Event round-up
11 Dec 2020

Event round-up: EdTech – the market, the trends and the future

How to navigate the EdTech market and become part of the Higher Education Community.

techUK recently hosted a webinar to provide members with an overview of the Higher Education Technology (EdTech) market. Representatives from UCISA, Tussell, and our member organisations CDW and Ji Software, came together to explore how suppliers can navigate the market to make the most of the opportunities in higher education and drive innovation in this sector.

An overview of the opportunity

The session began with Tussell founder, Gus Tugendhat, giving a useful overview of the public sector EdTech market, two key points being that it is consistently worth about £160m per year (or £40m per quarter/£10m per month); and, although it’s not clear why, there was a jump in IT spending by universities in 2019. One university in particular, the University of Manchester, spent £80m in tech investment, and there also seemed to be a broader investment cycle in that year – which is particularly interesting  intel, in that opportunities will arise when these contracts roll off in two or three years’ time.

Gus then provided a market breakdown in terms of general IT contracts which account for about £800m of total market, or 75% of the market value, since 2015. The remaining 25% accounts for more education-specific contracts; and, within these sub-sectors, data management accounts for the majority (£261m). Gus also highlighted that it is useful to look at current contracts in order to set benchmarks for future bids.  

One really interesting point flagged by Tussell’s data is that EdTech is still a relatively unconsolidated market, with the top 10 suppliers only accounting for 28% of the total contract value. So, there is ample opportunity for new entrants. Unlike most of the public sector, SMEs win more EdTech contracts by value than larger business, which further validates the promising nature of market to smaller companies and new entrants. But there are also plenty of opportunities for SMEs and Primes to work together.

Gus concluded his presentation by pointing out that there are 350 awards worth £134m expiring over the next two years, so organisations who plan early for these rebids are likely to be better positioned to win them. And this was only the first time that this session touched on the necessity to practice ‘good old-fashioned business development’ in the EdTech market. Indeed, being strategic and proactive is the key to unlocking success.

The importance of belonging to the Higher Education community

Next up, Neil Bailey – Head of Education at global IT provider CDW – took attendees through his organisation’s experiences of selling to universities, while providing useful insight on how suppliers can deliver innovation in Higher Education, and sell their products more strategically in this market. The overarching message here, as it was elsewhere in the session, is that you need to be part of the Higher Education community (& relevant to it) in order to be successful.

Neil provided a useful overview of the purchasing frameworks that universities use to procure technology, including the purchasing consortia that take responsibility for specific frameworks/technology stacks, as well as CCS’s traditional public sector frameworks. And this was important because, in order to find a route to market and start having conversations with customers, you need to be on the frameworks to make you relevant to them in the first place.

Another top tip here was that you also need to find the right people at universities to deliver against the potential that being on the framework enables. So think about investing in people who know the sector, and could usefully showcase what your organisation can do for it.

Understanding the bigger picture 

With the disaggregated nature of the frameworks, Neil emphasised the importance of really listening to Higher Education institutions, to find out what they really need and how this will fit seamlessly with other solutions. Think, for example, about how you’re going to help them to deliver a smart campus … What’s the right answer for students/researchers/faculty members? How can you help them utilise data to ensure students have the best possible experience on campus and remotely. How could data capture help tailor education to an individual’s needs? And, how can you make that university stand out in the international market? Something that’s more important than ever to them in the current climate.  

Continuing on the theme of helping universities to address the challenges they face, Deborah Green, CEO of UCISA, then delivered some useful insight on what’s keeping CTOs in higher education institution awake at night.

First and foremost, it’s important for suppliers to understand that they are coping with considerable financial constraint. Universities and colleges have taken a huge hit on their income, usually generated by accommodation/summer schools/conference facilities, as a result of the COVID-19 pandemic. There’s been a fall in student uptake, international students are thinner on the ground; and Government has also asked universities to fund COVID testing on the ground. This all comes on the back of a demographic dip in the number of 18 year olds, so it’s essentially been a case of ‘trouble heaped upon trouble’.

Suppliers should, therefore, have empathy for the situation that these institutions find themselves in: there simply isn’t the cash in the sector to renegotiate contracts right now.

