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1 ThepossiblebusinessimpactofMOOCs TimoKos CapgeminiConsul7ng /7mokos KhanAcademyNL Transform to the power of digital Content 1. A brief history of MOOC s 2. Business impact of MOOCs 3. Strategic scenario s 2

2 MOOC=MassiveOpenOnlineCourses(I) A.#Early#pioneers#(2007/2008)#of#connec8vism##social#learning#(now#cMOOC)# DavidWiley(BrighamYoungUniversity) GeorgeSiemens(AthabascaUniversity) StephenDownes(NaAonalResearchCouncel Canada) Proponentsofconnec7vismusethewebtoexplorethepossibili7es ofopensocial( networked )learning 3 MOOC=MassiveOpenOnlineCourses(II) B.#Pioneers#(2011D2012)#of#free#massive#open#online#classes#(now#xMOOCs)# SalmanKhan Prof.PeterNorvigProf.SebasAanThrun (Stanford) ProfAndrewNgeProf.DaphneKoller (Stanford) Prof.AnantAgarwal (MIT) Theseproponentsusethewebtoprovidetradi7onallystructuredonlinecoursesforfreeand aimto disrupthighereduca7onandopenituptothemasses. 4

3 xmoocplasorms:technologystartuupsbuildingnewdigitaldistribu7onchannels for open onlineeduca7on... Founded: January2012 Founder: Sebas7anThrun (exstanfordprofessor) Company: Forprofit Funding: 15million (VentureCapital) #UniversiAes:none #Courses: 22 #Topics: ICT #Students: CerAficaAon: Yes ProctoredexaminaAon: Yes (4000CBTloca7onsin170countries viapartnershipwithpearsonvue) OpenSource:No(licenced) Founded: April2012 Founder: KollerNge (Stanfordprofessors) Company: Forprofit Funding: 22million (VentureCapitalist) #UniversiAes:62 #Courses: 323 #Topics: Allacademicfields #Students: 2.7million CerAficaAon: Yes(most) ProctoredexaminaAon: Yes, (5accreditedcourses+partnership withproctoru) OpenSource:No(licenced) Founded: May2012 Founders: MITHarvard Company: NotUforUprofit Funding: 60million (Harvard/MIT:30each) #UniversiAes:12 #Courses: 20 #topics: ICT,Engineering,Health #students: CerAficaAon: Yes ProctoreeexaminaAon: Yes (450CBTloca7onsin110countries viapartnershipwithpearsonvue) OpenSource:Partly(licenced) 5..partneringwithtopunivers77esoftheShanghaiRanking(ARWU) (25fromthetop100,including7fromthetop10) Number#of#courses#offered# StanfordUniversityU#2 CaliforniaIns7tuteofTechnologyU#6 PrincetonUniversityU#7 ColumbiaUniversityU#8 UniversityofPennsylvaniaU#14 UniversityofWashingtonU#16 JohnsHopkinsUniversityU#17 UniversityofCalifornia,SanFranciscoU#18 UniversityofMichiganU#22 UniversityofIllinoisatUrbanaUCh.U#25 UniversityofTorontoU#27 DukeUniversityU#36 UniversityofMaryland,CollegeParkU#38 TheUniversityofBri7shColumbiaU#39 UniversityofCalifornia,IrvineU#45 VanderbiltUniversityU#50 UniversityofEdinburghU#51 HebrewUniversityofJerusalemU#53 UniversityofMelbourneU#57 UniversityofPiEsburghU#58 OhioStateUniversityU#65 BrownUniversityU#66 UniversityofFloridaU#72 LeidenUniversityU#73 RiceUniversityU# #1UHarvardUniversity #3UMIT #4UUniversityofCaliforniaUBerkley #35UTheUniversityofTexasatAus7n OfficialonUcampuscourse NonUofficialcourse Cer7ficatealercomple7on Textbookdigitalavailable 0 NB:chartd.d.january2013

4 experimen7ngwithonlinedidac7csfromothersuccessfullopeneduca7onstartuups Founded: 2006 Founder: SalmanKhan Company: nonuprofit Funding: 10million (Philantropists) #Courses: 3000+weblectures (200million+views) #Topics: Math, Science, History Art,etc.. #Students: ca.8million CerAficaAon: NO ProctoreedexaminaAon: NO RevenueModel:NonUprofit OpenSource:Yes Founded: 2009 Founder: PhillipSchmidt Company: nonuprofit Funding: unknown(philantropists) #Courses: 6schoolsonopen learning #Topics: OpenData, Educa7on Webcral SocialInnova7on Mathema7calFuture #Students: CerAficaAon: NO ProctoreedexaminaAon: NO RevenueModel:NonUprofit OpenSource:Yes Founded: 2011 Founders: ZachSimsandRyan Bubinski Company: foruprofit Funding: 12,5million(Venture Capital) #Courses: 5 #Topics: Javascript HTMLCSS Python, Ruby JQuery #Students: CerAficaAon: NO ProctoreedexaminaAon: NO RevenueModel:Referralfee s OpenSource:No(licenced) 7 ANDintroducingnew(nonUformal)typesofHEcer7ficatesissuedforautoma7callyand/ orpeerugradedexams # 8

