EJigsaw builds a channel for IT solutions in education

Internet Strategies for Education Markets: The Heller Report, Jan, 2001

eJigsaw.com (Hayward, CA, www.ejigsaw.com), a service to help IT professionals to identify and compare software solutions, has recently added both education and training as one of its more than forty industry segments. Other new areas include Agriculture and Pharmaceutical/Biotech. Across all industries, the site lists 18,000 products and services from 6,500 vendors.

The channel site, which launched in June of 2000, allows vendors to post product information for free and allows users to search the site for free. Users can search by category of software within an industry, refine the search with an online thesaurus that automatically offers relevant terms, and access a daily IT news digest and market research. A service that is scheduled to be added soon will email buyers with notices of new solutions that fit their interests.

Raghu Viswanathan, ceo, says that an organizations search for an IT solution commonly takes four to six months. eJigsaw.com, he says, can cut that time down to two to four weeks.

Viswanathan emphasizes that the business model is based on providing a channel between IT vendors and buyers, and that this work is not limited to web-based tools. Any user, for example, can request the eJigsaw.com staff, each of whom specialize in certain industries, to research a specific technology. The free service typically responds to a request within two days.

Revenues from Transaction Fees and channel Services

Two revenue streams support the company: eJigsaw takes a 5% cut on each transaction closed through their site and research experts, and they license tools that help vendors reach the customer directly. Those tools include the ability to conduct online presentations, demonstrations and meetings. Because so many IT solutions involve multiple technologies, EJigsaw also facilitates partnerships that enhance the overall IT offering to the customer. Viswanathan says the company will soon be adding abilities for IT companies to offer online training to companies. Annual fees for each of these a la carte services range from $25,000 to $50,000. Companies electing to use these tools do not pay the 5% transaction fee.

Viswanathan says that, at launch, education and training sectors received 6% of site traffic, a figure as high as industries that the company had had online for four to six months. Within education, "administrative solutions" received 21% of traffic, a segment defined as received 20% and "curriculum planning" and "testing and evaluation" each received 19%. Registrations show 90 different universities using the site. Only five school districts had discovered the resource at the time the company was interviewed.

Reaching Education Decision Makers

Ejigsaw.com is now building its education industry offering by expanding vendor participation and working to make IT decision makers in schools, districts and higher education aware of the service. Viswanathan says the company is initially putting more emphasis on the training sector than education, largely because there are more organizations from which they can purchase lists of decision makers in training.

Viswanathan plans to reach K12 and higher education markets through lists and affiliate relationships that place eJigsaws content on other sites. Candidates include online procurement sites. EJigsaw, for example, has content from other industries on Upside Magazines site, reflecting the look and feel of that site. The company does not yet have this kind of affiliate relationship within education.

Product comparisons are based on surveys completed by vendors posting information. eJigsaw does not attempt to evaluate any products. The survey requires answering about thirty questions for each product, and Viswanathan estimates it takes about 30 minutes to complete.

The company is in its third round of VC funding and cant disclose amounts. There are 42 employees, and Viswanathan expects to rapidly grow to about 80.?