2016 Xerox Corporation Education Technology Offering Software and intellectual property portfolio covering algorithms for creation, analysis and tracking of learning content July 20, 2016 For additional information, please contact: Conor Flynn (585) 329-9123 / conor.flynn@xerox.com 1 This Information Memorandum (“Memorandum”) has been prepared solely for informational purposes from publicly-available information and from internal Xerox Corporation (“Xerox”) materials. The Memorandum relates to a possible strategic transaction involving technology no longer aligned with Xerox’s business goals and is intended for use solely by prospective purchasers or licensors of the technology and/or the related intellectual property assets. Xerox is offering FOR SALE or LICENSE software, trademarks, domain names, patents and patent applications related to student assessment data analytics, content recommendation based on student need, efficient indexing and navigation of video lectures and trail-based navigation of internet content. Offers will be accepted for purchase of, or license to, any of the assets. There is no requirement that the assets remain joined in a transaction. This Memorandum has been prepared to assist interested parties in making their own evaluation of the portfolio, and does not purport to contain all of the information an interested party may desire or require for such an evaluation or eventual acquisition. In all cases, interested parties should conduct their own investigation and analysis of the assets and of any data set forth herein. The information contained in this document is not confidential. All confidential information has been redacted. Parties must sign an appropriate non-disclosure agreement in order to review the confidential version of this document. Diligence, including accessing demonstrations of functionality of the code, inventor interviews, and disclosure of confidential information redacted from this Memorandum may begin immediately upon receipt of this Memorandum and execution of a nondisclosure agreement with Xerox. Xerox internal review of offers will begin immediately, with closure of a transaction targeted for early fall. Xerox reserves the right to conduct one or more transactions involving these assets, or a portion thereof, at any time. All information and business exchanges between buyers and Xerox will remain strictly confidential. 2 Investment Highlights TutorSpace Turns video lectures into next-gen textbooks and E-Learning tutors. Includes software and algorithms for video-based learning, content creation and organization. Makes media content searchable for spoken language and automatically organizes and indexes the media content for easy access by students. Allows students to spend more time learning information and less time searching for information. Allows for differentiation among education technology companies by providing a way for instructors to easily organize and curate video content into a curriculum. Makes online video lectures textbook-like with searchable features. Instructors can easily, quickly and efficiently individualize student learning, resulting in better student outcomes by providing automatic student feedback to instructors and “gamifying” video lectures. Currently on the market with existing customers. Technology developed by leading education and data analytics researchers at Xerox Research Centre India, a new leader in cutting-edge innovation with an eye towards the future. Inventions protected by a young and developing patent portfolio, including 2 patents and 26 patent applications. Ignite Provides a next-generation method of student assessment, bridging the transition from paper-based to digital student assessment. Includes software and algorithms for reading and grading student hand-marked and online work; managing the data obtained from such reading and grading; and generating personalized student, instructor and administrator analytics. Allows for differentiation among education technology companies by enabling instructor involvement in validating student responses, automatic capture of student handwritten responses, and student-based personalized instruction. Moldable to individual needs. Plug-and-play capability for any existing Student Information System and question databank. Platform-agnostic. Operates with any manufacturer’s printers and/or copiers for paper-based assessment. Technology tested on market with school districts. Feedback from these customers has been extremely positive. Technology developed by leading education and data analytics researchers at Xerox PARC, a longtime leader in cutting-edge innovation. Inventions protected by a young and developing patent portfolio, including 13 patents and 12 applications. Intellectual Property TutorSpace Ignite Software ✓ ✓ Issued US Patents 2 13 5 US Applications 26 12 1 Filing Years 2013-2016 2011-2015 2009-2011 Forward Citations 6 47 39 ✓ ✓ Trademark Domain Name Related Education Offering ✓ 3 The education technology market is large and growing. There is a large and growing market for innovative education technology. The global education technology market is expected to grow from $44B in 2015 to $94B in 2020 at a compound annual growth rate of 16.72% during the forecast period.1 One of the significant drivers of this large projected growth is the need for instructors to provide personalized lessons to help students develop various skills in accordance with the needs of today’s competitive world.2 Content creation leveraging existing learning The MOOC (Massive Open Online Course) market, specifically, is large