OER and the Economies of Sale - CAMEX 2014


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Higher education is experiencing a "crisis of cost." Open Educational Resources are positioned to be an important part of the solution. This presentation contains seven reasons that OER are here to stay and challenges campus stores to embrace the opportunity and drive OER adoptions.

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OER and the Economies of Sale - CAMEX 2014

  1. 1. The Economies of Sale The Emerging Market for OER CAMEX 2014 Charles Key Open Doors Group March 7, 2014 www.opendoorsgroup.org
  2. 2. Except where otherwise noted, this work is licensed under: http://creativecommons.org/licenses/by/3.0
  3. 3. Charles Key Open Doors Group Director of Adoptions, College Open Textbooks, and Grants charles.key@opendoorsgroup.org http://www.opendoorsgroup.org http://www.collegeopentextbooks.org
  4. 4. Open Doors Group (ODG) is a not-for-profit organization that seeks to Increase access to education by lowering barriers for all learners. We are active in a wide range of activities, including our major projects: • College Open Textbooks • Communities • MOOCs • ODG Consulting College Open Textbooks (COT) • Online ‘referatory’ of over 750 open and affordable textbooks, primarily for two-year college level courses • Active online community of over 1500 members • Twenty Communities of Practice organized around specific academic disciplines or interests. We advocate for the adoption of OER as well as Affordable CARR
  5. 5. The Point Is… • Higher ed is in a “cost crisis” • Digital technology has changed the equation for creating, storing, and communicating information • OER are an increasingly important part of the solution • Campus stores can thrive in this environment
  6. 6. The Problem A crisis in higher education caused by rapidly increasing costs, leading to decreased access and compromised learning outcomes.
  7. 7. The Rising Cost of Everything Source: US Bureau of Labor Statistics
  8. 8. OMG! Source: US Bureau of Labor Statistics
  9. 9. Student Loan Debt Soaring
  10. 10. Textbook Cost as a % of Tuition Average annual cost of tuition and fees • Public two-year college (in state): ~$3000 • Public four-year college (in state): ~$8500 Average annual cost of books and supplies • Public college: ~$1200 http://money.cnn.com/2011/10/26/pf/college/college_tuition_cost http://www.studentpirgs.org/campaigns/sp/make-textbooks-affordable https://bigfuture.collegeboard.org/pay-for-college/college-costs/college-costs-faqs https://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064
  11. 11. The Cost Disparity at 2-Year Colleges: Take 2 Community college in-state tuition: $46/unit Cost of two 4-unit courses: $368 Organic Chemistry by Janice Smith: $195 Study Guide & Solutions Manual: $126 Students tell College Open Textbooks: It’s not uncommon for the cost of textbooks to double the cost of tuition at the 2-year college level. Calsidyrose by Curiosities CC BY http://www.flickr.com/photos/calsidyrose/4686098399/in/photostream/
  12. 12. The Effect 60%+ do not purchase textbooks at some point due to cost 35% take fewer courses due to textbook cost 31% choose not to register for a course due to textbook cost 23% regularly go without textbooks due to cost 14% have dropped a course due to textbook cost 10% have withdrawn from a course due to textbook cost            Source: 2012 student survey by Florida Virtual Campus www.projectkaleidoscope.org
  13. 13. There are no winners
  14. 14. The Response Entrepreneurs view market inefficiencies as opportunities. The convergence of the cost crisis, the digital revolution and new technologies is causing a fundamental shift in the way we view and provide education.
  15. 15. Open Data OER Governmental Policy Ed Space Startups State-Wide Repositories MOOCs
  16. 16. Entrepreneurship is Exploding
  17. 17. “MOOC, every letter is negotiable” by Mathieu Plourde CC BY http://www.flickr.com/photos/mathplourde/8620174342/sizes/l/in/photostream/
  18. 18. What are Open Educational Resources? “OER are teaching, learning, and research resources that reside in the public domain or have been released under an intellectual property license that permits their free use and re-purposing by others. Open educational resources include full courses, course materials, modules, textbooks, streaming videos, tests, software, and any other tools, materials, or techniques used to support access to knowledge." The William and Flora Hewlett Foundation
  19. 19. How Do You Know If It's Open? The 4-R’s Framework Reuse Revise Remix Redistribute
  20. 20. A Simple Philosophy http://ocw.mit.edu/index.htm
  21. 21. Open ≠ Free There is an inherent cost to produce and maintain content. This is independent of whether the producer charges the consumer for its use.
