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1. v2. 2. 3. 4. 5. SCHOOLS AFTER TOMORROW. 6. 7. 8. Jaime Alfredo Cabrera. 9. 58 SLIDES: @12 MINUTES RUNNING TIME. EMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS. 10. 11. 12. 13. 14. Image courtesy of Image courtesy of (interfaithharmony.wordpress.com). 15.

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schools after tomorrow

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v2

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SCHOOLS AFTER TOMORROW

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Jaime Alfredo Cabrera

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58 SLIDES: @12 MINUTES RUNNING TIME

EMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS

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Image courtesy of Image courtesy of (interfaithharmony.wordpress.com)

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MAIN MENU

main menu

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MAIN MENU

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Emerging Business Models

  • Streamlined Status Quo
  • Niche Dominators
  • Transformers

Emerging Strategies

  • Academic Quality & Excellence
  • Commercial Skills
  • Change Management
  • Speed to Market
  • Funding Relationships

Emerging Challenges

  • Roles
  • Scenarios
  • Regulations
  • New Entrants
  • Products & Services

Past Lessons for Futures

  • Lessons from Trailblazers
  • Hindsights
  • Foresights
  • Your New University Business Model

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The world is changing.

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Image courtesy of www.digital-photo-secrets.com

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What’s your new school business model?

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Image courtesy of www.digital-photo-secrets.com

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emerging business models

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INSTRUCTION & TRAINING INDUSTRY

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EMERGING BUSINESS MODELS

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Image courtesy of Image courtesy of zulqarnaingroup.com

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“We’re not businesses… but we need to be run in a business-like way”

- University Vice-President

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EMERGING BUSINESS MODELS

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Given the forces of changes affecting higher education today, school business models can transform into:

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EMERGING BUSINESS MODELS

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  • Streamlined Status Quo
  • NicheDominators
  • Transformers

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Some schools will continue as teaching, training and research institutions but will progressively transform the way they administer & deliver services.

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In this model, the school:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

still serves a broad mix of student segments

still offers a broad range of disciplines but

discontinues a number of unprofitable disciplines

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In this model, the school merges disciplines with another institution:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

to achieve scale

to provide resources for maintaining international competitiveness in other disciplines

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In this model, the school invests heavily in production, sales & delivery channels:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

digital channels

multimedia channels

multidelivery channels

blended models

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In this model, the school forms sales & delivery partnerships:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

with public & private higher education providers, secondary schools, industry partners, etc.

to open new markets or more efficiently access & serve existing markets

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In this model, the school outsources some back-office functions:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

to realise lower operating costs, and/or

to drive efficiencies through shared services arrangements with like-minded institutions

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A study reveals that most schools:

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STREAMLINED STATUS QUO

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

have ample scope to streamline their business & operations

have much higher support staff to academic staff ratios than other knowledge-based industries

have some assets that are used for less 100 days per year

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Some schools will:

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

reshape & refine their range of services & markets

target particular ‘customer’ segments

use tailored education, research & related services

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In this model, the school focuses on particular customer segments:

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

such as mature age distance learning students, international mass market, industry professionals

to enable the targeted development of course offerings, sales channels, delivery & related services

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In this model, the school:

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

significantly reduces its range of education disciplines

so as to focus on areas of genuine domestic & global strength & credibility

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In this model, the school:

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

streamlines its back office by using outsourcing and/or shared services models

to drive efficiency & economies of scale

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  • in domestic & international markets
  • across a broad range of disciplines & segments

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

The niche dominator model will be driven to maintain a competitive position:

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NICHE DOMINATORS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Private providers & new entrants will create market positions using:

niche dominator models

buildings & facilities designed for specific purposes, and

segment-focused businesses

without the constraints of legacy assets & workforce structures

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Some schools will carve out new positions in the traditional sector:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

to create new market spaces that merge parts of the education sector with other sectors

to include media, technology, innovation, venture capital

to create new markets, new segments & new sources of economic value

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In this model, innovators will redefine the education customer to include:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

content wholesalers

content consumers

financiers, employers, sponsors, paying parents

non-users

underserved or previously ignored markets

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Innovators will disaggregate the value chain to create new areas of specialisation such as:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

content aggregation

mass distribution

assessment

auditing

certification

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In this model, innovators will combine traditional education services with related industry services such as:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

media

entertainment

financial services &

venture capital

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In this model, innovators will build:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

predominantly digital sales models

delivery models that combine digital services & sourced specialist face-to- face services

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In this model, innovators will:

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

outsource learning products, assessment, testing & student support services

retain ownership of their customer relationships

use cloud-based customer relationship management tools & techniques

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In this model, innovators will outsource their full suite of back-office functions, including:

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  • student advising
  • student tutorials
  • learning assessments
  • student grading
  • learning materials development
  • learning services development
  • marketing & promotion
  • auditing
  • accounting
  • support services

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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In this model, innovators will be led by private providers & new entrants, not incumbent public schools.

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TRANSFORMERS

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  • This level of ‘disruption’ is hard to lead from the inside.
  • However, savvy public institutions will seek opportunities to create value in this space in partnership with private providers & new entrants.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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Existing schools bring two critical assets to this model: credibility & academic capability

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TRANSFORMERS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

in crafting a deal that creates brand protection & a reasonable share of the created value

in using a consortium approach (e.g., a prospective partner with the market weight of a global technology or media company)

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transformers

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For schools that get this right, rewards are high:

TRANSFORMERS

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  • increased global reach of the core mission & brand
  • much needed incremental revenue
  • support for internationally competitive education & research programs

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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emerging stragegies

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INSTRUCTION & TRAINING INDUSTRY

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EMERGING STRAGEGIES

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Image courtesy of Image courtesy of inhabitat.com

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Regardless of their chosen business models, future schools will need to use five strategies to address emerging challenges.