and rapidly growing. The global 1.4B potential learners unable to afford a college degree are turning to alternative means, such as MOOCs, to keep pace in a knowledge-based economy.3 The global MOOC market is expected to grow at a compound annual growth rate (CAGR) of over 46% between 2015 and 20194 to a total addressable market of $8.5B by 2020. Videos have always provided the bulk of MOOC learning content. These videos have been accompanied by online assessments and exercises to help cement content in students’ minds.5 MOOCs, however, are not without their challenges: (1) MOOC content is not easily consumable; (2) MOOCs have generally low completion rates; (3) MOOC students are forced into a “one size fits all” format which is not easily personalized; and (4) MOOCs are not amenable to student interaction, providing only passive learning and failing to provide students with adequate interaction, ongoing assessment, feedback and problem-solving skills. Leading MOOC providers have tried to combat these challenges. Providers discovered that there is a large subset of students who prefer to skip through online lecture videos http://www.marketsandmarkets.com/Market-Reports/educational-technology-ed-tech-market-1066.html http://www.marketsandmarkets.com/Market-Reports/educational-technology-ed-tech-market-1066.html 3 http://www.forbes.com/sites/joshbersin/2013/11/30/the-mooc-marketplace-takes-off/#715f3850556f 4 https://marketresearchreportsbiz921.newswire.com/news/global-moocs-market-to-grow-at-a-cagr-of-over-46-during-2015-2019 5 https://www.technologyreview.com/s/515396/as-data-floods-in-massive-open-online-courses-evolve/ 1 2 4 and fast-forward as much as possible.6 In fact, completion rates of online MOOCs was found to be about only 10%. The corporate training marketplace is beginning to pick up MOOCs, as well. Bank of America, Yahoo and 1-800-Flowers all use MOOCs to help educate their employees and customers.7 Enhanced student assessment High quality student instruction in the 21st century no longer resembles a one-size-fitsall model. Instead, it relies on responsive teaching and a varied approach to planning. Each student needs individualized attention; simple “fill in the bubble” approaches to student assessment are quickly becoming a thing of the past. Assessing student performance by grading handwritten exams is the greatest nonteaching consumer of an instructor’s time and effort. Instructors have limited time for grading and planning during already hectic schedules. Moreover, grading individual exams only gives an instructor a snapshot of an individual student’s grasp of the material at a particular point in time. Accordingly, instructors are unable to see how a student handles a topic over time, or where large gaps in understanding occur. Multiple choice formats, while faster to score than handwritten responses, don’t always mirror what is actually being taught or indicate what the student actually knows. Multiple choice exams leave instructors without insight into how a student arrived at an answer or where they went wrong. Instructors often lack the support tools that can help them deliver more targeted teaching. 6 7 https://www.technologyreview.com/s/515396/as-data-floods-in-massive-open-online-courses-evolve/ http://www.forbes.com/sites/joshbersin/2013/11/30/the-mooc-marketplace-takes-off/#715f3850556f 5 Solutions World-class data analytics researchers at Xerox have focused on the education market over the past decade, resulting in unique solutions to enhance traditional instruction methods and improve instructor productivity. Working hand-in-hand with instructors and administrators, Xerox has developed robust solutions to meet many of today’s challenges within the K-12, higher education, and corporate learning markets. These powerful technologies make instructional videos the next generation of textbooks and transition student handwritten responses to digital format, providing useful data that informs instruction at a fraction of the time instructors would normally spend grading. These solutions (TutorSpace and Ignite) will help companies focused on developing and commercializing education technology differentiate themselves in a competitive and crowded environment. The ideal candidate for purchase or license of these technologies will have existing access and channels into school districts, corporate learning environments and/or any other environments where technology helps produce better student learning outcomes. 6 TutorSpace: Personalized Learning at a MOOC Scale TutorSpace enables personalized learning at a MOOC scale. New computer vision and data analytics technology developed at Xerox Research Centre India makes it possible to locate and index content that is specifically tailored to a particular student’s learning patterns. TutorSpace makes instructional videos the next generation of textbooks. Unlike a textbook, it is difficult to organize and reference portions of a video lecture. This forces video-learning students to waste time searching through video content instead of quickly and efficiently finding and learning course material. Students need to spend more time studying, not searching. TutorSpace automatically and effortlessly creates a table of contents and index for a broad range of media, including videos. TutorSpace enables students to quickly jump to hyperlinked words, ideas, and themes across lecture videos. TutorSpace makes video-based learning more classroom-like. It can be difficult for instructors to instruct students not physically in a classroom. In remote settings, instructors struggle to obtain student feedback during online instruction sessions. Further, it is difficult and time-consuming for instructors to curate a curriculum of online lectures from a wealth of online multimedia content. TutorSpace makes the video learning experience similar to a classroom setting by inferring student engagement and dynamically adjusting content while evaluating student understanding as the video lesson is in progress. 