A Rapidly Changing Market€¦ · The number of openings increased across education, retail and construction and outnumbered the unemployed by 1.625 million in April 2019, the largest

A Rapidly Changing Market

J. Michael LockeOCTOBER 1, 2019

2Copyright Collegis, LLC - Proprietary and Confidential

Where is the education puck headed?

Unbundling the DegreeModality: The Opportunity is in

the Middle

Full-Cost Transparency and New Pricing Models

SoLoMo(Social, Local, and Mobile Experience)

The Rise of Employer Involvement3.7%


The national discourse on student debt is changing buying behavior


Source: The College Board, Trends in College Pricing 2018, Figure 3.

Price of school keeps rising


Leading to rising amounts of debt

Source: Mary Meeker Internet Trends 2019


Student debt second only to mortgages in household credit


Worst type of debt in paying back


Eduventures’ 2017 Survey of Admitted Students, which yielded a national sample of more than 90,000

college-bound high school students, identified the availability of a desired program as the second-most

important enrollment driver after affordability.

Consequence: Prospective students focused on cost and program

Source: Eduventures


Students now question the ROI: Millikin University College Scorecard

Source: U.S. Department of Education


I pay $84k taking on $27k in debt



and if I am one of the 6 out of 10 who graduate



I make $42k



Source: National Student Clearinghouse Research Center

Leading to changes in what programs students want


Students are also buying shorter programs

Source: Google Education Insights Quarterly, Q2 2019



Deflation is here through Discount Rate



Market “mode” of $10,000 - $15,000 a year


New pricing model: subscriptions / monthly payments


Alternatives to college pop up: boot camp example

“They cost an average of $11,000, last 14 weeks and place graduates in jobs with average starting salaries of nearly $71,000”


Some are financing through ISA



Employers will be the biggest driver going forward


Employers are struggling to fill their jobs

Source: WSJ; June 10, 2019

Number of Open Jobs 7.449 million

Number of Americans seeking work 5.824 million

The number of openings increased across education, retail and construction and outnumbered the unemployed by 1.625 million in April 2019, the largest gap on record back to 2000.


Leading policy makers to demand more training by colleges

Walker’s proposed revised statute reads:

36.01 (2) The mission of the system is to develop human resources to meet the state’s workforce needs, to discover and disseminate knowledge, to extend knowledge and its application beyond the boundaries of its campuses and to serve and stimulate society by developing develop in students heightened intellectual, cultural, and humane sensitivities, scientific, professional and technological expertise, and a sense of purpose. Inherent in this broad mission are methods of instruction, research, extended training and public service designed to educate people and improve the human condition. Basic to every purpose of the system is the search for truth.

Source: The Washington Post


DOE demonstration program extending Title IV to non-schools

University Partner1 Colorado State University Global Campus Guild Education2 Marylhurst University Epicodus3 SUNY Empire State College The Flatiron School4 University of Texas-Austin MakerSquare5 Dallas Community College System StraighterLine6 Northeastern University General Electric7 Thomas Edison State University Study.com8 Wilmington University Zip Code Wilmington

Source: The Department of Education


Other schools innovating

“SNHU Partners with Salesforce to Bring College Credit to Trailhead”-August 15, 2019

“Liberal arts college and boot camp team up to offer new computer science degree”-November 28, 2018

Source: Inside Higher Ed

Source: SNHU


How liberal arts graduates can improve their labor market prospects

Source: Burning Glass


Posting and salary data by skill set

Source: Burning Glass


The ‘hybrid’ skills that tomorrow’s jobs will require


‘Grow With Google’ IT Support Professional Certificate



Employers starting to control the education directly: Amazon investing $700mm

Amazon will pay for employees to attend the company's Machine Learning University, an

initiative that helps Amazonians with a background in technology and coding gain skills in

Machine Learning.

Launching Amazon Technical Academy, a training and job placement program that

equips non-technical Amazon employees with the essential skills to transition into, and

thrive in, software engineering careers.

Amazon will pay up to 95% of tuition and fees towards a certificate or diploma in qualified

fields of study, leading to enhanced employment opportunities in in-demand jobs.

Expanding Amazon Apprenticeship, a Department of Labor certified program that offers

paid intensive classroom training and on-the-job apprenticeships with Amazon.

Expanding AWS Training and Certification to close the cloud skills gap in the industry.


WalmartEmployees will pay just $1 a day to earn a degree – Walmart will cover the remaining cost for tuition, fees and books. (*There is no penalty for leaving the company or failing to complete the degree.)

Walmart selected universities with a specialized focus on serving working adult learners and top outcomes for the working adult demographic. In addition, Walmart is collaborating with these universities to tailor curriculum to relevant skills for jobs and advancement across industries for today and in the future.

Offering associates and eligible family members access to tuition discounts, financial aid assistance and education coaching.


McDonald’sThe Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.

$2,500 a year to eligible restaurant employees and $3,000 to managers in tuition assistance.

Extending the Career Online High School program and their college advisory services to family members.


“You used to go to college to get a job, now you get a job

to go to college.”


The continued proliferation of technology is necessitating a “digital first” mentality


Daily hours spent with digital media per adult user


Television & mobile daily time spent (non-deduped)


% Internet users using select platforms > 1x per day, global*

*Countries surveyed include major Internet populations – Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Colombia, Denmark, Egypt, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, UK, USA, United Arab Emirates, Vietnam. Toutiao estimate = ~4% of Internet users using Douyin in 2018….Not included owing to lack of trend data & regulatory action in period.


By 2020, big data will…

Increase in volume roughly 900%, from 4.4 zettabytes to roughly 44 zettabytes.

Every minute …

Every day …

Source: Statista website

300 hoursof video are

uploaded to YouTube

31.25M messagesare sent by Facebook users

2,400,000 search queries are performed on Google

450 billionbusiness transactions

6.1 billionsmartphone users

50 billionconnected devices


100 million YouTube followers

Barack Obama

108 million Twitter followers

Who can name this guy?


…2000sWinning Businesses =

Build / UseData Plumbing Tools

To Use Digital Data / InsightsTo Improve Customer Experiences


Data is everywhere in higher ed…


The potential is still largely untapped

As of this moment, only 0.5% of all accessible data is analyzed and used.

$300B/year in cost savings in the healthcare industry

60% uptick in operating margins for retailers

What if this data was integrated and used?

$65M/year increase in net income, for a typical Fortune 1000 company

Have succeeded in goal to be data-driven

37%$65M


Educause Top 10 Technology Issues for 2019…challenges schools face when trying to use data as a strategic differentiator.

Significant Obstacles Remain for Institutions to Fully Leverage Data


Adjust or Risk Survival

Sales 2000 $40.937 billion $2.76 billionSales 2019 Bankrupt $232.89 billion


Bringing it all together

Information Technology Backbone

Student Analytics/Business Intelligence

Student Support ServicesAcademic DeliveryMarketing / Recruiting

(Social, Local, and Mobile Experience)

SoLoMo

Individual Activity and Profile Data

Documents

A Rapidly Changing Market€¦ · The number of openings increased across education, retail and construction and outnumbered the unemployed by 1.625 million in April 2019, the largest