First Year Experience Software and Services

FYE Success, Inc.

First Year Experience Software and Services

Canyon TX/Durango CO

2.1 Company Description

We are an educational software development company dedicated to partnering with colleges and universities to improve their success. Our interactive software, FYESuccess®, when used in conjunction with first year experience programs, improves the success and retention of students. It adds an interactive online learning tool to university success classes, strengthens first year learning communities, or can be used in a variety of other ways.

We customize FYESuccess® for each unique institution and offer training and technical support for educators to get the most out of the software.

2.1.1 What is OUR COMPANY?

Our company, FYESuccess (First Year Experience Success, develops innovative educational software designed to improve first year student success on the college and university level. Our flagship product, FYE Success®, improves the effectiveness of first year experience programs by offering a customized array of features.

1. Fun, interactive case scenarios to actively engage students. These entertaining scenarios walk students through and solicit a response to issues such as:

* adjusting to a college environment,

* succeeding on the college level,

* maintaining effective relationships,

* confidence building and goal setting,

* managing stress,

* getting control of time,

* choosing a major

* diversity

* budgeting and managing money

* maintaining physical, mental and emotional health

* etc.

These scenarios enhance in-class teaching allowing students to actively engage in the material. Active engagement means stronger learning

“I read and I forget, I see and I remember, I do and I understand.”

Confucius

This feature of our software affords the opportunity for students to do just this.

2. Capability to plug into an existing online student interface. Our software is designed to act as a stand alone product or plug into existing school software. This way, first year students have one stop access to information about financial aid, tutoring, on-campus health care, academic advising, career services, international student office, campus clubs and organizations, activities, etc.

3. Message boards and chat rooms to increase on-campus connections. Research shows that strong campus connections and friendships increase student success. Our message boards and chat rooms, used in conjunction with university success classes and learning communities, effectively engage students and increase these connections.

Our educational consultants can offer ideas and teaching strategies to incorporate these tools into first year experience programs.

4. Online Q&A forum to access local campus experts. FYE Success® provides an online platform for campus professionals to interact with first year students. Whether students need assistance choosing a major, dealing with a roommate, or are just homesick, our software allows local campus professionals and students to connect. The software is all there; the campus simply provides the in-person resource and we provide the training to make a live Q&A session happen.

We also offer live web events with noted student development professionals and well known leaders from across the nation (Rudy Giuliana, Goldie Hawn, Larry King, etc.). These events are open to all students who use our software. Students gain great insights on succeeding in college plus they can chat online with these note-worthy figures. These events make great class activities and can enhance classroom discussions.

All web events are archived and can be accessed at any time by our subscribers. If students aren’t available for a live web event, the content is still available on demand.

5. An online mapping feature. Especially effective at mid to large sized schools, this feature enables students to easily find resources across campus. Utilizing GPS technology, our system can be used in conjunction with on-campus scavenger hunts or other “seek and find” activities your first year experience program has developed. It is an effective, fun way to help students quickly become comfortable in their new campus environment.

6. Technical support and training to ensure schools benefit from our software. We conduct both online and in-person training where educational consultants work with schools to develop the most effective use of FYESuccess® within their first year experience program.

Our call-in technical support center is open M-F from 7:00 a.m. to 7:00 p.m. (CST) and customers can also email questions to us and receive prompt attention to their issues. We also constantly update our web site with new product information and teaching ideas as well as an extensive FAQ section.

2.1.2 Why OUR COMPANY?

FYESuccess offers industry best educational software innovation. Our staff has the student development background, technical capabilities, knowledge of higher education, and the motivation to truly help first year students succeed.

Our expertise focuses on issues facing first year students. FYE Success’s experts have worked with this population and have even taught in first year programs. Our knowledge of these students is extensive and puts us in a unique position to develop software and educational concepts that can truly benefit them.

Technically, we have some of the best developers in the industry. This technical knowledge combined with our knowledge and passion for first year students results in a product that effectively meets the needs of students and schools.

Lastly, our knowledge of the higher education community helps us distribute FYESuccess®. Industry contacts and knowledge of purchasing procedures give us a significant advantage.

2.1.3 Why Now? The Opportunity

Retaining students has become critical in recent years. Now more than ever, it’s obvious there is a cost to society when students, who have the ability to succeed, drop out of college. That decision results in fewer contributions to the economy, and usually a lower quality of life for the student. Research tells us college graduates enjoy higher incomes, better health, longer life, and give more back to their community.

