This presentation was given by Pedro J. Lara (Universidad Europea – Laureate International Universities) at the international seminar “Opening higher education: what the future might bring” 8-9 december 2016, in Berlin, Germany, jointly organised by OECD Centre for Educational Research and Innovation (CERI) and Laureate International Universities (LIU).

1. New business models for
competency-based higher
education
The opportunities of openness
Pedro J. Lara
(@plaraber, pedro.lara@universidadeuropea.es, http://linkedin.com/in/pedrojlarabercial)
Universidad Europea
Laureate International Universities

2. Introducing myself
• Vice-rector of Innovation and Education Projects
Universidad Europea (UE)
• UE is a private university at Spain
(+15.000 students, Madrid-Valencia-Tenerife)
• Laureate International Universities
(1M students, 80 Institutions, 29 countries)

3. Contents
1. What is CBE?
2. What is not?
3. Comparing one example
4. Reasons why
5. Main challenges
6. Business Model characteristics
7. Cost drivers
8. Some prior decisions …
Sources
@rpkGroup - CBE: A study of four new models and their implications for bending the higher education Cost Curve
@Blackboard – CBE Higher Education’s answer to the call for change
@VanDavis – The expansion of competency-based programs in higher education
@Eduventures – Myths and Misconceptions about CBE
@MITMediaLab – Blockcerts, An Open Infrastructure for Academic Credentials on the blockchain

4. What is CBE?
Transitioning away from seat time, in favor of
flexibility, allows students to progress as they
demonstrate mastery of academic content
US Department of Education
Personalized
Learning
Opportunities
Regardless
of Time Pace Place
Enroll in a
¿Learning Unit?
Diagnostic
Assessment
Mastered?
Receive Credit
or accreditation
Summative
Assessment
Formative
Assessment
Develop
competency
Registration Diagnosis Instruction Assessment Awarding
@Blackboard

5. What is not CBE? • … a few courses launched online
• … a new type of academic certificate
• … just a fad for a few institutions
• … something only for adult learners
• … only about skills
• … only uncoupling from the credit hour
… is a market of about 300 HE institution with 350.000 students and other 600 colleges in US.
… is compatible with credit hour-model
@Eduventures
@rpkGroup
CBE …
CBE is not …
… and the notion of competency has been always in the base of “Good Education”
… requires design, planning and reconstructing curriculum, and a new delivery model
… is also about the application of skills against a good foundations of deep knowledge

6. Comparing one concrete example @TempoLearning
Approach to Learning Same Learning outcomes by completing
competencies – smaller units of learning.
Tempo Learning™
Same Learning outcomes by completing a
prescribed set of courses
Time to completion
You set the pace depending on how much you
want to learn during a given time period or if
you can apply prior knowledge and experience to
assessments.
You take a set of courses in a given term.
Depending on individual progress and credits
transferred, if applicable, you will earn your
degree within a predetermined time frame
Length of Term You can complete as many competencies in a 3-
month term as you want.
Depending on your degree program, you are
enrolled in quarter-based programs or
semester-based programs.
Start Dates The first Monday of every month. At the beginning of every term
Traditional Models
Cost
By subscription as an “all-you-can-learn” model.
The faster you go, the less you pay.
Based on the number of credit hours required
Faculty
Academic Coach: helps to keep you on track.
Subject Matter Experts: share their expertise
Assessors: assessing & Feedback
A dedicated faculty who serves as the subject
matter experts and also evaluate your
coursework.

7. What’s the relationship with openness?
What if every competency a student get could be
recognize everywhere?
BlockCerts
An open standard for digital academic certificates
Provider of Trust: The Bitcoin Blockchain
Issuer: Universities by creating digital academic certificates
Certificate: Using Open Badges as standards
Verifier: Anyone can, following the Blockchain
Wallet: Everyone can have one and safely store their certificates
@MITMediaLab

8. Reasons why
Employability Accountability Affordability Accesibility
A way to ensure the
preparation of students
in the way that
employers recognize
Instead of a whole grade, a
demonstrated
mastery of a set of
competencies
The amount of the
investment and the
number of
competencies
acquired are a student’s
decision
Modularity and
Flexible Access can be
better managed using
Technology
@Blackboard
Personalized Journey towards a
concrete destination

9. Main Challenges
Manage investment and
costs in a mid term horizon
of ROI
@VanDavisBlog
Employability
Costs
Completion
Rates
Admin.
structuresRegulation
Quality
Fit to all
students
Personal Support
Mechanism
Not only structures but
Institutional Cultures
The applied nature, a
limited F2F interaction and
modularization do not
imply necessary lower quality
The risk is cooking CBE
Programs but serving them
as a traditional.
Lost of Impact

10. Business Model
Characteristics
$5K-6K annually
Low prices to maximize access
@rpkGroup
CB curricular design eliminates duplication
Higher Students to Faculty Ratios (200:1)
Unbundling of Staff and Faculty Roles
PRICE
EFFICIENCY
SCALE
Aggressive growth (150% annually)
Implies High Investment in
Marketing to foster Recruitment
and speed up Enrollment per program
Student Support to improve Rettention
Mentoring
Success Coaches
Enrollment coaches
Assessment Experts
Instructional Designers
Learning Outcomes Assessors
Technology
1
2
Break Even
Year
5-6

11. Costs Drivers
@rpkGroup
Infrastructure
Initial
Investment
Program Management
Curriculum
(design, development, maintenance, assessment)
Learning Support
(mentoring, coaches, assessors)
Academic Program
Student Services
Marketing & Recruitment
Institutional Support
43%
38%
Technology 20%
T
I
AP

12. Some prior decisions and problems to be solved
A question of Balance
@rpkGroup
• What is the institution’s ability to invest?
• At what extend is a low Price strategy affordable to achieve the break event?
• How will CBE support a redesign of learning and faculty roles ensuring high
quality?
• Holding learning constant and variable timeline or map program-level
competencies into a credit-based model?
• How long are you willing to support CBE until Breakeven is achieved?
• At what extend are governments and regulators willing to support CBE?

13. Thank you
What doesn't evolve and adapt, will
eventually become obsolete and die