  22. 22. 7 Reasons Why OER Aren’t Going Away 1.Savings 2.Improving Quality 3.Technology 4.Governmental Policy 5.Licensing Infrastructure 6.Academic Freedom 7.Open Movement
  23. 23. How Much Can Be Saved? Higher Ed Savings Estimates $116.60 (Tacoma Community College 2013) $107.34 (Student PIRGs 2010) $101.69 (Student PIRGs 2011) $95.95 (Student PIRGs 2013) $90.61 (Project Kaleidoscope 2013) Average Savings: $100/student/class https://docs.google.com/document/d/1YikQJFigkv_AMmOw0C_E6i53UQ8UbAuDxnsZrIzfiFU/edit http://www.studentpirgs.org/reports/cover-cover-solution http://www.studentpirgs.org/resources/cost-analysis-open-course-library http://www.studentpirgs.org/resources/updated-cost-analysis-open-course-library to be published
  24. 24. How Much Has Been Saved in Higher Ed? Students Served Total students served: 771,263 Total potential savings: $75M+ http://www.slideshare.net/txtbks/billion-dollar-keynote
  25. 25. The Quality Issue People intuitively feel that the more you pay for something, the higher its quality (“You get what you pay for”) There’s a growing body of evidence that learning outcomes are as good or better when using OER than when using traditional commercial materials.
  26. 26. Studies Suggest… CMU Open Learning Initiative A 2011 independent study of an OLI statistics course showed that OLI students performed as well or better than students in traditional instructor-led classes. South Florida College Students using OpenStax physics textbook saw scores on concept inventory tests rise 30% over scores from the previous five years. Houston Community College In 2011, 690 psychology students using a free, online textbook had improved learning outcomes in three areas. Scottsdale Community College A 2012 study found that math students in classes using OER had comparable overall grades and completion rates to students from previous, non-OER classes. http://oli.cmu.edu/get-to-know-oli/see-our-proven-results/ http://chaos.open.ac.uk/evidence/impact-of-openstax-textbook-on-physics-students-south-florida-college/ http://www.tandfonline.com/doi/abs/10.1080/02680513.2012.716657#.UxQEqONdVuI http://www.irrodl.org/index.php/irrodl/article/view/1523/2652
  27. 27. Curated Repositories Washington State Open Course Library Florida Orange Grove University of Minnesota Open Textbook Library BCcampus Collection OpenStax College California Digital Open Source Library
  28. 28. Technology Digital Storage Wideband Access and Delivery Channels Devices • E-readers • Tablets • Cell Phones Authoring Tools • OERCommons OpenAuthor • Connexions Authoring Platform • AcademicPub Textbook Creation Platform
  29. 29. How Technology Influences Cost For One 250 Page Book Cost to Copy • By hand: $1,000 • By print-on-demand: $4.90 • By computer: $0.00084 • Cost to Distribute • By mail: $5.20 • By print-on-demand: $0 • By internet: $0.00072 CC BY: David Wiley, BYU
  30. 30. Production of Quality Content is Within Anyone’s Reach Music Video Social Media Websites Magazines Books
  31. 31. Governmental Policy Summary of Current and Proposed Policy Initiatives Related to Open Education and Resources Source: Creative Commons OER Policy Registry 48 Total Initiatives http://wiki.creativecommons.org/OER_Policy_Registry
  32. 32. Licensing of Open Content GNU General Public License A free, copyleft license for software and other kinds of works. Creative Commons Licenses A set of six licenses for creative works. Lots of Others http://creativecommons.org/licenses/ https://www.gnu.org/copyleft/gpl.html
  33. 33. Creative Commons Licenses http://www.slideshare.net/cgreen/keynote-ace-upcea-san-diego-sols14
  34. 34. Internationally Recognized http://www.slideshare.net/cgreen/keynote-ace-upcea-san-diego-sols14
  35. 35. A Notable Ancestor of OER • Founded in 1985 by Richard Stallman • Promotes the universal freedom to create, modify and distribute computer software • Pioneered Copyleft, a license which offers the right to distribute copies and modified versions of work, while requiring that the same rights be maintained in the copied work http://en.wikipedia.org/wiki/Copyleft http://en.wikipedia.org/wiki/Free_Software_Foundation
  36. 36. And Another… Linux • A Unix-compatible open operating system • A study of the Debian 4.0 release estimated and equivalent development cost of: • 73,000 person-years • $8.6B (Open ≠ Free) “Tux” by Larry Ewing, Simon Budig, and Anja Gerwinski http://en.wikipedia.org/wiki/Linux
