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Putting MOOCs to Work: How Online Education Impacts Corporate Training

How is the MOOC (Massive Open Online Course) market impacting corporate training? This presentation reviews Bersin by Deloitte's recent research on the trends and impact of the MOOC market on corporate training, recruiting, and skills development.

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Putting MOOCs to Work
Massive, open, online courses in corporate learning

Josh Bersin
Principal and Founder

Todd Tauber
VP, Learning Research

CopyrightCopyright © 2013 Deloitte Development LLC. reserved. reserved.
© 2013 Deloitte Development LLC. All rights All rights
Copyright © 2013 Deloitte Development LLC. All rights reserved.
Who We Are
-

-

Global provider of leading practices, trends, and
benchmarking research in talent management,
learning, and strategic HR.
60% of the Fortune 100 are Bersin by Deloitte
research members, with more than 19.5 million
employees managed by HR teams using Bersin
Research.

Offerings
-

WhatWorks® Membership: Research, Tools,
Education, Benchmarking

-

IMPACT®: The industry’s premiere conference on
the Business of Talent

-

Advisory Services & Consulting

Broad Research Practices
Human
Resources

Leadership
Development

Learning &
Development

Talent
Acquisition

Talent
Management

Copyright © 2013 Deloitte Development LLC. All rights reserved.
Agenda
▪ A brief history of MOOCs
▪ Putting MOOCs to work
▪ Questions & answers

Copyright © 2013 Deloitte Development LLC. All rights reserved.
MOOCs are…
Massive, open, online courses
•Authored by top university professors and other experts
•Usually free or low-cost
•Technology (authoring + LMS) + content + pedagogy
•Text, video, rich media, interactive exercises and
assessments and discussion forums + support

Copyright © 2013 Deloitte Development LLC. All rights reserved.
The MOOC Concept

World-class, branded universities
with highly specialized content
“unlocked” from the high prices
created by University pricing.
Copyright © 2013 Deloitte Development LLC. All rights reserved.
Copyright © 2013 Deloitte Development LLC. All rights reserved.

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Putting MOOCs to Work: How Online Education Impacts Corporate Training

