Openness, lessons from innovation for education

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In two seminal papers, Dahlander and Gann (2010) and Huizingh (2011) try to define openness as used in open innovation.  Here, I try to use these definitions of openness in describing openness in education, drawing some lessons for both sectors.

Definitions on openness in innovation

Although Huizingh (2011) bases its definitions on Dahlander and Gann (2010), it is easier to start with his distinction between the innovation process and the innovation outcome. Openness in terms of the process is determined by the amount of knowledge which is obtained externally, or developed internally. The openness of the outcome is determined by the fact if the resulting process or product is proprietary or made freely available for external partners.

Innovation process: Innovation outcome:  
  Closed Open
Closed Closed Innovation: proprietary innovation developed inhouse. Public Innovation: the outcome is available for others, whereas the innovation was developed inhouse.
Open Private Open Innovation: a proprietary innovation, developed with the input of external partners. Open Source Innovation: both the development as the result of the innovation are open.

Source: Huizingh (2011, p. 3)

Closed innovation is the traditional way innovations were developed. The aim of public innovation often is the development of a standard. For example, by making the PC the standard in computing during the 80’s, IBM could control part of the market for personal computers.

Another way to divide open innovation is to make a distinction between inbound and outbound innovation. In the definition of Huizingh (2011, p. 4): Inbound open innovation refers to internal use of external knowledge, while outbound open innovation refers to external exploitation of internal knowledge. Dahlander and Gann (2010) combined these types with the question whether there is money involved or not.

  Inbound Innovation Outbound Innovation
Pecuniary Acquiring Selling
Non-pecuniary Sourcing Revealing

Source: Dahlander and Gann (2010, p. 702)

Revealing seems to be used to attract collaboration, especially in situations without strong IPR regimes. It also resembles Public Innovation of Huizing (2011), in aiming to set a market standard. Sourcing refers to the absorption of external available knowledge to create new products and services. The literature suggests an inverted U-shaped curve: searching for external knowledge will be profitable up to a certain level, after which the “over-search” will become more costly than profitable.

There seems to be a paradox in openness: as Huizingh (2011) states, companies perform more inbound than outbound activities (which recently confirmed by studies of the open innovation network, http://oi-net.eu/), yet inbound activities of one organization should generate reciprocal outbound effects from other organizations?

Openness in education

As we noted elsewhere (De Langen, 2013), there are a lot of definitions of openness in education. Openness in the sense of free to obtain (MOOCs), free to use (OER) or the absence of entry barriers (Open Universities).

If we define the process as a measure of openness of the process, leading to the product, we can distinguish between free to access, free to use or even collaboration in design and production. The outcome is the education, the course or the program. Traditional education is mostly distributed in a closed form: it is exclusively for students of the institution. Traditional education is often designed and developed by a single teacher, by an internal group of teachers (both examples of closed process) and in some cases with developers outside of the own institution (often subsidy-led) or the usage of open resources and MOOCs. The Open Outcome-side describes the production of open educational products and services. The closed production of open outcomes are typically of the production of MOOCs. A situation of open production and open outcomes is found in situations where communities both develop and use educational resources. For example in the case of knowledge bases and portals, developed and exploited by communities of fellow teachers; two examples are MERLOT and FEmTechNet.

Educational process: Educational outcome:  
  Closed Open
Closed Closed Education: traditional education with an one-to-one relationship between students and teachers. Free to use: the outcome (courses, programs) are open to use, but the teaching/developing process is closed. We can distinguish different regimes:

a.       Traditional education without fees, as in large parts of Europe is practice; Open Universities

b.      MOOCs, where the product is free, but the process of developing the course is proprietary.

c.       Certain forms of Open Access, in the sense that the production process belongs to the researchers (holding the copyrights, sometimes having to pay a fee), whereas the published research results are free for the public.

Open Use of free: the use of free (open) resources to develop educational resources for traditional institutions; for example Lumen Learning offers to teach educators to use OER to develop courses and programs for usage within traditional institutions. Open Education: Open educational resources, DOCCs, communities of practice and alike.

If we look into the role of money in (open) education, than is the pecuniary side of the inbound knowledge acquisition the fact that most teachers use standard textbooks, produced and sold in a for-profit-business model by publishers. Of course, in traditional education teaching is one of the courses of income, however there are more opportunities. For example,

  Inbound education Outbound education
Pecuniary Acquiring textbooks and materials. Selling knowledge, texts and competences.
Non-pecuniary Sourcing: collaborating to acquire knowledge and resources. Revealing: collaborating to supply knowledge, competences and resources.

Another model

Another way to categorize education is based on Yunus et al. (2010). In their view, organizations optimize either financial profit or social value. On the other dimension, they distinguish the way organizations are financed: either they have to earn back the invested capital, or they don’t. In this last case, another organization will supply the funds necessary for the long term survival of the organization. Traditional HEI’s were placed either in the Not-for-profit category for public education; or in the For-profit-category for private educational firms. Interesting are those organizations (websites, portals, knowledge bases ect.) which resulted in the past years, as result of inter-organizational collaborations, subsidies or individual initiatives.

