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This presentation was used as a discussion catalyst at a Boston College seminar. Portions of this presentation were modified by John Gallaugher from original by Blake Ives. Notes on some slides were also added by Gallaugher. To view notes, select ‘Notes Pages’ from ‘View’ menu. Any errors are entirely attributable to Gallaugher. Original notice for Blake’s outstanding work follows...
Power point presentation describing the technology driven threats to business education marketplace. Includes auto timings. Can be used or modified by others, with acknowledgement to Blake Ives and Center for Virtual Organization and Commerce.
Original Presentation Available at:http://isds.bus.lsu.edu/cvoc/projects/virtualeducation/html/
Internet-Based Education:Opportunity, Threat, Fad
John Gallaugher
Jim Gips
Pete Wilson
A discussion catalyst for the Boston College Excellence in Teaching Seminar Series
Related Materials at: http://www2.bc.edu/~gallaugh/neted.html
Portions of this presentation were liberally adopted from an earlier work by Blake Ives of LSU. See the great work he & others are doing at CVOC (the Center for Virtual
Organizations & Commerce) at:
http://isds.bus.lsu.edu/cvoc/projects/virtualeducation/html/ [ESC to exit]
Anonymous entrepreneur as quoted by
Arthur Levin in the NY Times
“You know, you're in an industry which is worth hundreds of billions of dollars and you have a reputation for low productivity, high cost, bad management, and no use of technology. You're going to be the next health care: a poorly managed nonprofit industry which was overtaken by the profit-making sector.”
Market Snapshot
• Adult Education is a $225-300 billion a year business– By 2002, Exec. Ed. will be a $7.1-billion industry
• Web-based learning will surpass 5 million users by 2002
Users of Web-Based Training
01,000,0002,000,0003,000,0004,000,0005,000,0006,000,000
1999 2000 2002
Peter Drucker
“Universities won't survive. The future is outside the traditional campus, outside the traditional classroom. Distance learning is coming on fast.”
“We strongly believe in the superiority of facilities-based schools”
Andy Rosenfield – UNext.com
Carole S. Fungaroli, Adjunct Prof. of English, Georgetown
“I think it [online education] is going to be the joke of the 21st century. I don't see anything that these people are offering that you can't get better on campus”
The Questions Are:
Is Virtual Education Improving Faster and at What Rate?
Will it be Good Enough for Our Customers?
QualityOf
Education
Yesterday Today Tomorrow
As we currently provide
As our current students expect (we hope)
Managing Sustaining Technologies
“Breakthroughs” in Technology for Classroom Education
• Dustless Chalk • Text Book• White Board• Overhead Projector• Telescoping Pointer• Light Dimmer• Laser Pointer• PowerPoint ???
Breakthroughs in Technology for Non-Traditional Education
• Ubiquitous Web Access and Use
• Bandwidth
• Display Quality
• Multimedia
• Collaboration Technologies
• Economies of Scale
Yesterday Today Tomorrow
As we currently provide
As our current students expect (we hope)
As provided non traditionally
As expected by non-traditional students
?
Managing Disruptive Technologies
When
QualityOf
Education
Centers of Innovation
• More than one-third of US Universities already offer some sort of accredited degree online. – By 2002 estimates are 4 out of 5 will.
• Peterson's 1997 Distance Learning guide listed 762 CyberSchools
• The players, models, and offerings are diverse– Traditional Players– Alliances– New Rivals
A ubiquitous inexpensive distribution channel permits taking an existing
brand into new markets.
Geographically Fragmented IndustryBut for How Much Longer
Brand Extension
"We are a reasonably small university stuck in a very expensive real estate site in the middle of London with few or no possibilities of expansion."
Dean of the London School of Economics
Substitute London for Boston
Early Action Students Take Online Classes for Credit Before Setting Foot on Campus
AACSB ApprovedOnline MBA
Graduate Telecom CoursesTargeted at 30,000 IEEE MembersGraduate Telecom CoursesTargeted at 30,000 IEEE Members
Creating a CyberUniversity
Development, Distribution, and Sales Partnerships
with Leading HigherEd Brands
Partners in creating an Executive MBA for Corporate Teams
Strange Bedfellows
Announces an Online Journal on Virtual
Education
With a Provider of Online Education
“We always thought our new competition was going to be 'Microsoft University'. We were wrong. Our competition is our own faculty.”
President of an ‘elite Eastern University, quoted in the NY Times“E-Commerce Comes to the Quad” Feb, 13, 2000
The First Accredited Virtual
UniversityThe AAUP Goes Crazy
Over 8,000 online students paying $1,460/course
Products Under Siege?
Boston CollegeProgram
US NewsRank
Part-Time MBA 19Full-Time MBA 40Undergrad. Business Programs 32Among National Universities 39vu
lner
abil
ity
Highest?Highest?
So What Do We Do?
• Run down the same path– undercapitalized– competing on ‘church’ time
• Do we have underutilized (latent) sources of competitive advantage?– CEO lecture series– voraciously loyal alumni
• Shall we experiment? If so, how?
IMPACT: New Markets
• Managing a Disruptive Technology
• Target Non-Traditional Customers
• Establish Arms-Length Innovation Center
• Focus on Distinctive Competencies
• Seek out Distribution Partner(s)
• Partner with Faculty
• Look for Economies of Scale / Versioning
ALIGN: Traditional Students
• Provide ubiquitous access
• Strive for best practice in online support
• Acquire library of knowledge tools
• Motivate their use
• Integrate technology in functional areas
• Use IT-related cases & examples heavily
• Use WWW for Marketing, Alumni, Student portfolios - give stuff away.