1 min read

Partnership results in multiple new contracts

By Leiv Kåre Johannessen on Dec 7, 2022 6:00:00 AM

TERP has signed multiple new contracts with maritime schools in the Phillippines. Among these is the first public high school utilizing TERP technology. The new agreements kick off a restart of systematic sales. 

The company started systematic sales in April 2021, resulting in a revenue leap when the school year started last fall. At the time, we expected to launch new features during the school year to support the promised value proposition. However, we failed to deliver on time and had to pause sales. We also temporarily lost some paying customers for this school year.

We had to rebuild our technology team to get on track again. Now we have a smaller but more experienced team. We have worked with company values to better deal with the cultural differences between Norway and the Philippines. The current team is solid and can deliver what we need to restart systematic sales. The productivity in the technology team has multiplied even though we have far fewer developers.

A leaner and more productive organization makes TERP adapt well to the new capital market. We also make a strategic adjustment by prioritizing break-even over growth. As maritime education is currently our most important market segment, and the school year starts in August, the following six months are essential for sales. 

The new contracts are with schools and colleges connected to Philippine Transmarine Carriers Inc. (PTC), the largest manning company in the Philippines. Initially, we had an agreement with the maritime manning company Abojeb, but after PTC acquired them, the collaboration took a different direction. PTC has partnerships with multiple schools providing maritime education, and we expect to sign more of their partner school going forward. 

The three new signings are with Merchant Marine Academy of Caraga, Negros Maritime College Foundation, and Sto. Rosario National High School. The latter is a public high school that is a significant signing for two reasons. First, this is the first public school we have signed in the Philippines. All other customers are private. Second, the contract includes upgrading PTC´s learning resources to utilize the TERP technology fully. Content is essential when addressing any new market segment, and we hope this will be the first of many high schools to take advantage of our technology. Entering both public schools and high schools increases the market potential significantly.  

Topics: technology funding Sales culture
3 min read

Opportunity evolving from market trends

By Leiv Kåre Johannessen on May 31, 2022 8:00:17 PM

Since our previous funding round, TERP has evolved a lot, having 30 employees and a much stronger presence in South-East Asia. The potential is more extensive than first anticipated, having identified a huge unserved market of 3 billion learners and a total value of $36 billion. A set of learning and technology trends defines this potential.

Topics: technology learning resources oflline remote learning market trends market potential
1 min read

Revenue tripled in Q4

By Leiv Kåre Johannessen on Dec 28, 2021 1:30:11 PM

TERP tripled the revenue for the second quarter in a row closing in on 50.000 USD. The growth results from implementing new contracts within maritime education in the Philippines. The company expects to further increase the value of these contracts by about 50 %.

Maritime education consists of two major programs: nautical sciences and marine engineering. Most maritime schools and universities offer both programs, and TERP's contracts include deliveries to the entire maritime education. However, thus far, we have only onboarded nautical students. Pending learning resources on marine engineering, TERP will onboard the remaining students by the start of the next school year in September 2022.

The strong growth in revenue in Q3 and Q4 came from multiple new contracts TERP landed earlier this year. The company hired its first sales representatives in October 2021, starting systematic sales. We do not expect the work of the sales team to materialize significantly in revenue until Q3 and Q4, as our largest market segment is within education. Schools and universities tend not to implement new services in the middle of a school year.

Topics: Sales Revenue ARR
1 min read

Breakthrough in Malaysia

By Leiv Kåre Johannessen on Dec 14, 2021 11:15:58 PM

TERP signed an agreement with Universiti Teknologi Mara (UiTM) during a signing ceremony in the Malaysian state of Sarawak today. UiTM is the largest university in Malaysia. Having more than 160,000 students, the university is larger than all Norwegian universities combined. Initially, TERP will upgrade learning resources for business education of the university's campus in Kuching.

Topics: TERP contracts Abooks learning resources edtech Malaysia signing Sarawak Kuching UiTM
1 min read

Revenue leaped 7x in September

By Leiv Kåre Johannessen on Sep 30, 2021 7:00:00 AM

Monthly Recurring Revenue (MRR) increased 7x in September and will continue to grow in October due to new contracts implemented. The leap to MRR close to 13,000 USD is a taste of what is coming. TERP starts scaling sales in October.

1 min read

Successful launching

By Leiv Kåre Johannessen on Sep 16, 2021 2:15:25 PM

TERP started rolling out the post-chasm MVP on August 31st. It was a massive release containing 7,452 lines of code. In comparison, a typical launch has a few hundred lines of code. The launching has multiple effects and implications. From a business point of view, we can start scaling sales.

After monitoring our web service more than two weeks after the launch, we know it is stable. We experienced few bugs and addressed those we found immediately. Our tech team did a fantastic job!