Financial Profit Maximization
No recovery of Not sustainable in the long term For profit organizations Repayment of
Invested capital

(depending on external funds)

(Traditional) Not-for-profit organizations Social businesses Invested capital

(self-sustainable)

Social Profit Maximization

Next to the educational knowledge and competences, their survival will depend on the capability to generate funds to reimburse the capital used in the production and exploitation of open education.

Literature

Dahlander, L., & Gann, D. M. (2010). How open is innovation?. Research policy, 39(6), 699-709.

De Langen, F. H. T. (2013). Strategies for sustainable business models for open educational resources. The International Review of Research in Open and Distributed Learning, 14(2), 53-66.

Huizingh, E. K. (2011). Open innovation: State of the art and future perspectives. Technovation, 31(1), 2-9.

Open Innovation in European industries (2015), study for the European Commission, http://oi-net.eu/.

Yunus, M., Moingeon, B., & Lehman-Ortega, L. (2010). Building social business models: lessons from the Grameen experience. Long Range Planning, 43, 308-325.

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A Business Model for a research and education

Recently, I was asked to suggest a business model for a research and education center. Some organizations aimed to work together in the field of innovation and regional knowledge sharing. Aim is to make the center sustainable in the sense of Yunus et al. (2010). They describe Social Businesses as an organization which aims to earn enough to renew the invested capital combined with social profit maximization: At the same time as trying to achieve their social objective, social businesses need to recover their full costs so they can be self-sustainable.

Already several earning models of the kind Rappa describes at his website were discussed, however, a business model involves more than only an earning potential. So starting out with the assumption that in research each question is unique, this defines n=1. The methods of academic research may be more or less modeled in a stage model, each query will need different data bases, different academic specialties and competences.

The same applies for education. Taking aside learning styles and other contextual  factors, the group of intended learners will have specific work and practice related needs.

This suggest that at the input side r=g, a network organization is needed to meet the demand of the customers. The business model has to take the r=1-n=g philosophy of Prahalad (and others) into account. Central questions are

  1. how the network organization can attracted the necessary resources to organize the activities  needed to fulfill the unique demands of the customers?
  2. How to organize the earning model to make the center self-sustainable as a social business.

Education and research as a network organization

Note that in a network organization there are two sets of key resources and key activities as mentioned in the Osterwalder-Pigneur business canvas: firstly the resources and activities aimed at fulfilling the needs of the customer, the realization of the value offering. These factors have to be found in the relationships which make up the network of the organization. The key resources and activities within the organization have to do with setting the conditions necessary to activate the former external resources and activities. The internal resources and activities as relationship management, ‘the black books’ and communication and organizational skills are the core competences of the network organization. Money is often an important persuading factor, but reputation, knowledge sharing and strategic issues can also convince organizations to work together in a network setting.

A business model for an education and research network organization

The assumption is that the main customers of such a model are other organizations, having specific research questions, wanting to school their employees. The aim of the network organization is to match demand by organizing its partners into a relevant supply.

The actual business model is inspired by a model some colleagues of mine had developed some years ago for a HEI. It consists of different layers, each aimed at a specific audience, but building on each other.

The major difference between the layers is its amount of openness and the facilities offered. The first layer consists of free information, free courses, OER and research rapports. This layer offers free products and services for interested parties. The only restriction is that one has to register with an real email-address. There are several potential sources of income in such a case:

  1. Selling marketing space to third parties
  2. Internal subsidies because of the marketing of other products and services
  3. External subsidies because of the dissemination of knowledge
  4. Analyzes and sales of data on potential customers; email addresses ect.

In terms of Rappa’s earning models this is a combination of the advertising and the infomediary model. In Rappa’s taxonomy, the Freemium model of Anderson (giving away something for free; earning an income by offering additional services or products) is part of the advertising model.

In the second layer (registered) visitors find a supply of standardized service and products, for example courses based on existing courses of the participants, workshops and alike. Interested parties can either participate or buy products on a pay-as-you-go base, or –in the case of changing offerings- take a subscription. The utility model assumes the first case, whereas the subscription model differs from the description here as they assume the subscriber also to be a member of the network.

Here, I would label the participants of the last two layers as members. Members of the third layer become part of the community in the sense that they can freely use courses and existing research. Furthermore, they can participate in discussions and influence the direction of new research and the educational course of the center. This level can be compared with a regular student at a HEI, who has pays a yearly fee and is during that year free to use all the facilities and courses at the institute.

Of course, for specific studies or custom made courses and other on-demand the subscribing member has to pay an additional fee. The fourth layer consists of the full participants, the suppliers of services and products supplied in the three other layers. New full participants should pay a fee reimbursing the others for the initial investment costs, getting the right to promote and sell their own products and services within the center.