7 An education technology company can differentiate itself in a competitive marketplace by leveraging TutorSpace to make video lectures more accessible to students. Making lectures more accessible and the content easier to navigate will result in higher course completion rates, better learning outcomes and greater overall student satisfaction with the e-learning product. Integrating TutorSpace into an interactive video e-learning solution will also allow users to benefit from the power of advanced machine learning and multimedia analytics. For more information on the power of TutorSpace software, please watch the video here. 8 Ignite: Student Assessment and Responsive Data Analytics Ignite is a web-based tool that launches the classroom into the digital domain by empowering instructors to teach in a more targeted fashion. Ignite, which helps teachers spend more time teaching and less time grading, was developed by leading education and data analytics researchers at Xerox PARC, whose inventions include the laser printer, Ethernet, and the mouse-controlled graphical user interface (GUI). Using Ignite, educators are able to grade student hardcopy and online work and immediately receive analytical feedback, which helps teachers quickly and effectively tailor lesson plans. This technology has been tested with school districts, and feedback from these customers has been extremely positive. To learn more about the power of the Ignite software, please see the video here. Ignite automates the aspects of student assessment, helping instructors improve student learning outcomes. The easy-to-use Ignite platform administers student assessments in familiar formats while at the same time fundamentally changing how assessments are done. Virtually all assessment content can be put into the Ignite platform, including customized curriculum and published, widely available content banks. Ignite handles answer sheets more complex than “fill-in-the-bubble.” Ignite can assess student handwritten responses in addition to multiple choice “fill-in-the-bubble” type answers, giving instructors a better idea of whether students are truly grasping the material. Ignite helps instructors personalize instruction with ease using data analytics. Using Ignite, instructors can quickly personalize instruction to individual students or groups. With Ignite’s data analytics support tools, instructors can gain useful information to tailor instruction and more effectively address the needs of each individual student. Ignite pairs metadata associated with each question with details of the student responses so an instructor can determine where problems occur and quickly personalize instruction for individuals and small groups to address those problems so that students do not fall behind. 9 Ignite data analytics provides actionable feedback for all stakeholders at various levels of student instruction: Single Assessment One Point In Time Single Assessment Growth Over Time Multiple Assessment Growth Over Time Student Level (Instructor, Parent, Student) ✓ Class Level (Instructor, Lead Instructor) ✓ School Level (Lead Instructor, Principal) ✓ District Level (District Administrators) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Ignite enables instructors to quickly create lessons based on frequent and specific feedback on student’s progress in understanding the material. With its longitudinal data, Ignite provides instructors and administrators with a comprehensive view of their students’ strengths and weaknesses while fostering realtime data-based instruction. Ignite offers flexible “plug and play” functionality. Ignite can quickly and easily integrate into existing student information, content management and learning management systems (SIS, CMS, and LMS, respectively). Moreover, Ignite is compatible with any question data bank; the functionality is not limited to the Common Core-type assessments that Ignite was designed for and excels at. Ignite is system-agnostic. Ignite can grade paper assessments scanned as a PDF from any vendor’s printer/copier, and can grade online assessments from any web browser. To learn more about the power of the Ignite software, please see the video here. 10 Patents and patent applications for the Education Offering Tutor Space Internal Xerox File Number Application Number Filing Date Y 20130518US01 14/061780 10/24/2013 Methods and systems for processing speech queries Y 20130919US01 14/244926 4/4/2014 Methods and systems for imparting training Y 20131491US01 14/315772 6/26/2014 Y 20131489US01 14/468456 8/26/2014 Y 20140317US01 14/523966 10/27/2014 Y 20141044US01 14/608500 1/29/2015 Y Ignite 20140918US03 14/673990 3/31/2015 Y 20140525US01 14/687042 4/15/2015 Y 20141060US01 14/798499 7/14/2015 Y 20140988US01 14/802089 7/17/2015 Y 20150176US01 14/841760 9/1/2015 Y 20150016US01 15/015179 2/4/2016 Y 20141288US01 15/051718 2/24/2016 Y 20150819US01 15/088508 4/1/2016 Y 20141120US01 15/131085 4/18/2016 11 Patent Number Title Methods and systems for digitally capturing and managing attendance Systems and methods for service level agreement focused document workflow management Methods and systems for processing a multimedia content Methods and systems