moocs: still a viable business model?

MOOCs – Still a viable business

model?

Yves EpelboinProfessor Emeritus UPMC-

Sorbonne-Universités, Paris

Yves.Epelboin@impmc.upmc.fr

Agenda The context

MOOC’s budget

MOOCs for Europe

Emerging business models

ConclusionEdTech June 2-3 2015 London Y.Epelboin

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

US context: Tuition debtA 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

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

MOOC and student retention

Success as not the same meaning in a MOOC than in a classP. 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

MOOCThe budget

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 projectEdTech June 2-3 2015 London Y.Epelboin

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

Budget: teachersMission Course

1Course 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 hoursEdTech June 2-3 2015 London Y.Epelboin

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

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

CostMission 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

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

Cost comparizon

Students

€

100 200 300 400 500 600 700 800 900 10000

20000

40000

60000

80000

100000

120000

140000

160000

ClassicMOOCSPOC

EdTech June 2-3 2015 London Y.Epelboin

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

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

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

MOOCEmerging Business

models

Facts Students and employers value credential

and diploma, delivered by universities

Badges and certifications are of value for life education

Different objectives Different business modelsEdTech June 2-3 2015 London Y.Epelboin

Case # 1Arizona State University (ASU)

Universities consortium

First year through MOOCs for less than 6000$

Payment at the end

Participation of edXEdTech June 2-3 2015 London Y.Epelboin

Case # 2Urbana 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

Case # 3EPFL (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

Case # 4Gestion 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

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

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

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

A university model A three-tiers system

MOOC designer

s

MOOC distribut

or

Universities

EdTech June 2-3 2015 London Y.Epelboin

Blended learning

MOOC

A continuous education model

A four-tiers system

EdTech June 2-3 2015 London Y.Epelboin

MOOC designer

s

MOOC distribut

or

MOOC broker

Company

Conclusion

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

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

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

Yves.epelboin@impmc.upmc.frLinkedIn: 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)

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