Business models in international education: what is possible? How local is education in your view?

 

distance_education

In No education crisis wasted: On Bridge’s “business model in Africa (July 13, 2017), Hengeveld criticizes the way Bridge International Academies (Bridge) organizes their educational model in countries like Kenya (2009), Uganda (2014), Nigeria (2015), Liberia (2016) and India (2017). At their own website, they describe their Academy-in-a-Box: We re-engineered every part of the education system, from teacher training and support, to lesson delivery, construction and financial administration, as well as pupil and teacher feedback to monitor progress, to make it as efficient, effective – and very affordable for the communities we serve….The global education crisis means that it’s essential our education model is sustainable and scalable, that’s why we aren’t an NGO. The model includes 24/7 support of the teachers; following the national curriculum of the countries, incorporating the local context and standards, collaborate with local education ministries; personalized instructions using Wi-Fi handhelds, recording student data, freeing teachers to concentrate on teaching instead of administrative functions; streamlining managerial tasks, freeing managers to concentrate on teachers, families and communities.

According to a report of the Global Initiative for Economic, Social and Cultural Rights (GIESCR),  Bridge uses “school in a box” model, employing a highly-standardized approach to education. At BIA, every school looks the same, the material used is the same in each classroom, and most importantly, the lessons are the same across all the academies of the same country. BIA uses a system of scripted lessons, and its teachers – who are mostly secondary school leavers without formal teaching qualifications – receive lesson plans on an e-tablet, which they have to follow word by word”. This report criticizes Bridge for several reasons. Firstly, they show that the tuition fees are such that poorer students cannot participate. Secondly, they dispute the compliance with local legal and educational standards. The report points towards research in Kenya(*), that “the majority of BIA students are taught by unqualifed, overworked, teachers using teaching scripts (developed in the US) read from tablets. The school infrastructure is basic and viewed by many as inadequate. [..]. Regular payments are strictly enforced and students who are behind with payments are excluded from the classroom. Both GIESCR and Hengeveld argue that public investors, as the Dutch government and the World Bank should reconsider their contributions.

Whether Bridge International Academies does violate national legal educational and labor regulations is something which I cannot determinate.  The arguments in the contra-Bridge rapports are convincing, but Bridge of course deny the observations mentioned above.

A different question is whether the business model of Bridge is viable altogether. Taking the strategic paradox De Wit and Meyer (2014**) on internationalization of organizations, they distinguish two perspectives, the global convergence perspective and the international diversity perspective. The first builds on international centralization of management, economies of scale in purchasing policies and sales, increasing efficiency. The second perspective accepts that there are fundamental differences between local markets, customers and governments.

Education is a sector which is certainly characterized by international administrative and legal diversity. So each organization which wants to operate on a global scale should take account of the local rules and regulations with respect to curricula, but also to privacy legislation and labor market regulations. react severely when –in their experiences- an organization disrespects or even violates these national laws. Especially when the organization offers formal degrees, local accreditation is essential for recognition.

Another question is how general is ‘education’. Is it possible to develop educational materials for the teachers or even for the students which can be used globally? To profit from the economies of scale, there has to be some synergy between either resources (reallocation, specialization), activities (pooling, specialization or competitive local advantages) and in the product offering (standardization, cross-border competition). For example, by designing an international oriented MOOC, the assumption is that the didactical methods are internationally usable. Whether it is an American textbook on sociology, a MOOC on global pollution or a distance course on chemistry, the designers/authors use a didactical method, specific examples and language. What makes some materials broader usable than others; what makes authors think that their materials are internationally usable? For example, starting European students of economics in the 80’s knew more about the American Federal Reserve than of the monetary systems of other European countries.

Bridge, but also MOOCs and OER implicitly assume that educational materials are broader adaptable than the development environment. Bridge even states that the material they make available through their tablets can be supplemented by the advice of central organized experts. Of course, the materials made available by Bridge are their own resources. MOOCs are available under creative common copyrights, but are often not adjustable, taking the form of a static text book for use in other environments. Only OER available under the most flexible creatives commons are adjustable and reusable by third parties (teachers). Yet, adjusting these resources, translating them in other languages, subtitling and adding local examples will be a lot of work. If the critique on Bridge’s central approach is right and local education is more effective with local teaching, this also removes the arguments of the possibility to provide less costly education, available for all social classes and incomes. If Bridge’s education isn’t more effective, more accessible and of a higher quality than the local teachings, the business model of this kind of education disappears.

But if the central globalization approach doesn’t work for Bridge, will MOOCs and OER be usable outside of the developers’ environment. Three of the shortcomings of MOOCs as listed on the website Online Course Report (OCR, 2016) are the teaching methods, the way content is presented and their Anglo-Saxon orientation. And these are listed as general limitations, not specifically because of local methodology.

