A Guide to the Education Industry for Business Radio Two-Way Retailers by David Martin

April 2009

Market Insight

A Guide to the Education Industry for Business Radio Two-Way Retailers Answering the call for critical solutions Educational organizations across the country must meet a wide range of needs for students. However, many of these institutions face limited, even decreased, funding. Now more than ever, Motorola business two-way radios can provide an economical solution to schools that must balance cost efficiency with reliability as they seek to enhance security, employee productivity and the core mission of teaching students.

DidYouKnow?

According to an assessment by the New York State Education Department, the five most prevalent security measures used by schools are as follows: 1. Visitor sign-in requirements 2. Controlled access to buildings 3. Use of two-way radios 4. Telephones in classrooms 5. Closed campus for lunch

Communication at the root of security

It’s in the headlines nearly every day—the nation’s K–12 schools and colleges often face threats to the security of their students. Furthermore, the parents who send their children to these places of learning demand safety. Schools that emphasize security are more likely to achieve a better learning environment, and may find greater success at attracting and retaining students. Communication is a key pillar of school safety. According to the White House Conference on School Safety, emergency planning—including the establishment of a school communication plan—is vital to building security. Furthermore, the use of two-way radios is an important aspect of the communication plan. In fact, school safety consultant Robert Jonaitis advises that schools should “Equip administrators with two-way radios.” Two-way radios can boost school and campus security when: • Teachers and security guards can report incidents at school assemblies or other large gath- erings, such as sporting events. • School crossing-guards can communicate traf- fic issues that threaten students. • Teachers on bus duty (pick-up and drop-off) can share information with bus drivers. • Cafeteria and hall monitors can report incidents to the school office. • Maintenance staff and custodians can respond to repair and clean-up calls. • Coaches can report injuries from the practice fields. • Teachers in the classroom can quickly contact school security officers.

Opportunity alert While the use of two-way radios as a safety measure is highly recommended by school safety experts, 30% of public schools in the United States do not deploy radios. Sources: National Center for Education Statistics, 2007

Facts about education The education industry consists of public or private schools and colleges that provide coursework instruction for students ranging from preschool to post graduation. • There are approximately 13,800 public school districts operating in the United States. • The majority of school districts (55%) are in rural areas. • There are approximately 131,000 elementary and secondary schools in the United States. • Nearly 75% of elementary and secondary schools are public schools. • There are approximately 6,400 degree-granting postsecondary institutions (trade schools, junior colleges, four-year colleges) in the United States. Source: National Center for Education Statistics, 2007

Opportunities

According to the American Association of School Administrators, schools across the nation are facing serious financial obstacles with the majority of K–12 superintendents reporting their districts to be “inadequately funded.” Despite this sobering news, 74% of educational entities plan to maintain or increase technology buying activity in 2009, down from 86% in 2008 projections. Source: Onvia Government Market Outlook 2009

Source: White House Conference on School Safety, “Making Our Schools Safer,” 2006; National Association of Independent Schools

QuickFact

Emergency preparedness is still a concern, and the degree of school readiness still a question. While many schools have plans drafted, most have never been tested. Source: School Safety Congressional Testimony by Kenneth Trump, 5-27-07 www.schoolsecurity.org

Stimulus effect The recently approved American Recovery and Reinvestment Act, better known as the federal stimulus plan, provides about $100 billion in education funding. The stimulus funding includes $8.8 billion for modernization of school facilities. For some school districts and public colleges and universities, this could include expenditures on construction and renovation. Additionally, as schools seek to expand and modernize, there could be a corresponding demand for two-way radios to address security and instructional needs. Growth market Day care facilities, pre-schools and K–12 are traditionally a strong source of demand for business two-way radios. And demographic trends seem to indicate that school-aged populations will continue to grow in the near future, potentially driving growth in the size of this customer base. Indicators of growth include: • Children will number 80 million in the United States by 2020. • Facilities for early-childhood education (pre- schools and kindergartens) served 8.1 million students in 2007, up from 7.6 million in 2000. • Elementary enrollments (pre-kindergarten through grade 8) will increase 9.1% between 2008 and 2017. • All school enrollments (pre-kindergarten through high school) will increase 8.1% between 2008 and 2017. • The number of day care establishments in the United States increased 2.5% between 2004 and 2006. • Employment of child care workers was project- ed to increase by 18% between 2006 and 2016. Sources: childstats.gov; National Center for Education Statistics; U.S. Bureau of Labor Statistics