  • 1. Putting MOOCs to Work Massive, open, online courses in corporate learning Josh Bersin Principal and Founder Todd Tauber VP, Learning Research CopyrightCopyright © 2013 Deloitte Development LLC. reserved. reserved. © 2013 Deloitte Development LLC. All rights All rights Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 2. Who We Are - - Global provider of leading practices, trends, and benchmarking research in talent management, learning, and strategic HR. 60% of the Fortune 100 are Bersin by Deloitte research members, with more than 19.5 million employees managed by HR teams using Bersin Research. Offerings - WhatWorks® Membership: Research, Tools, Education, Benchmarking - IMPACT®: The industry’s premiere conference on the Business of Talent - Advisory Services & Consulting Broad Research Practices Human Resources Leadership Development Learning & Development Talent Acquisition Talent Management Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 3. Agenda ▪ A brief history of MOOCs ▪ Putting MOOCs to work ▪ Questions & answers Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 4. MOOCs are… Massive, open, online courses •Authored by top university professors and other experts •Usually free or low-cost •Technology (authoring + LMS) + content + pedagogy •Text, video, rich media, interactive exercises and assessments and discussion forums + support Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 5. The MOOC Concept World-class, branded universities with highly specialized content “unlocked” from the high prices created by University pricing. Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 6. Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 7. The Demand for Education is High Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 8. Career Education Pathway – Role for MOOCs Formal Education Degree Programs Learners Students Vets Workers Fulfilling Career Post Secondary Education Career Networks Employers Corporate Training Assessments and Career Pathways Professional Development Mentors Friends Advisors Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 9. Market Size is Very Large Education Marketplace Employers Corporate Skills Devt. Demand for training, certification, skills, and certificates (corporate training programs and providers) paid by corporations Demand for courses, degrees, certificates, and programs (universities, for-profit degree programs, online universities) For Profit ~ $1.2 trllion Not for Profit ~ $130 billion Skills and Degrees for Employment Academic Degree Demand Individual Skills Development Marketplace Professional Skills Demand Demand for professional education and skills driven by individuals and families (adult education, continuing education, consultants, etc.) paid by individuals ~ $60-80 billion Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 10. But Education is Out of Step ▪ Educator and employer disconnect ▪ 72% of Educators believe students are prepared for work yet only 42% of Employers believe students are prepared for work ▪ Entry level students are not ready ▪ 45% of employers do not believe entry level college grads are “ready” for work ▪ Cost of education skyrocketing ▪ 31% of students avoid education because of high cost, 48% in US ▪ Only half of youth believe college improved their educational opportunities ▪ Professional Dev is very expensive ▪ Leadership development programs at major universities cost $10K+ Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 11. And the Corporate Content Market has Become Difficult ▪ Academic content has been “locked up” in high priced universities ▪ Skillsoft, Lynda.com, and many other smaller e-learning vendors provide excellent but limited content ▪ Experts and authors have not had a way to release and sell their own expertise easily ▪ Professional development market fragmented and has inconsistent brand and quality Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 12. Enter the MOOCs ▪ Primary focused on the education market ▪ Content authored by professors, assembled and hosted by MOOC providers ▪ University branded and supported ▪ Cohort-based ▪ Almost free today Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 13. Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 14. The MOOC Market Players Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 15. MOOCs are Cohort-Based Blended Learning Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 16. Where MOOCs Fit Collaboration (Webcast, Discussion, Blog, Wiki) Performance Support Performance Management Goals, Objectives, Performance Plans, Development Plans, Assessments Reviews, Ratings, Rankings Application Programs, Courses, Objects, Assessments Prices, Fees, Student Hours, Credits, Resources, Certifications, Scores, Completions, Ratings 360 Assessment Competency Requirements, Organizational Competencies, Skills Job and Role Descriptions, Open Requisitions Organizational Data (Relationships, Hierarchy, Geography) Data Content Interfaces Learning Content Succession Planning Reporting Learning Content Content Development Tools MOOCS Content Management (LCMS) Content+ Delivery LMS Platform Career Development Tools Portals: Employee | Manager | Customer | Partner Compensation Data (Current, planned, short/long term) Employee Profile Data (Demographics, History) Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 17. edX Non-Profit (MIT-Harvard) Open Source Platform Top Branded Universities Highly Flexible Platform Google Mooc.org X-Series Programs Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 18. Udacity Technical computer Science focus Online Degree program With AT&T at GA Tech “Open Education Alliance” Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 19. Coursera Wharton, Rice Exec Ed Tracks Signature Series Focused on some Corporate users Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 20. Udemy iTunes for Corporate User generated content Excellent delivery experience Corporate portal and corporate services Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 21. Where MOOCs Play ▪ Technical education for computer science, math, statistics, psychology ▪ Leadership development and management development and internal training offerings ▪ Self-study for employees in wide range of topics ▪ Validated courses for potential applicant evaluation in recruiting ▪ Custom programs Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 22. Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 23. Why MOOCs are Disruptive ▪ Changing the Education Economics ▪ Opening up branded low cost professional content ▪ Expanding market for many niche academic experts ▪ Enabling self-development for global workers ▪ Empowering L&D to develop new forms of content Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 24. Agenda ▪ A brief history of MOOCs ▪ Putting MOOCs to work ▪ Questions & answers Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 25. MOOCs are coming to the workplace Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 26. This is just the beginning Interest is building 70% of Bersin by Deloitte members are interested in exploring the use of MOOCs for corporate training Awareness is low 69% of exec ed participants have never heard of MOOCs Experience is rare Only 7% of organizations surveyed by MOOCs@Work are using them for employee learning…but 31% plan to Josh Bersin, “The MOOC Market Takes Off”, LinkedIn, 11/2013, UNICON, “MOOCs and Executive Education”, 6/2013; 11/25/2013; MOOCs@Work survey, 10/2013 Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 27. Employers Get It- Momentum Builds ▪17% of employers believe online education is as good or better than traditional education. They will accept the credential. ▪ More than half of employers believe the quality of education online is equal to or superior to the classroom. http://www.publicagenda.org/pages/not-yet-sold Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 28. The workforce wants (and likes) MOOCs ~10m people have enrolled in MOOCs to date; 50% to 70%+ are working adults, not students - 44% participated to get skills to do their job better - another 17% to get the skills needed for a new jobs 10%+ of exec ed participants have taken MOOCs; 54% finished them (vs 5% to 10% for academic MOOCs) - Only 8% are not interested in learning via MOOCs 1/3 of L&D professionals who have taken a MOOC rated it “good” or “excellent”; only 2% said it was “bad” Coursera, edX, Udacity and Udemy, University of Pennsylvania, 7/2013; UNICON, “MOOCs and Executive Education”, 6/2013; 11/25/2013; MOOCs@Work survey, 10/2013 Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 29. 7 ways companies are using MOOCs 1. Building talent pipelines 2. Onboarding new employees 3. Self-directed development 4. Workforce training 5. Educating partners & customers 6. Brand marketing 7. Collaboration and innovation Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 30. Building talent pipelines Candidate screening:  350+ companies, including Google, Amazon, Twitter and Facebook, have paid Coursera and Udacity to match them with high-performing students who might be a good fit for jobs. [Chronicle of Higher Education and Inc.] Sponsorship:  AT&T is sponsoring (for $2m) an MS in Computer Science at Georgia Tech to be built and delivered in partnership with Udacity. It plans to enroll its employees in the program in the future. [Inside Higher Ed] Consortium:  Google, AT&T, Autodesk, Intuit and NVIDIA, are partnering with Udacity’s Open Education Alliance, a non-profit project geared specifically toward teaching students and workers the skills needed to find jobs in the technology industry. [GigaOm] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 31. Onboarding new employees Adapting the MOOC approach ▪ McAfee borrowed the MOOCs’ semi-synchronous “flipped classroom” approach to overhaul its 80-hour-long new hire orientation program. ▪ The company says it not only saved time, but it enabled new salespeople to sell more, more quickly. [Forbes] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 32. Self-directed career development ▪ Deloitte encourages consultants to sign-up for Coursera courses on corporate finance, financial markets and the energy industry (but does not credit them toward required learning ...yet). [CLO Magazine] ▪ Yahoo! reimburses its software developers and engineers for participating in Coursera’s “Signature Track” program, which verifies their identity and provides a certificate of completion. [Coursera blog] ▪ Jardine Lloyd Thompson encourages employees to take MOOCs and recommends specific Coursera, edX, Udacity and Khan Academy courses to its finance, accounting and operations staff. [MOOC News and Reviews] ▪ Datalogix uses Udemy for Organizations to give staff the opportunity to take relevant courses when / where they have the time. [InformationWeek] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 33. Workforce training ▪ Google enrolled 80,000 employees in Udacity’s HTML5 course, driven by Chrome Developer Relations team. [Inc.] ▪ Aquent, has created a proprietary MOOC “Gymnasium” to build in-demand HTML5, CSS, responsive design and coding skills within its pool of marketing, creative, and digital media talent. [InformationWeek] ▪ Tenaris, a $10 billion manufacturer of steel pipes, is going to be using edX’s platform and course materials for its employee learning program. [edX and Tenaris] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 34. Workforce training (adapted) ▪ Jardine Lloyd Thompson is blending public MOOCs with in-house classroom workshops to improve public speaking skills. [MOOC News and Reviews] ▪ TELUS has adapted the MOOC approach – blending formal, informal and social learning elements – for sixweek “Lead and Grow Series” programs on leadership, collaboration, products and customer service (although not necessarily tied to a platform). [ASTD] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 35. Channel / customer education ▪ SAP created its own MOOCs (openSAP) to provide fast, cost-efficient education to its partner and customer ecosystem in order to drive adoption of its mobile and data technologies. [SAP and Forbes] ▪ 1-800-FLOWERS.com recently signed-up Udemy to build and deliver a comprehensive online learning program, covering business management as well as floral design, product care and handling, for its retail florist network, BloomNet. [The Wall Street Journal] ▪ The World Bank is working with Coursera to offer free courses on health, education, development and climate change to its partners and technical experts in emerging markets. [The World Bank] ▪ The IMF is doing something similar with edX, to educate government officials about debt and financial policy making. [BBC] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 36. Brand marketing ▪ AMC is partnering with UC Irvine and Instructure (Canvas) to offer a massive, open, online course based on “The Walking Dead” in order to drive a deep, sustained connection with the show. [UC Irvine] ▪ Bank of America is working with Khan Academy to provide its customers and prospects with easy-to-understand lessons on financial literacy. [Bank of America] ▪ The Center for Creative Leadership (CCL) is offering a MOOC (Leadership for Real) through Instructure / Canvas. [Instructure] ▪ 23andMe developed a college-level online genetics class with Udacity to drive awareness and hopefully demand for its genetic analysis services. [MarketWatch] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 37. Collaboration and innovation ▪ 100+ (undisclosed) companies and non-profits – including one with 280,000 employees – worked with a Coursera / University of Virginia business strategy course to crowdsource solutions to real-world business challenges via a platform called Coursolve. [Harvard Business Review] Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 38. Challenges for organizations • Catalog depth • Length • Quality • Customization • Security and data privacy • Tracking / LMS integration • Policies and culture • Customer support Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 39. More work to be done How should MOOCs adapt to the needs of corporations? Future Workplace survey of 195 corporate learning and HR professionals Jeanne Meister, “How MOOCs Will Revolutionize Corporate Learning And Development”, Forbes, 8/13/2013 Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 40. Our Advice • Encourage your employees to take a look • Review your policies (e.g. credit?) • Research your options (as-is, custom, adapted) • Get in touch (with the MOOCs …or us) • Think about your LMS • Look for pilot opportunities • Push your other content providers • Contact us to join our MOOC working group Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 41. Agenda ▪ A brief history of MOOCs ▪ Putting MOOCs to work ▪ Questions & answers Copyright © 2013 Deloitte Development LLC. All rights reserved.
  • 42. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright © 2013 Deloitte Development LLC. All rights reserved.