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Michelle R. Weise, Ph.D.
Hire Education:
TheDisruptivePotential
ofOnlineCompetency-BasedEducation
@rwmichelle
Disruptive Innovation
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
@rwmichelle
How to identify a disruptive innovation
Disruption is a relative phenomenon
•  Is the innovation targeting people who are nonconsumers or overserved by
existing products?
@rwmichelle
Who are the nonconsumers of higher ed?
§  71% “nontraditional”
§  By 2020, 42% of all college students will be 25 years
of age or older (NCES)
§  87.9% of college freshmen (CIRP)
§  178 skillsets in Sept 2009 à 924 in Jun 2012
(McKinsey)
§  ~91MM Americans with HS & no degree + some/no
college
@rwmichelle
How to identify a disruptive innovation
Disruption is a relative phenomenon
•  Is the innovation targeting people who are nonconsumers or overserved by
existing products?
•  Is the innovation not as good as existing products as judged by historical
measures of performance?
@rwmichelle
Performance	
Time	
Pace	of	performance	
improvement
@rwmichelle
Sustaining InnovationsPerformance
Time
Performance that customers
can utilize or absorb
@rwmichelle
Sustaining vs. Disruptive Innovation
Performance	
Time	
Sustaining	innova,ons	
Incumbents	dominate	sustaining	ba0les	
Entrants	typically	win	at	disrup7on	
Pace	of	performance	
improvement	
Disrup,ve	Innova,ons	
Time
Different	
Measure	of	
Performance
@rwmichelle
Waves of disruption
•  1st wave: flexibility, convenience
•  2nd wave: innovation on price
–  Price + competency-based
@rwmichelle
How to identify a disruptive innovation
Disruption is a relative phenomenon
•  Is the innovation targeting people who are nonconsumers or overserved by
existing products?
•  Is the innovation not as good as existing products as judged by historical
measures of performance?
•  Is the innovation simpler to use, more convenient, or more affordable?
•  Is there a technology enabler that can carry the new value proposition up-
market?
@rwmichelle
Industries without an upwardly scalable technology are not disrupted
Where does disruption not apply?
@rwmichelle
How to identify a disruptive innovation
Disruption is a relative phenomenon
•  Is the innovation targeting people who are nonconsumers or overserved by
existing products?
•  Is the innovation not as good as existing products as judged by historical
measures of performance?
•  Is the innovation simpler to use, more convenient, or more affordable?
•  Is there a technology enabler that can carry the new value proposition up-
market?
•  Is the technology paired with a business model innovation that allows it to be
sustainable?
•  Are existing providers motivated to ignore the new innovation and not
threatened at the outset?
@rwmichelle
Sustaining vs. Disruptive Innovation
Incumbents	dominate	sustaining	ba0les	
Performance	
Time	
Disrup,ve	Innova,ons	
Time
Sustaining	innova,ons	
Entrants	typically	win	at	disrup7on	
Customer	ability	to	use	
improvements	
Pace	of	technological	
improvement	
45%	margin	on	
$250,000	
40%	margin	à	20%	margin				
on	$2,000	
60%	margin	on	
$500,000	
Performance
@rwmichelle
You gotta keep ’em separated
@rwmichelle
What’s the real job to be done?
Solution Job
What? Why?
“People don't want to buy
a quarter-inch drill…
…they want a quarter-inch hole!"