Key areas where Higher Education institutions need help

The second big issue that universities are grappling with is risk management and the need for increased awareness in cyber security. There have been a number of cyberattacks on higher education institutions and these have been the work of well-funded and persistent attackers. The sophisticated nature of attacks – particularly those after COVID research – means that these institutions must protect themselves with high levels of cyber hygiene and protection. Indeed, multi-factor authentication is now absolutely critical but a huge number of universities still haven’t implemented this.

It’s imperative that universities segment their networks; thoroughly review the use of remote desktop services; and make sure things are backed up securely in a non-accessible place.

Deborah has been briefing CFOs to ensure they appreciate the investment required in this field. (The good news is, there is investment!)  The cyber hygiene expertise needed might not be available in institutions, so CFOs are also aware that they may need to fund advisory services here, too.

Further key points made in this enlightening presentation were that it is recognised that Higher Education systems must be fully supported and maintained, or real costs will be incurred; and that old systems must be decommissioned properly to ensure GDPR adherence. So, the message is very much that investment can be anticipated but do be fully aware of financial constraints, perhaps offering options at different price points. These institutions need to know what they can cut out if they can’t afford it!

Another big trend for CIOs is, of course, how they support remoted working, teaching, learning and research. While the sector moved swiftly this year, it’s still a world away from successful best practice in learning and research. The task, therefore, is to understand what best practice looks like for EdTech, and anyone who can help them to do this – or identify processes and procedures that will underpin this practice – will be welcomed.

How to become part of the Higher Education Community (some top tips!)

Deborah rounded off her talk with some final pieces of advice including a reminder that:

  1. Those you’re seeking to influence are extremely time poor. They’ve been hit by wave after wave of change as Government has flip flopped on policy this year; and they’re dealing with the complex logistics of things like COVID testing, etc.
  2. Cold calls will fall on deaf years, so the importance of building relationships is critical. From 2022 an uplift in opportunity is expected, so use this time to get yourself in the position to seize that opportunity.
  3. Don’t overly focus your attention on appealing to the CIO – don’t underestimate the power of teams (leaders do listen to them). Those who build relationships with the team and put the time in will reap the benefits.
  4. Adopting the COLLABORATIVE style of the sector – Higher Education customers will share your successes with others.

Our final speaker, David Jefferson, Managing Director of the SME Ji Software, echoed the advice given by the other speakers, in particular emphasising the importance of – knowing your customer!

But how do you do this?

  1. Recognise that, in the public sector, you’re dealing with a culture that’s very different to that of a profit-drive business. Universities don’t want to be ‘sold at’, but they do want solutions that solve their challenges and deliver value.
  2. Consider taking your products to exhibitions.
  3. Tap into the fact that many areas of university management all have their own trade associations that could help you gain entry to the community.
  4. Don’t promote a benefit to someone who isn’t the recipient. Start developing relationships to see if your product fits: if it doesn’t, listen to what the customer needs because you may be able to adapt your product.
  5. Know your competition for the service you’re trying to deliver; and maintain communication with the university teams in case during the progress of their journey to the solution changes. Many companies have wasted money putting in bids because they haven’t read all the requirements/they haven’t realized they won’t win.
  6. Offer workshops and free demos to understand the requirements and demonstrate that you’re listening.
  7. Think about who else needs to say yes to your solution, that is, the IT team. Make sure you’re talking to them, too.
  8. Help people discover you with a brochure/white papers -share the knowledge  of why your product is unique with the people who face the challenge it resolves.  

The point that each presenter came back to, and the key away from this session is that, in the EdTech market, success is not in responding to tenders, but in proactively helping to shape opportunities by becoming part of the Higher Education community. So, if you really want to put your best foot forward in this market, you must have visibility of what opportunities will be arising over the next 24 months and start planning how to you’re going to seize them.

Watch the presentations by Tussell, CDW and Ji Software here.

Ellie Huckle

Ellie Huckle

Programme Manager, Central Government, techUK

Jill Broom

Jill Broom

Programme Manager, Cyber Security, techUK

 

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