Key challenges and opportunities: business schools and higher education

Key Challenges and Opportunities:
Business Schools and Higher Education
Andreas Kaplan
Dean for Academic Affairs
2016
ESCP Europe Business School
Sorbonne Arts et Métiers University
kaplan@escpeurope.eu

• Overview of ESCP Europe
• Key challenges and opportunities
for business schools
• Special focus on online / digital
distance learning and education
Agenda
2Andreas Kaplan – Dean for Academic Affairs

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About ESCP Europe,
the World‘s First Business School (est. 1819)
• 6 ESCP Europe campuses in Berlin, London, Madrid, Paris, Turin, and Warsaw
• Cross-campus programmes with coordinated curricula
• Over 100 academic alliances in Europe and the World
• Triple accredited: EQUIS, AMBA, AACSB
• 5,000 students in degree programmes representing 100 different nationalities
• 5,000 high-level participants in customized trainings and executive education
• More than 130 research-active professors representing over 20 nationalities
• 45,000 active alumni in over 150 countries in the world
Andreas Kaplan – Dean for Academic Affairs

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European cross-border multi-campus
business school – the concept
ESCP Europe
European
cross-border
multi-campus
business school
In contrast to
campuses outside of
Europe, close distance
allows for efficiently
working together
across campuses
on all levels
In contrast to
partnerships with other
business schools, own
campuses allow for
better coordination
and control of
academic excellence
• Complete integration of 6 campuses with
adaptations for local contexts:
One school with six doors
• Relative closeness permits working in cross-
campus teams while on top experiencing
different cultures, learning language, etc.

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Brand storytelling is vital:
Europe appears difficult to grasp
What’s the advantage
of studying at a
European business
school?
Focus on humanistic
values, understanding
of cultures, tradition,
more transversal
approach, …
Europe embraces a
maximum cultural diversity
at minimal geographical distance
ESCP Europe is/educates experts in European,
cross-cultural management in Europe and beyond
???
?

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Defining European Management,
notion behind the concept
Kaplan, Andreas M. (2014) European management and European business schools:
Insights from the history of business schools, European Management Journal, 32(4), 529-534.
Societal management takes
into account society’s overall
welfare in addition to mere
profitability considerations
European
management is a
cross-cultural, societal
management approach
based on interdisciplinary principles
Interdisciplinarity creates s.th. new
by crossing boundaries and
combining the knowledge
encompassed in different domains
Cross-cultural management aims to understand how culture affects
management practice, to identify cross-cultural similarities
and differences in management practices

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ESCP Europe‘s strategy:
“Cultures for Business” - #C4B

Key challenges and opportunities of business schools

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Key challenges:
The 3 E‘s for Education
Core challenge 1:
Enhance HE institutions’ prestige and market share
in a consolidating global educational market.
Core challenge 2:
Embrace a deeper entrepreneurial mindset,
with corresponding modus operandi and decision‐making approaches.
Core challenge 3:
Expand links, interactions, and value co‐creation with key stakeholders.
Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education:
Managing Complexity and Uncertainty, Business Horizons, 59(3), 311‐320.

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Strengths
• Essential source for a society‘s talent and
innovativeness
‐ Institutionalized public service with a societal mission
‐ Important provider of knowledge and innovation
• National driver and global ambassadors
‐ HE as domestic resource, engine of growth and
economic recovery
‐ International expansion and global knowledge
dissemination
Decrypting higher education:
A SWOT analysis
Weaknesses
• Substantial delay in entrance of business practices
‐ Tradition of being a public service financed and
protected by the State
‐ Partial resistance of influential faculty
• Low responsiveness to changes in corporate world
‐ Little adaptation of programs and curricula to recruiters‘
needs and job expectations
‐ Myopic publish‐or‐perish research strategies leading to
purely academic publications without consideration of
other stakeholders
Opportunities
• Fast‐evolving HE environment through ICT
‐ Development of new markets, potential productivity
gains, and branding possibilities
‐ Advancement of both general knowledge and network
society
• Rapid transformation encouraged by socio‐
demographics
‐ Millennials seeking augmented educational experience
‐ Growing and changing student population
Threats
• Continuous decrease in public funding
‐ Necessity for external fundraising and increased self‐
financing
‐ Need for marketization of HE, potentially lowering
academic standards and quality
• Increasingly competitive environment
‐ Domestic deregulation leading to new market entrants
‐ Gobalization broadening competition to an
international scale

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1. Enhance prestige and market share
Core challenge 1:
Enhance HE institutions’ prestige and market share
in a consolidating global educational market.
• Guarantee resources for sustaining growth
• Additional performance metrics to measure universities’ excellence, and ultimately
enable them to access resources for future development; Market will assess which
universities deserve to be part of the top leagues and rankings
• More advanced stage of private fundraising, leveraging university reputation to
become preferred partner of choice of key stakeholders (notably alumni, but also
students, professors, corporations, etc.) and new forms of collaboration between the
university and the rest of the world

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1. Enhance prestige and market share
ALUMNI ARE KEY

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2. Embrace entrepreneurship & innovation
Core challenge 2:
Embrace a deeper entrepreneurial mindset,
with corresponding modus operandi and decision‐making approaches.
• Entrepreneurial leadership at all levels of HE institutions
• Defined and formalized mission and strategy able to guide an entrepreneurial
approach at all levels of HE’s institution
• Pivotal role of academic‐managers in contributing to HE institutions’ quality and
reputation and participating actively in management and decision making
• Increased autonomy and accountability permit more control over resources and
freedom to choose investment strategies. Management of HE has to encompass more
complex and urgent business decisions (e.g., the ICT infrastructure)

