Higher Education Market Overview

Company Overview
Online LearningEducational Market Review
Stephen Gilfus, General Partner, Gilfus Education Group Llc.

Agenda
Background and Overview
Market Overview
Mis-Perceptions
Online Learning
The Evolution
Growth of Online Learning
Providers and Advancements (Commercial and Open Source)
Learning Object Repositories
Content as A Platform
Why a Learning Object Repository
Educational Funding
Private Funding
The Stimulus Package
How Education will Benefit

Market Overview
According to the U.S. Department of Education (“DOE”), there are 9,258 colleges and universities in the U.S.
Of this total, 4,197 are degree granting, meaning that they are authorized to grant associate’s level degrees or higher
The remaining 5,059 institutions are typically small, single-site and, in aggregate enroll less than 3% of all students.
Serves a student population of approximately 17 million students in college and 54 million in K-12.
Over a trillion dollar industry, second only to healthcare in the U.S.

Our Mis-Perceptions
Can online learning help?
The U.S. has the best system in the world.
We are loosing traction and competitiveness
Serves all sectors of the population.
The rising cost of Higher Education, not equal to all
Has been a growth engine of our economy.
Is this proven – Can we be sure?
Our institutions are innovators and creative.
In research maybe, but not in the education business
Our system is a role model for the rest of the world.
Yes – But how is the world improving upon it

5
MISSION CRITICAL
EXPLORATORY
SUPPORTED
STRATEGIC
TRANSFORMATIVE
Transition 1
Transition 2
Transition 3
Transition 4
INSTITUTIONAL GROWTH
Course web sites
Commercial enterprise course management system
Online courses, organizations, and institutional services integrated with back-office systems
A full online campus with learning communities and shared digital content resources
When any student or teacher can view instructional content, collaborate with educators, evaluate academic performance, and access learning resources at any time to achieve their educational objectives.
Phase 5
Phase 2
Phase 3
Phase 4
Phase I
TIME
Evolution of Learning technologies
Source: The Educational Technology Framework “The Gilfus Model” © Gilfus Education Group 2004

6
MISSION CRITICAL
EXPLORATORY
SUPPORTED
STRATEGIC
TRANSFORMATIVE
Planning
Budgeting
Technology
Support
Training
Phase 5
Phase 2
Phase 3
Phase 4
Phase I
TIME
Adoption Implications (Organic vs. Planned)

Growth of Online Learning
Online learning applied appropriately can create a strategic advantage
Not just growing acceptance but part of the fabric
Over 3.5 million or about 20% of all college students have taken an online class.
In the K-12 market it is estimated that over one million students gave taken an online course (primarily in high school)
It was born out of a classroom model but has grown into something else.
From augmentation to full online learning
It can personalize learning and better engage students.
It provides capabilities to the non-traditional learner
It can increase efficiency and accountability.

8
Increased Value over each Phase

9
MISSION CRITICAL
FOUNDATIONAL
SUPPORTED
TRANSFORMATIVE
MISSION CRITICAL
EXPLORATORY
SUPPORTED
STRATEGIC
TRANSFORMATIVE
Transition 4
Transition 3
Transition 2
Transition 3
Transition 2
Transition 1
Transition 1
Phase I
Phase 2
Phase 3
Phase 4
Phase I
Phase 2
Phase 3
Phase 4
Phase 5
Organic vs. Planned Adoption
Planned Adoption
Planned/Foundational Adoption
Initially driven by Executive Sponsor
Accelerated growth
Strategic planning upfront
Organic Adoption
Organic / Exploratory Adoption
Initially driven by End Users
End User Plateau
Strategic Phase Necessary for continued growth
Transition Management is the key to successful adoption regardless of approach.

Comercial Platforms

Commercial Capabilities “a Suite of Applications”
What does it mean to be an “Education Company”?
Improve
Assessment
Administrative Tools
Instructor Tools
Student Tools
Outcomes Management
Communication & Collaboration
Learning Content Management Technology
Systems Integration
Accessibility Standards

Commercial Advantages
Focused on meeting customer needs will creating business sustainability
Strong Support Models
One company does it all
Company Stability
Sustainable model for growth
Dedicated R and D
Budgeted R and D dollars towards enhancing the platform
Customer Sensitive
Revenue generation based on meeting customer needs and desires
Open “Platform”
Building Blocks, Agents, Plug-Ins, allow for extensibility

Open Source Alternatives
Permission to use, copy, modify, merge, publish, distribute, andsublicense this Original Work and its documentation, with or withoutmodification, for any purpose, and without fee or royalty to thecopyright holder(s) is hereby granted, provided that you include thefollowing on ALL copies of the Original Work or portions thereof,including modifications or derivatives, that you make:
http://www.opensource.org/licenses/ecl1.php
Sakai and Moodle are freely available via a GNU Educational License.