User experience
This launch contains infrastructure that paves the way for new features and a better user experience. Now they can use a single sign-in and switch easily between our apps. Soon they will have access to a new version of TERP Classroom, making it easier to utilize abooks at schools, universities, and other learning programs.

The new version of TERP Classroom automize many of the operations currently handled manually by our customer success team. This automation removes the most significant bottleneck in the sales funnel, allowing us to start scaling our sales team.

Topics: TERP technology Sales scaling post chasm MVP
1 min read

Alpha release of AR simulation

By Leiv Kåre Johannessen on Jun 15, 2021 11:36:07 AM

TERP has released an alpha version of AR (Augmented Reality) simulation. The technology allows students to conduct simulation cases at home on their living room tables using their smartphones. Our first cases are on ship handling. We believe it will be a game-changer making abooks even more differentiated from the competition.

AR simulation is not a part of the post-chasm MVP TERP releases in August but a taste of new technologies the company will include in Abooks 2.0, which is the name we use for the new generation of abooks. Still, we aim to have a beta version ready by the start of the new school year.

HubSpot Video
Topics: Blended learning TERP Augmented reality AR technology Abooks learning resources Ship simulation
1 min read

Extended MVP

By Leiv Kåre Johannessen on May 12, 2021 1:53:50 PM

We have extended the scope of the post-chasm MVP by adding two new features. Maritime education in the Philippines is our current primary market segment. The start of the school year is now moved to August, so we are moving the deadline for the MVP accordingly. Besides making a better product, this move eases the pressure on our tech team, which had reduced capacity in April due to Covid-19.

Both our frontend developers tested positive for Covid-19 last month. One of them has recovered, but the other one is still in the hospital. Our backend team is on track, but the frontend development delay prevents us from delivering post-chasm MVP in June, as planned. We are currently onboarding two new developers giving us a frontend team of four, so the issue is temporary.

The original deadline in our primary market in the Philippines was due in June, at the start of the school year. However, the pandemic changed the school year. Now the schools start in August, giving us an additional two months to improve our product. We want to extend the post-chasm MVP due to the response in the market. Instead of delivering the original MVP in July, we want to provide an even better product in August. We are adding two features:

  1. Exams
  2. Validation of assessments

We already added an exam feature in our backend six months ago and have tested it in the market. Inter Global College Foundation in the Philippines has run more than 2000 exams in one day. This is a feature that enables them to do their whole operation remotely. We are now adding frontend features letting our customers set up exams without our involvement.

In addition, we are including Item Analysis and Item Response Analysis. These analyses help our customers to validate the quality of each question in their assessments and exams. E.g., they will have data on how a question discriminates between good and weak students. Besides providing our customers with a tool to improve their assessments, it helps them provide necessary documentation when audited.
Topics: Blended learning TERP distance learning Abooks remote teaching remoteexams universityexams edtech extended MVP post chasm MVP
1 min read

Crowdfunding closed within seconds

By Leiv Kåre Johannessen on Apr 28, 2021 2:55:54 PM

TERP closed a 1.5 MNOK crowdfunding on the FundingPartner investor platform within seconds yesterday. Investors who attempted to register an investment 10 seconds after the launching at 2 pm were too late.

Topics: TERP crowdfunding FundingPartner edtech
2 min read

Strategic shift to market penetration

By Leiv Kåre Johannessen on Apr 21, 2021 4:32:56 PM

TERP started shifting our strategic focus from product development to market penetration in March this year. We are on track to launching the post-chasm MVP* in June, as planned. This release represents a transition to a market strategy where our primary focus is market penetration.

Topics: TERP investment technology scaling postchasmmvp marketpenetration
1 min read

TERP Targets Publishers

By Leiv Kåre Johannessen on Mar 27, 2021 11:32:39 AM

TERP launches an upgrade program targeting publishers. A limited number of publishers are getting the opportunity to upgrade their learning materials to abooks. Access to quality content has proven to be an essential factor for educators and training programs using the TERP Web Service.

Topics: TERP Upgrade Learning material publishers Abooks learning resources
2 min read

TERP reaches two new value inflection points

By Leiv Kåre Johannessen on Feb 14, 2021 7:00:00 AM

The term "value inflection points" is taken from Bruce Cleveland's book "Transversing the traction gap" and refers to milestones which change the valuation of tech companies. Over the last year, we have focused on two such milestones: To complete post chasm MVP (Minimum Viable Product) and build repeatable processes in sales and marketing to achieve Minimum Viable Repeatability (MVR)We expect both of them to be value inflection points as the first one gives us access to the majority market, and the latter sets up our organization for scaling.

Topics: investor information Value inflection points TERP
1 min read

Sales paradox

By Leiv Kåre Johannessen on Feb 1, 2021 7:00:00 AM

TERP experienced a sales paradox in 2020. We had a surge of new contracts combined with diminished short-term sales. The paradox was partly due to the corona pandemic, partially because we implemented a new business model, and partly because of capacity issues.