However, students and society aren’t the only losers. Schools lose as well when students drop out. Lost students mean lost revenues. In our current environment of shrinking budgets, these revenues are important; retaining students is critical.

Also, many schools are struggling to effectively teach today’s student. Drop out rates have increased and are not getting better. The profile of the typical student has changed dramatically over the last few years. Their ethnic, family, financial, and academic background has changed. Today’s student is much different than the student of 20 years ago. The old way of teaching students is not working any more, and if schools are to fulfill their mission statements, they must take more accountability for student success, especially during the first year.

Given this environment, a quality enhancement movement has recently swept through our nation’s colleges and universities. Schools are developing Quality Enhancement Plans (QEPs) to respond to the challenge of becoming more accountable for students success. Usually, a major emphasis in these plans is to focus on first year students. Research shows incredible improvements in student success when intentional intervention happens during this time frame. In fact, part of the accreditation process for the Southern Association of Colleges and Schools (SACS) calls for examining a university’s QEP.

The time is right for FYESuccess. Universities need help making their QEPs effective, and our company has resources to assist in this process.

The QEPs are driven by the accreditation process, so budget monies are available for companies like ours. Schools are motivated to help first year students succeed and our company offers resources to help achieve this goal. There is no better time than right now to offer our service.

2.1.4 Strategic Vision

We envision our product used in first year experience programs across the country. Using our technical and student development experience, we will partner with schools and develop effective educational programming designed to increase the success and retention rates of first year students.

Our goal is to be an indispensable component of first year experience programs. Our software will add value to programs by allowing students to connect with the material in a comfortable, familiar manner.

Continual improvement will be a hallmark of our company. We will systematically survey and respond to the needs of our member schools and release updated versions of our software.

We plan to start with at least 25 schools in our first year, and through excellent support, listening to our customers, and aggressive marketing, double that number in year two. We will continue to pursue aggressive growth year.

FYESuccess will be a premier educational software development company.

2.1.5 Unique Assets, Value and Marketing Advantage

FYE Success has the following advantages:

1. Timing. We will be one of the first companies (if not the very first) to offer a first year student oriented product. Being first to market provides us a first mover advantage.
   Schools choosing FYE Success® make a meaningful commitment, in terms of time, training, and resources, to incorporate the software across an entire first year experience program. This large-scale commitment makes changing software in the future more difficult, so early entry into the market provides a significant advantage over the competition.
   
2. Environment. Environmental factors are extremely positive for software like ours.
   Years of research verifying the importance of first year student success along with pressure from accreditation agencies has set the stage for schools to invest in first year experience programs. Quality Enhancement Programs, most of which focus on first year students, are now prevalent. This environment has motivated schools to designate budget monies to first year experience programs. Schools are willing and able to invest in programs designed their first year students.
   
3. Student development experience and industry contacts. Our staff has an extensive student development background with many having worked with first year experience programs. We have a good understanding of first year students and can effectively develop educational strategies with schools to best utilize our software. This knowledge gives us more credibility with schools.
   We also have developed strong relationships with many key contact people. We know decision makers and the process schools go through to adopt programs in first year experience programs.

2.1.6 Revenue Models

FYESuccess employs the following revenue models:

• End User Licensing – Users pay a yearly fee to use FYESuccess®. This model allows us to increase the cost periodically to cover new updates, research & development, training and support, etc.
  
• Third Party Reseller Licensing – Using a reseller allows our company to focus on support & training without neglecting the sales function. Our reseller receives a 20% commission; however, the cost is well worth it considering the expanded market penetration we can achieve.
  
• Software Customization and Consulting – Our expertise in first year student development and software customization can be leveraged. We’ll charge an additional fee for schools who desire in-depth educational consulting and customization. There is a standard consulting and customization service included in the basic end user licensing fee; however, more in-depth service and consulting are available for an additional fee.

2.1.7 Proprietary Technology

If this is any good when we are done, I’ve got a buddy that has a software dev firm and he’ll do up this section similar to what you find at . If he won’t do it, I’ll write it but it won’t be as good.

