White chalk and dusty erasers are a thing of the past. Today, theword blackboard carries a completely new meaning.
Blackboard Inc., which puts course materials, grade books, studentmessage boards and campus activities on the Web, is a leadingenterprise software company for e-education. According to Inc.magazine’s 23rd annual “Inc. 500” rankings, it is the fastest growingprivately held education company in the country. Started in 1998 byMichael Chasen and Matthew Pittinsky, the company now sells to nearly3,000 colleges, universities and school systems throughout the world.
“I am a big believer in the concept of a living-learningenvironment,” Matthew Pittinsky, chairman and co-founder ofBlackboard said in a 2002 interview. “A true educational experienceis never confined to the classroom – it’s found in the library, studyhall, coffee shop, faculty offices and more. What is exciting aboute-learning is that it takes the Internet and turns it into a 24/7education environment.”
In addition to leading its industry category, Blackboard’s 11,047percent revenue growth from 1998 through 2002 earned the educationsoftware company a No. 6 ranking in the overall list of the 2002″Inc. 500.” Blackboard’s yearly revenue was $620,000 in 1998, and$69.2 million in 2002 and more than $92 million in 2003.
San Diego State has been using Blackboard since 2000. All schools,colleges and universities that utilize Blackboard pay a fee on anannual basis. Those fees are constantly reinvested to meet needs andchallenges in the academic world.
“Twenty-five million dollars will be put into research anddevelopment (this year) to improve and enhance new products,” MichaelStanton, senior director of corporate communications at Blackboard,said. “Using a combination of information from our clients as well asour own thoughts, new features and values are added for deliveranceof a quality product.”
The privately held company has a multitude of investors.
Strategic investors include Microsoft, AOL Time Warner, PearsonEducation, Dell and Kaplan. Financial investors include Oak HillCapital Partners, Aurora Funds, The Carlyle Group, Merrill Lynch,Novak Biddle Venture Partners, Internet Capital Group, RBG DainRauscher and Edelson Technology Partners.
Professors have found that using Blackboard saves them time andenergy, and allows for communicating with students, deliveringlecture notes and posting grades.
“I love the ease of use and the fact that (Blackboard) makescommunicating with students, sharing materials and posting grades soeasy, fast and trouble-free,” marketing professor Cristel Russell,said. “I cannot imagine class without Blackboard and I think thestudents have gotten used to it and love it as well.”
Communication professor David Dozier likes the online grade book,which allows students to have access to their grades 24 hours a day,seven days a week. He also likes the ability to put lecture contentonline. This can help students with note taking and provides lectureoutlines for classes they miss.
Whether communicating with professors, sending assignments orchecking grades, students also save time and energy by usingBlackboard.
“I use (Blackboard) constantly for my (information and decisionsystems) class,” Lauren Thayer, integrated marketing communicationssenior said. “I use various functions of Blackboard to check mygrade, determine class assignments and quiz problems.”
Heaven Denyer, SDSU marketing senior, feels that Blackboard hasmade her life easier as a student. She likes how Blackboard can becustomized to suit any student’s or professor’s needs.
Blackboard leads the e-education market with 45 percent of thetotal market share. WebCT follows with 33 percent, while eCollegecarries 5 percent. Various other e-education software companiescomprise the remaining 17 percent.
