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A MOOC Strategy that Worked

It appears that Udacity, one of the early MOOCs, founded by Sebastian Thrun, has found a profitable model based on vocational training. When the MOOCs started out the assumed model was the college course which made total sense with respect to attracting university partners and investment dollars. What a frenzy they created 3-4 years ago as the elite universities strutted their expertise in education technology. MOOCs could make college accessible to the masses, unfortunately, that may not have been what the masses needed nor what the higher education wanted. The elite universities jumped on the bandwagon to make sure they had some control over the destiny of these Massively Open Online Courses, MOOCs. MOOCs have been successful with respect to exposure of college courses to the masses but they have been a dismal failure when evaluated against traditional college courses. That is exactly what higher education wanted, validation that their course delivery model was superior to these new online options.

The New York Times article, “Udacity Says It Can Teach Tech Skills to Millions, and Fast” gives us the story on how transitioning to a vocational training model is paying off for Udacity’s bottom line and for the careers of their students. The test market was obvious, software development, which has been pioneering new models based on the boot camp concept of intensive training typically under the guidance of the interested employers. Good jobs exist for coders of today’s popular development platforms. AT&T has been a leader in trying to manipulate the traditional computer science degree feeder system. I was highly impressed with their Georgia Tech and Udacity partnership to create an affordable MS degree in Computer Science. But that degree program was about affordability and marketing, not about a more successful MOOC model.

Udacity’s new program, Nanodegree, “Credentials built and recognized by industry leaders to advance your career”, appears to be the successful outcome to all of the trial and error experience gained by the MOOCs. The financial commitment of $200 per month with the incentive to receive half of it back upon successful program completion within a year is the motivation needed by the 10,000 students currently enrolled. The concept is still work at your own pace so one could turn this into a very affordable boot camp solution. I am currently enrolled in the Udacity course “JavaScript Basics” for the fun of it and so far Udacity has done an excellent job of coaching me to be successful.

The MOOC supporters such as AT&T may have finally found the right formula with Udacity’s Nanodegree. Instead of hiring college graduates with programming aptitude and retraining them maybe the corporate employers have finally found a way to satisfy their appetite for software developers.

Impending Disruption to Higher Education

I have spent a lot of time in the last week thinking about what disruption to Higher Education will really look like. I got to spend some time with Richard DeMillo after I read his book, “Abelard to Apple“. The book is an excellent review of what Higher Ed was and in some cases still is. And Richard offers sound ideas about the obvious need to adapt education to our current information rich world. What struck me was that he identified the significance of MOOCs before they had evolved as we see them today under flags of Coursera, Udacity and edX.

DeMillo was a guest speaker for our NWACC Summit which happened to be our 25th anniversary with a major strategic planning purpose. So it also surprised me that discussion amongst the 30+ CIOs from the Northwest also focused heavily on the ramifications of the MOOCs. You see MOOCs are not the disruption, they are just exposing the problems so that we will finally need to deal with the disruption that is already upon us. Many have chosen to focus on the MOOCs themselves, determining how they will inevitably fail to compete academically and with respect to profitability. But it is not about the MOOCs succeeding in our traditional measures. The MOOCs have been funded by venture capitalists who tend to know when a profit is to be made and the Monetization value of MOOCs is starting to become clear. Exposure brings fame and fortune and access to valuable data or clients does as well. Coursera Career Services is not just about about helping their students find a job. I believed for many years that there was no way Amazon could ever make a profit, now I realize there are bigger forces at play.

The disruption comes from the MOOCs exposing the weakness of our traditional Higher Education course and degree delivery system. An obvious threat comes from the career service aspect. That is a domain that Higher Ed needs to control. Our degrees need to be the preeminent standard for validation that learning has  been accomplished. At the foundation of our system is the credit hour. The Carnegie Foundation for the Advancement of Teaching announced this week that it is rethinking the value of the Carnegie Unit for which we have defined the credit hour. Higher Education; we need to respond to this disruption with innovation rather then denial.

They are changing the face of education globally

I checked out Coursera’s course offerings and I have to admit they have a great lineup of quality courses. I signed up for “Introduction to Logic” from Stanford which begins soon so I could evaluate the process and quality of delivery, plus I am somewhat interested in logic. Then I signed up for “Introduction to Genome Science” from University of Pennsylvania for a fun refresher to my MS in Bioinformatics where my thesis was “Security of Our Personal Genome”. Purely continuing education but what a huge market that could be. You do realize this is wave 2 of open courseware. Coursera’s quote: We are changing the face of education globally, and we invite you to join us. Let’s assume Coursera is able to competently deliver these courses to any number of students. And let’s assume their student assessment techniques allow them to validate that learning took place. They have the prestigious of elite institutions of higher education. What does this mean?

What if a year from now millions of people are successfully completing courses through Coursera, Udacity and probably other copycat competitors. First Coursera is going to be worth billions and second a benchmark will be established that will define what is a quality online course. What will this benchmark mean? It will eliminate the argument that legitimate For-Profit online providers lack in quality. But more important it will validate the other argument that many of the online courses from traditional non-profit institutions are not worth the bandwidth you are wasting on them. So what does this mean for most of us (higher education)? Our online or blended offerings which we realize we must offer will have to be of similar quality to the free offerings from the Coursera’s of the world. We will have a benchmark. And then we just worry about holding on to our control of accreditation for validating what is a college degree and what is it worth. I am thankful that we will still have the value of the campus experience, but again, what will it be worth.

Update July 17, 2012 – More research universities join Coursera

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