan time available for other tasks Increased request scope/time: curriculum design, not case mapping Kaplan (Marketing pilot), Aspire (India) Sample multi-topic (syllabus) maps: Int’l Business (U Maryland): cases since 2008 Economics (Copenhagen Business School, Denmark) Seminar in Finance (Southern New Hampshire) Financial Reporting (Willamette) Corporate Finance School (Cass Business School, UK) Industrial Organization (Carnegie Mellon) Marketing has all Curriculum Mapping searches – available on site

9. 9 Curriculum Mapping: FY2012 suggestions for improvement  RSMs: The more (specific) information RSMs provide in the requests, the more efficiently and accurately the team can work  RSMs: Customer feedback on value of the service  RSMs: Manage and educate new customer expectations about turnaround times and scope of service (all case maps must be further read and evaluated in depth by the faculty expert).  RSMs: Guide customers to standard maps and map-type products: HBP course modules & textbook maps, HBS module notes, etc. Self-service model  Tech/Marketing: ongoing “wish list” for improved search speed, accuracy, and management of huge archive of searches

10. Core Notes Program – High Level Overview Sales Meeting August, 2011

11. 11 New Product Line: Core Notes Program Roll-Out Largest Revenue Opportunity Lowest HBP Market Share Opportunity for HBP to launch core notes program in major disciplines for traditional MBA curriculum Study of average MBA syllabus signaled interesting opportunity for HBP penetration of a new content area

12. 12 New Product Line: Core Notes Program Roll-Out Potential for Disruption Strategic Advantages for HBP Opportunistic response to 2 phenomena  Disaggregation efficiencies generated by digital technology  Increasing dissatisfaction with practices and culture of leading textbook publishers Ability for faculty to dispense with multi-vendor supply line Opportunity for customers to source all pedagogical content from HBP Offering in digital format only avoids high costs of physical production, inventorying and shipping allowing for low price point relative to traditional textbooks Exploiting HBS’ unparalleled brand power and HBP’s access to HBS faculty New revenue stream for HE Increased revenues from established products  Liberates sizable share of student course materials budget  Facilitates adoption of more HBP content (cases, articles, sims) Fortifies HBP’s reputation as dependable source of high-quality teaching materials serving widest range of pedagogical needs Addresses growing market challenges posed by aging HBS technical note collection

13. 13 Primary Elements of the Core Notes Project  Ten Core Notes for the higher education market available for use for the fall semester 2012  The Notes will cover core conceptual material in Operations Management, at a level typical of first year MBA courses at top business schools  The objective is to supplant the current use of textbooks and other conceptual materials that business school faculty assign to complement cases in operations management  The last critical element in the HBP family of learning objects for a typical syllabus  Modular approach: Professors will be able to assign the full set of available Notes in place of a text book, or just the individual Notes they need  “Micro-transactions” 

14. 14 Product Policy – Core Notes  Length: Approximately 15,000 words, or 30 pages  Some Notes will be shorter or longer, as required by the content  Accompanying Teaching Guide will be approximately 3-5 pages  Content: Approximately twenty pages of the note will constitute essential reading  The remaining ten pages will be optional material that the professor can assign depending on student ability, interest, time, etc.  The essential reading will be as generic as possible, applicable to any type of organizational context and international in perspective  Probable topics for short pieces of optional material are: optional side topics related to material, more advanced math that supports the math in essential reading, sample problems applied to real organizations, recent research trends on the topic, recent business innovations on the topic

15. 15 Product Policy (continued) – Core Notes  The accompanying Teaching Guide will recommend a few discussion questions for class, and also HBS cases and simulations that reinforce the material  For each case and simulation listed, there will be a description of how it applies to the material in the Note.  For each Note, there will also be an accompanying PowerPoint slide deck to use in class, Length will be 3-5 slides  For each Note, there might also be one or several accompany calculator/tools  Tools will be very simple, individual-user based  Goal of tools is the build intuition behind the relationship between parameters in a model discussed in the essential text.  Tools could be embedded in the text.  Pricing: tbd, but likely based on current pricing model for cases and HBR articles

16. 16 Next Steps in Product Development Work  Release market research survey  Analyze survey data  Finalize detailed outline of topical coverage  From analyzed data and discussions with HBS faculty, develop a draft topic outline for each Note  Recruit faculty authors for the Notes in addition to “Uber-editor” for the core note series  Recruit peer reviewers, expert teaching panel, and beta testers  Select interior designer and create a design template A lot of work in a short period of time! 

17. 17 Tentative Note Topics  Introduction to Operations Management and Its Link to Strategy and Finance  Process Mapping and Analysis  Constraint Management and Capacity Planning  Quality Management  Lean Systems: JIT (for example)  Sources and Consequences of Variability  Inventory  Forecasting  Supply Chain Management  Innovation Management, Product and Process Design

18. 18 Link to Educational Technology  Development of six supporting “concept labs” in operations management  Potential topics include: quality management, constraint management, process mapping  Look and feel very similar to the operations management concept lab highlighting process variability (car wash concept lab)  Simulations will be authored by core note authors  Additional supporting educational technology in the form of calculators and tools  Potential topics include: