Avoiding the tragedy of the commons: Creating new models for digtal textbook delivery

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Presentation at University of Michigan-Elsevier conference on eTextbooks in Academic Life

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  • Peter Murray photo used under creative commons license 3.0 SA NC. All players- publishers, bookstores, libraries, faculty, students act rationally under constraints of current development, distribution, and use system. For their respective agencies to change, the structure must change to maintain textbook affordability and improve student learning.
  • Retail “new” textbook costs represent more than 31% of average community college tuition and fees. “Net cost of use” (buy new, used, resell, borrow) represents approximately 15% of average tuition and fees.See Textbook Affordability calculator. 6-year graduation rate varies from 19%-90%. Compound factor at 10% increase can exceed tuition and fees for one academic term.
  • There is no “bad guy,” all members of system must change, and can change, if new digital licensing model emerges with OER and modular options available.
  • The Ohio Digital Bookshelf is a state-level initiative launched in 2009. Its goal is improved learning and affordability, plus the more rapid diffusion of digital learning materials.
  • January 2009 Local pilots recommend launch of statewide pilotApril 2009 Chancellor Eric Fingerhut convenes Textbook Affordability SummitNovember 2009 Textbook Affordability Strategic PlanApril 2010 Ohio Digital Bookshelf Organizational Meeting/Create NINGhttp://ohiodigitalbookshelf.ning.comJuly 2010 Digital Pioneers WorkshopAugust/September 2010- Launch of Year 1-Intro PsychJanuary 2011- Psi Chi Research- student assessmentsJanuary 2011- Year 2 Launch (Accounting, Bio, Econ)
  • Christakis and Fowler 2010 17 members to 203 members
  • If 40% use the PDF version for free, and 60% buy the print for $20, the average savings are $141. The average cost of the new textbook is $153.54 and the average cost of the used book is $124.Assume 10% buy new and keep the new book, another 10% buy new and re-sell, 20% buy used and keep, 50% buy used and re-sell, and 10% buy nothing. Net cost of use is $78.7578.75= (153 x .1)+($76.50 x .1) + ($124 x .2) + $62 x .5) + (0 x .1). On a class basis, the net cost of use is reduced to $12= (.4 x 0) + (.6 x 20). Net savings are $66.75= (78.75-12)
  • Project Director: CharlesGinn, Associate Professor, University of CincinnatiWiley text (Kowalski, 5e) served as project anchor1132 key terms from 12 chapters were evaluated on 4 different categories + added learning toolsAccuracy (The source content is free from error or defect)Clarity (The source is easily understood or without ambiguity)Engagement (The source provokes reader interest and maintains attention)Thoroughness (The source provides sufficient depth and detail of the given topic)
  • Developmental Education:What Policies and Practices Work forStudents?Thomas Bailey, Heather Wathington, Tom BrockWebinar based on September 2010 ConferenceDecember 15, 2010Pay for Success Model
  • Developmental Education:What Policies and Practices Work forStudents?Thomas Bailey, Heather Wathington, Tom BrockWebinar based on September 2010 ConferenceDecember 15, 2010Pay for Success Model
  • State-developed open-source textbooks must be irrevocably owned by or licensed to the state for use in the applicable subject and grade level. The state must have unlimited authority to modify, delete, combine, and/or add content to the textbook after purchase. Applicants may choose to sell the content to TEA outright, and TEA would host all of the content, or the applicant may choose to host the content for a minimum of six years and TEA would have full access and licensing to the content. The state spent $264 million last year in hardcover textbook replacements, which Hochberg says is about normal. He estimates implementation of open-source textbooks would only cost the state $20 million. http://reportingtexas.com/texas-expands-use-of-k-12-electronic-textbooks/
  • 4/26/11 is date
  • Avoiding the tragedy of the commons: Creating new models for digtal textbook delivery