Our Mis-Perceptions
Complexity and Flexibility versus Stability and Support
Open Source is Free.
The software is free but the underlying costs are not
Open Source is cheaper.
The cost of the software does not include hosting, hardware, support
Open Source is more flexible.
With flexibility comes complexity, you can get whatever you need but how does this strategy complicate support?
Open Source is more innovative
Although a mass of individuals can work on an open source project are they truly developing components that meet the need?
Open Source can be modified any way I want.
Yes – But what is the cost to make the modification and then support the modification

Mixed mode Alternatives
rSmart and Moodle Rooms provide critical capabilities for the support and management of open source alternatives

Likely Purchasers
The 90% of academic institutions
Simply need an application to enable online learning without taking on levels of risk
One “neck to noose”
The 5% of academic institutions
Risk vs. Reward. Perception of cutting edge
Resources and capabilities to manage complexity internally
Primarily support themselves
The 10%+ - Growing number of institutions
Fighting open source perceptions (Cheaper)
Mixed approach looks to Mitigate complexity
Comparable to commercial capabilities

Market Share
Source:Dunn & Bradstreet MDR, 2002, Higher Education Findings.
* Of institutions using a product of this type
Blackboard acquired WebCT making it the dominant platform in the space

New Players - Learning Object Repositories
Definition: Content as a Platform (con-tent as a plat-form)
create a centrally managed “engine” to share, create and manage content across an institution. Then enable various consumers on and off campus to access that content in a secure and contextual manner. Content can be stored locally (documents, presentations, spreadsheets, audio/video), on web solutions (streaming audio, video, podcasts), in subscriptions to journals and articles (library content) and make it seamlessly available to the various consumers both on and off campus.
Source: The Learning Edge North America
This includes course managements systems, other digital repositories, authoring tools, ePortfolios and others.

Items
Metadata
Attachments
= Content
Collections
The Content Advantage – Publisher Positioning
Content Sharing
Open textbooks
Open Content
Open Market
ECollege is now a Pearson Company
Source: The Learning Edge North America
Publisher strategy is to bundle tools for learning, others is to “Free” Content to make it accessible to all.

Why a Learning Object Repository
Significant cost efficiencies through reuse.
Creating/Finding quality content is expensive & time consuming
Once you have it – share across multiple collections/systems/state
All while enforcing DRM and full copyright compliance
Ease in transition from one CMS to another
Serve content to multiple CMS at the same time
Integration of library content
Management of ballooning content storage and content versions
Compliant with any/all metadata schema – crosswalk
Supports Federating and harvesting (OAI)
Incorporate state standards for
accreditation, common course numbering
Incorporate Publisher Content – tied to standards as well

Higher Education Funding
Private funding for higher education in the United States is substantially higher than it is anywhere else in the world, with many American universities having established considerable endowment funds over the last twenty years.
Harvard University, for example, has developed an endowment fund that was valued at $25.9 billion in 2005. Yale University, its closest competitor, has an endowment fund that was valued at $15.2 billion whilst Stanford, Texas and Princeton Universities each have endowment funds that were valued at more than $10 billion in 2005.
The USA does not have a centralized, Federal-Government-run higher education endowment fund. However twenty-four US states have created government matching fund programs. Although there is a great deal of variability in American matching fund programs, due to their being designed, implemented and overseen at a state level, these programs’ purpose is typically to leverage private funds, enhance the quality of teaching and learning and increase access to higher education.

Recovery and Reinvestment Budget Allocations
Category $ in Billions
Tax Relief $288
State and Local Government Fiscal Supplement $144
Infrastructure and Science $111 -- $126
Vulnerable Individuals and Populations $ 81 -- $142
Healthcare $ 59
Education and Training $ 53 -- $78
Energy $ 43 -- $65
Other $ 8

Economic Stimulus package
Impact on University and College Green Initiatives
The economic stimulus package is expected to protect and accelerate campus green initiatives:
The cyber-infrastructure of computer and networks is the largest producer of CO2 (carbon dioxide) emissions at most universities and colleges.
Many schools have already started initiatives to reduce CO2 emissions.
Schools are expected to be early-adopters of LEED (Leadership in Energy and Environmental Design) standards for new construction projects.
Green initiatives are also attractive because they reduce school energy consumption operating costs.

Use by Universities and Colleges
Analysts believe that many universities and colleges will benefit directly from four categories:
Education and Training
With growing unemployment schools, applications for full-time and part-time programs has already increased at most schools.
Infrastructure and Science
It is expected that funding for basic and applied research in science, technology and engineering will increase.
Energy
It is expected that funding for basic and applied research in energy exploration and energy efficiency will increase.
Schools are expected to be early-adopters of LEED standards for new construction projects.
Healthcare
University hospitals and medical schools are expected to be early adopters of electronic medical records.

The Future of Higher Educaition
The economic stimulus package will require efficiencies in operations and technology
Academic institutions will continue to look towards outsourcing to mitigate risks, refine operations and reduce costs
Online Learning will continue to grow to provide greater capabilities to academic instituions without having to build more brick and mortar
Privately held academic instituions will be challenged by decreases in endowment value
Content sharing as a reduction in cost is a viable space for collaboration
The system will continue to evolve creating more sustainable for-profit instititutional opportunities.

Thank YouSpecial Thank You toThe Learning Edge USA
All logos and/or third-party images remain the respective property of their rights owner.

http://www.gilfuseducationgroup.com	32
http://www.slideshare.net	6
http://www.enteprisecorp.com	3

Higher Education Market Overview

by sgilfus on Jul 19, 2009

Accessibility

Categories

Tags

Upload Details

Usage Rights

3 Embeds 41

Statistics

Higher Education Market Overview — Presentation Transcript