U.S.-based computer-assisted English-language learning firm DynEd is planning to enter the Czech market through franchising. The company is now looking for a business partner to develop its Czech operations.
U.S. language software firm targets the Czech market

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DynEd provides English-language educational software that can bring a beginner to the language-management level in 360 hours, according to the company statements. Usually, computer-assisted language education takes roughly 800 hours and classical class study goes far above 1,000 hours, Mehmet Bayraktaroglu, managing director of DynEd, told CBW. “We’re simply three times faster than classical systems,” he said. Reaching language management requires one hour of daily study. This follows the natural process of how human memory stores new information, Bayraktaroglu said. DynEd software is personalized to adapt to the individual features of each student. For example, it includes an initial test that immediately takes the student to the appropriate level. Then, it focuses on phrases, concepts, listening and conversation recording.

By recording one’s voice, one can improve pronunciation and gain confidence to speak a language, Bayraktaroglu explained.

Grammar comes later because the system focuses on a natural type of language learning, as opposed to classical systems emphasizing grammar.

Bayraktaroglu added the system provides 15 programs that address different study levels and make the student familiar with unusual situations, such as talking to a non-native English speaker. “This is artificial intelligence that adapts to individual profiles,” he said.

Everyone must make money out of it

DynEd is now looking for a country manager that could start the company’s Czech operations. The initial cost the future country manager should expect to pay is €250,000 (Kč 6.3 million) for the initial license, plus up to €50,000 as an initial investment in office staffing. The country manager will own the license for 10 years and have access to know-how, training, updates and product-related services for no additional cost. It can be the representative of a commercial organization or an individual willing to engage in the educational project.

The country manager’s task will then be to look for appropriate training partners. These can be universities, schools or other learning centers that would provide students with access to DynEd’s software. “Trainers are necessary in order to provide supervision for the students’ performance,” Bayraktaroglu said. Even though study takes place individually, the results need to be interpreted by a professional trainer that would explain the software use, take the student through the learning process and provide support when necessary, he explained.

In order to become a training partner, an institution—education facility or company—must pay an initial €20,000 license fee. Afterwards, it can provide services to their students and employees. If a company purchases the license, it can provide training to all its employees, including their families and children, Bayraktaroglu said. Given that every student is given a personal password that makes the system adapt to his or her own level of proficiency, the piracy rate is practically zero, he noted.

DynEd has a four-part revenue spread system. Some 25 percent of the education revenues usually go to the teacher; 25 percent to the institution providing the training; 25 percent to the country manager; and the rest to the licenser. The firm provides a feasibility study that shows that, even with coverage of only 0.2 percent of the population, the return on investment would be at least 51 percent per year, Bayraktaroglu said.

For the end-user, access to the new system would cost some €100 per month if accessed individually. If a company pays the initial €20,000 fee, its students can access the software for €60 per month. In the case of schools, access costs €120 per student per year. Universities also need to pay the initial €20,000 license fee. However, half the final revenue from a university student would stay with the school and the rest would go to the country manager.

“This is how the school can make money that it can later further invest into new technology and better computers. Thus, it can make even more revenue. The basic idea is that everyone should make money out of this system,” Bayraktaroglu said. In universities, use of DynEd software for English-language study would be tied to the grading system.

Betting on a growing trend

DynEd established its first European operations in 2008 in the Netherlands. Now, it is trying to enter all European markets. The Czech Republic is an interesting target because of its heavily export-oriented economy requiring staff to speak English. Moreover, individual study could save managers the embarrassment of studying in an open class with their subordinates. DynEd only provides English-language education. In the past, it tried to develop Spanish and Japanese software, but then it decided to focus only on English. “This is where we can make a difference,” Bayraktaroglu said.

In the Czech Republic, computer literacy has been growing for the last two decades. At the end of 2009, some 54 percent of Czech households had access to a computer, up from 24 percent in 2003, the Czech Statistical Office (ČSÚ) reported. As of 2008, some 99 percent of students had access to a computer at home, a friend’s home or school, and 97.5 percent of students had Internet access.