    1. 1. Avoiding the tragedy of the commonsCreating new business models for digital textbook delivery<br />Stephen R. Acker, Research Director<br />The Ohio Digital Bookshelf Project<br />Presented to: “The Future of E-textbooks: A Symposium on the Influence of E-textbooks on Academic Life” March 18, 2011<br />
    2. 2. Ohio’s enrollment growth goal - an additional 210,000 students by 2017<br />
    3. 3. Mainly through use of low-cost pathways<br />
    4. 4. Affordability, engagement, and preparedness- “big 3” correlation<br />Average= $3,474<br />
    5. 5. Current business model<br />
    6. 6. Results in- “The Tragedy of the Commons”<br />Peter Murray<br />
    7. 7. Current business model- Compound price increase >10%<br />
    8. 8. Strategic Goals for new models<br />Increase student learning<br />Reduce Cost increases of 8-13% per year<br />Generate improved ROI<br /> ROI=Learning Outcomes/Cost<br /><ul><li>Escape the Tragedy of the Commons</li></li></ul><li>
    9. 9. Strategy #1- The Buyer’s Co-op<br />Introduction to Psychology Course (2010 Pilot Launch)<br />23 Colleges and Universities<br />Representing 50,000 of 70,000 annual enrollments<br />100 attendees at Digital Pioneers Workshop<br />Wide range of results<br />U. Cincinnati 500/term $62,000 savings<br />OSU 45/term $2,250 savings (off print list)<br />OU-Eastern 0/term 0 (digital) savings<br />Everything in-between<br />Shift to learning platform from text<br />
    10. 10. Strategy #2- Build ODP Community<br />
    11. 11. Ohio Digital Bookshelf Participants 2010-2011<br />
    12. 12. Catalyst for Strategy #3<br />
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    25. 25. Strategy #3- Promote Open Educational Resources<br />$20 for a printed version<br />
    26. 26. $3,474<br />Average tuition and fees at public two-year institutions<br />$153<br />Average savings on <br /> new Algebra textbook*<br />4.4%<br />Percent of tuition<br />*Net use savings for full OER adoption is $66.75 w/60% printing @ $20<br />66.75=(78.75-12)=[(153 x .1)+($76.50 x .1) + ($124 x .2) + $62 x .5) + (0 x .1)]-[(0 x .4) +(20 x .6)<br />
    27. 27. Open Educational Resources<br />Stitz and Zeager Pre-Calculus and Trigonometry Book<br />Creative Commons 3.0 (BY-NC-SA)<br />NGLC Program<br />“All NGLC content will be available under a Creative Commons Attribution (CC-BY) license.”<br />Ohio’s Scaffold to the Stars<br />Department of Labor TAACCCT Grant Program<br />“The Grantee will license to the public . . . all work . . . under a Creative Commons Attribution 3.0 License.”<br />University System of Ohio-Flat World Knowledge Pilot<br />
    28. 28. Strategy #4 Student Research <br />
    29. 29. University of Cincinnati Psi Chi Research (02/01/11)<br />
    30. 30. Strategy #5- Flat World Knowledge Mixed Model<br />
    31. 31. Strategy #6- Comparative Pricing<br />
    32. 32. Strategy #7- Blanket licensing<br />
    33. 33. Strategy #8- “Skin in the game”<br />Bailey, Wathington & Brock, 2010<br />
    34. 34. Strategy #9- Stair-step pricing<br />OSU 2010 3rd term data (n=1,500; New=$100; Used=$80; Digital=$50; Buyback=$50)<br />Publisher Revenue under current pricing:<br />(1,500 x .02= 30 x $100) + (1,500 x .03= 45x $50) = $5,250<br />Publisher Revenue break even with under Digital Bookshelf pricing (1,500 x .02= 30 x $100) + (1,500 x .05= 75x $30) = $5,250<br />Break even= 30 unit increase in digital sales<br />Stair-step pricing refinement<br />60% off-list of new edition<br />65% off-list second academic term<br />75% off-list second year and beyond<br />
    35. 35. Strategy #10- State procurement<br />
    36. 36. Strategy #11- Leverage Accessibility<br />Evaluate and promote “born digital” content for accessibility<br />Annual A-DRM Conference<br />AMAC membership for USO<br />Digital formats (ePub, .mobi, Daisy, VitalSource 5.4) and eReaders for accessibility<br />Leverage UDL for learning<br />
    37. 37. Strategy #12- Expand the library role<br />Modular content mapped to learning objectives<br />OhioLINK as modular digital bookshelf<br />OhioLINK as information curator<br />Individualize based on learning styles<br />Pathfinders (FindingDulcinea)<br />Patron acquisition or carte blanche?<br />Pricing simultaneous use licenses?<br />
    38. 38. Strategy #13- Policy Symposium<br />
    39. 39. Strategy Summary<br />Take the survey- Tell us what you think of these strategies!<br />
    40. 40. Ohio Digital Bookshelf Goals Revisited<br />React to, and shape, disrupted marketplace<br />Escape the “tragedy of the commons”<br />Cultivate the “new digital commons”<br />
    41. 41. Contact<br />Stephen R. Acker (acker.1 at osu.edu)<br />Research Director, The Ohio Digital Bookshelf<br />
    42. 42. Darlene McCoy John Magill Steve Acker (acker.1 at osu.edu)<br />Associate Vice-Chancellor Executive Director Research Director Ohio Digital Bookshelf<br />The Ohio Board of Regents OhioLINKOhioLINK/The Ohio Board of Regents <br />
    43. 43. End of Presentation<br />

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