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Disrupting Class
- 1. Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn [email_address] July 16, 2010 Copyright Clayton M. Christensen
- 2. Sustaining and Disruptive Innovations Copyright Clayton M. Christensen Performance Time Sustaining innovations Incumbents nearly always win Performance that customers can utilize or absorb Pace of Technological Progress
- 3. Disruptive Innovations create asymmetric competition Copyright Clayton M. Christensen Performance Time Sustaining innovations Incumbents nearly always win 60% on $500,000 45% on $250,000 Entrants nearly always win Non-consumers or Non-consuming occasions Different measure Of Performance Time Disruptive Innovations: Competing against non-consumption 40% on $2,000 20% Performance that customers can utilize or absorb Pace of performance improvement
- 4. Disruption in business models has been the dominant historical mechanism for making things more affordable and accessible Today Toyota Wal-Mart Dell Southwest Airlines Fidelity Canon Microsoft Oracle Cingular Community colleges Apple iPod Copyright Clayton M. Christensen Yesterday Ford Dept. Stores Digital Eqpt. Delta JP Morgan Xerox IBM Cullinet AT&T State universities Sony DiskMan
- 5. Disruption of Toyota Copyright Innosight Institute, Inc.
- 6. Disruption in business models has been the dominant historical mechanism for making things more affordable and accessible Today Toyota Wal-Mart Dell Southwest Airlines Fidelity Canon Microsoft Oracle Cingular Community colleges Apple iPod Copyright Clayton M. Christensen Yesterday Ford Dept. Stores Digital Eqpt. Delta JP Morgan Xerox IBM Cullinet AT&T State universities Sony DiskMan Tomorrow Chery Internet retail RIM Blackberry Air taxis ETFs Zink Linux Salesforce.com Skype Online universities Cell Phones
- 7. Different Systems Architectures Proprietary, interdependent architectures: Microsoft Windows; Apple products 02/14/10 Copyright Clayton M. Christensen Customization is very expensive Customization is straightforward Modular, open architectures Linux; Dell PCs
- 8. We all learn differently Copyright Innosight Institute, Inc.
- 9. Conflicting mandates in the way we must teach vs. The way students must learn Copyright Clayton M. Christensen Need for customization for differences in how we learn Standardization !! Learning Styles Paces of Learning Multiple Intelligences Interdependencies in the teaching infrastructure Temporal Lateral Physical Hierarchical Customization !!
- 10. Historically, most schools have “crammed” computer-based learning into the blue space Copyright Clayton M. Christensen Non-consumers or Non-consuming occasions Different measure Of Performance Time Performance Time Core curriculum Path taken by most schools, foundations and education software companies
- 11. Prime examples of non-consumption Copyright Innosight Institute, Inc. Looming budget cuts and teacher shortages are an opportunity, not a threat
- 12. The substitution of one thing for another always follows an S-curve pattern Copyright Clayton M. Christensen % new % new % old .001 .0001 .01 0.1 1.0 10.0 09 11 07 05 03 13 15
- 13. Online learning gaining adoption Copyright Clayton M. Christensen Enrollments up from 45,000 in 2000 to 1,000,000 in 2007 27% of high school students took online course in 2009 Ambient Insight projects 10.5M students taking online courses by 2014
- 14. Predictably improving Copyright Innosight Institute, Inc.
- 15. What are public schools doing? 46 states have some form of online learning initiative 27 states have supplemental state-led programs FLVS, Idaho Digital Learning Academy, MVU At least 7 have 10K+ enrollments Districts increasingly getting into the game Serving nonconsumers: drop-out recovery, credit recovery, advanced courses, home-schoolers Copyright Innosight Institute, Inc. 16
- 16. Practical implications Autonomous Self-sustaining funding Not beholden by the old metrics Seat time Mastery/Performance-based Student: teacher ratio Teacher certification Human resources pipeline and professional development Broadband/wireless infrastructure Portal/Based on usage and what works Treatment and use of data Copyright Innosight Institute, Inc.
- 17. Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn [email_address] July 16, 2010 Copyright Clayton M. Christensen
- 18. Assessment in today’s monolithic system Copyright Clayton M. Christensen Deliver content to students Testing & assessment Progress to next grade, subject, or body of material Receive results
- 19. How should assessment work? Copyright Clayton M. Christensen Copyright Clayton M. Christensen Deliver content to students Testing & assessment Progress to next grade, subject, or body of material Receive real-time interactive feedback
- 20. Copyright Clayton M. Christensen 7 Centralization followed by decentralization: Computing
- 21. Copyright Clayton M. Christensen 8 The decentralization that follows centralization is only beginning in education
- 22. Why does an organizational model lock us in? Copyright Clayton M. Christensen PROCESSES : Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc. REVENUE FORMULA : Assets & fixed cost structure, and the margins & velocity required to cover them THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job they’ve been trying to do RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers
- 23. Copyright Clayton M. Christensen PROCESSES : Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc. PROFIT FORMULA : Assets & fixed cost structure, and the margins & velocity required to cover them THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job they’ve been trying to do RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers Business units don’t evolve. Corporations do.