5 crea7ngpossibili7estopursuenewmone7za7onstrategiesandcreatenewbusiness modelsforhighereduca7on! licensemodel:ashareofgrossrevenuebetweenplasormprovideranduniversi7esofferingcourseshostedonthe plasormfortui7onpaiddegeeprogramsorfeesforaddi7onalservicestostudents(e.g.coaching)! AdministraAvefees:forcer7fica7ononproctoredexamloca7ons! Recruitmentfees:fromcorpora7onsforrecrui7ngtalentedstudents! Premium/Fremiummodel:freeandupgradedpaidversionsoftheMOOCsandservices,resemblingthe freemium and premium paymentmodelsofotherinternetservices! AdverAsement:mone7zingonthescaleandsocialcharacteris7csofusersoftheplaSorm. 9 Content 1. A brief history of MOOC s 2. Business impact of MOOCs 3. Strategic scenario s 10

6 GiventheunprecedentedscaleofMOOCsandtheglobalreputa7onofthepartner universi7esofthexmoocplasorms,wesetouttoanswerthefollowingques7on: aremoocsahypeoradisruptiveinnovation? Casestudy BusinessimpactofMOOCs aspartof3yearresearchwithmit Review board Drs. Anka Mulder Prof. Dr. Marc Vermeulen BusinessplanOnlineEducaCon Opdrachtgever Drs Paul Rullmann Drs. Anka Mulder Interviewees Drs. Paul Rullmann (TUD) Prof. dr. Simone Buitendijk (UL) Prof. dr. Elmer Sterken () Prof. dr. Ed Brinksma (UvT) Drs. Agnita Mur (HL) Drs. Gerard van Drielen (HR) Dr. Geleyn Meijer (HvA) Dr. Wilfred Mijnhardt (EUR) Drs. Tom Abel (UvA) 11 FirstweanalyzedxMOOCplaSormsfromGartnerstechnologyhypecycleperspec7ve WebCams YouTube SocialMedia (Smart)Browsers andconcludedthatmoocsdonotfitthecharacterisacsofatechnologyhype (althoughthemediaaeen7ontheyreceivedofitthecharacteris7csofamediahype) 12

7 (Open)OnlineEduca7onviewedfromChristensens sdisrup7veinnova7onperspec7ve... Thetheoryof!disrupAveinnovaAon! A process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors Topranked(under)graduate degreeprograms Highranked(under) graduatedegree programs ProfessorClaytonM.Christensen, HarvardBusinessSchool AuthorofDisrup8ng#Class#(2008)andThe# Innova8ve#University#(2011) Lowranked (under)graduate degreeprograms Thevaluepropositonsofthedifferenttypesofonlineeduca7oncompared: Accessibility InstrucAon/classes TradiAonaleducaAon (ondcampus,f2f) SelecAve/inclusive:(high)tui7on, admissionrequirements Offline (inflexibleschedule) OpenCourseWare xmoocs Online(only) EducaAon Freeandopenaccessforeveryone Freeandopenaccessforeveryone SelecAve/inclusive:(high)tui7on, admissionrequirements Onlinecourses,webUlectures digitallearningmaterials Onlineclasses digitallearningmaterials Onlinecourses (flexibleschedule), InteracAonbetween students Yes,mainlyf2foffUline No,selflearners Yes,peerUtoUpeerviaonline Yes,onlinelearningplaSorms, learningplasormsandsocialmedia virtualclassrooms,andsocial and MOOCUmeetups media No,onlybyreputa7on Yes,Accredita7on (professor/ranking) QualityControl Yes,Accredita7on Yes:forcontent Noforprocess InteracAonbetween studensfaculty Yes,(mainly)offUlineonUcampus No Yes,onlinelearningplaSormsand socialmedia Exercises Yes,bothindividualandingroups Yes,assta7cteachingmaterials (nostudentfeedback) Yes,onlinelearningplaSormsand socialmedia Yes,onlineexcercises(quizes)with Yes,revisedbyteacher/faculty automatedanswersfeedback staff Exams Yes,oncampusgradedbyfaculty staff Yes,assta7cteachingmaterials (nograding) Yes,onlinecomputergradedor bypeerugrading Yes,onlineandgradedbyfaculty staff IdenAtyverificaAon Yes,oncampus No Yes:proctoredexamsincomputer basedtes7ngcentres Yes,throughonlineoroncampus iden7fica7onprocess Deadlines CerAficate Degree Yes,fixedterms(semesters, trimesters) No Yes,dedicatedcourseperiods Yes,severalstar7ngdatesduring duringtheyearaswellasdeadlines theyearaswellasdeadlinesfor forhomeworkexams homeworkexamsduringcoures Yes,Accredited No Yes,nonUformalcer7ficateof Yes,Accredited comple7on(byprofessora/ounix) Yes,Accredited No No(notyet) Yes,Accredited 14

