This is a presentation used during a Pedagogical Café at IESEG School of Management in January 2013

1. Pedagogical Café N 2
CETI – Center for Educational and
Te c h n o l o g i c a l I n n o v a t i o n
New Challenges and Business
Models in Higher Education
10 January 2013

2. Pedagogical Café
Blended learning
Learn Online courses
iTunes U
Role of the professor
Online sharing In-class sharing
New ways of Teaching Societal issues in
teaching
Flipped learning
Managing students/professors
SHARE The future of teaching
interactions Students’ learning behaviors
YouTube.edu Smartphones in education
Tablets in education Teaching with social networks

3. Pedagogical Café
A moment and place to share our pedagogical
experiences in a reflective manner so that it
benefits to all the school’s stakeholders (professors,
students, administrative staff, companies, etc.) and
participates in the development of the school and
its values

4. Massive Open Online Courses

5. What’s new about MOOC?
Scale, scope, pace and
structuration of the ventures

8. Screen capture: January 8

9. 2011…
Online course in artificial
Sebastian Thrun intelligence Peter Norvig
160,000 registered - 190 countries + 200 on campus –
dwindled to 30
23,000 completed (online transfer)
“Peter and I taught more students AI than all AI professors in the world combined”…
“Having done this, I can’t teach at Stanford again, I feel like there’s a red pill and a blue pill,
and you can take the blue pill and go back to your classroom and lecture your 20 students.
But I’ve taken the red pill, and I’ve seen Wonderland.”

10. • Raised $15 million
• Free for the students
• Sells leads results to companies (when permitted)
• Helps the students to get a job
• More than 1 million students
• Students in one Udacity class can get credit
through the Global Campus of Colorado State
University
• “Udacity in partnership with Pearson VUE
announces testing centers”

11. MOOC Common characteristics
• Online courses (video lectures + written materials +
forums / communities (= social)+ self-scoring tests)
• Free for the students
• Can reach thousands of students at the same time
• Top-rated universities (usually)
• Great researchers and teachers
• « Shop windows » for other courses offered by the
institutions
• No diplomas, but certificates or badges
• Less personal support to the students
• High percentages of students who give up

12. Badges vs diplomas?
• Badges represent the acquired skills
– Store all the information about the validated training as
metadata (institution, skills, grades, type of the exam, etc.)
• Good way to attract students towards learning
– Getting the badge = quest
– Intermediary badges with each new competence, all the
badges = quest completed
• Studies by Mc Arthur foundation with Mozilla, with
such organizations as NASA, Intel, Disney-Pixar,
Motoral, US Ministry of Education
• Skilled-based rather than diploma-based jobs

13. An answer to the students’ loan
bubble?
• http://edition.cnn.com/2012/12/06/opinion/b
ennett-student-debt/index.html
• http://www.zerohedge.com/news/2012-09-
28/student-loan-bubble-19-simple-charts
• http://www.usnews.com/opinion/blogs/econ
omic-intelligence/2012/06/12/the-
government-shouldnt-subsidize-higher-
education

14. Implications
• New challenges and new business models
• New pedagogical / educational models
• Less expensive – both for institutions and students
• How is Higher Education delivered?
• What can / should we become? (as institutions)
• What is quality education?
• Who is Higher Education for?
• Will there be an increased segmentation and low-cost vs
high-quality education? (+ accreditations?)
• How to reach new markets?
• What is / will be / should be our job as professors?
• Etc. (larger social, economic, etc. Implications)

15. Disruptive innovation Incremental innovation
“Introduce a very different package of attributes from
the one mainstream customers historically value, and
“Give customers something more or better in
they often perform far worse along one or two
the attributes they already value” (Bower
dimensions that are particularly important to those
and Christensen, 1995: 45) - “Innovations
customers” (Bower and Christensen, 1995: 45) –
that make a product or service perform
“Create an entirely new market through the
better in ways that customers in the
introduction of a new kind of product or service, one
mainstream market already value”
that’s actually worse, initially, as judged by the
(Christensen & Overdorf, 2000: 72)
performance metrics that mainstream customers
value” (Christensen & Overdorf, 2000: 72)
Customers are unable to grasp the value in use of the
Customers can value the nature of the
innovation (they “are unwilling to use a disruptive
They already do…
product in applications they know and understand”,
innovation and understand what it brings
them
Bower and Christensen, 1995: 45)
Make possible the emergence of a new market and can
Does not create a new market
invade established markets over time