Open Education                                   – free (registered) entry–                   Open Access
Courses                                                     – pay as you go –                                 Studies
Programs and custom made courses          – community I –                   Original research
(New) Producers                                           – community II –                   Founding fathers

Overall, such a center will act as a broker between the participating organizations and individuals or organizations seeking the products and services on offer. In the brokerage model, income is earned by charging a commission or a fee either based on actual transactions or as part of a general agreement. Yet, at each level data is generated which could be used to create value for (potential) customers and partners, again creating income. Another additional source of income could be regional and national subsidies as governments often stimulate geographical collaboration.

Changes are that an actual implementation of such a model will require some adjustments, for example the privacy regulations with respect to adjustments to the gathering and usage of data are strict; in a world of ever falling government budgets, subsidies may be small or non-existent.

Still, a business model which generates income through its communities can afford to sustain Open Education and Open Access (research), which in itself will not be sustainable.

It would, therefore, be interesting to see if an institute or center build on these principles would be self-sustainable in the sense of Yunus et al (2010), combining a social goal (Open Education, Open Access), while at the same time covering the full costs.

http://www.opencoffeeoss.nl/open-coffee/

Source: http://www.opencoffeeoss.nl/open-coffee/

Literatuur

Yunus, M., Moingeon, B., & Lehman‐Ortega, L. (2010). Building social business models: lessons from the Grameen experience, Long Range Planning, 43, 308‐325

It has to be Open: The Lau last performance at PinkPop

Not-for–profit organizations and customers: trying to solve the puzzle

Lately, I gave a lecture on shareholders, using Mitchell et al. (1997) Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts. In this paper, they try to describe an instrument which can be used by managers to identify the stakeholders and their relative importance.

This is important, because given any organization, the whole world (and perhaps the whole universe) can be seen as some kind of an stakeholder. So it is important to order your stakeholders one a scale between very urgent towards ignore. However, the order in the stakeholders is not given, but dynamic. If time changes, positions and influence can change.

The dimensions Mitchell et al. (1997) use are:

  • Power: ..a party to a relationship has power, to the extent it has or can gain access to coercive, utilitarian, or normative means, to impose its will in the relationship… (p. 865)
  • Legitimacy: …”a generalized perception or assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions”.. (quoting                Suchman, 1995, p.866)
  • Urgency: .. time sensitivity is necessary, it is not sufficient to identify a stakeholder’s claim or “manager relationship” as urgent. In addition, the stakeholder must view its claim on the firm or its relationship with the firm as critical or highly important. …. (p.867)

 

 

So shareholders are the ultimate dominant stakeholders (having power to change the policy of the firm and having a legitimate claim to do so). However, when there is an idea that present management is making large mistakes, they will want to change management fast and they become definitive stakeholders.

The same will happen when an environmental pressure group, who have legitimate claims and a sense of urgency (dependent stakeholders) acquire political support; becoming powerful and so definitive stakeholders.

Customers have a legitimate claim on the firm. Next, they have a discreet power, if they get a sense of urgency, a customer’s strike will force the firm to act in a desirable way.

By determining the strategy of a not-for –profit organization (whether an NGO or an educational organization) it is often not possible to determine a customer, an individual or group who pays for the service or product offered. Stakeholder analyzes can help to answer the question: For who are we doing what we do? What is our value-offering to whom?

For example, education has several goals, depending on the individual or group you ask. If we take the four kinds of “aspirations” of Christensen et al (2011, 1) and combine them with the stakeholders who have an interest in these goals, we get the following combination:

Goal Stakeholder(s)
1. Maximize human potential StudentEmployers
2. Facilitate a vibrant participative democracy in which we have an informed electorate that is capable of not being “spun” by self-interested leaders GovernmentSociety 
3. Hone the skills, capabilities and attitudes that will help our economy remain prosperous and economically competitive GovernmentEmployersStudents
4. Nurture the understanding that people can see things differently-and that these differences merit respect rather than persecution GovernmentSociety

 

Christensen et al. (2011) furthermore point out that education is used as a sort of magic cure, for several societal problems (ranging from poverty towards anti-terrorism). Budgets, regrettably, do not  rise in the same amount as requests do.

Society at large is too big and not specific enough to be anything else than a discretionary or demanding stakeholder. Employers can be divided into two categories; as part of the society, defining certain legitimate demands on the competencies of students, but without power. Another group is a real customer, paying institutions to organize refresher courses and alike. In that case, they have both the power and the legitimate to influence (this kind of) education: becoming dominant stakeholders.

Governments and other financiers are also dominant stakeholders which goals should be taken seriously into account. As described above, goals are added to the original goals as society changes, but budgets overall remain the same adding budget control as an additional goal.

Students want to learn, to further their career, to increase their social skills. They want to learn the right things in the right way. This makes them legitimate stakeholders with some sense of urgency. However, question is how much power they have? In most educational systems, students pay fees, but not enough to reimburse costs. So who determines which are the right things to learn? Governments finance the major part of educational programs, but often based on the number of students, certificates and awarded degrees. Yet, academic teaching is supposed to be founded in academic research, which is financed by governments and corporations. So indirect these determine the content of the programs.