- Theodore Levitt
@rwmichelle
Learning to know & learning to do
@rwmichelle
1.  Disruptive Innovation and Academic Inertia
2.  Jobs To Be Done: The Shifting Value Proposition of College
3.  The Core of Competency-Based Education
4.  Online Competency-Based Education: Mastery and Modularization
5.  A New Value Network: Industry-Validated Learning Experiences
6.  College Disrupted
7.  Epilogue: Education and Equality
Hire Education
Mastery, Modularization, and the Workforce Revolution
@rwmichelle
Fixed-time, variable learning
Deliver	content		to	
students	
Tes,ng	&	assessment	 Progress	to	next	
grade,	subject,	or	
body	of	material	
Receive	results
@rwmichelle
Competency-based Learning
Learning is fixed and time is variable
Offer	learning	
experiences	to	
students	
Tes,ng	&	assessment	 Receive	real-,me	
interac,ve	feedback	
Progress	to	next	body	of	material
@rwmichelle
Unbundled or disaggregated staffing models
Professor	
InstrucDonal	
Design	Team	
Mentor/	
Academic	Coach	
Tutor	 Assessor	
Subject	MaJer	
Expert	
New	opportuniDes:	
•  Cost	reduc,on	
•  Focus	
•  Redesign	of	graduate	school	
•  Redefini,on	of	high-touch
@rwmichelle
Adding MODULARIZATION
to the vernacular
@rwmichelle
Nine competency clusters @CollforAmerica
Foundational Skills
Personal and
Social Skills
Content Knowledge
Communication
Skills
Critical and
Creative Thinking
Quantitative Skills
Digital Fluency and
Information
Literacy
Personal
Effectiveness
Ethics and Social
Responsibility
Teamwork and
Collaboration
Business
Essentials
Science, Society
and Culture
“nothingcouldbemoreabsurdthantotryto
educateindividualswithaneyetoonlyone
lineofactivity” --JohnDewey(1915)
@rwmichelle
Does this sound like voc-tech to you?
“I learned about Lean Principles, the Federal Reserve,
globalization, and the moral philosophies of Immanuel Kant
and John Stewart Mill. I learned about the Renaissance,
the Reformation, and the Enlightenment while exploring art
from masters such as Giotto, Donatello, Rembrandt,
Manet, and Picasso. I studied how the earth cycles water,
carbon, nitrogen, and phosphorous; the enormity of the
Great Pacific Garbage Patch; and the devastating impact
pollution is having on sea turtles, birds, fish, and the overall
health of our precious oceans.”
--CfA graduate Shannon Lougee
@rwmichelle
@rwmichelle
Anthony P. Carnevale and Jeff Strohl, “Separate and Unequal: How Higher Education
Reinforces the Intergenerational Reproduction of White Racial Privilege”
Education & Equality
@rwmichelle
Our Credentialing Ecosystem
$47
Certifications, apprenticeships,
And other workforce training
$18
Federal job training
$177
Employer-provided
formal training
$413
Employer-provided
informal training
$60
Two-year colleges
$347
Four-year colleges
$655B
Opportunity
@rwmichelle
What is the
job to be done?
@rwmichelle
Hire Education:
Mastery, Modularization, and the
Workforce Revolution
Available on Amazon.com
Got Skills?
Why Online Competency-Based
Education
Is the Disruptive Innovation
for Higher Education
Educause Nov 2014
For more information, please check out:

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Michelle R. Weise - Executive Director, Sandbox Collaborative Hire Education: The Disruptive Potential of Online Competency-Based Education

  • 1. Michelle R. Weise, Ph.D. Hire Education: TheDisruptivePotential ofOnlineCompetency-BasedEducation
  • 2. @rwmichelle Disruptive Innovation 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
  • 3. @rwmichelle How to identify a disruptive innovation Disruption is a relative phenomenon •  Is the innovation targeting people who are nonconsumers or overserved by existing products?
  • 4. @rwmichelle Who are the nonconsumers of higher ed? §  71% “nontraditional” §  By 2020, 42% of all college students will be 25 years of age or older (NCES) §  87.9% of college freshmen (CIRP) §  178 skillsets in Sept 2009 à 924 in Jun 2012 (McKinsey) §  ~91MM Americans with HS & no degree + some/no college
  • 5. @rwmichelle How to identify a disruptive innovation Disruption is a relative phenomenon •  Is the innovation targeting people who are nonconsumers or overserved by existing products? •  Is the innovation not as good as existing products as judged by historical measures of performance?
  • 8. @rwmichelle Sustaining vs. Disruptive Innovation Performance Time Sustaining innova,ons Incumbents dominate sustaining ba0les Entrants typically win at disrup7on Pace of performance improvement Disrup,ve Innova,ons Time Different Measure of Performance
  • 9. @rwmichelle Waves of disruption •  1st wave: flexibility, convenience •  2nd wave: innovation on price –  Price + competency-based
  • 10. @rwmichelle How to identify a disruptive innovation Disruption is a relative phenomenon •  Is the innovation targeting people who are nonconsumers or overserved by existing products? •  Is the innovation not as good as existing products as judged by historical measures of performance? •  Is the innovation simpler to use, more convenient, or more affordable? •  Is there a technology enabler that can carry the new value proposition up- market?
