Schools after tomorrow emerging business models

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A presentation about school business model innovation dedicated to trailblazers Margarita Ventanilla Hamada of The Philippines and Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary of Malaysia.

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Schools after tomorrow emerging business models

  1. 1. SCHOOLS AFTER TOMORROWEMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS Image courtesy of Image courtesy of (interfaithharmony.wordpress.com) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 58 SLIDES: @12 MINUTES RUNNING TIME Jaime Alfredo Cabrera v2
  2. 2. MAIN MENU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Emerging Business Models • Streamlined Status Quo • Niche Dominators • Transformers Emerging Strategies • Academic Quality & Excellence • Commercial Skills • Change Management • Speed to Market • Funding Relationships Emerging Challenges • Roles • Scenarios • Regulations • New Entrants • Products & Services Past Lessons for Futures • Lessons from Trailblazers • Hindsights • Foresights • Your New University Business Model
  3. 3. The world is changing. Image courtesy of www.digital-photo-secrets.com 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15
  4. 4. What’s your new school business model? Image courtesy of www.digital-photo-secrets.com 21 2 3 4 5 6 7 8 9 10 11 12 13 14 15
  5. 5. INSTRUCTION & TRAINING INDUSTRY Image courtesy of Image courtesy of zulqarnaingroup.com 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
  6. 6. “We’re not businesses… but we need to be run in a business-like way” - University Vice-President 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 EMERGINGBUSINESSMODELS
  7. 7. Given the forces of changes affecting higher education today, school business models can transform into: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 EMERGINGBUSINESSMODELS • Streamlined Status Quo • Niche Dominators • Transformers Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  8. 8. Some schools will continue as teaching, training and research institutions but will progressively transform the way they administer & deliver services. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  9. 9. • still serves a broad mix of student segments • still offers a broad range of disciplines but • discontinues a number of unprofitable disciplines In this model, the school: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  10. 10. • to achieve scale • to provide resources for maintaining international competitiveness in other disciplines In this model, the school merges disciplines with another institution: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  11. 11. • digital channels • multimedia channels • multidelivery channels • blended models In this model, the school invests heavily in production, sales & delivery channels: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  12. 12. • with public & private higher education providers, secondary schools, industry partners, etc. • to open new markets or more efficiently access & serve existing markets In this model, the school forms sales & delivery partnerships: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  13. 13. • to realise lower operating costs, and/or • to drive efficiencies through shared services arrangements with like-minded institutions In this model, the school outsources some back-office functions: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  14. 14. • have ample scope to streamline their business & operations • have much higher support staff to academic staff ratios than other knowledge-based industries • have some assets that are used for less 100 days per year A study reveals that most schools: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 STREAMLINEDSTATUSQUO Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  15. 15. • reshape & refine their range of services & markets • target particular ‘customer’ segments • use tailored education, research & related services Some schools will: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NICHEDOMINATORS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  16. 16. • such as mature age distance learning students, international mass market, industry professionals • to enable the targeted development of course offerings, sales channels, delivery & related services In this model, the school focuses on particular customer segments: NICHEDOMINATORS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
  17. 17. • significantly reduces its range of education disciplines • so as to focus on areas of genuine domestic & global strength & credibility In this model, the school: NICHEDOMINATORS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
  18. 18. • streamlines its back office by using outsourcing and/or shared services models • to drive efficiency & economies of scale In this model, the school: NICHEDOMINATORS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
  19. 19. The niche dominator model will be driven to maintain a competitive position: NICHEDOMINATORS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools • in domestic & international markets • across a broad range of disciplines & segments
  20. 20. Private providers & new entrants will create market positions using: • niche dominator models • buildings & facilities designed for specific purposes, and • segment-focused businesses without the constraints of legacy assets & workforce structures 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NICHEDOMINATORS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  21. 21. • to create new market spaces that merge parts of the education sector with other sectors • to include media, technology, innovation, venture capital • to create new markets, new segments & new sources of economic value Some schools will carve out new positions in the traditional sector: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  22. 22. • content wholesalers • content consumers • financiers, employers, sponsors, paying parents • non-users • underserved or previously ignored markets In this model, innovators will redefine the education customer to include: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  23. 23. • content aggregation • mass distribution • assessment • auditing • certification Innovators will disaggregate the value chain to create new areas of specialisation such as: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  24. 24. • media • entertainment • financial services & • venture capital In this model, innovators will combine traditional education services with related industry services such as: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  25. 25. • predominantly digital sales models • delivery models that combine digital services & sourced specialist face-to- face services In this model, innovators will build: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  26. 26. • outsource learning products, assessment, testing & student support services • retain ownership of their customer relationships • use cloud-based customer relationship management tools & techniques In this model, innovators will: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  27. 27. In this model, innovators will outsource their full suite of back- office functions, including: • student advising • student tutorials • learning assessments • student grading • learning materials development • learning services development • marketing & promotion • auditing • accounting • support services 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  28. 28. In this model, innovators will be led by private providers & new entrants, not incumbent public schools. • This level of ‘disruption’ is hard to lead from the inside. • However, savvy public institutions will seek opportunities to create value in this space in partnership with private providers & new entrants. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  29. 29. • in crafting a deal that creates brand protection & a reasonable share of the created value • in using a consortium approach (e.g., a prospective partner with the market weight of a global technology or media company) Existing schools bring two critical assets to this model: credibility & academic capability 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 TRANSFORMERS Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  30. 30. TRANSFORMERS • increased global reach of the core mission & brand • much needed incremental revenue • support for internationally competitive education & research programs For schools that get this right, rewards are high: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  31. 31. Image courtesy of Image courtesy of inhabitat.com INSTRUCTION & TRAINING INDUSTRY 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