The goals of Christensen et al. (2011) concentrates on the external stakeholders. Of course employers (teachers but also administrative personnel) are important stakeholders. Employment means not only income, but also (hopefully) a meaningful work environment.

It is interesting to see what happens when the stakeholders’ aims differ.

For example, students campaign for free education: Free education is not just about the money. It’s about the working conditions of those who make our education possible, and about democratising and liberating our institutions and the curriculum; funding vocational and further education, living grants and childcare that allows women to freely access learning.

In the Netherlands, students and teachers occupy part of the University of Amsterdam protesting against a perceived reduction in quality of teaching and too little democracy.

It is the Board of the HEI’s who have to unite or compromise the different conflicting goals of the diverse stakeholders. Power and urgency fight for influence.

 

I don’t think that this blog solves the puzzle of the role of “customers” or stakeholders in education. Most teachers I know will say that they teach because of the students. However, as seen above, it is important to realize that funding partners will influence our institutional targets. As far as these coincide with the personal goals of the teachers and students, this will be reinforcing; however when they conflict, it becomes interesting.


 

 

 

Professor R. Edward Freeman speaks about the role of business in society: Purpose of business is not maximizing profit for shareholders, but is about changing the world!


 

 

Literature:

Christensen, C., M. Horn and C. Johnson (2011) Disrupting Class, McGraw Hill, New York

Mitchell R., B. Agle, D. Wood (1997) Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts, The Academy of Management Review, Vol. 22, No. 4 (Oct., 1997), pp. 853-886

Osterwalder, A., Y. Pigneur (2010), Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers, John Wiley and Sons Ltd, Augustus 2010

Articles on budget cuts:

http://www.msnbc.com/msnbc/gop-governors-want-higher-education-cuts-recoup-budget-shortfalls

http://www.cbpp.org/cms/?fa=view&id=4011

http://eacea.ec.europa.eu/education/eurydice/documents/facts_and_figures/National_Budgets.pdf

 

What is Openness in Open Education??

In general, there seems to be a tendency towards openness in society.

Ilustation from Magelia WebStore, https://www.magelia.org

In the sector of Information Technology, we see the Open Software movement, a movement in which people share knowledge, resources and products for free.

The Open Educational Resources movement strives to generate educational resources, which are shared for free (although often developed using subsidies of national governments and private institutions).

In the publishing sector, we see a discussion on Open Access; free access to scientific (subsidized) publication.

In industrial sectors, we see a discussion on Open Innovation (Chesbrough, 2006, de Wit and Meyer, 2014); the idea that most knowledge will be developed outside the firm. New knowledge, necessary for innovations, has to be bought, sold or shared. (Information) Technology increases the possibilities for innovation on a small scale. Sharing of knowledge and resources is a major force behind the MakersMovement, in which small inventors design, prototype and -eventually- distribute their innovative products or services (also see Anderson, 2012).

Wiley (2014) – in his discussion on Moocs – defines openness in education as the transition of ‘open entry’ (in the sense of no entry demands from the Open Universities) towards ‘open licenses’, as in Open Educational Resources (OER), towards a possible  ‘open educational infrastructure’.

Open Universities over the world (generally) accept all kinds of students, independent of the level of former education. Yet, education in this case is not free; students have to pay fees, which can become a barrier despite the formal openness. So did a member of the Open University of the UK argue that it could be seen as a social obligation to set entry tests. Given that students have to pay certain fees, it would be unfair to let them make debts for a couple of years, after which the university concludes that they are not capable of finishing their study.Since the nineties of the last century, several organizations worked on the development and distribution of free educational objects. These objects were termed Open Educational Resources in 2001 by the Unesco (1st Global OER Forum in 2002). This openness is defined over five dimensions (the 5R activities, as defined by the Unesco (2012):

  • Retain – the right to make, own, and control copies of the work (e.g., download, duplicate, store, and manage)
  • Reuse – the right to use the work in a wide range of ways (e.g., in a class, in a study group, on a web site, in a video)
  • Revise – the right to adapt, adjust, modify, or alter the work itself (e.g., translate it into another language)
  • Remix – the right to combine the original or revised work with other open works to create something new (e.g., incorporate the work into a mash up)
  • Redistribute – the right to share copies of the original work, your revisions, or your remixes with others (e.g., give a copy of the work to someone else)

© Chad Anderson | Dreamstime.com

Another general model of openness is the 5-components model for open education (5COE) of Mulder and Janssen [2013, figure 2]. This model unbundles the different activities into three components on the supply side and two on the demand side.

On the supply side they distinguish:

  1. Open educational resources (OER) 2. Open learning services (OLS): online and virtual activities which are available either free or for payment, including assessments, exams and communities; 3. Open teaching efforts (OTE): all supporting activities as teaching, ict-support and other roles in (distance) teaching; these activities will generally not be free.

