PRIMEX ‘02PRIMEX ‘026 February 20026 February 2002
Managing a business in a challengingManaging a business in a challengingeconomy with technologyeconomy with technology
Reed ElsevierReed Elsevier
Reed Elsevier is a world leading publisher Reed Elsevier is a world leading publisher and information provider, operating in four and information provider, operating in four core segments. Its principal activities are in core segments. Its principal activities are in North America and Europe and the company North America and Europe and the company employs approximately 36,000 people.employs approximately 36,000 people.
ScientificScientific& Medical& Medical
c$2.0bnc$2.0bn
No. 1 in ScienceNo. 1 in ScienceNo. 1 in MedicalNo. 1 in MedicalGlobal Global
Note: Proforma Revenues post Harcourt
LegalLegal
c$2.0bnc$2.0bn
US, UK, Europe US, UK, Europe Asia PacificAsia Pacific
Latin AmericaLatin America
No 1 or 2 inNo 1 or 2 in all marketsall markets
EducationEducation
c$1.5bnc$1.5bn
No. 3No. 3No. 1No. 1No. 1No. 1
USUSUKUK
CommonwealthCommonwealth
BusinessBusiness
c$2.0bnc$2.0bn
No. 1No. 1
No. 1No. 1
MagazinesMagazinesUS, UK, NetherlandsUS, UK, Netherlands
ExhibitionsExhibitionsGlobalGlobal
Four Businesses Four Businesses
Reed Elsevier Vision Reed Elsevier Vision
Indispensable partner of professional Indispensable partner of professional customerscustomers
Demonstrably superior information driven Demonstrably superior information driven services services
Global presence and leadership in four target Global presence and leadership in four target sectorssectors
High quality management and organisational High quality management and organisational effectivenesseffectiveness
Above market revenue growth & double digit Above market revenue growth & double digit earnings growthearnings growth
Reed Elsevier StrategyReed Elsevier Strategy
Focus on four core businessesFocus on four core businesses
Attractive global growing marketsAttractive global growing markets
Targeted at professional users Targeted at professional users
Proprietary, must have contentProprietary, must have content
Annual subscription modelAnnual subscription model
Internet accelerating growth opportunitiesInternet accelerating growth opportunities
Survive and Thrive in Survive and Thrive in Changing EconomyChanging Economy
Elsevier Science:Elsevier Science:Historical Strength in JournalsHistorical Strength in Journals
Health Sciences DivisionHealth Sciences Division
UPGRADEDSCIENCEDIRECT
PRODUCT
INTERNET MIGRATIONCUSTOMER PREFERENCE
MODERATEPRICINGPOLICY
AGGRESSIVESALES ANDMARKETING
HIGHERPENETRATION
HIGHER USAGE
STRONGER RENEWALS
ACCELERATED REVENUE GROWTH
Science & Medical: Strategy for Growth
NAVIGATION
Abstracts & Indices (30m)
Print JournalsFull text
searchable database
ARCHIVE
Growing electronic archive
SUBJECT PORTALS
Physics, Engineering,
Chemistry etc.
