MT5016

BUSINESS MODELS FOR HI-TECH PRODUCTS

Roberto De Joya Jr. A0118989E

Ryan Michael Gelig A0098535R

Zhou Xintao A0098599X

Liang Liang A0098464N

Jonathan Castillo A0098438M

Wong Chee Yeow A0104437M

INTRODUCTION

SCOPE OF ACTIVITES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

CHANGING TREND IN HIGHER EDUCATION

Rising Costs

Perception of shrinking financial returns

of education

Unequal access to employers

Unequal access to education

RISING COSTS OF HIGHER EDUCATION

http://www.bloomberg.com/news/2013-08-26/college-costs-surge-500-in-u-s-since-1985-chart-of-the-day.htmlhttp://money.cnn.com/2011/06/13/news/economy/college_tuition_middle_class/

Free and paid (for premium services)

educational courses offered online and

open to anyone

The concept started from

University of Phoenix’s initiative

in 1989

1st MOOC experiment launched in

2008 by Stephen Downes and George

Siemens, “Connectivism and

Connective Knowledge”

Current MOOC providers:

Coursera, Udacity, edX,

KhanX

New York Times

declared 2012 as

the "Year of the

MOOC"

MASSIVE OPEN ONLINE COURSES

MASSIVE OPEN ONLINE COURSES

http://elearninginfographics.com/wp-content/uploads/Are-MOOCs-the-Future-of-Online-Education-Infographic.jpg

COURSERA

Founded in 2012 by Prof. Daphne Koller

and Andrew Ng from Stanford University

Raised $65M in funding from Silicon

Valley VCs

6.8M registered users

Offering 600+ courses

108 partner institutions

COURSERA

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

SCOPE OF ACTIVITIES

COURSERA

Learning

Institutions /

Universities

Amazon

Web ServicesACE Publishers Translators

Content Delivery X

Licensing X

Distribution X

Screening Services X

MarketingX

Content

DevelopmentX

Web Storage X

Server Infrastructure X

Search X

Accreditation X

Reading Materials X

Translations X

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

Elite Universities,

Publishers

Students

Students

Students within a course

Peer assessments

Free + Paid courses

Course content, textbook

recommendations

Amazon

Ad exposure for textbook

recommendations

Employers

Job placement for qualified

students

List of Qualified

Students to Hire

Textbooks

ACE Credit

ACE Credits granted on passing Signature Track and

Credit Exam

Course Accreditation

Non-partner

Institutions

School Credits

License touse platform andcertain courses

VALUE PROPOSITION

VALUE NETWORK

COURSERA will only

offer classes/content

from the most

reputable institutions.

A composition of

the members of the

Association of

American Universities

or “top five”

universities in

countries outside of

North America.

VALUE PROPOSITION

PRESTIGIOUS COURSES

Students who have completed the course

with Signature Track will receive a Verified

Certificate issued by COURSERA and the

participating university.

VALUE PROPOSITION

SIGNATURE TRACK

Verified Certificate proves

that they have met the

passing criteria of the

online courses offered by

a university on

COURSERA.

It can be used to advance

in their careers, gain

valuable credentials, or

build on what they already

know.

People can also list their

Verified Certificate on

their résumé/CV and

include it on social

media/career profiles.

VALUE PROPOSITION

VERIFIED CERTIFICATE

Students can earn an ACE

CREDIT (American Council

on Education’s College

Credit) by signing up for an

eligible course in

the Signature Track.

As well as taking an online

proctored Credit

Recommendation Exam at

the end of the course.

VALUE PROPOSITION

RECOGNITION OF CREDITS

COURSERA Career Services - opt-in recruiting service

that allows students to find and connect with positions

that “match their skills and interests.”

VALUE PROPOSITION

CAREER ADVANCEMENT

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

COMPETITOR ANALYSIS

https://www.edsurge.com/n/2013-12-22-moocs-in-2013-breaking-down-the-numbers

*As of January 2014

COMPETITOR ANALYSIS

Organization Status For-profit For-profit Non-profit

Funding $65M $21.1M $60M

Number of Students 5+ million 1.8 million 1.65 million

Number of Courses532

(Broad range of subjects)

33

(Technical fields)

125

(Broad range of subjects)

Number of

Languages5 63+ 1

Pacing Start and end datesNo start/end dates (suggested

completion time)Start and end dates

Verified CertificationVirtually verified certificates for

$30-100 for 70 courses

Virtually and physically proctored

exam certificates

Physically proctored exam

certificates

Accreditation

5 courses offered for ACE credit

for $90-190; Credit at licensing

institutions

5 courses offered for credit at

California State University

system for $150

Credit at licensing institutions

Career Services Limited number of companies Network of 400+ companies None

Platform

DevelopmentCompany Company + student contributions Open-source

Content

Development

Outsourced to elite partner

institutionsCo-developed with instructors

Developed by institutions in

xConsortium

COMPETITOR ANALYSIS

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

CUSTOMER SELECTION

Individuals

Companies

Learning Institutions / Universities

Individuals from around the world

Individuals with busy schedulesIndividuals interested in prestigious courses

Individuals pursuing particular courses

CUSTOMER SELECTION

INDIVIDUALS

CUSTOMER SELECTION

INDIVIDUALS

Source: MOOCs @ Edinburgh 2013, 10 May 2013

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Aspirations

MOTIVATION SURVEY

CUSTOMER SELECTION

INDIVIDUALS

http://mfeldstein.com/the-most-thorough-description-to-date-of-university-experience-with-mooc/

