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10.11.11 acct meeting
The document discusses disruptive innovation in higher education. It argues that higher education can be "unbundled" by separating out different services like instruction delivery, learning content, career services, and assessment. This disruption process appeals to new types of customers by offering simpler, more affordable options without replicating the cost structure of traditional universities. Enablers of disruption include online education technologies and new business models that deliver value in different ways than traditional universities. The document advocates that policymakers and institutions embrace disruption by removing barriers, focusing on teaching and learning outcomes over inputs, and recognizing different types of institutions.
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10.11.11 acct meeting
- 1. Disruptive Innovation: ADifferent Way to View Higher Education Change ACCT Symposium on Student Success Generating A Policy Agenda October 11, 2011 Louis Soares Director - Postsecondary Education Program Center for American Progress
- 2. What Students/Society Wantfrom College? Content Skills Socialization Credentials Do these deliverables need to be done in the same place at the same time? Or Can they be unbundled?
- 3. Unbundling College: Service By Service Instruction delivery learning content publishing and library services career and educational management services tutoring/mentoring and test-prep services academic and technical standards assessment, and certification services learning management enterprise platform services quality assurance services
- 4. Disruptive Innovation ProcessNon-consumption Functionality Reliability Simplicity Cost Reduction
- 5. Process Of DisruptiveInnovation Sophisticated customers not interested New Customers, less complex needs, expectations Move up market without replicating cost structure
- 6. Enablers of DisruptiveInnovation Technology Enabler Business Model
- 7. Technology Enabler –Online Education 2003 – 10 % 2014 – 50 %
- 8. 2009 37% ofall courses
- 9. Business Models –How Value is Delivered
- 10. Three Basic Typeof Business Models Solution Shops diagnose and solve unstructured problems consulting firms, advertising agencies, hospital diagnoses Deliver value through people they employ Revenue - fee for service Research in Universities Value Adding Process businesses organize inputs that are incomplete and turn them into outputs of higher value Manufacturing, restaurants, retailing Revenue – outputs of their work Most Teaching in K12 and Universities Facilitated user networks Enterprise in which participants exchange things with each other Mutual insurance companies, telecommunications Fee for membership, fee for use
- 11. Historical Business ModelsKnowledge Creation (research) Knowledge Proliferation (teaching) Preparation for Life and Careers Disruptive Innovation Online Education Focused on teaching and learning Highly structured delivery Learning Analytics Target on prep for careers Competency-based
- 12. Policy Makers ShouldEliminate barriers that block disruptive innovations and partner with the innovators to provide better educational opportunities Remove barriers that judge institutions based on their inputs such as seat time, credit hours, and student faculty ratios Not focus on degree attainment as the sole measure of success Fund higher education with aim of increasing quality and decreasing cost Recognize the continued importance of research institutions
- 13. Existing Institutions Applythe correct business model for the task Drive the disruptive innovation Develop a strategy of focus Frame online learning as a sustaining innovation
- 14.
- 15. Disruption Across IndustriesMerrill Lynch Charles Schwab Web-based financial transactions Financial Services ? ? ? Higher Education Most newspapers (except NY Times) Craigslist, Google Web-enabled markets Newspapers ATT, Ma Bell Sprint, Nokia Cell phones Telecommunications Travel Agents Expedia, Kayak Web-based booking Travel Incumbent Disruptor Technology Industry
- 16. Disruptive Innovation isthe Process by which A Sector That ……. with complicated products services… that were expensive and inaccessible…. And served only a limited few sophisticated customers…… Is transformed into one which… Offers products and services that… Are simple, affordable and convenient serving…. Many…no matter their wealth and expertise How? Redefines quality in a simple often disparaged application Slowly improves taking for market share by taking on complicated problems Without replicating cost structure
Editor's Notes
- #3 Noted technology author and Fast Company reporter, Anya Kamenetz, in her best selling book, DIYU : Edupunks, Edupreneurs and the Coming Transformation of Higher Education , provides a practical point view of on what colleges actually do that can be helpful in solving this affordability/value puzzle. She argues that while “higher education is not just an industry….from the students’ point of view colleges do provide a bundle of services. You crack a book or go to a lecture and learn about the world ; you go to labs, complete problem sets, and write papers, building a skill set ; you form relationships with classmates and teachers and learn about yourself ; and you get a diploma so that world can learn about you. Knowledge (in a field of study), practical skills, socialization, and accreditation.” [i ] [i] DIYU, Anya Kamenetz
- #10 Disruptive Innovation plugged into new business models Allows organization to serve a job to be done in the lives of customers at this new lower price point or In a new way, far more convenient fashion without extra cost Plugging a disruptive innovation into an existing business model never results in transformation of the model; instead, the existing model co-opts the innovation to sustain how it operates. Important note: This means that the disruption of higher ed at public universities will need to happen at the level of state systems of higher education, not at the level of the individual institutions, which struggle to evolve.
- #12 Di Questions college; Its processes where it happens What are its goals Assumptions Prestige goes to institutions that accept best students and do the best research Knowledge was scarce during the rise of America’s top universities and colleges which implied that research and teaching should be tightly coupled Online learning can allow learning to happen in various contexts, locations and times. Tightly structured program could add to success of those traditionally underserved Escape from policies that focus on credit hours and seat time to one that ties progression to competency and mastery. Onlinelearning can easily be embedded acationable assessments and allow student to accelerate past concepts and skills they understand and have mastered and instead focus their time where they most need help at the leove most appropriate for them.
- #16 No incumbent has ever remained dominant in a market that has been disrupted.