EdventuresLab Background & OverviewPCS originally operated experiential learning centers throughout the Western US. Founded by a rural school teacher with a remarkable vision for providing students with hands-on, meaningful learning experiences, these centers were the origin of the learning philosophy and methodology embedded in all of PCS products, curriculum, and services. PCS left the brick and mortar learning center business in the late 1990s to pursue the development of experiential curriculum and institutional products.
Today, PCS’ experience in hands-on STEM learning and learning centers combined with its collective expertise and IP in STEM, adaptive learning frameworks, and robotics provide the infrastructure to create a high energy, effective STEM learning environment that can serve as the basis for an expanded PCS business model. This new business model aligns with major drivers and megatrends in the industry and positions PCS to become a global leader in a unique learning category – adaptive, blended, STEM education that leverages mobile learning technology to bind students together in a unique digital community.
EdventuresLab in Action
To accomplish this goal, PCS began by establishing two pilot labs in the Idaho Treasure Valley, one in Boise attached to the corporate offices to facilitate R&D, and one as a standalone facility in Eagle, Idaho. These two facilities provide PCS with an active testing and development environment for both PCS STEM products, as well as the long-term vision of the PCS EdventuresLab network. As of January 2016 these two labs actively serve approximately 150 students on a weekly basis.
The next phase of the EdventuresLab project is to implement the digital learning framework that will both deliver content to students, as well as track and assess their progress and communicate that back to their parents. The digital learning framework is the critical component in the business model as it provides the digital “glue” for connecting students to the PCS EdventuresLab mothership and drives long term retention as well as creates a “digital tether” to students that will maintain a monthly subscription. Once the framework is completed, PCSV can actively begin to scale the system through partnerships and licensing both domestically and around the world. To do this, PCS is seeking partners with physical presence and synergy with our business model.
The Business Model & Strategy
In an investment environment driven by virtual products, why does PCSV believe in a brick and mortar presence? The answer to this is simple – the most effective learning is nearly always “experiential” in nature. If you personally think back to your favorite experiences in education, they are probably all related to hands-on experiences of some sort. Very few people will stroke their chin and recall their favorite lecture when asked about their most powerful learning moment. We believe the approach that we are pursuing is the ideal balance of the physical and the virtual. By combining the power of experiential education with the scalability of digital learning technology our business model optimizes both learning and revenue opportunities. The following bullet points are intended to highlight some important aspects of the business model and strategy:
- The model is predicated on a combination of virtual and physical students. Attending the lab at an hourly rate of $25 – $35 / hour is a premium experience. The use of virtual delivery can maintain a connection to students and deliver our experience to the home, after-school, or classroom environment at a lower rate and students will attend the lab to gain access to the premium services which include expert instruction and access to high-end equipment and resources.
- The nature of the EdventuresLab program promotes a fluid student population as students attend year-round, dropping out for basketball season or other events but returning after, or joining just for summer programs, etc. Families are busy so the program accommodates. The nature of the program is designed around longevity – we want students to stay with us for years, not just weeks for an individual course. Here is a link to a Youtube Video interview with a PCS EdventuresLab student who has attended EdventuresLab for several years.
- For illustration purposes, let’s look at a hypthetical EdventuresLab scenario modeled in our business plan. This EdventuresLab would be based in a major metropolitan area with a student body of 200 students attending Lab on a weekly basis (5 hours X $25/hour) and potentially another 2500 students who are attending only virtually (2500 students X $10/month) but anchored to that Lab site and community. This core student body of 200 individuals is fluid with some of the virtual students migrating on to the physical lab schedule as others move out for various seasonal changes. The monthly revenue from such a model looks something like this: $25,000 physical students + $25,000 virtual students or $50k/month. With each site generating $600K in top-line revenue per year the model has great potential. By exploring brick and mortar partnerships and licensing opportunities we believe we can proliferate the EdventuresLab concept once it is ready to scale.
- Where are we with our digital learning framework? In November of 2015 we launched our first EdApp learning title – EdApp Droneology. “EdApp” is what we are calling the framework and we are now working on phase 2 of the application. You can test out the learning platform by visiting EdApp Droneology and taking it for a test drive! The first lesson is free.
- The business strategy, long term, also seeks to leverage retail sales opportunities. During R&D in the EdventuresLab program, we have developed and now offer for sale two EdventuresLab retail kits – we call them our iQ series and you can check them out here.
- The R&D aspects of the EdventuresLab program have been a rich resource for PCSV in developing programs and solutions. For example, our recent content production contract in the Kingdom of Saudi Arabia was based on the technology, systems, and processes being tested and perfected in the Idaho EdventuresLab sites. Our PCS Robotics system is developed in iterative cycles that involve regular testing with students in our EdventuresLab. Our digital delivery network is being tested with in-house training of instructors. These are just a few examples of many of the benefits of the EdventuresLab test facilities.
Summary and Conclusion
PCSV plans to seize the current business opportunity in the education industry through the creation of STEM focused learning environments called EdventuresLabs augmented by a virtual community focused on experiential learning. The labs will generate revenue streams through: 1) a virtual community for participants that will become a global network of experiential learners; 2) experiential learning classes designed to develop STEM and 21st century skills where students, grades 4-12, identify their talents and find their passion; 3) retail sales to consumers based on hands-on experience with the products in the learning centers; 4) a model lab “showroom” that will leverage the lessons learned from our direct sales efforts and from which improved and refined direct sales efforts can be conducted in strategic, educational markets; 5) licenses with private and public entities to implement these labs on their premises; and 7) International opportunities for licensing and expansion.
This update includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as PCS Edventures, Inc. or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statement.