On the demand side they describe the following two components:

  1. Open to learners’ needs (OLN): open education should be free in the sense of time, space and tempo; however, it should also be affordable for everyone. 5. Open to employability & capabilities development (OEC): education should be open towards new and changing demands from society and the labour market, but also promote critical thinking, creativity and personal growth .

The unbundling of Janssen and Mulder (2013) had the aim to develop a potential earning model for HEI’s, combining paid activities with the supply of free resources. This was necessary because there was a feeling that the isolated development of open educational resources, as done by MIT (subsidized by the William and Flora Hewlett Foundation), or Saylor.org (offering whole courses, subsidized by Michael Saylor ( MicroStrategy Inc.)) were too much dependent on the goodwill of a person or foundation.

Others are building on Andersons 2009) Freemium model ). For example, the Free Software Academy, which offers free courses and paid tutoring within accredited programs. The Moocs developed in recent years often use a similar business model.

With respect to the openness of this model two remarks have to be made:

  1. there is a major division between several providers of resources, whether objects or full courses. All are open in the sense that using them to learn or teach is free (costless and no entry barriers), Yet, some do apply all the Unesco R’ s, some only part (both participating under different Creative Commons Copyrights), some are not reusable or adjustable at all. Especially Moocs are static in the sense that they cannot be changed or adjusted to new usage, sometimes new usage is actively discouraged. Furthermore, Most Moocs are only open for a certain period (often the period the same course is given in the original university).
  2. as shown by economic theory, obtaining money for products or services requires the possibility to exclude others from using the service or product. Unbundling to design a business model for open education means to draw a line between activities and products which are open (exchanged for free, but not necessarily costless) and activities which are closed (exclusively available for paying participants). Janssen and Mulder (2013) did use their model to show the possibilities of traditional and open universities to participate in the OER movement. Yet, it can also be used to explain the initial enthusiasm of xxx-investors to participate in the American Mooc-platforms. The expectation was that by offering additional activities, the platforms would generate profits. To guarantee the required exclusivity, participating HEI’s had to sign contracts which restricted their freedom in usage of the material placed with the platform. Data, but also third party contracting (in-company trainings ect.) became the prerogative of the platform.

Christensen et al. (2014) uses a similar approach to forecast a more disruptive development with respect to the (American) educational sector. Distance education, the competence based approach, the existence of high quality, accredited open educational materials offers commercial firms the opportunity to enter the educational sector, aiming at low cost segments and non-consumers (of existing education). According to them, it is only a matter of time before the last bastion of the traditional mixture of academic research and education, the accreditation organizations, will fall.

So unbundling education at an organizational level could result in unbundling at a sectorial or national level and a new division between open en exclusive forms of education.

Wiley (2014) moves openness even one level higher. He sees open education as  an open education infrastructure. With this he means a “set of interconnected structural elements that provide the framework supporting education”.

He concentrates in this on competence-based education. Developing competence profiles and the accompanying programs, techniques and need is costly and complex. By offering open competence programs, more institutions can develop new experiments based on these programs, improve and change the programs, which will feed back in the education of the original developers. Such a process should improve quality and efficiency of CBE-programs and the educational infrastructure. The same applies to assessments. In a CBE-world, knowing the exams will not increase a student’s chances (a reason for secrecy in a the more traditional educational world) as the test are competence based, and will judge performance rather than reproduction. Again, opening up your assessments will improve them by increasing usage, localization and experimentation. Wiley (2014) adds open certification to his open educational structure as a logical step following the definition of competence oriented learning objectives, teaching and learning using open educational resources; being tested through open assessments and using open certificates to show for the acquired competences. Openness of this kind will increase the quality and efficiency of the national educational system.

There are two important distinctions between these approaches. First of all, we can make a distinction between free activities and free products. As Michael Saylor is quoted at the Saylor.org website: Education should be free. Yet, at the website, a lot of courses can be found, however if we define education as the combination of materials, teaching, assessments and feedback, it represents only part of the educational activities.

The same seems to apply to the open education of Wiley (2014). He writes about the exchange of CBE-profiles, open exchange of assessments and alike. However what will be done with these products is not discussed.

The second distinction touches this point. Mulder and Janssen (2013) distinguish between the supply and the demand side. The supply side of the educational system are the teachers and HEI’s offering education to students; competent employees to employers and engaged civilians to society; forming the demand side of the system.

Openness on the supply side seems to concentrate on educational resources, whether teaching materials, assignments or CBE-profiles. The aim of the resources is to support and improve teaching by making materials available, but also stimulating quality through discussion and improvement of existing materials.

Openness on the demand side is about the freedom to participate in education. This is about the removal of entrée barriers. These barriers can be formal (admission restrictions), financial (high fees, large additional costs) or otherwise. The OECD (2014) rapports on tuition fees . These range from non (eg. Austria, Greece, Finland) to € 1950 in the Netherlands. Outside of Europa, the average fees are higher: Canada (approx. 4,000 USD), UK and the USA (approx. 5,000 USD) .