16. “It's been interesting watching this unfold in music, books, newspapers, TV, but
nothing has ever been as interesting to me as watching it happen in my own back
yard. Higher education is now being disrupted; our MP3 is the massive open online
course (or mooc), and our Napster is Udacity, the education startup.
We have several advantages over the recording industry, of course. We are
decentralised and mostly non-profit. We employ lots of smart people. We have
previous examples to learn from, and our core competence is learning from the past.
And armed with these advantages, we're probably going to screw this up as badly as
the music people did.”
Clay Shirky, Associate professor at New York University and a fellow at the Berkman Center
for Internet and Society (2012 12 17)

17. • Created in 2006
• Flipped learning
• Non-profit organization – donations
• Supported by the Gates Foundation, Reed
Hastings (CEO of Netflix), Google and the
O’Sullivan Foundation (among others)
• More than $16.5M in funding
• Videos on YouTube

18. Andrew Ng
Daphne Koller
“Education should be a right, not a privilege”
April 2012

19. Number of students signing for the site’s
5 courses in its first 24h
$ Million raised
million users 4 months after its creation
• 2M+ in December 2012
• +70,000 users/week
Courses in 12/2012

23. • “Monetization is not the most important objective for this business at this point.
What is important is that Coursera is rapidly accumulating a body of high-quality
content that could be very attractive to universities that want to license it for their
own use. We invest with a very long mind-set, and the gestation period of the very
best companies is at least 10 years.” (Scott Sandell, a Coursera financier )
• “We’ll make money when Coursera makes money. I don’t think it will be too long
down the road. We don’t want to make the mistake the newspaper industry did,
of giving our product away free online for too long.” (Peter Lange, the provost of
Duke University)

24. • Certification
• Secure assessment
• Sale of information to potential employers
• Assessment of competency
• Tutoring or evaluation of progress
• Licensing or sale of the learning platform and courses
• Sponsorship
• Tuition
• Amazon Affiliate
Source: contract between Coursera and participating universities

25. Transfer Coursera courses
evaluations into credits?
Would enable students to take an identity-verified
proctored exam, pay a fee and get and ACE credit
transcript (accepted in 2,000 universities for credits)

26. Revenues
• 85 to 94% • 6 to 15%
• 80% of gross profit • 20% of gross profit
Coursera Partner Universities
Questions remain about sharing the revenues
with the professors…

27. Fall 2012
$30M each
Not just teaching and learning. Stated intent = to “research how students
learn and how technologies can facilitate effective teaching both on-
campus and online. The EdX platform will enable the study of which
teaching methods and tools are most successful.” (press release)

28. • University of Texas will use edX courses for
credit.
• 400,000+ students enrolled
• Modest fees to get certificates of successful
completion

29. 12 institutions
To be released in 2013

30. • Context
– UK: distance learning = a niche concern
– High increase in registration fees = decrease in the
number of students
– Traditional campus-based experience “boring” in the
eyes of international students (Martin Bean, Vice-
Chancellor of the OU)
• Directed by Simon Nelson, key architect of BBC
Online.
• No diploma, but charged option to take tests in
centers to get a skills certificate

31. Some references
• http://www.guardian.co.uk/education/2012/dec/17/moocs-higher-education-transformation
(fascinating and insightful )
• http://www.guardian.co.uk/education/2012/dec/03/massive-online-open-courses-universities
• http://www.theatlantic.com/business/archive/2012/02/envisioning-a-post-campus-
america/253032/
• http://www.guardian.co.uk/higher-education-network/blog/2012/dec/20/futurelearn-uk-moocs-
martin-bean?INTCMP=SRCH
• http://www.guardian.co.uk/education/2012/nov/19/open-online-courses-higher-education
• http://www.nytimes.com/2012/03/05/education/moocs-large-courses-open-to-all-topple-campus-
walls.html?_r=1&pagewanted=all
• http://www.fastcompany.com/3000042/how-coursera-free-online-education-service-will-school-
us-all
• http://en.wikipedia.org/wiki/Coursera
• http://www.insidehighered.com/blogs/university-venus/problem-edx#ixzz2HOb0d3h5
• http://www.nytimes.com/2013/01/07/education/massive-open-online-courses-prove-popular-if-
not-lucrative-yet.html?src=me&ref=general
• http://news.onlineschools.org/2012/08/courseras-business-plan-elucidated-by-published-contract/
• http://www.nytimes.com/2012/11/20/education/colleges-turn-to-crowd-sourcing-
courses.html?pagewanted=all
• http://www.quora.com/Online-Education-1/Will-the-courses-provided-by-organizations-like-
Udacity-Coursera-and-edX-remain-free-forever-If-so-what-is-their-business-model-and-revenue-
stream
• https://www.documentcloud.org/documents/400864-coursera-fully-executed-
agreement.html#document/p40
• http://fr.wikipedia.org/wiki/Khan_Academy
• http://chronicle.com/blogs/wiredcampus/harvard-and-mit-put-60-million-into-new-platform-for-
free-online-courses/36284