  37. 37. The Epitome of Open Content The English version contains nearly 4.5M articles “Wikipedia comes close to Britannica in terms of the accuracy of its science entries, a Nature investigation finds. ” Jimmy Wales, founder of Wikipedia, on Open Content: “…we’ve chosen the free licensing model because that empowers anybody to take our content and do anything they like with it…” http://www.nature.com/nature/journal/v438/n7070/full/438900a.html http://www.ted.com/talks/jimmy_wales_on_the_birth_of_wikipedia.html http://en.wikipedia.org/wiki/File:Size_of_English_Wikipedia_in_August_2010_(L).svg
  38. 38. Business Models for OER The early model: No-cost content, pay for services and upgrades • Special formats • Printed matter Sustainability has been hard to come by • Flat World Knowledge, an early leader in professional-grade open textbooks, has retreated and is now Affordable CARR • Boundless offers some no-cost content, but most is low-cost The Wikipedia model hasn’t yet worked for OER
  39. 39. Business Models Prominent Models • Government/System Supported • For-Profit Publishers • College/Department • Individual Authors • Student Fees New work by new digital-only providers with low overhead • NACS reports that 77 cents of the textbook dollar goes to publisher overhead. The software industry has shown that consumers are willing to pay for packaging and convenience
  40. 40. There’s Money to be Made Selling Free Content The content is free, the packaging is not. http://files.shareholder.com/downloads/RHAT/2991989334x0x657207/97DF4F83-606D-4AC5-9153-0B7B49C558CC/SEC-RHAT-1193125-13-173724.pdf
  41. 41. Opportunities For Stores Expertise Partnerships Print-On-Demand
  42. 42. So Many Options…
  43. 43. …So Little Information Surveys consistently show that educators who want to explore OER don’t know where to go • Wide range of sources, from individual authors to curated repositories • No easy way to locate them • OER producers lack the marketing budgets to get the information to consumers Many interested educators don’t understand licensing issues No database of adoptions data so that educators can find out what peers are using
  44. 44. Partnerships Will Be Key Faculty Libraries Administration Printers Stores Authors/Publishers Students Information Providers
  45. 45. Print-On-Demand 75-80% of students still want a printed copy, even when digital media is available Offers a tangible way to participate when OER is used Solves a persistent problem for retailers: inventory control Bonus: Interest in self-publishing is booming
  46. 46. One POD Option http://ondemandbooks.com/
  47. 47. Learn More About OER • Follow the links in this presentation • www.collegeopentextbooks.org • www.collegeopentextbooks.ning.com • Monthly webinars at CCCOER http://oerconsortium.org/
  48. 48. Open Doors Group Can Help A Community of Practice for Campus Stores If there is enough interest, College Open Textbooks will create a Community of Practice to support campus stores The CoP will be a social network group open to all who are interested in sharing information, expertise, ideas, best practices, and lessons learned around the subject of helping campus stores thrive in the new education environment Interested? Contact charles.key@opendoorsgroup.org
  49. 49. ODG Consulting ODG Consulting is a team of educational and technical experts dedicated to expanding educational opportunities for all learners. The ODG Consulting staff have expertise and skills in a range of areas including open and affordable textbooks and other Open Educational Resources (OER), licensing, digital and print publishing, tools, and courseware. We have a wide range of product offerings including advising, presentations, surveys, research and analysis, pilots, project management, introductions, marketing plans, workshops, and more. Please check our web page for additional information. To find out more about how ODG Consulting can help you develop affordable and innovative solutions that provide increasing access to education, contact jim.huether@opendoorsgroup.org. http://www.opendoorsgroup.org/projects/odg-consulting/
  50. 50. Contact Charles Key Open Doors Group Director of Adoptions, College Open Textbooks, and Grants charles.key@opendoorsgroup.org http://www.opendoorsgroup.org http://www.collegeopentextbooks.org