Other barriers, however, may be even more important especially in later-in-life education, as the combination between education and work.

Open education is different from free education; yet in my opinion, openness should be about removing barriers for learners, not only on providing resources for teachers.

Literature

Anderson , C., (2009) Free: The Future of a Radical Price, Hyperion

Anderson , C., (2014) Makers: The New Industrial Revolution, Crown Business

Chesbrough, H. (2006) Open Business Models, Harvard

Christensen, C. M., M. B. Horn, L.Caldera, & L. Soares, (2011) Disrupting College: How Disruptive Innovation Can Deliver Quality and Affordability to Postsecondary Education http://www.americanprogress.org/issues/labor/report/2011/02/08/9034/disrupting-college  (accessed April 4 2013)

Mulder, F.,  B. Janssen (2013, in Dutch) Open (het) onderwijs, Surf Trendrapport, http://www.surf.nl/en/knowledge-and-innovation/knowledge-base/2013/trend-report-open-educational-resources-2013.html (accessed October 2014)

OECD (2014) Education at a Glance, http://www.keepeek.com/Digital-Asset-Management/oecd/education/education-at-a-glance-2014_eag-2014-en#page1 accessed December 2014.

Unesco (2012), Declaration of  Paris, http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/CI/WPFD2009/English_Declaration.html, retrieved September 30, 2014

Wiley, D.,  (2014), The Open Education Infrastructure, and Why We Must Build It, July 15, 2014, http://opencontent.org/blog/archives/3410, accessed December 18, 2014

Wiley, D., (2014), The MOOC Misstep and the Open Education Infrastructure,  July 15, 2014, http://opencontent.org/blog/archives/3557 , accessed December 18, 2014

Wit, de B., R. Meyer (2014), an international perspective, 5th edition, Cengage Learning

 

The Crowd and Open Education: resilience and sustainability

Updated July 21 2014

 Update:

A relevant quotation I found in my notes:

Paul Stacey

Crowd learning

Crowd learning describes the process of learning from the expertise and opinions of others, shared through online social spaces, websites, and activities. Such learning is often informal and spontaneous, and may not be recognised by the participants as a learning activity. In this model virtually anybody can be a teacher or source of knowledge, learning occurs flexibly and sporadically, can be driven by chance or specific goals, and always has direct contextual relevance to the learner. It places responsibility on individual learners to find a path through sources of knowledge and to manage the objectives of their learning. Crowd learning encourages people to be active in setting personal objectives, seeking resources, and recording achievements. It can also develop the skills needed for lifelong learning, such as self-motivation and reflection on performance. The challenge is to provide learners with ways to manage their learning and offer valuable contributions to others.

 

Deloitte University Press published an infographic on crowdsourcing. Crowdsourcing is defined as “an approach to harnessing the power of individuals to work to solve problems in a decentralized way”.

They distinguish five different kinds of crowd sourcing, using the crowd’s creativity and knowledge (competition, collaboration and voting), its funds (funding) or its labour power (labor). According to the writers, Rob Hamill, Emily Malina and Elizabeth Pal, each form of crowd sourcing is applicable in certain situations and will be contra-productive in other situations.

The table below gives an overview of the different ways of crowd sourcing, the video has some funny examples, starting with 1714 as start of one of the first crowd sourcing projects.

 

Form Pro Contra
Crowd CompetitionCrowd competition refers to the hosting of contests in which participants work individually or in groups to come up with a solution to a given problem. The outputs may include many viable ideas or solutions.
  • creating actional solutions
  • developing prototypes
  • Generating outside ideas
  • predetermined desired outcomes
  • lack of resources to review submissions
  • building community
Crowd Collaboration
Crowd collaboration requests the input of decentralized individuals to develop, aggregate, and share knowledge and information across a pool of contributors, generally through a loosely controlled web-based platform. The typical outputs of a crowd collaboration effort are collective concepts with shared buy-in.
  • building and sharing knowledge
  • responding to emergencies
  • shared policies
  • User anonymity
  • Small and inactive crowds
  • Promoting individuality
Crowd Voting
Crowd voting is the process of turning to the crowd to reach a decision. This practice typically involves inviting participants to help make a decision based on pre-defined options.
  • Decision making
  • Rating and ranking
  • Quality assurance
  • Strategic decision making
  • Political sensitive issues
Crowd FundingCrowd funding is the process of funding projects through small contributions from a large group of participants. Crowdfunding activities are typically hosted through web-based platforms.
  • Fundraising
  • Disaster relief
  • Start-ups
  • High transparency

 

  • Ongoing operations
  • Loosely structured initiatives
  • High short term expectations on returns
Crowd Labor
Crowd labor refers to the engagement of a distributed labor pool to accelerate the completion of large-scale projects by splitting up a task into components that require little creativity or coordination but that cannot be automated.
  • Creating actionable solutions
  • Data entry and validation
  • Translation (eg language)
  • Digital archiving
  • Unstructured tasks
  • Subjective tasks
  • High-level thinking

As I argued before, the sustainability (or resilience to use a new buzz word) of business models for Open Education will depend on the inclination of people and institutions to cooperate either on the input/production side as on the user/learner/consumer side of the business model. As crowd sourcing is a form of this kind of collaboration, it could generate knowledge on the the potential success factors by reversing this table and apply the pro’s and contra’s to different systems of Open Education.