We will take the necessary steps to patent our software. Our interactive, case scenario feature will be protected; however, we realize that many times patents are not effective barriers to competition. Because of this, we will strive to make our software the choice among educators by also providing:

* Value-added services such as curriculum guides and training for effective software use

* A high level of customer service- phone support, resource web site, training webinars, etc.

* Continual surveying of our customers and the implementation of upgrades and improvements

We will pursue all avenues to legally protect our product while at the same time providing excellent customer support and training to encourage long-term use.

3.0 Situation Analysis

The market for first year student success tools is one yet to be developed and ripe with opportunity. This market opportunity coupled with the potential for high growth rates and the relative low barrier to entry presents FYE Success with the ability to position itself as an industry pioneer.

In this section, we will analyze the market environment in detail and identify our opportunities to succeed.

3.1 Overview of the Industry

Educational software was among the first software developed in the early days of desktop computing. Software development firms recognized the potential of applying computers to the learning process. But because of market changes and fast-changing competitive nature of technology, educational software companies face unique challenges.

Our target market, colleges and universities, face unique issues when considering the implementation of new software products. Colleges and universities often lack the in-house expertise to implement and manage new software. Additionally, colleges and universities often have some hesitation about investing in the hardware infrastructure needed to run school-wide software. Also, peripheral expenses involved in the implementation of educational software are of concern. Often times schools challenged by the resources required to maintain additional software/hardware and support expense.

When looking at first year students, these unique issues are counter balanced by colleges’ and universities’ need to retain students. There is pressure from accreditation agencies to emphasize first year student success. Accreditation pressures have motivated schools to seek external tools and find budget monies to focus on first year students. Additionally, colleges and universities commit significant resources to acquire new students. This investment is negated if schools do not retain first year students. Therefore, the opportunity is ripe for FYE Success to introduce our integrated educational software focusing on first year students.

3.2 Market Summary

As an undeveloped segment, the first year student market will expand exponentially with the advances in technology and online education. The critical component to our entrance into the market is the approval and support from colleges and universities.

3.2.1 Market Demographics

There are 5,758 colleges and universities in the United States. As a start-up company, our initial focus will actively target second tier universities. As we grow, our focus will be to move away from the second tier and acquire first tier universities.

When planning for the market, we must fist look at demographics, the enrollment trends and the potential market nationally:

• The largest high school graduating class nationwide is projected for 2008, with southern states showing the most growth. And by then, we should have been recognized by the public and established our own brand.
• E-learning grew 19% nationally from fall 2002 to 2003, 24% from 2003 to 2004, and much greater in the following year. That is to way, the demand for high-quality online education would increase as time goes by.

Although the future looks bright from national trends, as a set-up company, we want to focus on Texas which we know best:

• Since fall 2000, Texas higher education enrollment has grown by approximately 158,000 students or almost 14%. With the expansion of many colleges, they need to update their infrastructure correspondingly.
• Among the above growth rate, community colleges accounted for the most; 58% of all undergraduates in fall 2003 were enrolled at 2-year colleges, including 67% of first-time students. They compose the market we are familiar with and deserve great attention.
• The age 18-34 population will increase by 2 million through 2020; the Hispanic population is expected to grow to 46% and the Anglo population is projected to decrease to 26% by 2030. Their special needs would be considered when we customize our software.

3.2.2 Market Needs

For more than two decades a significant investment has been made by many colleges and universities to improve the first year. But funds spent have often not yielded expected returns in student learning and retention. Pressure from accreditation agencies has caused many higher education institutions to establish Quality Enhancements Programs, focusing heavily on helping first year students succeed.

What these schools need is more than just educational software to offer instructions to students in need of help with classes, relationship, etc. They need to create a safe but challenging learning environment (particularly through effective assessment and feedback to students) that will provide a sound basis for future development.

3.2.3 Market Trends

The most significant trend in the market is the nationwide movement to focus on first year student success. Also, the rapid development of online education makes our software even more attractive to today’s colleges and universities

3.2.4 Market Growth

In recent years, there is a fast-growing educational trend at colleges and universities which has millions of students accessing the Internet to get assistance with reading, writing and tutoring. Online education and educational resources are a viable market. More than 2.6 million students in the United States studied through online courses and tutoring in 2004, up from 1.9 million in 2003, according to the Sloan Consortium, an online research group.

Combine this growth in Internet based learning with the increased emphasis on the first year student and the market for FYE Success® is very promising.

3.3 SWOT Analysis