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  • FIVE STRATEGIES

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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  • FIVE STRATEGY AREAS

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Quality & academic excellence

Academic talent & workforce structure

Commercial skills

Change management & speed to market

Relationship with government

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academic quality excellence

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ACADEMIC QUALITY & EXCELLENCE

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Whatever the target market & financial pressure, schools must maintain academic excellence & deliver quality output.

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Quality may suffer in a competitive market but those that can’t maintain quality will eventually lose market share & relevance.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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academic talent workforce

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ACADEMIC TALENT & WORKFORCE

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Universities will need to attract new talent to replace an ageing workers & at the same time build a new workforce structure that can:

  • support new business models
  • deliver increased productivity, &
  • accommodate non-traditional operating models

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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commercial skills

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COMMERCIAL SKILLS

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As training & instruction service markets become increasingly competitive & consumer-driven, schools will deepen the commercial competencies of their faculty & staff.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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commercial skills1

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COMMERCIAL SKILLS

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This will be needed to secure market share in various markets and enable schools to cut the right deals with private providers & new entrants.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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change management

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CHANGE MANAGEMENT

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New school models will require significant change; leaders will need to find ways to

  • stay true to a mission or vision
  • maintain academic integrity & independence and
  • change business & operating models

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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speed to market

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SPEED TO MARKET

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As local & foreign markets increase competition, schools will need to be first to market with:

  • new learning products
  • new teaching services
  • new assessment methods
  • new research programs
  • innovative student experiences

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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funding relationships

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FUNDING RELATIONSHIPS

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The next years will see increasingly fiscally constrained governments & sponsors, regardless of political persuasion.

Funding for schools will likely decline.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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FUNDING RELATIONSHIPS

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Universities will need to search for ways to move beyond the ‘fight for funds’ relationship.

For example, schools might be in joint initiatives that build a national base for a globally competitive knowledge economy.

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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emerging challenges

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INSTRUCTION & TRAINING INDUSTRY

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EMERGING CHALLENGES

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Image courtesy of Image courtesy of inhabitat.com

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“Ambitious players will need to move fast to establish new models & secure partnerships with leading incumbents.”

- Anonymous

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EMERGING STRATEGIES

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Universities are critical to a nation’s future.

In planning a school for the future, five elements must be addressed.

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EMERGING STRATEGIES

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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Roles of schools in a country’s future

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Image courtesy of Image courtesy of angeladavidsphotography.wordpress.com

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Scenario modeling that anticipate emerging futures

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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Regulation & choices in learning assessment and accreditation

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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Roles of private sectors & new entrants to the industry

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Image courtesy of Image courtesy of angeladavidsphotography.wordpress.com

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Flexibility in pricing & delivery of products & services

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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past lessons for futures

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INSTRUCTION & TRAINING INDUSTRY

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PAST LESSONS for FUTURES

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Image courtesy of Image courtesy of angeladavidsphotography.wordpress.com

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A single-revenue strategy is a danger.

A local-market strategy is a risk.

The MOOCs model isn’t working.

Traditional processes & standards can hurt an innovative business.

Slow governments will hurt a fast business.

Staff & user involvement and commitment can increase & protect your business.

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PAST LESSONS for FUTURES

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Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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A single-revenue strategy can endanger a business.

In highly competitive markets driven by disruptive innovations, your products & services are constantly threatened by more agile competitors.

What strategies can put you ahead of the competition as well as increase your revenues?

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FORESIGHTS

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A local-market strategy can put a business at risk.

Global forces can affect local markets & revenues in unforeseen ways.

Aside from exclusive schools, education is not recession-proof.

What strategies can you use to reach & capture non-local markets for your products & services?

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FORESIGHTS

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The MOOCs model isn’t working.

Massive online courses can tremendously increase enrolment, but completion rates are very poor.

Student profile and context can affect completion rates.

What strategies can you use to increase the completion rate of e-learning?

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HINDSIGHTS

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Traditional learning products & services can hurt the business:

Teachers not trained to teach in ways young students learn today

Learning materials not designed for ways young students learn today

Assessment methods not designed for ways that young students produce output today

What strategies can you use to bridge these gaps?

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HINDSIGHTS

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Slow governments will hurt the business.

Governments are slow to grant full accreditation to non-traditional learning models

Users are hesitant to invest time or money in unaccredited learning

What strategy can you use to speed up government accreditation for alternative training, instruction, & learning models that you will use?

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HINDSIGHTS

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A highly committed faculty, staff & alumni can increase & protect your competitive advantages.

In an increasingly unstable & competitive industry, you need all the help you can get.

What strategy can you use to create & sustain an involved & committed faculty, staff, alumni and users?

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HINDSIGHTS

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So... what’s your new school business model?

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Image courtesy of www.digital-photo-secrets.com

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I can help.

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mr.jaime.aiu@gmaiil.com

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schools after tomorrow1

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SCHOOLS AFTER TOMORROW

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Jaime Alfredo Cabrera

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EMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS

END OF PRESENTATION. THANK YOU.

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For details, contact mr.jaime.aiu@gmail.com

Image courtesy of Image courtesy of (interfaithharmony.wordpress.com)

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