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Disrupting Class
Michael B. Horn | mhorn@christenseninstitute.org | Twitter: @christenseninst
How Disruptive Innovation Will Change the Way the World Learns
Clayton christensen institute@christenseninst
Review of disruptive innovation
Clayton christensen institute@christenseninst
Disruption = affordability, accessibilityPast and present examples
Yesterday• GM• Dept. Stores• State universities• Digital Equipment• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• Sony DiskMan
Today• Toyota• Wal-Mart• Community colleges• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Apple iPod
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Disruption of Toyota
From hyundaiusa.com May 5, 2013
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Disruption = affordability, accessibility
Yesterday• GM• Dept. Stores• State universities• Digital Equipment• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• Sony DiskMan
Past, present, and future examples
Today• Toyota• Wal-Mart• Community colleges• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Apple iPod
Tomorrow• Chery• Internet retail• Online universities• Smart phones• Air taxis• ETFs• Zink• Linux• Salesforce.com• Skype• Smart phones
Clayton christensen institute@christenseninst
How does disruptive innovation relate to K12 education?
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Online learning is gaining adoptionSubstitution calculation indicates online learning is growing disruptively
50% of all high school courses online by 2019
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
The rise of K-12 blended learningDefinition of blended learning
A formal education program in which a student learns at least in part through online learning, with some element of student control over time, place, path and/or pace
at least in part in a supervised brick-and-mortar location away from home (such as school).
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The modalities along each student’s learning path within a course or subject are connected to provide an integrated learning experience.
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Emerging blended-learning models
Clayton christensen institute@christenseninst
1. Sell to educators in existing system2. Sell to educators in sustaining innovation blended-
learning models3. Sell to educators in disruptive innovation blended-
learning models
Companies appear to have 3 options
Clayton christensen institute@christenseninst
The decision matters
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Disruption is not a technology problem
Pe
rfo
rma
nce
Time
Time
Diff
ere
nt M
easu
reof
Per
form
ance
Tabletop Radios, Floor-standing TVs
Path taken byvacuum tube
manufacturers
Pocket radios
Portable TVs
Hearing aids
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Systems disrupt systems
Pe
rfo
rma
nce
Time
Time
Diff
ere
nt M
easu
reof
Per
form
ance
Appliance Stores
Component suppliers
RCA, Zenith
Sony, Panasonic
Component suppliers
Discount retailers
Clayton christensen institute@christenseninst
Option 1: Selling to educators in existing system
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Blended Learning is not…
Clayton christensen institute@christenseninst
Sustaining the chalkboardThere has been a long history of selling technology to enhance the current classroom
Perf
orm
ance
Time
Performance that customers
can utilize or absorb
Clayton christensen institute@christenseninst
Option 2: Selling to educators in sustaining innovation blended-learning models
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Disruption isn’t so straightforward
Pe
rfo
rma
nce
Time
Time
Diff
ere
nt M
easu
reof
Per
form
ance
Tabletop Radios, Floor-standing TVs
Path taken byvacuum tube
manufacturers
Pocket radios
Portable TVs
Hearing aids
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Perf
orm
ance
Time
Disruptive Innovations
Time
Ability to use improvements
Pace of performance
improvementPe
rfor
man
ce
The theory of hybrids
Peapod: Are there customers that would love a car that won’t go far, and won’t go fast?
Competing on design, reliability, and
performance on the California Freeway
Tesla $100,000
Prius Hybrid
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Perf
orm
ance
Time
Disruptive Innovations
Time
Ability to use improvements
Pace of performance
improvementPe
rfor
man
ce
The theory of hybrids
Smartphones
The disruptive technologydoesn’t invade and reform
the existing system.Rather, new measures of
Performance entice customersinto the new system
The metric of performance changes
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
The theory of hybrids
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
How to spot a hybrid
1. It includes both the old and new technology; pure disruption doesn’t offer old in full form
2. It targets existing users, not nonconsumers3. It tries to do the job of existing technology4. It is less foolproof than a disruptive innovation; does not
reduce level of wealth and/or expertise to purchase and operate it
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Emerging blended-learning models
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Station Rotation Model
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
How to spot a hybrid
Traditional PLUS online
Core subjects,
mainstream students
Measuring itself against traditional value proposition
Requires expertise in
both
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Station Rotation Model
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Lab Rotation Model
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Flipped Classroom Model
Clayton christensen institute@christenseninst
Option 3: Selling to educators in disruptive innovation blended-learning models
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Prime examples of nonconsumption• Credit recovery• Drop outs• AP/advanced courses• Scheduling conflicts• Home-schooled and homebound
students• Small, rural, urban schools• Unit recovery• Disaster preparedness• Tutoring• Developing countries
• Professional development• Pre-K• After school• In the home• Incarcerated youth• In-school suspension• School bus commute• Summer school• Teacher absenteeism• Migrant worker families• Foreign languages
Budget cuts and teacher shortages are an opportunity, not a threat.