Crow Labor is one of the most used forms of Crowd Sourcing in the development of Open Educational Resources. Organisations as the Saylor.org, Merlot.org rely heavily on materials of others. However, this kind of free labour has also some aspects of Crowd Collaboration because it is not necessarily about projects which “require little creativity or coordination”.

Crowd Competition is seen in situations in which organisations as the EU, Hewlett foundation or the American government ask for proposals which will be subsidized. On an individual level, these calls will be passed on towards teachers and other educational developers to come up with the creative solutions to win the funds.

It can also be used as an instrument to start-up a new data-base or website on educational resources and programs. By setting a suitable reward, the system can generate a certain minimal critical mass, above which it will be interesting for other partners to participate.

Crowd Voting is often used to give an indication of the quality of the resources or programs. For a ranking to be functioning, there have to be enough votes and the voting public has to be something of an “in-crowd” of experts.

The remaining form of Crowd Sourcing is the financial form, Crowd Funding. According to the authors, this instrument is unsuitable for ongoing operations and loosely structured initiatives. Yet, I have the impression that several non-commercial projects depend on one large fixed subsidizer and a fringe of minor short-term donors.

Concluding, the examples of Open Educational Resources and Open Education show that the forms of Crowd Sourcing as described by Hamill, Malina and Pal is not complete; there are other situations which can only partially described by this taxonomy. Especially the voluntary participation in high-knowledge projects does not fit either the Crowd Collaboration nor the Crowd Labor definitions.

Still, the research in Crowd Sourcing should generate a further understanding of these kinds of collaboration: the free contribution and exchange of educational materials between individuals and organisations. A better understanding of these phenomena will enhance the changes of success of the Open Education movement.

 

Education, let’s blow it to bits or put it back?

At the end of the last century some business theorists saw the start of a new development. The combination of technological change and an increasing competition between firms would result in a concentration on the core competencies of firms. This has two results: every firm concentrates on the tings they do best. Survivors of the competition will produce the best for the lowest costs. If every firm does so, and the B2B system is organized well, customers get the best quality for the lowest prices.

Of course, recent years showed a mixed pattern. Concentration in the banking sector, combining different financial products and services within one organization, ignoring the specific competencies necessary (including control and organization) is one of the causes  of the financial crisis. Yet, as result of this crisis, we see an increase in start-ups, employee-buy-outs and the emergence of other forms of small enterprises.

It would be interesting to see what the industry triggers are which rule concentration versus fragmentation, but also success versus failure in the different industries.

Technological change and didactic experiments have broadened the variation of digital education with the introduction of Open Educational Resources and Moocs.

In line with commercial business we have seen two trends emerging.

So let’s blow it to bits ………………………

One trend is shared by economists as Christensen and educational managers as Fred Mulder (UNESCO-chair OER). Both envisage a division within the academical sector. Christensen sees a division between research and education as a disruptive factor in the educational sector. E-learning provides a vehicle for the emergency of low costs mass education provided by organizations which concentrate on the educational process, without the burden of academic research.

Mulder goes one step further, in dividing the educational process in different stages and services. He concentrates on the division between content, which should be offered as open educational resources, and services as tutoring and grading, which should form the base of organizational income.

** Added 13-02-14: As pointed out by Ben Janssen as a comment to this post, he and Fred Mulder stop here with their analyses (also see their chapter Opening up education in Trend Report: Open Educational Resources 2013). The next text is my augmentation of their arguments, not their reasoning.**

However, if different products and services within the educational sector can be offered using different business models, there is no reason why they should take place within the same organization. If all organizations concentrate on the activities which they do best (making materials (Moocs or otherwise), tutoring, grading), the combination, the fragmented model, should produce the best and most effective and efficient education possible.

Both the individual student as society as a whole will gain as education becomes more affordable, public subsidies can decrease and quality increases. Christensen, therefore, concludes his paper with a set of advises for the public sector to realize the predicted benefits.

Of course there can be several drawbacks: in the age-group of 12 – 24 education is also about socialization, which is absent in the fragmented model. Also, there can be a discussion if academic education is possible without fundamental research; although the best researchers are not necessary the best teachers. Lastly, the advantages of the fragmented model ignore so-called transaction costs. Students have to select the best teaching organization and grading institute, but also the best combination of those two. Teaching organizations have to search for information on the grading requirements and the best (open) educational resources. The government has to inspect and accredit several institutes. In contrast to Open educational resources and Moocs, the workings of the open market are not free.