SCIRUS
Linkage to web
scientific data
ACADEMIC WORKBENCH
Authorship and pre-
publication tools
Science & Medical: Science & Medical: Expanded Expanded ScienceDirect OfferingScienceDirect Offering
Navigation30m abstracts & indices
Navigation30m abstracts & indices
PhysicsPhysics Econ.Econ. Chem.Chem. Etc Etc BioMedBioMed
Subject PortalsSubject Portals
Archive4m backfilesArchive
4m backfiles
ScienceDirect
1.4m articlesFully searchable
database
ScienceDirect
1.4m articlesFully searchable
database
Library Management Tools:ENDEAVOR
Web search Web search engineengine
SCIRUSSCIRUS
55m 55m science science related related pagespages
Authorship Authorship and pre-and pre-
publication publication toolstools
ACADEMIC ACADEMIC WORK WORK BENCHBENCH
ScienceDirect: ScienceDirect: Superior Global Superior Global ProductProduct
Dramatic increase in usageDramatic increase in usage
Increasing penetration of ScienceDirect Increasing penetration of ScienceDirect
Subscriber attrition reducedSubscriber attrition reduced
Major new contracts agreedMajor new contracts agreed
Marketplace Impact:Marketplace Impact:Positive Key Performance IndicatorsPositive Key Performance Indicators
ScienceDirect:ScienceDirect:Increase in UsageIncrease in Usage
Number of page views (millions)Number of page views (millions)
00
55
1010
1515
2020
2525
JanJan
9999MarMar
9999MayMay
9999JulJul
9999SepSep
9999NovNov
9999JanJan
0000MarMar
0000MayMay
0000JulJul
0000SepSep
0000NovNov
0000JanJan
0101MarMar
0101MayMay
0101JulJul
0101SepSep
0101
ScienceDirect:ScienceDirect:Increasing PenetrationIncreasing Penetration
%%
00
1010
2020
3030
4040
5050
6060
7070
8080
MarMar9999
AugAug9999
FebFeb0000
AugAug0000
DecDec0000
AugAug0101
DecDec0011
Dutch ConsortiumDutch ConsortiumDutch ConsortiumDutch ConsortiumChinaChinaChinaChina
KoreaKoreaKoreaKorea
AustraliaAustraliaAustraliaAustralia
TaiwanTaiwanTaiwanTaiwan
BrazilBrazilBrazilBrazil
CanadaCanadaCanadaCanada
BavariaBavariaBavariaBavaria
Vale (USA)Vale (USA)Vale (USA)Vale (USA) Nord Rhein WestphaliaNord Rhein WestphaliaNord Rhein WestphaliaNord Rhein Westphalia
Marketplace Impact:Marketplace Impact:Major New ContractsMajor New Contracts
Legal:Legal: Historical Strength in Print & Historical Strength in Print & Proprietary OnlineProprietary Online
LEGAL: LEGAL: US STRATEGY FOR US STRATEGY FOR GROWTHGROWTH
ACCELERATED REVENUE GROWTH
UPGRADEDSALES AND MARKETING
US LAW SCHOOL PREFERENCE
SMALL LAWPROGRAMME
COMPETITIVEPRODUCTlexis.comnexis.com
STRONGERRENEWALS
HIGHER PENETRATION
HIGHER USAGE
INTERNET MIGRATIONCUSTOMER PREFERENCE
LEGAL:LEGAL: CUSTOMISED SOLUTIONSCUSTOMISED SOLUTIONS
CUSTOMISED E-SOLUTIONS
KNOWLEDGEMANAGEMENTPORTALSpecialised portal for law firms
INTRANET SOLUTIONSCustomisedlegal intranets
PRACTICE PAGESCustomised approachto specific practiceareas
LEXISNEXIS DATABASE/CONTENT
CUSTOMWEB PAGESEasy access to specific forms and sources
TAXCCH/Tax Analysts
LEGALExpandedE-treatises
Improved Linkages
CITATORFunctionality
Upgrade
CASE SUMMARIES300 700 Editors
WEB RELIABILITYPrivate Nodes
EASE OF USENew lexis.com
New WebSphere Platform
NEWS & BUSINESSFT Profile/
Company Dossier
PUBLIC RECORDSRiskwise/Corp America
Acquisitions
LexisNexis: LexisNexis: Product Upgrade ProgrammeProduct Upgrade Programme
00
11
22
33
44
55
66
Marketplace Impact: Marketplace Impact: Turnaround in Turnaround in LexisNexis Revenue GrowthLexisNexis Revenue Growth
1998 1999 2000 2001* first half* first half
+5%+5%
+1%+1%
+2%+2%
+3%+3%
%%
LexisNexis Preference Overall in Law Schools (%)LexisNexis Preference Overall in Law Schools (%)
Marketplace Impact:Marketplace Impact:Online Product Preference ConfirmedOnline Product Preference Confirmed
00
1010
2020
3030
4040
5050
6060
19971997 19981998 19991999 20002000 20012001FallFall FallFall FallFall FallFall FallFall
15151919
3232
54545050
Marketplace Impact:Marketplace Impact:Increase in UsageIncrease in Usage
Number of Searches (millions)
33
44
55
66
77
88
99
1010
Jan99
May99
Sep99
Jan00
May00
Sep00
Jan01
May01
Sep01
Business: Business: Leadership Portfolio inLeadership Portfolio inPrint Magazines and ExhibitionsPrint Magazines and Exhibitions
BUSINESS:BUSINESS: STRATEGY FOR STRATEGY FOR GROWTHGROWTH
UPGRADEDSALES AND MARKETING
ACCELERATED REVENUE GROWTH
PRINT LAUNCH AND EXTENSION
LEADING INTERNETPORTALS