Industry issues

Schools are constantly faced with internal and external obstacles that can inhibit the delivery of quality education for students. It’s important that business radio two-way retailers are aware of these issues and prepared to demonstrate how Motorola solutions help solve problems. Key issues faced in the education sector • Growing role in safety and security – Breaches in security – Focus on incident prevention • Technology as a differentiator – Tools to recruit and retain students and faculty – Proliferation of mobile devices used by students and faculty • Legislation and funding – Dependence on state funding – Rising costs, tighter budgets • Workforce productivity – Streamlining administrative operations

Motorola solutions Education + Motorola Many of the challenges facing the education industry can be addressed by improving communications in the schools. Motorola business two-way radios and accessories are rooted in superb technology and innovation that provide a dependable and effective solution. The case for business two-way radios Affordable and easy to use, Motorola business two-way radios provide the immediate communications tool to help maintain order, manage operations and enhance student safety. Clear messages With text messaging available in the Motorola DTR™ series, business two-way radios can overcome noisy work conditions. Text messaging capabilities enable discreet communications, or provide an alternative when voice communication is not possible. Noise suppression technology can limit background noise, providing clear/ static-free audio, even at the coverage limit. Radio coverage Interior walls or multiple buildings in an educational complex can be obstacles for cell phones. Motorola radios break down those barriers with a talk range of up to 350,000 square feet and 30 floors indoors. Motorola high-power RDX radios can operate with a repeater, expanding coverage for a school or campus facility. Emergency notification Teachers, bus drivers, crossing guards and coaches can take immediate action when disturbances or emergencies occur. Radios allow staff to quickly communicate with safety or security teams, or the school nurse. Campus security Motorola DTR radios allow you to retrieve and send critical messages wherever you are in the building, on the move. Security staff can also program Motorola DTR radios for unique alert tones from a private contact. Easy to use Motorola CLS, RDX and DTR radios clip onto the belt for hands-free portability, and are lightweight for easy carrying. In addition, Motorola radios feature extended battery life. Incidence prevention With the one-to-one or one-to-many calling features of Motorola DTR radios, you can alert school security to potentially dangerous or suspicious situations. Radios allow all equipped personnel to keep in contact and aware of developing situations—accelerating response time and improving safety and incident prevention. Two-way radios also provide excellent communications for buses traveling out of the local district to sports events or field trips.

QuickFact

...Access and communications were two areas that the 355-student Weston School District in Wisconsin focused on in the wake of a tragedy last September 29… “It would have been good to be able to communicate in some places we couldn’t communicate,” said Acting Superintendent Tom Andres. “They were just in lockdown for the two hours not really knowing what was going on.” To improve communication, the district bought 16 two-way radios, adding to the six they originally had, and expanded the radio coverage to include all areas of the property... Source: May 2007 District Administration Magazine

Productivity and efficiency Staff can efficiently manage school bus loading and unloading, large assemblies, cafeterias and sporting events with ease. Radios clip on the belt for hands-free productivity.

Customer buying cycle It’s important to know your customer’s calendar and how it influences the timing of purchase decisions.

Quick communications Staff can use one-to-many calling functions to reach all necessary employees with one message. Two-way radios can provide immediate contact and response.

K–12 buying cycles Most school district buying cycles are a multiphase, year-round process with year-to-year cycles that overlap. That’s why it’s critical to contact district leaders throughout the year.

Cost savings Two-way radios are affordable and simple to operate, with no monthly fees, per-call charges or annual contracts. Furthermore, there are no infrastructure costs.

It’s also important to remember, each school district sets its own schedule, and some districts operate with no schedule at all. Plus, most school districts do not consider their buying cycles “set in stone.”

Durability Motorola RDX and DTR radios feature heavy-duty construction that will stand up to the demands of multiple users and tough work environments. Motorola original batteries are designed to maximize talk time.

However, keep in mind: • The biggest months for finalizing budgets are in March, April, May and June. • Nearly 40% are finalized in April and May.

Discreet communications Motorola two-way radio accessories, such as head sets and ear pieces and allow users to communicate clearly and privately.