  32. 32. Regardless of their chosen business models, future schools will need to use five strategies to address emerging challenges. Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools FIVESTRATEGIES 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
  33. 33. 1. Quality & academic excellence 2. Academic talent & workforce structure 3. Commercial skills 4. Change management & speed to market 5. Relationship with government FIVESTRATEGYAREAS 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  34. 34. ACADEMICQUALITY&EXCELLENCE Whatever the target market & financial pressure, schools must maintain academic excellence & deliver quality output. Quality may suffer in a competitive market but those that can’t maintain quality will eventually lose market share & relevance. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  35. 35. ACADEMICTALENT&WORKFORCE Universities will need to attract new talent to replace an ageing workers & at the same time build a new workforce structure that can: • support new business models • deliver increased productivity, & • accommodate non-traditional operating models 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  36. 36. COMMERCIALSKILLS As training & instruction service markets become increasingly competitive & consumer-driven, schools will deepen the commercial competencies of their faculty & staff. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  37. 37. COMMERCIALSKILLS This will be needed to secure market share in various markets and enable schools to cut the right deals with private providers & new entrants. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  38. 38. CHANGEMANAGEMENT New school models will require significant change; leaders will need to find ways to • stay true to a mission or vision • maintain academic integrity & independence and • change business & operating models 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  39. 39. SPEEDTOMARKET As local & foreign markets increase competition, schools will need to be first to market with: • new learning products • new teaching services • new assessment methods • new research programs • innovative student experiences 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  40. 40. FUNDINGRELATIONSHIPS The next years will see increasingly fiscally constrained governments & sponsors, regardless of political persuasion. Funding for schools will likely decline. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  41. 41. FUNDINGRELATIONSHIPS Universities will need to search for ways to move beyond the ‘fight for funds’ relationship. For example, schools might be in joint initiatives that build a national base for a globally competitive knowledge economy. 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  42. 42. Image courtesy of Image courtesy of inhabitat.com INSTRUCTION & TRAINING INDUSTRY 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
  43. 43. “Ambitious players will need to move fast to establish new models & secure partnerships with leading incumbents.” - Anonymous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 EMERGINGSTRATEGIES
  44. 44. Universities are critical to a nation’s future. In planning a school for the future, five elements must be addressed. Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 EMERGINGSTRATEGIES
  45. 45. Roles of schools in a country’s future 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 3 Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  46. 46. Scenario modeling that anticipate emerging futures 4 Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  47. 47. Regulation & choices in learning assessment and accreditation 5 Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  48. 48. Roles of private sectors & new entrants to the industry 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 6 Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  49. 49. Flexibility in pricing & delivery of products & services 746 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  50. 50. Image courtesy of Image courtesy of angeladavidsphotography.wordpress.com PAST LESSONS for FUTURES INSTRUCTION & TRAINING INDUSTRY 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  51. 51. • A single-revenue strategy is a danger. • A local-market strategy is a risk. • The MOOCs model isn’t working. • Traditional processes & standards can hurt an innovative business. • Slow governments will hurt a fast business. • Staff & user involvement and commitment can increase & protect your business. PASTLESSONSforFUTURES 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools
  52. 52. A single-revenue strategy can endanger a business. • In highly competitive markets driven by disruptive innovations, your products & services are constantly threatened by more agile competitors. • What strategies can put you ahead of the competition as well as increase your revenues? FORESIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  53. 53. A local-market strategy can put a business at risk. • Global forces can affect local markets & revenues in unforeseen ways. • Aside from exclusive schools, education is not recession-proof. What strategies can you use to reach & capture non-local markets for your products & services? FORESIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  54. 54. The MOOCs model isn’t working. • Massive online courses can tremendously increase enrolment, but completion rates are very poor. • Student profile and context can affect completion rates. • What strategies can you use to increase the completion rate of e- learning? HINDSIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  55. 55. Traditional learning products & services can hurt the business: • Teachers not trained to teach in ways young students learn today • Learning materials not designed for ways young students learn today • Assessment methods not designed for ways that young students produce output today What strategies can you use to bridge these gaps? HINDSIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  56. 56. Slow governments will hurt the business. • Governments are slow to grant full accreditation to non-traditional learning models • Users are hesitant to invest time or money in unaccredited learning What strategy can you use to speed up government accreditation for alternative training, instruction, & learning models that you will use? HINDSIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  57. 57. A highly committed faculty, staff & alumni can increase & protect your competitive advantages. • In an increasingly unstable & competitive industry, you need all the help you can get. What strategy can you use to create & sustain an involved & committed faculty, staff, alumni and users? HINDSIGHTS 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  58. 58. So... what’s your new school business model? Image courtesy of www.digital-photo-secrets.com 846 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  59. 59. I can help. mr.jaime.aiu@gmaiil.com 946 47 48 49 50 51 52 53 54 55 56 57 58 59 60
  60. 60. SCHOOLS AFTER TOMORROW EMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS Image courtesy of Image courtesy of (interfaithharmony.wordpress.com)For details, contact mr.jaime.aiu@gmail.com Jaime Alfredo Cabrera 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 END OF PRESENTATION. THANK YOU.

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