- 24. When launching disruptions, autonomy is key Copyright Clayton M. Christensen Improve performance of each component Level of change Product architecture : What are the components, and which ones interface with others? Organizational model in which product is used Change the specifications for how components must fit together VP VP VP VP Autonomous VP VP VP VP Heavyweight VP VP VP VP Lightweight VP VP VP VP Functional
- 25. Copyright Clayton M. Christensen Transforming the content model Manufacturing Food services Medical procedures Instruction Textbooks; education software today Value-adding process businesses Telecomm Insurance EBay D-Life Education software tomorrow Facilitated- network businesses
- 26. Copyright Clayton M. Christensen Non-consumers or Non-consuming occasions Different measure Of Performance Time Performance Time Path taken by Educational software developers The instructional materials business historically has been a value-adding process business
- 27. Stages in instructional disruption Copyright Clayton M. Christensen Different measure Of Performance Performance Teacher-led courses Different measure Of Performance Online courses Tutoring tools Little Extensive Degree of customization Teacher-led monolithic instruction Online learning Student-centric learning facilitated user networks
- 28. Student-centric software will be a facilitated-network business Copyright Clayton M. Christensen Non-consumers or Non-consuming occasions Different measure Of Performance Time Performance Modules Custom classes Tutoring Facilitated Network: parents, teachers, students, entrepreneurs
- 29. When education is not delivered in an intrinsically motivating way, prosperity is an enemy to education Copyright Clayton M. Christensen Why do we need to innovate?
- 30. A case study of successful innovation in education: The Florida Virtual School Copyright Innosight Institute, Inc. Start small Break the mold grant for $200K What should it look like? Unconstrained by old assumptions; what can we do with this new medium? What is true in this world? Experiment and learn from failure Puzzle: who will want to use this?
- 31. Key policies emerge Autonomous organization Established in 2000 as independent educational entity New value proposition Freedom to create its rules and procedures and enter into agreements with providers, hold patents, etc. as need be to fulfill its mission Funding Initially a line-item allocation In 2003, self-sustaining model established FL funding formula Seat time Mastery Copyright Innosight Institute, Inc. 32
- 32. FLVS growth Copyright Innosight Institute, Inc.
Editor's Notes
- #3: So you need to nail the job, but still, innovation seems unpredictable. Are there different kinds of innovations? Do certain ones work well in certain circumstances and not others? How can I make innovation more predictable?
- #5: Now, this isn’t just a technology phenomenon. For-profit, non-profit, governmental – point out 2 nd to last one in particular.
- #7: Now, this isn’t just a technology phenomenon. For-profit, non-profit, governmental – point out 2 nd to last one in particular.
- #10: School system is very interdependent, which has led to monolithic, factory-model school system and prevented customization.
- #12: 35,000 PA students did not graduate from high school in 2008-09. Despite stimulus that has allowed luxury not to change, it is temporary. A cliff is still coming. Must be strategic about cuts – e.g. summer school
- #23: The school system’s business or organizational model that gave it the capabilities to address the first 2 jobs quite well, however, equally defines what it is not capable of – it is incapable of addressing these 2 new jobs (the last one in particular) of educating EVERY child. Explain what an organizational model is and why it matters. For “profit formula” tell school leaders to think of it in terms of revenue they need to support the costs for the system since they don’t turn a “profit” per se.
- #25: So if we need to address a totally new value proposition or job, how can we create that model? Autonomy is vital. Different teams for different types of tasks. Target and IBM examples.
- #26: Back to you Clay if you’d like
- #29: Clay – do the beginning of this and then hand it off to me to finish this slide and I’ll finish up the presentation
- #30: OK, so I bet you’re saying, “This is interesting, but do schools even need to innovate? We teach it; it’s their fault if students don’t learn it, right? In certain Asian countries, they seem to be just fine lecturing at them and they get it, so what gives in the U.S. Is it the parents maybe or family structures? Why does what you just taught us matter to us?”
- #32: Allowed for organic growth in accordance with unique mission – to serve districts and students any time, any place, any path, any pace