Or put it back …………………………………….

Another aspect of the fragmentation into core-competence organizations is the need to cooperate. This cooperation can result either of a spontaneous organization, as we know of complex dynamics, or it can be the result of an intermediary organization. For example, Laura Czerniewicz sees as one of the reasons to be engaged with Moocs is the fact that it  “gives us an entry to talking about online learning …. with people with whom we have not had those conversations before” and  there is room to “experiment”  with new online materials.

From: http://www.workingpoint.com/blog/free-tools-for-entrepreneurs-collaboration/3591

Another interesting point Laura makes is that there is room for niche subjects. As Anderson has pointed out in his theory of the Long Tail, is that small percentages of the total demand can generate large numbers when the materials are available electronically and world wide. Some courses cannot be organized because of the lack of local students. If different organizations work together, they can combine the local interest into a sustainable (inter)national group of students. The same can be done in the case of to few qualified teachers on a special subject: by using the new technologies it should be possible to teach in different locations without extensive travel.

Again using the conclusions of research in the field of business co-operations, an interesting phenomena is that firms who compete heavily on the consumer side, will cooperate at the backdoor. For example, beer companies do their best to convince you that their beer is the best fitting with your life style, is the cheapest or the best quality. However, in most Western European countries all beer is sold in the same bottles and crates as the distribution and retribution of the bottles is organized together.

Question for educational organization is: what do you want to be? What is the identity you try to communicate towards your students? Given this strategic identity, you can determine your core competencies and resources. You can also determine all the non-core activities and resources.

These are the things which could be outsourced or developed in a common program. Courses like mathematics, statistics or English are often just secondary to the major program, international business, European law or psychology. Resources which could be freed by cooperation with other organizations could be used to enhance the strategic profile.

To me, working together to improve the quality and efficiency of education on a international scale seems a more interesting perspective than decreasing our organizations into atomic cores which orbit the potential students without any sense of curricula or programs; being totally dependent on the authority of some external agent who sets the requirements for a degree. Yet, if education is left to the open market either because of the ruling ideology or because of the lack of public funding, there is no guarantee that cooperation will overcome competition.

Why business models in education matter

Again, and again teachers rightfully state that there is no reason why they should take into account the business model of their course. However, on an institutional scale a business model describes the way an organization defines itself. It is not only an earning model: describing the earnings versus the costs, determining the net income of the organization.
The business model also contains collaborations, essential activities and processes and core competencies. By defining the organization in this way shows clearly what the organization sees as its raison d’être, its competitive position in regard to other institutions and organizations.

The individual teacher teaching a class in Latin may not be interested in the fact that her investment in offering an interesting program is only attended by small groups of students. At an administration level of the university, however, the imbalance between the costs of providing the class and the income generated through direct student fees and governmental subsidies. This imbalance and the financial long term effect of it can be fed back to the individual teacher, providing an incentive to change the way of teaching. In this case, sharing with other teachers over universities could be an answer to the investment costs (eq. through virtual classes, by video appearances). Yet, another measurement taken could be to when the institution sees this course as essential for its identity and does not want to share it with others. In that case, funds will be made available for teaching regardless financial shortages. An intermediary way could be to support the teacher to develop materials which could reduce the actual f2f time by offering online materials.

All these actions (innovative or conservative) require an understanding of the business model of the institution:
– why would we invest in innovation in our present education: this requires a view on the strategy of the institution and on the values of the stakeholders;
– will we cooperate and who are our partners, con-colleagues or co-creators?

A good business model can help in three ways: (1) analyses the present activities: are we still creating value for the present students and other stakeholders? (2) Given our strategic targets, are our activities still in line with these targets? (3) Given the wish for change, what does that mean for our activities, competences and partnerships?

Especially in education were the situation is complex as the stakeholder who provides the finances is not the same as the one who receives the education. Is education the service provided (towards the individual student) or is it the student with a degree who is delivered towards society? Another complicating factor is the interaction between the different business models for research, teaching, valorization and other activities as employed at HE institutions.

Again, a business model without a clear strategy or vision on the organization is like having a roadmap without a destination. If we know what we want to do for who; the next thing is to determine how and when. Describing the different business models could give an internal consistency on each major activity, but also show interdependencies and conflicts between the different business models.

Inside in the business model of an organization will stimulate innovation in a broader sense than only technology or demand driven. By aligning the demands of the stakeholders with the possibilities of the organization, possible improvements can be identified, raising the value for stakeholders, whether students, teachers, governments or society at large.

This should not mean that governments should control either content or methods of teaching, that administrations should make profits the main driver of education, but it isn’t a carte blanche for teachers to use unlimited resources in their teachings.
The acceptance of reciprocal interests and interdependencies should lead to an innovative mixture of alternative financing of new interesting teaching methods.

Education Changemakers: Business Models Matter http://marscommons.marsdd.com/business-models-matter/