CONTENT AND DATA AQUISITION
NEW REVENUESOURCES
STRONGER ADVERTISING PROPOSITION
HIGHER VOLUMES
EXPANSION OF SERVICES CUSTOMER PREFERENCE
BUSINESS: BUSINESS: NEW AND UPGRADED NEW AND UPGRADED PORTALS LAUNCHEDPORTALS LAUNCHED
00
2020
4040
6060
8080
100100
120120
19991999 20002000 20012001targettarget
$m$m
Business:Business:Total Online Revenue GrowthTotal Online Revenue Growth
2020
5555
9090OrganicOrganic
Including Acquisitions Including Acquisitions
Education:Education:Strength in English Speaking WorldStrength in English Speaking World
Education:Education:E-learning ProgrammeE-learning Programme
E-strategy:E-strategy:Major research programme to determine customer Major research programme to determine customer needs and future strategyneeds and future strategy
E-content:E-content:Technology programme accelerated by Riverdeep Technology programme accelerated by Riverdeep alliancealliance
E-professional development:E-professional development:Acquisition of leading online provider: Classroom Acquisition of leading online provider: Classroom ConnectConnect
E-testing:E-testing:Increased investment in classroom testingIncreased investment in classroom testing
Driving Accelerated Driving Accelerated Growth: Growth: Technology Technology StrategyStrategy
Technology Strategy FrameworkTechnology Strategy Framework
Strategic Objective
Technology requirement(s) to meet the objective
Initiative, project or other implementation proposed
Adoption curve
Success / impact
measures
Ap
plic
atio
n D
ev
elo
pm
en
tA
pp
lica
tion
Dev
elo
pm
en
t
Application Integration Application Integration and Middlewareand Middleware
Infrastructure Infrastructure ServicesServices
NetworksNetworks
DatabaseDatabase
PlatformsPlatforms
SharedServicese.g. HR/Payroll
“Data Warehouse” Knowledge Management/Management Information
BusinessProcess
Management
CustomerRelationshipManagement
TransactionProcessing
Web delivery
CD Delivery
Print on demand
Dial up
Other
FinancialAccounting
Content Repository
Content Supply
SharedServicese.g. HR/Payroll
“Data Warehouse” Knowledge Management/Management Information
BusinessProcess
Management
CustomerRelationshipManagement
TransactionProcessing
Web delivery
CD Delivery
Print on demand
Dial up
Other
FinancialAccounting
Content Repository
Content Supply
Business strategy linkageDescribes strategic objectives for the business division. Details known technology requirements and projects and initiatives required to address the business need
Solutions FrameworkEnables grouping of technology requirements, projects, software applications and solutions to identify common themes.
Infrastructure LayersCovers services (e.g. Security), architecture, technical policies & standards, hardware, network and software solutions.
Business strategy drives solutions
Business solutions drive infrastructure
Technology StrategyTechnology Strategy
Technology work aligned with business Technology work aligned with business need:need:
Development of demonstrably superior productsDevelopment of demonstrably superior products
Systems to enable collaboration and global workingSystems to enable collaboration and global working
Cost-effective technology infrastructureCost-effective technology infrastructure
Future ViewFuture View
ConvergenceConvergence
Gartner Research
Future TrendsFuture Trends
NowNow
Customer = EnterpriseCustomer = Enterprise
Products = print/onlineProducts = print/online
Customisation = fringeCustomisation = fringe
Content + platformContent + platform
Specific ContentSpecific Content
Local/globalLocal/global
Static information productsStatic information products
FutureFuture
Customer = IndividualCustomer = Individual
Products = online/printProducts = online/print
Customisation = totalCustomisation = total
Individuals Desktop/PDAIndividuals Desktop/PDA
Rich linking to other contentRich linking to other content
Global/localGlobal/local
Professional decision making Professional decision making
Managing a business in a Managing a business in a challenging economy with challenging economy with technologytechnology
Develop a Strong Platform for Growth Attractive global growing businesses
Targeted at professional users
Proprietary, must have content
Annual subscription model
Internet accelerating growth opportunities
ConclusionConclusion