for evaluating user 9384396 System and method for detecting settle down time using computer vision techniques Methods and systems for detecting plagiarism in a conversation Methods and systems for indexing multimedia content Methods and systems for recommending content Methods and systems for segmenting multimedia content Methods and systems for detecting topic transitions in a multimedia content Methods and systems for extracting content items from content System and Methods to Create Multi-faceted Index for Instructional Videos Method and system for summarizing multimedia content Tutor Space Ignite Internal Xerox File Number Y 20141507US01 Y 20150109US01 Y 20150225US01 Y 20150235US01 Y 20150637US01 Y 20150818US01 Y 20150827US01 Y 20150989US01 Y 20151036US01 Y 20151185US01 Y 20151231US01 Y 20160021US01 Y Y 2011673US01 Application Number Filing Date 15/142239 Patent Number Title Method and system for voice-based user authentication and content evaluation System and Methods to Enable Audio-Visual Blogging in Educational Videos System and Methods to Support Insertion of Questions at Randomized and User Behavior-based Locations in a Video Activity Analysis from Firstperson/Egocentric View of a Wearable Camera External Knowledge Driven Multimodal Table of Content Creation in Educational Videos Weakly Supervised Localization and Classification of Multimodal Concepts System and Methods for automated visual adaptation of Educational Videos Time Compression of Education-focused Multimedia Signals Ranking educational videos by their 'engagement quotients' using acoustic, lexical and visual descriptors of speaking style 4/29/2016 Finding Prerequisites in Educational Videos Utilizing visual text for automatic transcription of instructional videos System and Method for supporting Keyword Queries on Multiple Knowledge Graphs 13/475220 5/18/2012 12 8867741 System and Method for Customizing Reading Tutor Space Ignite Internal Xerox File Number Application Number Filing Date Patent Number Title Materials Based on Reading Ability Y 20101760US01 13/107543 5/13/2011 8768239 Methods and Systems for Clustering Students Based on Their Performance Y 20110477US01 13/214358 8/22/2011 8718534 System for co-clustering of student assessment data Y 20111565US01 13/602375 9/4/2012 Y 20130529US01 14/052415 10/11/2013 Y 20110477US02 14/166452 1/28/2014 Y 20131046US01 14/218184 3/18/2014 Y 20131377US01 14/221791 3/21/2014 Y 20130720US01 14/252162 4/14/2014 9317760 Y 20131001US01 14/256242 4/18/2014 9361515 Y 20140412US01 14/537449 11/10/2014 Y 20140149US01 14/570367 12/15/2014 Y 20140816US01 14/571753 12/16/2014 Y 20140550US01 14/574963 12/18/2014 Y 20131267US01 14/609820 1/30/2015 Y 20140849US01 14/627457 2/20/2015 13 Creating assessment model for educational assessment system A method and apparatus for customized handwriting entry zones System for co-clustering of student assessment data 9152876 9361536 Methods and systems for efficient handwritten character segmentation Methods and systems for providing penmanship feedback Methods and systems for determining assessment characters A distance based binary classifier of handwritten words Method and apparatus for defining performance milestone track for planned process Selectively settable message routing system for job status on a multifunction device Identifying user marks patterned lines on preprinted forms Student assessment grading engine A method and system to attribute metadata to preexisting documents Confirming automatically recognized handwritten answers Tutor Space Ignite Internal Xerox File Number Application Number Filing Date Y 20140917US01 14/922582 10/26/2015 Latent student clustering using a hierarchical block clustering method Y 20150056US01 15/000157 1/19/2016 Assessment performance prediction Y 20151112US01 15/164074 5/25/2016 Y 20080676Q1US01 12/340116 12/19/2008 8457544 Y 20080676US01 12/339979 12/19/2008 8699939 Y 20090894US01 12/640426 12/17/2009 8768241 Y 20091417US01 12/771534 4/30/2010 8725059 Y 20100114US01 12/840584 7/21/2010 8521077 Y 20100556US01 12/958768 12/2/2010 8831504 20081208US01 12/408397 3/20/2009 8533582 20081408US01 12/408431 3/20/2009 8856645 20091145US01 12/731694 3/25/2010 8321382 20100195US01 12/915754 10/29/2010 20090598US01 13/169189 6/27/2011 20110594US01 13/242762 9/23/2011 14 Patent Number 8775444 9069769 Title Fillable Components Identification in Document Images System and method for recommending educational resources System and method for recommending educational resources System and method for representing digital assessments System and method for recommending educational resources System and method for detecting unauthorized collaboration on educational assessments System and method for generating individualized educational practice worksheets Trail-based data content discovery, organization and processing Generating formatted documents based on collected data content Validating aggregate documents Generating a subset aggregate document from an existing aggregate document System and method of managing multiple levels of privacy in documents Creating or modifying an ordered trail of links to pages and/or documents Non-patent IP for the Education Asset Offering Software Ignite software for education assessment and data analytics. TutorSpace software for automatic indexing of video lectures and content recommendation. Trailmeme software for trail-based web content organization for additional development. Trademarks Ignite U.S. Trademark serial number 85850171 Trailmeme U.S. Trademark serial number 85091822 Domain Name Trailmeme.com (1554529816_DOMAIN_COM-VRSN) 15 16