Understanding the customer

ShopTalk

According to a recent survey of two-way radio users: • 43% of purchases were for replacement radios, 38% were additions to existing networks and 19% were first- time customers. • 48% of purchases were from industry sup- pliers, 26% came from retail outlets and 23% from catalogs. • 52% did not acquire accessories at the time of purchase. • The most common accessories acquired with Motorola two-way business radios were: heavy-duty belt clips, carrying cases and rapid three-hour chargers. • The three most effective drivers for purchases of Motorola two-way radios are: ease of operation, the Motorola brand and reliability. Source: Motorola

A matter of timing

There are countless ways in which Motorola solutions can benefit schools of all types, but how do business radio two-way retailers deliver this message? Start by learning who the decision makers are and what factors most likely affect their decisions. Decision makers Know your audience. The decision makers for purchases at an educational institution will vary based on the type of product, the size of the district, school or university and structure. Also, enterprise-wide solutions versus single solutions have differing decision makers. Two-way radios: Small colleges/universities: • Chief/director of security • Vice president of administration • Director of facilities & operations • Telecom manager • Maintenance manager K–12 schools: • School board • Principal/assistant principal • Superintendent • District IT manager • Maintenance director • Transportation director • Athletic director • After School director Pre-schools, day care facilities: • Facility director

Jan

Feb

Mar

13%

Apr

20%

May

19% 15%

Jun Jul

10%

Aug Sept

4% 2%

Oct Nov Dec

4% 2% 1%

Two-thirds (67%) of all school budgets are finalized in March, April, May and June. Over one-third (39%) of school budgets are finalized in April and May. Source: Quality Education Data, Q4 2008

Higher education buying cycles Public universities’ buying cycles depend heavily on the budget cycles of the states they reside in, which all differ. The majority operates on annual budgets that are usually set in the spring, but some have biennial budget cycles that can begin at differing times of the year. Consequently, all situations should be handled uniquely and researched beforehand.

ShopTalk

According to a 2007 survey of education end users: • 56% made their last two-way radio purchase within the last three months. • 40% purchase radios two or more times per year. • 32% said price was the top reason they chose their primary brand. • 50% indicated quality was the most important attribute when purchasing two-way radio equipment. Source: Motorola

SurveyResults

According to a 2007 survey of education end users: • 70% have a 7+ year relationship with their supplier of choice. • 80% were “very satis- fied” with their supplier of choice. • 66% used the dealer or distributor as a source of two-way radio information, followed by websites at 32%. Source: Motorola

Starting at the source Customer buying preferences Decision makers in the education industry must meet a multitude of needs in numerous categories, so each purchase must be prioritized and examined carefully. Motorola business two-way radio dealers should be familiar with the sources that influence buying patterns such as consultants, analysts and industry peers, associations and publications. Funding models As educators consider equipment purchases, the funding model will be a factor in the final decision to buy. Motorola business radio two-way retailers should know: Budget ownership • Which person in the organization has responsibility for the purchase decision? • Which person in the organization stands to benefit directly from the purchase (this may be different from the purchaser)? • What other projects or priorities are competing internally for the budget, and who is championing those priorities? Budget source Funds for their purchase will likely come from one of the following sources: • Emergency response and crisis management grants • U.S. Homeland Security • State grants • School PTOs and school district foundations

American Recovery & Reinvestment Act State Fiscal Stabilization Fund Government Services ($8.8 billion) The State Fiscal Stabilization Fund may be used for education, public safety and other government services. Eligible uses in education include modernization, renovation, or repair of facilities for elementary and secondary schools, as well as both public and private institutions of higher learning. This modernization and renovation includes new technology. Government Services funding is divided by state depending on overall population and student-age population. The governor of each state controls the distribution of the Government Services funds within each state. Learn more about the American Recovery and Reinvestment Act at the following websites: • The Obama Technology Agenda www.whitehouse.gov/agenda/education/ • U.S. Department of Education State Fiscal Stabilization Fund www.ed.gov/policy/gen/leg/ recovery/factsheet/stabilization-fund.html

More information:

Learn more about the education industry at these websites: • Regulatory organizations – Commission on Accreditation of LE Agen- cies (CALEA) (www.calea.org) • Industry associations – National Association of College and University Business Officers (NACUBO) (www.nacubo.org) – American Council of Education (ACE), (www.acenet.edu) • Industry publications – District Administration, The Magazine for K–12 Education Leaders (www.districtadministration.com) – The Chronicle of Higher Education (http://chronicle.com)

Motorola 1301 Algonquin Road Schaumburg, Illinois 60196 U.S.A. www.motorola.com/governmentandenterprise MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their registered owners. ÂŠMotorola, Inc., 2009. All rights reserved. RO-99-2191-POD

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