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Individual Rotation Model: Carpe Diem
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Carpe Diem
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Carpe Diem
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Flex Model
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
A La Carte Model
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
Enriched Virtual model
Clayton christensen institute@christenseninst
The pluses and minuses of targeting disruption
Clayton christensen institute@christenseninst
The markets appear either saturated or small
Core academics Nonconsumption
Sust
aini
ngD
isru
ptive
“No Excuses”
Trad’l quality metrics
Districts
Charters
Districts
C
C
CLAYTON CHRISTENSEN INSTITUTE@christenseninst
TraditionalClassroom
New value propositionsLike all disruptions, disruptive blended-learning models deliver different value
DisruptedClassroom
Individualization Productivity
Access, Equity
@christenseninst
Disrupting ClassHow Disruptive Innovation Will Change the Way the World Learns
Michael B. Hornmhorn@christenseninstitute.org
Twitter: @christenseninst
Clayton christensen institute@christenseninst
Private enterprise & public education
Clayton christensen institute@christenseninst
• For-profits not inherently good or evil• Far fewer inherent differences between for-profits and non-
profits than many assume• Differences between for-profits stem from corporate
structure, where for-profits have owners and non-profits don’t• Easier for for-profits to attract capital, scale, and possibly talent• Easier for for-profits to focus• Non-profits can remain rooted in a community in absence of market
• Incentives matter. Policies must encourage smart demand
High-level conclusions
Clayton christensen institute@christenseninst
For-profits not inherently good or evil
Clayton christensen institute@christenseninst
Perf
orm
ance
Time
Disruptive Innovations
Time
Sustaining innovations
Incumbents dominate sustaining battles
Entrants typically win at disruption
Customer ability to use
improvements
Pace of technological
improvement
45% margin on$250,000
40% margin 20% margin on $2,000
60% margin on$500,000
Perf
orm
ance
Sustaining vs. Disruptive Innovation
CLAYTON CHRISTENSEN INSTITUTE# christenseninst
Understanding how users experience life
“The customer rarely buys what the company thinks it is selling him.”
Peter Drucker
If a customer won’t pay them to do something, over time they won’t do it. Will chase their incentives and do what they are paid to do—not much more and not much less
Clayton christensen institute@christenseninst
Far fewer differences
CLAYTON CHRISTENSEN INSTITUTE# christenseninst
What is a business model?And why does it lock us in?
PROCESSES:
Ways of working together to address recurrent tasks in a
consistent way: training, development, manufacturing,
budgeting, planning, etc.
REVENUE FORMULA:
Assets & fixed cost structure, and the margins & velocity
required to cover them
THE VALUE PROPOSITION:
A product that helps customers do more effectively,
conveniently & affordably a job they’ve been trying to do
RESOURCES:
People, technology, products, facilities, equipment, brands, and cash that are required to
deliver this value proposition to the targeted customers
CLAYTON CHRISTENSEN INSTITUTE# christenseninst
What is a business model?And why does it lock us in?
PROCESSES:
Ways of working together to address recurrent tasks in a
consistent way: training, development, manufacturing,
budgeting, planning, etc.
REVENUE FORMULA:
Assets & fixed cost structure, and the margins & velocity
required to cover them
THE VALUE PROPOSITION:
A product that helps customers do more effectively,
conveniently & affordably a job they’ve been trying to do
RESOURCES:
People, technology, products, facilities, equipment, brands, and cash that are required to
deliver this value proposition to the targeted customers
Business units don’t change. Will fighta new order that fundamentally challenges
how they make money
But non-profits have business models, too, and will do the same
Clayton christensen institute@christenseninst
• For-profits not inherently good or evil• Far fewer inherent differences between for-profits and non-
profits than many assume• Non-profits aren’t always virtuous• Non-profits have business models, too• For-profits won’t cut corners if customers will punish them for doing so• In public education, historically, neither for-profits nor non-profits have actually saved
the taxpayer much money because of policy There is some sense in which they are all public entities because publicly funded
High-level conclusions
Clayton christensen institute@christenseninst
• For-profits not inherently good or evil• Far fewer inherent differences between for-profits and non-
profits than many assume• Differences between for-profits stem from corporate
structure, where for-profits have owners and non-profits don’t• Easier for for-profits to attract capital, scale, and possibly talent• Easier for for-profits to focus• Non-profits can remain rooted in a community in absence of market
• Incentives matter. Policies must encourage smart demand
High-level conclusions
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