Intellinex, LLC

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Executive Summary
Intellinex LLC is an eLearning company that was recently spun off from its parent Ernest & Young LLP. At its inception Intellinex claimed to be one of the largest eLearning providers. They have an aggressive strategy to take advantage of the consolidating eLearning market and become a "one-stop" provider of all eLearning services for their clients. Their focus is on creating customized training for clients and helping them to implement and maintain their on-line courses. Products and services are geared toward large companies that spend approximately $1 million on their eLearning projects; not individuals or small companies. They have asserted a strenuous goal of $100 million revenue in the first year of business.
Company Background
Intellinex LLC is an eLearning provider of “one-stop learning solutions that are faster, lower in cost, more flexible, and more convenient than traditional classroom training,” (www.intellinex.com). Ernst & Young LLP launched their wholly owned eLearning venture, Intellinex LLC, on October 5, 2000. Ernst & Young was the first of the “Big 5” firms to create an operating company that offers eLearning services. With less than a year of experience practicing business on their own, much of the background information for Intellinex stems from their internal work with Ernst & Young prior to the spin off. Their parent had already seen the light of eLearning and began creating training that “focused on everything a young audit person would need when first starting their career”. Almost all Ernst & Young employees had begun taking eLearning courses through a unit now known at Intellinex. They found that it was less expensive to train them online than to fly them to training centers for multiple courses. Due to Year 2000 concerns, Ernst & Young changed its curriculum-development procedures and what previously took 200 hours to create 1 hour of online training now takes 20 hours. (Walsh 2) Intellinex was able to take advantage of this change. Ernst & Young already had more than 40 clients receiving eLearning services using this unit. Ernst and Young will continue to use Intellinex for internal training through a third party agreement. (Howell 2) Ernst & Young’s decision to separate from its online corporate training department was in hopes of increasing the unit’s profitability by acquisitions. Intellinex started with more than 400 employees and five major locations. Their focus was providing customized training for clients through satellite, desktop web casting, streaming video, and web-based courses.

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