DEMOGRAPHIC SURVEY

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

VALUE CAPTURE

Premium

ServicesLicensing

Career

Services

Merchandise

Affiliates

Program

VALUE CAPTURE

VALUE CHAIN

Elite Universities,

Publishers

Students

Students

Students within a course

Peer assessments

Free + Paid courses

Course content, textbook

recommendations

% gross revenue from

courses

Amazon

Exposure for textbook

recommendations

% commission on each book

sale

Employers

Job placement for qualified

students

List of Qualified Students to Hire

money

Textbooks

money

Payment for Signature Track

Program

ACE Credit

ACE Credits granted on passing Signature Track and

Credit Exam

Evaluation Fee

Course Accreditation

Non-partner

Institutions

School Credits

Licensing Fees:$3000 + additional

fee per student

License touse platform andcertain courses

Signature Track

Premium Service

USD30-90 per course +

USD60-90 for exam

VALUE CAPTURE

PREMIUM SERVICES

Estimated total revenue of

USD$1,300,000 in 12 months

(25,000 students in the Signature Tracks)

Specialization

Certificate for a

set of courses

USD300-500 per

certificate

VALUE CAPTURE

PREMIUM SERVICES

VALUE CAPTURE

LICENSING

Licensing of COURSERA platform

and certain courses to non-

partner institutions

USD3,000 + additional fee per student

Affiliates Program with Amazon

COURSERA will collect profit from Amazon.com

each time students buy recommended textbooks.

http://www.timeshighereducation.co.uk/news/coursera-strikes-deal-with-publishers-on-textbooks/2003754.article

“The publishers will make relevant

chapters from e-textbooks

available free of charge, although

students who wish to read the

books in full, or read them once

their course has ended, will have

to purchase them.”

VALUE CAPTURE

AFFILIATES PROGRAM

COURSERA Company Gear

Earns twice as much money than textbook revenues

VALUE CAPTURE

MERCHANDISE

COURSERA Career Services

Companies seeking qualified employees pay a

certain fee for introduction, with a share of that

revenue going to colleges that offer the course.

VALUE CAPTURE

CAREER SERVICES

INTRODUCTION

SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL

Signature Track: Obtained certificates can be used as

degree credits.

ACE credit: expand to more subjects

College credit: Universities can offer courses that can be

counted for college credits

Secure Assessments: Testing centers to prove students

have done work themselves

Establish the Gold Standard in Course Certification

recognized worldwide (like GMAT, IELTS) by employers and

universities

Security: Identity verification technology through keystroke

biometrics and webcam

Partnerships:

Job Opportunities

STRATEGIC CONTROL

COMPLIMENTARY ASSETS

STRATEGIC CONTROL

BARRIER OF ENTRY

Strengthen and establish exclusive relationships

with Elite Institutions

Course videos, tests and presentations are

delivered only through:

a. COURSERA website;

b. Mobile application for iOS, Android, Windows

Phone; or

c. Limit the usage of course materials within the

COURSERA web platform and mobile

application.

Corporate learning: COURSERA provide specific

courses for companies with charges

‘Freemium’ model: Charge for courses that students

are interested to further pursue after introductory

chapters

Company-sponsored courses: give options to

employers to bid for Signature Track with the courses

they prefer or build customized Track for employers

Charging tuition: Universities can offer tutors for

courses

Charging for Proctored Exams: offer proctoring

services that connect proctors and students via

webcam

STRATEGIC CONTROL

REVENUE

• Develop the COURSERAPad, a cheap tablet

device with all the tools pre-installed for

learning-on-the-go

• Can be used by students from primary to

university level

• Manufacturing will be outsourced

STRATEGIC CONTROL

REVENUE

COURSERAPad: a color multitouch tablet running

COURSERA OS for learning-on-the-go

• Software:

– OS: customized version of Android

– COURSERA Store: similar to iTunes University where

users can choose new courses to enroll in.

– COURSERA Apps: Pre-installed apps that can help in

learning Math, Algebra, Accounting, Physics, etc.

• Hardware:

– Processor and memory enough to run apps smoothly

– Webcam for identity verification in Signature Track

– WiFi for internet connectivity

– Touchscreen

STRATEGIC CONTROL

REVENUE

STRATEGIC CONTROL

BUSINESS MODEL

Employers

Students

Students

Students within a course

Coursera

Peer assessments

Freemium or Paid Certified Courses

Screen and recommend potential candidates

Advertisers

Advertising Fees

InstaEDUOnline Tutor

Commission on sales

Payment for Signature Track and/or

COURSERAPad

LinkedIn

Student Data (Grades and

Certifications)

Companies

Specialized Courses

Exposure for Online Tutor

services

Exposure for Ads

Signature Track students get free access to LinkedIn’s Premium

Services

Commission on recruited

COURSERA students

Recruitment and advertising fees

Access to talentdatabase and

ad space

Bid for Signature Track courses based on

preferred topicCOURSERA

Pad

Fees forcorporate learning

Online tutoring

Pay discounted rate

*In addition to COURSERA’s

current business model

THE

END

Revenue for 9 months

(ending in Sept. 30, 2013)

*numbers in thousands

Business networking website

Number of Users: 277 million, Revenue: $1.52 billion

Alexa global website ranking: 8th

APPENDIX

Online tutoring company matching students with online tutors

Founded by 3 Stanford graduates

High quality tutors screened

Subjects cover topics in higher education

APPENDIX