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MOOCs: still a viable business model?

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Talk given at Future EdTech about business models for MOOCs

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MOOCs: still a viable business model?

  1. 1. MOOCs – Still a viable business model? Yves Epelboin Professor Emeritus UPMC- Sorbonne-Universités, Paris Yves.Epelboin@impmc.upmc
  2. 2. Agenda  The context  MOOC’s budget  MOOCs for Europe  Emerging business models  Conclusion EdTech June 2-3 2015 London Y.Epelboin
  3. 3. US context: students debt  Tuition fees at an inacceptable level:  Up to 10 000 $ in public universities  40 000 – 60 000 $ in private universities EdTech June 2-3 2015 London Y.Epelboin Le Monde 26/04/2015
  4. 4. US context: Tuition debt A negative impact on the US economy First debt before housing! 1160 Billions US $ EdTech June 2-3 2015 London Y.Epelboin Le Monde 26/04/2015
  5. 5. Growth of MOOCs https://www.edsurge.com/n/2014-12-26-moocs-in-2014-breaking-down-the-numbers EdTech June 2-3 2015 London Y.Epelboin
  6. 6. MOOC and student retention Success as not the same meaning in a MOOC than in a class P. Hill e-Literate, March 2013 http://mfeldstein.com/emerging-student- patterns-in-moocs-a-revised-graphical-view/ EdTech June 2-3 2015 London Y.Epelboin
  7. 7. MOOC The budget
  8. 8. An important investment  Course scenario renewed  New documents and OER  Massive use of short videos (chunks 5-7 up to 15 mn)  Need of a local organization to sustain the MOOCs A MOOC is a complex team project EdTech June 2-3 2015 London Y.Epelboin
  9. 9. MOOC: do you have the budget?  Example of a 8 weeks MOOC  Base: Sciences with Maths equations and graphics  MOOC being used internally at least 3 times  Human resources  Teachers  Academic support  Technical support EdTech June 2-3 2015 London Y.Epelboin
  10. 10. Budget: teachers Mission Course 1 Course 2 Course 3 Preparation 40 8 8 Writing docs 90 20 20 Writing assessments 40 10 10 Optional Video recording 32 6 6 ½ day per one hour Project organization 30 5 5 Animation 48 48 48 Total 520 hours EdTech June 2-3 2015 London Y.Epelboin
  11. 11. Budget: pedagogic support Mission Course 1 Course 2 Course 3 Pedagogic engineer 40 8 8 Project manager 60 12 12 Tests 60 12 12 Total 225 hours EdTech June 2-3 2015 London Y.Epelboin
  12. 12. Budget: technical support Mission Course 1 Course 2 Course 3 Video 32 6 6 Recording Video 180-240 36-50 36-50 Editing Texts 10 2 2 Formatting Iconography 35 7 7 Variable Integration 15 3 3 Platform Meetings 10 2 2 Total 480 hours EdTech June 2-3 2015 London Y.Epelboin Pomerol, Epelboin & Thoury MOOCs, Design, Use and Business Models, Wiley 2015
  13. 13. Cost Mission Course 1 Course 2 Course 3 Total Euros Teachers 15 000 5 200 5 200 25 400 Pedagogic support 6 000 1 200 1 200 8 400 Technical support 10 000 2 000 2 000 14 000 Salaries ≈ 48 000 Base: Teachers: 75 k€/y, support teachers: 60 k€/y, tech: 47 k€/y EdTech June 2-3 2015 London Y.Epelboin Pomerol, Epelboin & Thoury MOOCs, Design, Use and Business Models, Wiley 2015
  14. 14. Total cost  8 weeks MOOC:  30 000 € - 120 000 € (external support)  UC San Diego: 150 000 $  Not included:  Delivery  Environment for teachers and staff EdTech June 2-3 2015 London Y.Epelboin See: Pomerol, Epelboin & Thoury MOOCs, Design, Use and Business Models, Wiley 2015
  15. 15. Cost comparizon Students € 0 20000 40000 60000 80000 100000 120000 140000 160000 100 200 300 400 500 600 700 800 900 1000 Classic MOOC SPOC EdTech June 2-3 2015 London Y.Epelboin
  16. 16. MOOC economy  Less expensive solution:  Below 200 – 300 students: classic approach  Above 500 students blended approach versus classic approach  MOOC valid only above 200-300 students  Staff environment not taken into account EdTech June 2-3 2015 London Y.Epelboin
  17. 17. MOOC & SPOC in university  Large classes: freshmen: SPOC  Recruiting more students without aditional investment (staff, building): MOOC  Federation of universities for rare studies: MOOC, SPOC. Ex.: Virtual Bavarian University  Universities do not have the manpower to build a full curriculum EdTech June 2-3 2015 London Y.Epelboin
  18. 18. The MIT Model https://formation.unpidf.fr/fr/mediatheque/media-51 EdTech June 2-3 2015 London Y.Epelboin Free MOOCs can only be a by- product
  19. 19. MOOC Emerging Business models
  20. 20. Facts  Students and employers value credential and diploma, delivered by universities  Badges and certifications are of value for life education Different objectives Different business models EdTech June 2-3 2015 London Y.Epelboin
  21. 21. Case # 1 Arizona State University (ASU)  Universities consortium  First year through MOOCs for less than 6000$  Payment at the end  Participation of edX EdTech June 2-3 2015 London Y.Epelboin
  22. 22. Case # 2 Urbana Champaign university  eMBA for 20 000$ 1. First, selected Coursera specializations 2. Agreement of curriculum by Urbana 3. Finish as official MBA degree EdTech June 2-3 2015 London Y.Epelboin
  23. 23. Case # 3 EPFL (Switzerland) MOOCs@Africa  Free access to MOOCs  Certification: 30 €/ECTS, full cursus 8-12 ECTS followed by a personal work (6-10 ECTS, 90€/ECTS)  Exams in a partner center  Partners: Coursera and edX EdTech June 2-3 2015 London Y.Epelboin
  24. 24. Case # 4 Gestion de Projets (Ecole Centrale Lille)  Free MOOC  Second part with one or two ECTS by payment (50 – 150 €) with different levels of examinations and options  Various options for continuous education (490-690 €) http://mooc.gestiondeprojet.pm/ EdTech June 2-3 2015 London Y.Epelboin
  25. 25. Others  Georgia Tech master in ccomputer sciences  MiriadaX  Open U There is a huge space for online learning with MOOCs EdTech June 2-3 2015 London Y.Epelboin
  26. 26. MOOC providers?  Unclear Business models?  Will certification and course selling suffice?  Shift of Udacity from Higher Education to Continuous Education “There is no money to make with HE” EdTech June 2-3 2015 London Y.Epelboin
  27. 27. MOOC providers? Coursera  Certifications & Specializations «… we are hosting nearly 900 courses and I expect to have 1,000 courses on our platform by early 2015. In three years, we’ll have 5,000 courses, which is about the curriculum of your average medium to large university. » Daphne Koller, Knowledge@Wharton 05/01/2015 Tommorrow: online university? EdTech June 2-3 2015 London Y.Epelboin
  28. 28. A university model  A three-tiers system MOOC designers MOOC distributor Universities EdTech June 2-3 2015 London Y.Epelboin Blended learning MOOC
  29. 29. A continuous education model  A four-tiers system EdTech June 2-3 2015 London Y.Epelboin MOOC designers MOOC distributor MOOC broker Company
  30. 30. Conclusion
  31. 31. MOOCs for Universities  Blended learning and distance learning for freshmen  Cheaper way to handle large classes  Efficient means to attract distant students  A method to increase the participation of minorities?  Rare studies and small classes  If universities are able to work together EdTech June 2-3 2015 London Y.Epelboin
  32. 32. MOOCs for continuous Education  A huge market for the XXI century « The other trend we’ve observed, from the larger corporations in our client base, is a shift to outsourcing the development of E-Learning content to professional agencies rather than building in-house. We’re excited about the landscape for 2014. » Guy McEvoy, Managing Director, Guyka E-Learning Market Trends & Forecast 2014-206 Report, docebo report,www.docebo.com EdTech June 2-3 2015 London Y.Epelboin
  33. 33. Coursera & al.  Major actors to federate universities  Major actors for continuous Education  Much more than certificates providers, providers of tommorrow education  Future partners of universities for courses building. EdTech June 2-3 2015 London Y.Epelboin
  34. 34. Yves.epelboin@impmc.upmc.fr LinkedIn: https://www.linkedin.com/in/yepelboin Twitter: @yepelboin Blogs: http://blog.educpros.fr/yves-epelboin/ (french) http://www.eunis.org/blog/category/erai-2/blogs/ (english)
  35. 35. Discussion

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