schools after tomorrow emerging business models

SCHOOLS AFTER TOMORROWEMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS

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58 SLIDES: @12 MINUTES RUNNING TIME

Jaime Alfredo Cabrera

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Emerging Business Models• Streamlined Status Quo• Niche Dominators• TransformersEmerging Strategies• Academic Quality &

Excellence• Commercial Skills• Change Management• Speed to Market• Funding Relationships

Emerging Challenges• Roles• Scenarios• Regulations• New Entrants• Products & ServicesPast Lessons for Futures• Lessons from Trailblazers• Hindsights• Foresights• Your New University

Business Model

END SHOW PRECEDING SLIDE LAST SLIDE VIEWEDMAIN MENU NEXT SLIDE

The world is changing.

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


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What’s your new school business model?



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EMERGING BUSINESS MODELSINSTRUCTION & TRAINING INDUSTRY

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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EMERGIN

G BUSIN

ESS MO

DELS

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

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EMERGIN

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ESS MO

DELS

• Streamlined Status Quo• Niche Dominators• Transformers

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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STREAMLIN

ED STATUS Q

UO


• still serves a broad mix of student segments• still offers a broad range of

disciplines but • discontinues a number of

unprofitable disciplines

In this model, the school:1

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STREAMLIN

ED STATUS Q

UO


• to achieve scale• to provide resources for

maintaining international competitiveness in other disciplines

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

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STREAMLIN

ED STATUS Q

UO


• digital channels •multimedia channels•multidelivery channels• blended models

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

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STREAMLIN

ED STATUS Q

UO


• with public & private higher education providers, secondary schools, industry partners, etc.• to open new markets or more

efficiently access & serve existing markets

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

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STREAMLIN

ED STATUS Q

UO


• to realise lower operating costs, and/or • to drive efficiencies through

shared services arrangements with like-minded institutions

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

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STREAMLIN

ED STATUS Q

UO


• 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

A study reveals that most schools:1

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STREAMLIN

ED STATUS Q

UO


• reshape & refine their range of services & markets• target particular ‘customer’

segments• use tailored education, research

& related services

Some schools will: 1

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NICHE DO

MIN

ATORS


• 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

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


NICHE DO

MIN

ATORS


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• significantly reduces its range of education disciplines• so as to focus on areas of

genuine domestic & global strength & credibility

In this model, the school:


NICHE DO

MIN

ATORS


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• streamlines its back office by using outsourcing and/or shared services models• to drive efficiency &

economies of scale

In this model, the school:


NICHE DO

MIN

ATORS


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


NICHE DO

MIN

ATORS

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30Adapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

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

disciplines & segments

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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NICHE DO

MIN

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• 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

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

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TRANSFO

RMERS


• content wholesalers • content consumers • financiers, employers, sponsors,

paying parents• non-users• underserved or previously ignored

markets

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

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TRANSFO

RMERS


• content aggregation• mass distribution• assessment• auditing• certification

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

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TRANSFO

RMERS


• media • entertainment• financial services & • venture capital

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

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TRANSFO

RMERS


• predominantly digital sales models• delivery models that combine

digital services & sourced specialist face-to- face services

In this model, innovators will build:

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TRANSFO

RMERS


• outsource learning products, assessment, testing & student support services • retain ownership of their

customer relationships• use cloud-based customer

relationship management tools & techniques

In this model, innovators will:16

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TRANSFO

RMERS


In this model, innovators will outsource their full suite of back-office functions, including:• student advising• student tutorials• learning

assessments• student grading• learning materials

development

• learning services development• marketing &

promotion• auditing• accounting• support services

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TRANSFO

RMERS


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

RMERS


• 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)

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

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TRANSFO

RMERS


TRANSFO

RMERS

• increased global reach of the core mission & brand• much needed incremental

revenue • support for internationally

competitive education & research programs

For schools that get this right, rewards are high:

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Image courtesy of Image courtesy of inhabitat.com

EMERGING STRAGEGIESINSTRUCTION & TRAINING INDUSTRY


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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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1. Quality & academic excellence

2. Academic talent & workforce structure

3. Commercial skills4. Change management & sp

eed to market5. Relationship with govern

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FIVE STRATEGY AREAS31

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ACADEMIC Q

UALITY & EXCELLEN

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

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


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ACADEMIC TALEN

T & W

ORKFO

RCEUniversities 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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COM

MERCIAL SKILLS

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

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COM

MERCIAL SKILLS

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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CHANGE M

ANAGEM

ENT

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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SPEED TO M

ARKETAs 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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FUN

DING RELATIO

NSHIPS

The next years will see increasingly fiscally constrained governments & sponsors, regardless of political persuasion.Funding for schools will likely decline.

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FUN

DING RELATIO

NSHIPS

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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Image courtesy of Image courtesy of inhabitat.com

EMERGING CHALLENGESINSTRUCTION & TRAINING INDUSTRY

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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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EMERGIN

G STRATEGIES

Universities are critical to a nation’s future. In planning a school for the future, five elements must be addressed.


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EMERGIN

G STRATEGIES

Roles of schools in a country’s future

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Image courtesy of Image courtesy of angeladavidsphotography.wordpress.comAdapted from http://www.ey.com/AU/en/Industries/Government---Public-Sector/UOF_Future-challenges-for-schools

Scenario modeling that anticipate emerging futures


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Regulation & choices in learning assessment and accreditation


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Roles of private sectors & new entrants to the industry

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Flexibility in pricing & delivery of products & services


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Image courtesy of Image courtesy of angeladavidsphotography.wordpress.com

PAST LESSONS for FUTURESINSTRUCTION & TRAINING INDUSTRY


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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 commit

ment can increase & protect your business.


PAST LESSON

S for FUTU

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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?


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?


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?


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?


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 learningWhat strategy can you use to speed up

government accreditation for alternative training, instruction, & learning models that you will use?


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?


HINDSIGHTS

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



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I can help.

[email protected]


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SCHOOLS AFTER TOMORROWEMERGING BUSINESS MODELS OF TRAINING & INSTRUCTION SERVICE PROVIDERS

Image courtesy of Image courtesy of (interfaithharmony.wordpress.com)For details, contact [email protected]

END SHOW NEXT SLIDEMAIN MENU

Jaime Alfredo Cabrera

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END OF PRESENTATION. THANK YOU.

mailto:[email protected]

schools after tomorrow emerging business models

Education