MOOCs, Money, & e-Learning Models discusses massive open online courses (MOOCs) and their potential impact and relationship to other e-learning models. MOOCs differ from traditional online courses in that they can have thousands of students per class and are offered free as open courses. They utilize streaming video, embedded quizzes, and analytics. MOOCs may bring pricing pressure to other e-learning models and affect institutions' strategies around becoming producers or consumers of MOOCs. The presentation covers costs and business models of various e-learning options and potential strategies for institutions regarding MOOCs.

1. MOOCs, Money, & e-Learning Models
What a CFO needs to know about “Massive Open Online Courses”
“A massive open online course (MOOC) is a model for delivering
learning content online to any person who wants to take a course,
with no limit on attendance.” - EDUCAUSE
Fred Miller
fred.miller@furman.edu

2. Who’s afraid of the big, bad MOOC?
¤ Your institution?
¤ e-learning at your institution?
¤ Your role?
¤ Familiarity with MOOCs?
¤ Other e-learning?

3. About Furman and me
¤ About Furman
¤ Private, liberal arts
¤ 2650 Undergraduates
¤ 750 acres in Greenville, SC
¤ 96% residential
¤ Division 1 sports
¤ About me
¤ Higher ed
¤ Education
¤ MOOCs

4. Overview
¤ What you should know about MOOCs
¤ How do MOOCs differ from other e-learning models?
¤ Costs and benefits
¤ Strategies
¤ Discussion

5. What you should know about MOOCs
¤ Thousands of
students per class
¤ “Open” = Free
¤ Like puppies
¤ (not beer)

6. Why you should pay attention
¤ Will MOOCs affect
your institution?
¤ Should your
institution be a
consumer or
producer?
¤ Pricing pressure on
other e-learning
models?

7. Partners & Platforms
¤ Commercial providers
¤ Consortia
¤ Open Source

8. ¤ Analytics
¤ Peer feedback
¤ Minimal faculty contact
¤ Streaming video with embedded quizzes
An innovation frequently attributed to MOOCs is:

9. ¤ Analytics
¤ Peer feedback
¤ Minimal faculty contact
¤ Streaming video with embedded quizzes
An innovation frequently attributed to MOOCs is:
√

10. Potential Benefits
Institution
¤ MOOC as textbook
¤ MOOC as marketing
¤ MOOC as research
Individual
¤ Exploration
¤ Gateway
¤ Refresher

11. MOOC as textbook
¤ MOOCs and the “flipped classroom”
¤ timing

13. MOOCs and other e-learning models
¤ Course Modality
¤ Course Design
¤ Business models
¤ Worth $50,000
per course?

14. Course Modality
¤ Face-to-Face
¤ Blended / Hybrid
¤ Synchronous
¤ Asynchronous
¤ Fully Online Course
¤ Cohort-Based
¤ Self Paced

15. Course Design
¤ Facilitators &
Participants
(workshop)
¤ Individual Faculty
¤ Faculty Team
¤ Instructional Design
Team including faculty

16. e-learning models

17. Higher Ed e-Learning Models

18. E-learning & the income statement
¤ Revenue
¤ Expenses
¤ Labor
¤ Other Direct Costs
¤ Overhead

19. Revenue
Blended&/&
Hybrid
"Traditional"&
On3Line&
Course
MOOC&
cohort
MOOC&&&&&&&&&&
self3paced
Per$credit/certificate Yes Yes No Maybe
Require$larger$class$sizes Maybe Usually Yes Yes
Other$revenue No No Maybe Maybe

20. Expenses: labor
Blended&/&
Hybrid
"Traditional"&
On3Line&
Course
MOOC&
cohort
MOOC&&&&&&&&&&
self3paced
Design'Team'&'
Production'for'course Maybe Maybe Usually Yes
Faculty'paid'for'course'
design Usually Usually Maybe Maybe
Faculty'paid'for'teaching'
course Yes Yes Yes Yes
Teaching'Assistants Sometimes Maybe Many Maybe
Technology'Support'Staff Yes Maybe Yes Maybe

21. Expenses: other direct costs
Blended&/&
Hybrid
"Traditional"&
On3Line&
Course
MOOC&
cohort
MOOC&&&&&&&&&&
self3paced
Software)licensing Depends Depends Depends Depends
Open)software)support Depends Depends Depends Depends
Web,)phone,)or)video)
conference Yes No No No
Servers)(in)house)or)
cloud) Yes Yes Yes Yes

22. Expenses: overhead
Blended&/&
Hybrid
"Traditional"&
On3Line&
Course
MOOC&
cohort
MOOC&&&&&&&&&&
self3paced
Marketing Yes Yes Yes Yes
Registration.&.
administration Yes Yes Yes Yes
Internet.bandwidth Depends Depends Depends Depends
More Yes Yes Yes Yes

23. Contract Highlights
¤ Coursera delivers Content
¤ University develops content
¤ University contracts with faculty
¤ Higher cut for 3 year term and high quality content
¤ 3 revenue models
¤ Course free – revenue to be shared
¤ University offers course for fee
¤ Coursera offers course for fee
¤ Limited to AAU members (with a few exceptions)

24. Barriers to Adoption
¤ Revenue Models
¤ Credentialing or accreditation
¤ Course Completion Rate
¤ Student Authentication

25. Future...
¤ MOOC or SPOC?
¤ Small Private Online Course
¤ New Consortia?
¤ Credit for competency?

26. E-learning Pricing Pressure
¤ Will MOOC-like economies of scale be disruptive?
¤ “Pay as you go” benefits

28. edge.furman.edu

29. Possible strategies
¤ Develop IT readiness
¤ Consider and analyze
business models
¤ Ramp-up faculty
capabilities
¤ Engage in trials
¤ Consider partners

30. IT Readiness & IT Investment

31. Summary
¤ Lots of hype about MOOCs
¤ Many partners & platforms
¤ Revenue questions
¤ Numerous costs
¤ Barriers to adoption

32. Discussion questions
¤ Are MOOCs more opportunity or threat?
¤ Will MOOCs bring pricing pressure?
¤ Encourage staff to try MOOCs?
¤ Consumer or producer?
¤ Worth the risk?

33. Thank You!
“What Campus Leaders Need to Know About MOOCs”
An EDUCAUSE Executive Briefing, 2012.
http://net.educause.edu/ir/library/pdf/PUB4005.pdf
Hill, Phil, “Online Educational Delivery Models: A Descriptive View”,
EDUCAUSE Review Online, 11/1/2012.
http://www.educause.edu/ero/article/online-educational-
delivery-models-descriptive-view