In the information to investors in May 2020, we informed about a lost semester. The lockdown in March effectively stopped all maritime education in the Philippines as they had no contingency plan. The next semester started in August/September, two-three months later than planned, which resulted in only having revenue from one semester in 2020.

Changing to a subscription business model in the second half of 2020 reduced the short-term sales even further. Earlier, we sold textbooks at the beginning of each semester. Now we have recurring revenue every month. A third factor was the capacity of the Customer Success Team. We had neither personnel nor systems to deal with the surge in new contracts. We temporarily stopped all active sales and focused on building our Customer Success Team and related functional units.

The presents of an efficient Customer Success Team has proven to be critical for scaling TERP. They ensure smooth implementation, so we get value out of the signed contracts. We have started to involve the Customer Success Team already in demos made for potential customers. They are also engaged in pilots, which now is much shorter than before. Before, we typically piloted a whole semester. Now we developed a pilot concept with a 30 days timeline.

As a result of these adjustments, we discover the implementation challenges before the contract is signed. The customer already knows their contact person in the Customer Success Team, and the implementation goes smoother. It is not perfect yet, but we are improving our working processes every week. The backlog of contracts not yet under implementation is almost empty. What we focus on now is to strengthen our playbook gradually through a series of systematic experiments. By identifying the best practice for the different parts of the operations and making it a part of our documented playbook, we can hire new personnel with a predictable outcome. Then we can gradually scale the Customer Success Team as our sales grow.

Topics: Blended learning TERP paradox customer success Sales scaling contracts
1 min read

2,2 millions NOK from Innovation Norway

By Leiv Kåre Johannessen on Aug 6, 2020 7:00:00 AM

TERP integrates augmented reality (AR) in abooks when delivering new technology to the ambulance service at Innlandet Hospital Trust (Sykehuset Innlandet) in Norway. The solution will support evidence-based practice. Innovation Norway contributes 2,2 million NOK in grants to the project.

The corona pandemic has created a great demand for distance learning solutions. TERP's primary market so far has been maritime education in Southeast Asia, where the company has provided adaptive textbooks. A key element in this education is practical exercises on a simulator, which conventional distance learning solutions can not replace. The solution TERP has come up with is to integrate augmented reality into the textbooks to run virtual simulations at home on the living room table.

When developing new technology, we are looking for innovative environments that are at the forefront of the use of new technology. We found this environment at Innlandet Hospital Trust. The health organization, which has 26 ambulance stations in Innlandet county, has a strong focus on evidence-based practice and has used virtual reality in employees' training for several years.

Topics: Blended learning TERP Augmented reality Innovation Norway AR
2 min read

Corona challenges

By Leiv Kåre Johannessen on May 25, 2020 7:00:00 AM

Even though the corona pandemic represents an opportunity for TERP, we have faced some short-term challenges. We canceled all international travels on March 4th and stopped traveling domestically one week later. At the same time, we closed our offices and started working from home.

As we are a distributed organization, the shift to working from home was smooth. However, not being able to visit customers became a challenge both in terms of sales sales and implementation.

After the lockdown, the implementation of Abooks with new customers was even more challenging as the schools had no prior setup to efficiently communicate with students remotely. The lockdown also
had economic consequences as our customers had no personnel available to process our invoices. However, we have compensated
for the delayed payments by reducing costs and renegotiating the terms for our loans. Now schools and universities are re-opening.

The lockdown in March effectively stopped all maritime education
in the Philippines as they had no contingency plan. According to the signals we have received, it looks like the next semester will start in August, two months later than planned. We expect that the delay forms a
new standard where the semesters that used to begin in June and November move to August and January. If so, we will only have revenue from one semester in 2020 as we will deliver our products and services for the second semester at the beginning of 2021. On the other side, the delay will enable us to prepare more content and develop more features supporting distance learning, contributing to higher revenue next semester. Besides this, the corona situation provides us with a surge of new customers. It is too early to conclude if these factors will compensate for the “lost” semester in 2020, but the issue is technical. The overall picture is that the company will be in a much better position despite that the revenue in 2020 might not be as high as previously estimated.

An immense challenge we are facing is the software development capacity. To satisfy the early majority long-term, we have to develop additional features to build a whole product. We have to at least triple the development capacity to deliver according to our tech roadmap. The first step was to acquire the training app company InfoGym. We have integrated their tech team into ours, and we have a setup that allows us to build a larger and more cost-efficient development team. We make ourselves independent of consultants and expect to double the number of development hours we get out of each US dollar invested.

The acquisition of InfoGym brought us much closer to having
what the organization needs, but we might have to strengthen our organization even more. The market is moving very fast due to the current situation, and certainly much quicker than we anticipated when we completed the last funding round. It may be in both the company's and shareholders' interest to acquire additional funding to take full advantage of this unique window of opportunity.