8 Thefuture?Earlyadoptorsareposi7oningthemselvesforanewandtrulyglobalmarket formassive(lowprice)formalcer7ficatedegreeawardingonlineeduca7on SelfLearnerPopulaCon (badges)# Marketsegments CerAficateseeking (nondformal) Degree CerAficate seeking (formal) F2F Campus (formal) Time Tradi7onaluniversi7es ForProfitUniversi7es cmooc 15 SoareMOOCsadisrpu7veinnova7on?YES 1. MOOCs are distributed through new digital channels with a potential of attracting millions of visitors, creating valuable digital channels with the potential of new (low price) revenu models that are common in the internet economy (scale now, monetize later). 2. MOOCs serve a global mass market with a new value proposition that till recently was not available or affordable for large groups of students around the world. 3. Some of the MOOC courses provide the same content as on campus courses, and claim to be of the same academic quality. 4. MOOCs are not equal to a campus education, but a stripped down version targeted at a studentpopulation who do not need the full value offered at the high end of the market 5. MOOCs are produced using widely accepted internet technology which enable any lecturer with a high academic reputation to produce a MOOC by themselve and reach a potentially unlimited number of students at a fraction of the cost per student that are needed for delivering traditional (online) university lectures. 6. MOOCs offer a supplement to on-campus courses and are already being integrated in credited (bachelor) degree programs. 7. MOOCs are replacing parts of the regular campus curriculum and thereby start to alter the business model and operating model of brick-and-mortar universities (leading to speciliazation between universities). 16

9 Content 1. A brief history of MOOC s 2. Business impact of MOOCs 3. Strategic scenario s 17 MarketSegments focusversusmo7ve Motive Focus of qualification Academic Professional TUD Not-for-profit MIT Stanford UniversityofSouthern California Universiteit Leiden LibertyU Universityof Liverpool INSEAD Avans# Universityof NotreDame HSInholland OU Profit Duisenberg# School#of#Finance# Universidad# Europea#de#Madrid# Nyenrode#Business# University# Kaplan Phoenix University University NTI DeVry NCOI 18

10 WheredotheMOOCPlaSormsfitinthemarketforonlinehighereduca7on? Motive Not-for-profit For-Profit MIT Stanford Focus of qualification Academic (selective) Professional (inclusive) Universiteit Leiden LibertyU Universityof Liverpool TUDell INSEAD Open University Avans# Universityof NotreDame HSInholland Duisenberg# School#of#Finance# Universidad# Europea#de#Madrid# Nyenrode#Business# University# Kaplan Phoenix University University NTI DeVry NCOI 19 WhentheriseofMassiveOnlineEduca7onisviewedasadisrup7veinnova7on, anearlyadop7onstrategyforonlineeduca7ondifferspermarketusegment Motive Not-for-profit Profit Focus of qualification Academic (selective) Professional (inclusive) DellUniversityof Technology MIT LEVERAGE GLOBAL REPUTATION Stanford ErasmusUniversity RoEerdam AmsterdamUniversity ofappliedscience SaxionUniversityof AppliedScience OpenUniversity LOCALLY APPLIED SCIENCES NyenrodeBusiness University ADD. PROF Universidad EuropeadeMadrid NETWORK SERVICES Duisenberg SchoolofFinance Kaplan University Phoenix University LOW PRICE FIGHT NCOI MARKET 20

11 TimoKos,PrincipalConsultant MarketLeaderEduca7onEmployabilityNL TimoKos Phone: +31(0) Mobile: +31(0) hep://linkedin.com/in/7mokos hep://twieer.com/7mokos Transformtothepowerofdigital

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