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2. Embrace entrepreneurship & innovation

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3. Expand links and value co-creation
Core challenge 3:
Expand links, interactions, and value co‐creation with key stakeholders.
• Increased connections, interactions, and value co‐creation with a larger set of key
stakeholders
• Learn to navigate the new technology‐oriented and multimedia environment, with HE
institutions supporting academics as they acquire necessary skills
• Deeper integration of Web 2.0 and networking in research
• New design of learning processes and infrastructures, aiming at co‐learning through
highly interactive and responsive pedagogies
• Dialogue and participative communication, leveraging new media (and in particular
Web 2.0 and social media) to address HE’s different audiences with customized
messages

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3. Expand links and value co-creation
ALUMNI ARE KEY AGAIN

Special focus on distance learning and education

Classifying online distance learning:
Time dependency & Number of particpants
Classification of online distance learning
applications according to two dimensions: the
number of participants (unlimited/limited)
and the degree of time dependency
(asynchronous/synchronous)
Number of participants
Unlimited Limited
Time dependency
Asynchronous
MOOC
(Massive Open
Online Course)
SPOC
(Small Private
Online Course)
Synchronous
SMOC
(Synchronous Massive
Online Course)
SSOC
(Synchronous Private
Online Course)
Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution:
About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450.

Defining MOOCs, SPOCS, SMOCs, & SSOCs:
Four groups of online distance education
• MOOC (Massive Open Online Course): Open‐access online course (i.e., without specific
participation restrictions) that allows for unlimited (massive) participation.
• SPOC (Small Private Online Course): Online course that only offers a limited number of
places and therefore requires some form of formal enrollment.
• SMOC (Synchronous Massive Online Course): Open‐access online course that allows
for unlimited participation but requires students to be ‘present’ at the same time
(synchronously).
• SSOC (Synchronous Private Online Course): Online course that only offers a limited
number of places and requires students to be ‘present’ at the same time
(synchronously).
• Distance education: Providing education to students who are separated by distance
and in which the pedagogical material is planned and prepared by educational
institutions.

Describing xMOOCs vs. cMOOCs:
Passive learners vs. Active contributors
• xMOOCs: MOOCs based on traditional lecture formats (inspired by Harvard
University, which used the prefix ‘x’ to indicate (offline) courses in the university’s
course catalogue for which online versions were available).
• cMOOCs: MOOCs where social media applications constitute a central part. Social
media allow students to create pedagogical materials (via blog entries, tweets,
podcasts, and the like) that can subsequently be commented on and further
enhanced by other participants.
xMOOC cMOOC
Professor
Instructor,
who designs a standardized course for everyone
Facilitator,
who animates an individual learning process
Participants Passive learners Active contributors
Pedagogy
Predetermined content, based on a formal
curriculum, using lecture style and evaluation
Collaboratively developed content without a formal
curriculum, in seminar style without evaluations
Pattern
Structured with regular sessions
over a fixed time period
Unstructured based on continuous learning
Platform Centralization of content in one place Decentralization of content across network

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MOOCs & further types of distance learning
most likely not to replace physical presence
To sell a concept where location
and differences in local contexts
additionally is of academic
importance might be highly
valued in the future
“Within 50 years there will be only
10 institutions of higher learning
left in the world”
Sebastian Thrun – Cofounder Udacity
But:
• Physical presence might be necessary to go
the extra mile
• Networking often best happens after class
and not during
• Life skills than only knowledge + know‐how

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MOOCs will make it essential for business
schools to be an expert in a specific area
To be an expert in a certain field will become more and more
important in the future of MOOCs.
• Universities and schools will produce MOOCs where they have a real legitimacy
• Students world‐wide will choose the expert‘s MOOC to learn in a specific field
• A single business school hardly can be expert in everything
• Local / regional players will arise (languages & different teaching approaches)
Examples:
• ESCP Europe ‐> European / cross‐cultural manager
• Harvard University ‐> Lawyers
• Wharton School ‐> Investment bankers

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A final video about ESCP Europe:
European Identity, Global Perspective
Andreas M. Kaplan – Dean for Academic Affairs

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Further readings...
Andreas M. Kaplan – Dean for Academic Affairs
• Kaplan Andreas (2017) Academia Goes Social Media, MOOC, SPOC, SMOC, and SSOC:
The Digital Transformation of Higher Education Institutions and Universities, in
Bikramjit Rishi and Subir Bandyopadhyay (eds.), Contemporary Issues in Social Media
Marketing, Routledge.
• Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution:
About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons,
59(4), 441‐450.
• Pucciarelli Francesca, Kaplan Andreas (2016) Competition and Strategy in Higher
Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311‐320.
• Kaplan Andreas (2015) European business and management (Vol. I ‐ IV) – Four‐volume
reference work, Sage Publications Ltd., London.
• Kaplan Andreas (2014) European Management and European Business Schools:
Insights from the History of Business Schools, European Management Journal, 32(4),
529‐534.
• Kaplan Andreas (2014) Social Media and Viral Marketing at ESCP Europe, the World's
First Business School (est. 1819), European Case Clearing House, Case 514‐058‐1.
• Kaplan Andreas (2009) Virtual worlds and business schools: The case of INSEAD, in
Wankel C., Kingsley J., Higher education in virtual worlds: Teaching and learning in
second life, Emerald Group Publishing, 83‐100.

Key challenges and opportunities: business schools and higher education

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