Topics: Blended learning technology challenges Corona
1 min read

Crossing the chasm

By Leiv Kåre Johannessen on May 11, 2020 7:00:00 AM

The corona situation has given us a once-in-a-lifetime opportunity to cross the chasm from the early adopters to the early majority. In other words, we have the chance to evolve from being an enticing solution for innovators to becoming a recognized standard in the mainstream market. Most technology companies never manage to cross the chasm.

It is a chasm because early adopters and the early majority are very different from each other. While early adopters are visionary innovators who test new technologies to make a potential leap and separating themselves from competitors, the early majority are pragmatic. They want proven solutions tested in the market. Preferably a solution provided by the market leader.

Crossing the chasm is not possible unless we define a small beachhead market we can dominate fast. Our beachhead market is maritime education in Southeast Asia (Philippines, Malaysia, Singapore, and Vietnam). There are 110 maritime schools and universities in this market. When we get 33 of these schools as customers, we will become the undisputed market leader with a 30 % market share. As we already have 18; we just need 15 more before we have crossed the chasm.

Besides defining a small market, the key to crossing the chasm is to develop a whole product. Our core product is the web-service enabling customers to create a-books. Along with our content, this forms our generic product. The early majority, however, expects more. They want a complete solution that is easy to implement and that fits seamlessly into their operations. We have to build that solution over the next 12 months.

Topics: Blended learning TERP technology Corona distance learning crossing the chasm diffusion
1 min read

Corona framework

By Leiv Kåre Johannessen on Apr 27, 2020 7:00:00 AM

After the coronavirus outbreak in March, we created a framework to analyze the corona pandemic's consequences, defining three phases.

We observed how the need for digitalization increased in phase one. Processes that used to take months and years were settled in days. Simultaneously, everyone faced challenges as national authorities used lockdowns to get the pandemic under control.

We assumed that the drivers for digitalization would remain strong in phase two. Partly because of the measures necessary to avoid the spread of the virus until a vaccine is in place and partly because of the need to implement contingency plans in case of new waves of infection.

The last weeks have shown us that our assumptions about phase two were spot on. In many countries, authorities have started to re-open the society, including education and training, but with restrictions. On April 13th, the Philippines' authorities, which is our core market, communicated that schools had to implement measures to maintain social distancing when re-opening. That message caused an explosion of inquiries from schools, universities, and training institutions looking for a solution to implementing some degree of distance learning.

Phase one and two lead to a situation where the masses have adopted technology previously reserved for innovators. New standards on how to organize education and training will evolve during the pandemic. We will not go back to the old ways when entering phase three after we have a vaccine. The use of new technology will reveal better approaches to teaching and leaner operations, thus defining a new normal.

Topics: Blended learning TERP Corona distance learning teaching

TERP acquires InfoGym

By Leiv Kåre Johannessen on Mar 30, 2020 7:00:00 AM

TERP acquires the training app company InfoGym. We know InfoGym very well as both companies are a part of the Leap tech community outside Haugesund. The transaction gives us a much more robust technical team.

The agreement makes investor Harald Mowinckel Troye one of TERP's largest shareholders. Mowinckel Troye is one of the initiators of the Tripod investor community in Bergen.

The InfoGym agreement gives us access to technology we might otherwise have had to develop ourselves. Besides, the expertise in InfoGym will provide us with more efficient technology development. The potential synergies are significant. Within a year, we expect to get twice as much development out of every dollar invested.

Topics: TERP technology InfoGym

2 million NOK investment from Validé Invest

By Leiv Kåre Johannessen on Feb 11, 2020 7:00:00 AM

Validè Invest has made a 2 million NOK follow-up investment in TERP, making the investment fund our largest investor. During the last year, TERP has increased the equity by 11 million NOK.

- TERP has a strong founder team, an exciting business idea, and a great growth potential, says Valide's director of investments, Johannes Løyning. - They have proven their ability through sales and market positioning in the Philippines. The company's solution can disrupt the publishing industry.

Topics: investor information TERP Valide investment Disruptive technology publishing

12.5 million funding for machine learning project

By Leiv Kåre Johannessen on Dec 17, 2019 7:00:00 AM

Norwegian Research Council has granted TERP 12.5 million NOK for a machine learning project. By utilizing artificial intelligence TERP will automate the adaptive features in abooks, making the technology more scalable.

Norwegian Computing Center (NCC) and the University of Stavanger (UiS) are research partners. NCC is a European powerhouse within machine learning, and UiS will contribute with expertise in pedagogics. Also, a team of neuropsychologists will contribute.

Besides the Norwegian Research Council grants, the project qualifies for Skattefunn, Tax Deduction Scheme for Companies with Research and Development Projects, increasing the total grants to 70 % of the project costs.