  • 11. @rwmichelle Industries without an upwardly scalable technology are not disrupted Where does disruption not apply?
  • 12. @rwmichelle How to identify a disruptive innovation Disruption is a relative phenomenon •  Is the innovation targeting people who are nonconsumers or overserved by existing products? •  Is the innovation not as good as existing products as judged by historical measures of performance? •  Is the innovation simpler to use, more convenient, or more affordable? •  Is there a technology enabler that can carry the new value proposition up- market? •  Is the technology paired with a business model innovation that allows it to be sustainable? •  Are existing providers motivated to ignore the new innovation and not threatened at the outset?
  • 13. @rwmichelle Sustaining vs. Disruptive Innovation Incumbents dominate sustaining ba0les Performance Time Disrup,ve Innova,ons Time Sustaining innova,ons Entrants typically win at disrup7on Customer ability to use improvements Pace of technological improvement 45% margin on $250,000 40% margin à 20% margin on $2,000 60% margin on $500,000 Performance
  • 14. @rwmichelle You gotta keep ’em separated
  • 15. @rwmichelle What’s the real job to be done? Solution Job What? Why? “People don't want to buy a quarter-inch drill… …they want a quarter-inch hole!" - Theodore Levitt
  • 16. @rwmichelle Learning to know & learning to do
  • 17. @rwmichelle 1.  Disruptive Innovation and Academic Inertia 2.  Jobs To Be Done: The Shifting Value Proposition of College 3.  The Core of Competency-Based Education 4.  Online Competency-Based Education: Mastery and Modularization 5.  A New Value Network: Industry-Validated Learning Experiences 6.  College Disrupted 7.  Epilogue: Education and Equality Hire Education Mastery, Modularization, and the Workforce Revolution
  • 18. @rwmichelle Fixed-time, variable learning Deliver content to students Tes,ng & assessment Progress to next grade, subject, or body of material Receive results
  • 19. @rwmichelle Competency-based Learning Learning is fixed and time is variable Offer learning experiences to students Tes,ng & assessment Receive real-,me interac,ve feedback Progress to next body of material
  • 20. @rwmichelle Unbundled or disaggregated staffing models Professor InstrucDonal Design Team Mentor/ Academic Coach Tutor Assessor Subject MaJer Expert New opportuniDes: •  Cost reduc,on •  Focus •  Redesign of graduate school •  Redefini,on of high-touch
  • 22. @rwmichelle Nine competency clusters @CollforAmerica Foundational Skills Personal and Social Skills Content Knowledge Communication Skills Critical and Creative Thinking Quantitative Skills Digital Fluency and Information Literacy Personal Effectiveness Ethics and Social Responsibility Teamwork and Collaboration Business Essentials Science, Society and Culture “nothingcouldbemoreabsurdthantotryto educateindividualswithaneyetoonlyone lineofactivity” --JohnDewey(1915)
  • 23. @rwmichelle Does this sound like voc-tech to you? “I learned about Lean Principles, the Federal Reserve, globalization, and the moral philosophies of Immanuel Kant and John Stewart Mill. I learned about the Renaissance, the Reformation, and the Enlightenment while exploring art from masters such as Giotto, Donatello, Rembrandt, Manet, and Picasso. I studied how the earth cycles water, carbon, nitrogen, and phosphorous; the enormity of the Great Pacific Garbage Patch; and the devastating impact pollution is having on sea turtles, birds, fish, and the overall health of our precious oceans.” --CfA graduate Shannon Lougee
  • 25. @rwmichelle Anthony P. Carnevale and Jeff Strohl, “Separate and Unequal: How Higher Education Reinforces the Intergenerational Reproduction of White Racial Privilege” Education & Equality
  • 26. @rwmichelle Our Credentialing Ecosystem $47 Certifications, apprenticeships, And other workforce training $18 Federal job training $177 Employer-provided formal training $413 Employer-provided informal training $60 Two-year colleges $347 Four-year colleges $655B Opportunity
  • 28. @rwmichelle Hire Education: Mastery, Modularization, and the Workforce Revolution Available on Amazon.com Got Skills? Why Online Competency-Based Education Is the Disruptive Innovation for Higher Education Educause Nov 2014 For more information, please check out: