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Disruptive Innovation & the Lean Startup
CCCU Conference on Technology
6/5/2018
Dr. Andrew Sears
President, City Vision University
www.cityvision.edu
andrew@cityvision.edu
https://www.linkedin.com/in/andrewsears
PCs
Mobile
Disruptive Innovation Theory
Mainframes
10 x
More
Users
1/10th
Cost
Disruptive Innovation Theory
Image Source: Wikimedia
We are here
Proven Data Theoretical Projection
Image Source: Wikimedia
Adoption Cycle for Post-Secondary Degrees
US
Average
Global
Average
Top
Income
Quartile
3rd
Income
Quartile
1st & 2nd
Income
Quartile
Higher Education is not a Single Market, but Multiple Markets with Different Needs
Steps to Develop an Innovative Culture
1. Incorporate Lean Startup methodology in key divisions in your
institution
2. Incorporate unbundling and re-bundling into your strategy
3. Do scenario planning for a future with widespread, personalized
learning from millions of modular adaptive courses
4. Use Blue Ocean Strategy develop a synthesis at the intersection
of these trends and your institution’s strategic position
1. Backwards (Waterfall) Program Design vs. Lean Startup Design
Audience is Traditional Students
Outcomes for Well-Defined Fields
Assessments Based on Known Outcomes
Instruction with Known Content Available
Feedback
Iteration
Is Years
1. Best Development Methodology
Changes Based on the Environment
Development Methodology We know what customers
want
We know how to deliver it
Waterfall √ √
Agile √ ?
Lean Startup ? ?
Problem Solution
Source: http://www.slideshare.net/NatalieHollier/lean-strategymeetup-small/
1. Waterfall vs. Agile vs. Lean Design
Source: http://www.slideshare.net/NatalieHollier/lean-strategymeetup-small/
(Backwards Design/Traditional Assessment Plans)
1. Lean Startup Process
Build
MeasureLearn
Product
(start with minimum viable product)
Data
Pivot
Maximize
Loop
Iteration
Speed
Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous
Innovation to Create Radically Successful Businesses (First Edition). Crown Business.
1. How Do You Reach 6 Billion People without Access to Higher Education?
Design for 4 Interrelated Uncertainties
Changing
Students
Changing
Goals
Affordable
Content
Availability
Costs
Different students based on different
goals, content and costs.
$1,000 degree vs. $100k degree
What goals are realistic
given the students,
costs and content?
Different costs, goals and students
will present different content options +
content & platforms are rapidly changing.
Different content availability,
goals and students will allow
radically different costs.
Modular Universities =
Lego Cities
Monolithic Bundled Degrees Today
Unbundled Education =
Lego Blocks
Modular Degrees
& Credentials =
Lego KitsInteroperable
Standards
Source: http://www.christenseninstitute.org/unlocking-stackable-global-credentials/
http://www.christenseninstitute.org/a-standards-strategy-for-stackable-global-credentials/
2. Incorporate Unbundling &
Re-bunding into your Strategy
2. Unbundling & Re-bundling Strategy
Industry
Certifications
Top-Up Degrees
(City Vision, etc)
University
Courses
Books & Paid
Courseware
1.Christian Courseware, MOOCs,
Apps & Open Educational Resources
Internships &
Missions Trips
Alternative
Ed Providers
Vocational
Qualifications
(GC4)
4. Uncredentialed
Local Coaches
3. Christian Worldview
Program Designers
• Course market becomes more like book and software markets to reduce costs & improve quality
• Christian courses become more modular and less interdependent where possible
• University becomes system integrator of content and tech platforms.
2. Credentialed
Online Faculty
Ordination
Vertically
Integrated
University
Virtually Integrated
University
Transformation is a core
competency of Missions Agencies
Horizontally Integrated Rebundled University
Unbundled
Christian Programs
Faculty role is unbundled into
4 specialized positions
Access to
Opportunity
(branding, licensing
& quality assurance)
Transformative
Experience
(primarily affective)
Metacognition
& Skills
(psychomotor &
high-level cognitive)
Knowledge &
Content
(low-level cognitive)
PartnershipsDEGREE
Church & Ministry
Microcampuses
Small
Groups
Mentoring
1: Traditional
Higher Education
2: Traditional
Online Education
3: Adaptive CBE
& Emerging Markets
Mac
iPod
iPhone
Innovation Extensions in Higher Education
Steps of Quality Improvement in Disruptive Innovation
Image Source: Wikimedia
2. Certificate Courseware/MOOCs
1. Open Videos, Books & Partial Courses
3. Alternative Credit
Courses
4. Microdegrees for credit
5. Unbundled Online University Degrees
with Alternative Credit Transfer
6. Blended Learning at Microcampuses for University Degrees
7. Blended Personalized Learning from Millions of
Modular Adaptive Courses for University Degrees
ScalabilityLow-TechHigh-Touch
Pace of PersonalizationMore Static Continuously Adaptive
High-Tech,Low-Touch
Face-to-Face Tutoring
Differentiated
Instruction
Correspondence
Courses
Static Apps,
MOOCs & OER
Online
Courses
Mastery Learning CBE
(Western Governors)
Adaptive
CBE Ecosystem
(Duolingo)
PLA Portfolio
Blended
Adaptive
(Khan Academy)
Credit
By Exam
Classroom
Instruction
Fixed Cost: $10m-$1b
Per Student Cost: < $1
Fixed Cost: $5k-20k
Per Student Cost: $1k-5k
Mapping Modes of Education
Source: Initial Chart idea from Brian Flemming. (2015, May). Adaptive Learning: The Breakthrough Innovation Impacting Education Today. Eduventures Online Webinar. Retrieved
from bit.ly/1HGerOS. Andrew Sears made many additions and changes to chart.
Technology
Assisted
Instruction
(enhanced
outcomes for
the elite)
Human
Assisted
Technology
Platform
(access for
the masses)
Fixed Cost: $10k-100k
Per Student Cost < $1
(per course)
Tech Creates Two Tiered Markets with No MiddleWorld’sBestLongTail
Journalism Video Publishing Ideas Courses Credentialing
Adaptive
Competency
Based Education
Ecosystem
Traditional
Degree
Duolingo
• 200 million users
• Free app
• $20 test competes
with TOEFL
Khan Academy
Knowledge Map
Blue Ocean Strategy Canvas for Southwest Airlines
Overview of Blue Ocean Strategy and Value Innovation
www.cheia.org

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Disruptive Innovation and the Lean Startup Workshop for CCCU COT Conference

  • 1. Disruptive Innovation & the Lean Startup CCCU Conference on Technology 6/5/2018 Dr. Andrew Sears President, City Vision University www.cityvision.edu andrew@cityvision.edu https://www.linkedin.com/in/andrewsears
  • 3. Disruptive Innovation Theory Image Source: Wikimedia We are here Proven Data Theoretical Projection
  • 4. Image Source: Wikimedia Adoption Cycle for Post-Secondary Degrees US Average Global Average Top Income Quartile 3rd Income Quartile 1st & 2nd Income Quartile Higher Education is not a Single Market, but Multiple Markets with Different Needs
  • 5. Steps to Develop an Innovative Culture 1. Incorporate Lean Startup methodology in key divisions in your institution 2. Incorporate unbundling and re-bundling into your strategy 3. Do scenario planning for a future with widespread, personalized learning from millions of modular adaptive courses 4. Use Blue Ocean Strategy develop a synthesis at the intersection of these trends and your institution’s strategic position
  • 6. 1. Backwards (Waterfall) Program Design vs. Lean Startup Design Audience is Traditional Students Outcomes for Well-Defined Fields Assessments Based on Known Outcomes Instruction with Known Content Available Feedback Iteration Is Years
  • 7. 1. Best Development Methodology Changes Based on the Environment Development Methodology We know what customers want We know how to deliver it Waterfall √ √ Agile √ ? Lean Startup ? ? Problem Solution Source: http://www.slideshare.net/NatalieHollier/lean-strategymeetup-small/
  • 8. 1. Waterfall vs. Agile vs. Lean Design Source: http://www.slideshare.net/NatalieHollier/lean-strategymeetup-small/ (Backwards Design/Traditional Assessment Plans)
  • 9. 1. Lean Startup Process Build MeasureLearn Product (start with minimum viable product) Data Pivot Maximize Loop Iteration Speed Ries, E. (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (First Edition). Crown Business.
  • 10. 1. How Do You Reach 6 Billion People without Access to Higher Education? Design for 4 Interrelated Uncertainties Changing Students Changing Goals Affordable Content Availability Costs Different students based on different goals, content and costs. $1,000 degree vs. $100k degree What goals are realistic given the students, costs and content? Different costs, goals and students will present different content options + content & platforms are rapidly changing. Different content availability, goals and students will allow radically different costs.
  • 11. Modular Universities = Lego Cities Monolithic Bundled Degrees Today Unbundled Education = Lego Blocks Modular Degrees & Credentials = Lego KitsInteroperable Standards Source: http://www.christenseninstitute.org/unlocking-stackable-global-credentials/ http://www.christenseninstitute.org/a-standards-strategy-for-stackable-global-credentials/ 2. Incorporate Unbundling & Re-bunding into your Strategy
  • 12. 2. Unbundling & Re-bundling Strategy Industry Certifications Top-Up Degrees (City Vision, etc) University Courses Books & Paid Courseware 1.Christian Courseware, MOOCs, Apps & Open Educational Resources Internships & Missions Trips Alternative Ed Providers Vocational Qualifications (GC4) 4. Uncredentialed Local Coaches 3. Christian Worldview Program Designers • Course market becomes more like book and software markets to reduce costs & improve quality • Christian courses become more modular and less interdependent where possible • University becomes system integrator of content and tech platforms. 2. Credentialed Online Faculty Ordination Vertically Integrated University Virtually Integrated University Transformation is a core competency of Missions Agencies Horizontally Integrated Rebundled University Unbundled Christian Programs Faculty role is unbundled into 4 specialized positions Access to Opportunity (branding, licensing & quality assurance) Transformative Experience (primarily affective) Metacognition & Skills (psychomotor & high-level cognitive) Knowledge & Content (low-level cognitive) PartnershipsDEGREE Church & Ministry Microcampuses Small Groups Mentoring
  • 13. 1: Traditional Higher Education 2: Traditional Online Education 3: Adaptive CBE & Emerging Markets Mac iPod iPhone Innovation Extensions in Higher Education
  • 14. Steps of Quality Improvement in Disruptive Innovation Image Source: Wikimedia 2. Certificate Courseware/MOOCs 1. Open Videos, Books & Partial Courses 3. Alternative Credit Courses 4. Microdegrees for credit 5. Unbundled Online University Degrees with Alternative Credit Transfer 6. Blended Learning at Microcampuses for University Degrees 7. Blended Personalized Learning from Millions of Modular Adaptive Courses for University Degrees
  • 15. ScalabilityLow-TechHigh-Touch Pace of PersonalizationMore Static Continuously Adaptive High-Tech,Low-Touch Face-to-Face Tutoring Differentiated Instruction Correspondence Courses Static Apps, MOOCs & OER Online Courses Mastery Learning CBE (Western Governors) Adaptive CBE Ecosystem (Duolingo) PLA Portfolio Blended Adaptive (Khan Academy) Credit By Exam Classroom Instruction Fixed Cost: $10m-$1b Per Student Cost: < $1 Fixed Cost: $5k-20k Per Student Cost: $1k-5k Mapping Modes of Education Source: Initial Chart idea from Brian Flemming. (2015, May). Adaptive Learning: The Breakthrough Innovation Impacting Education Today. Eduventures Online Webinar. Retrieved from bit.ly/1HGerOS. Andrew Sears made many additions and changes to chart. Technology Assisted Instruction (enhanced outcomes for the elite) Human Assisted Technology Platform (access for the masses) Fixed Cost: $10k-100k Per Student Cost < $1 (per course)
  • 16. Tech Creates Two Tiered Markets with No MiddleWorld’sBestLongTail Journalism Video Publishing Ideas Courses Credentialing Adaptive Competency Based Education Ecosystem Traditional Degree
  • 17. Duolingo • 200 million users • Free app • $20 test competes with TOEFL
  • 19.
  • 20. Blue Ocean Strategy Canvas for Southwest Airlines
  • 21. Overview of Blue Ocean Strategy and Value Innovation

Editor's Notes

  1. Before Moore’s Law was Moore’s law, it was Moore’s unreasonable expectation on the employees of Intel. But Moore also understood the basic physics of the transistor, and that there was no fundamental limitation for decades to his law. The economics of online are similar. There are no fundamental reasons why the growth rate will not continue.
  2. Who here is familiar with the adoption cycle graph? Innovators are people who bought a PalmPilot, early adopters bought a Trio or Windows Phone. The idea of crossing the chasm is that the companies that serve the geeks, often are not the companies that dominate the market for the average people (iPhone and Android). Most people like to think of higher education as a single market, but its actually multiple markets.
  3. 73% of college students are non-traditional. Increasingly, we are preparing students for jobs that don’t exist. How can you prepare students if you don’t know what fields you are preparing them for. Teach how to think. That is some of it, but also need to stay current. 90% of the world’s data was generated in the last 2 years. Each year I do my courses, there are radically different content and platforms available. Pace of change is accelerating
  4. Unbundling teacher/faculty: reduce cost with less skilled mentors, how small groups are led Vertically integrated: Move from a vertically integrated university to a modular networked university Does the university have to be all things to all people? Most instructors can never compete for teaching with the podcasts I listen to In some cases this will be better and in other cases it will be much worse But it is what the trend is toward
  5. Adaptive CBE systems are likely to be ecosystems that represent $1 billion+ projects or niches. Ecosystems are likely to be dominated by a handful of players. Many niches like Duolingo. Best of niches are likely to be bought up by ecosystem networks similar to media and publishing industry. Top candidates for Adaptive CBE: Duolingo, Khan Academy (next generation), Apple iTunes U, Google YouTube + Classroom, LinkedIn Lynda.com, Amazon, Pearson, McGraw Hill, adaptive CBE MOOCs, other new entrants Top is human-assisted technology platform for the masses. It will be It is all about productivity and cost to improve access with “good enough” quality. Bottom is technology assisted instruction for the elite. It will be about enhancing outcomes. Best example is Minerva. In either case, the primary role of university is to be a system integrator using modular technology platforms to provide a solution bundled with a credential.
  6. Other examples: Organic vs. Factory Farming, Physical Retail vs. Amazon, Venture Capital vs. Bootstrapping, mobile vs skype international calls World’s Best: machine-assisted humans, primarily human expertise with technology in background Long Tail: human-assisted machines Moneyball, analytics, big-data driven, tech as core competency