I would like the opinion of teachers among my readers, How local is education in your view?

* Bridge versus Reality: A study of Bridge International Academies’ for profit schooling in Kenya; Report, Education International/Kenya National Union of Teachers, December 2016

** De Wit, B., & Meyer, R. (2014). Strategy synthesis: Resolving strategy paradoxes to create competitive advantage. Cengage Learning EMEA.

 

 

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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.

Is Higher Education disrupted or not?

Freedom’s just another word for nothin’ left to lose
Nothin’, I mean nothin’ hon’ if it ain’t free
Joplin Janis – Me And Bobby Mcgee

Do we have to expect that traditional education will disappear within the next three decennia as mainframe computers are replaced by handheld smartphones? Following Christensen and Horn (2013) Moocs will have this effect in time, with Moocs as disruptive innovation replacing brick-and-mortar universities.

However, in  Christensen, Horn, Caldera and Soares, they give a more nuanced approach, based on the existence of (open) distance learning institutions, given the different problems of (USA-based) higher education (p. 2): stagnating graduation rates; financial difficulties, both by the educational institutions, by the students and on the different government levels, declining prestige in the field of education, notwithstanding a good reputation in research.

To follow their 2011-analyses, we will give a description of disruptive innovation, followed by the analyze why ODL will be a disruptive force, but also reasons why it will fail if some conditions are not met.

Funnily, Moocs do not have the characteristics Christensen et al (2011) see as essential for ODL to become a disruptive force. Given the attention given in the last year to the possible disruptive influence of Moocs, it is interesting to see what the conditions leading to disruption in the educational sector.

Disruptive innovation

Disruption does not mean ‘a radical breakthrough improvement’, but it is an innovation replacing an existing complicated high price-high profit offering with a low price- low profit alternative, which is generally less complicated and with less functionality. This alternative replaces the original offering at the lower end of the market, but also opens up new opportunities in making the product or service available to customers who formerly could not understand or afford this product/service.

For a number of reasons the existing firms are not able to provide a similar alternative, as this alternative cause them to lose the higher profit upper part of the market. According to Christensen et al., business models are designed to solve one specific ‘problem’ and make money via a particular profit formula (p. 20). In an existing market it makes more sense to increase quality, prices and profit rates by moving production capacity from the low-profit bottom of the market toward the more profitable upper part of the market. A conclusion which is not fully accepted in the business model literature (see for example Osterwalder and Pigneur (2010), who assume that one organization can house more business models).

Assuming the new entrants to be price fighters, their costs advantage will disappear when the last of the original firms leaves the market. However, then:

..disruptive companies must move up-market through sustaining innovation once their business model has been established in one of the outer circles in order to sustain profitability and organizational vitality. The reason: If they stop this up-market pursuit and compete only against equal-cost competitors, then they have no cost advantage. It is only if they carry their low-cost business model up-market that they can retain their cost advantage against competitors (p. 15).

So the disrupting firms will move towards the top-end of the market pushing out the old existing firms.

The only exemption to this destructive force is IBM, who decided to open a new business unit at arm’s length, after the introduction of personal computers. In time, the business unit replaced the original mainframe producer!

ODL as disruptive innovation

Question is if the conclusions from the research into disruptive innovations in the profit sector are valid in a not-for-profit sector as education. Their answer is yes, because:

Improved profitability tends to drive the decision making in for-profit circumstances. But in not-for-profit circumstances, the ambition to do more and have a bigger footprint—an ambition driven both by administrations and often alumni in the case of education—precipitates precisely the same behavior as profit maximization in the for-profit world. The companies on the sustaining trajectory, when faced with the choice of making better products that merit better profit margins vs. making lower-priced, simpler products that merit slimmer margins, invariably find it more attractive to build and offer more and better (p. 14).

So, what are the problems with the present business models of education?

Christensen et all. distinguish three kinds of business models, solutions shops, value adding processes and facilitated network-users. In the table below, these three types of business models are described. Problem is that most universities try to combine at least two of these business models, as can be seen in the fourth column.

Model

Type

Source of income

Education

Solution shops Institutions focused on diagnosing and solving unstructured problems such as consulting firms, advertising agencies.These shops deliver value primarily through the people. Fee-for-service model: being compensated for their inputs, not the results, because the outcome depends on many other factors. Most university faculty research is solution shop-like activity
Value-adding process businesses Organizations with value-adding process business models, in which resources and processes are used to transform inputs into more complete outputs of higher value. Value is created by efficient processes and organization. Income is based on the output of their work. Teaching
Facilitated user networks An enterprise in which the participants exchange things with each other. Fee for membership or fee for use. Thanks to the Internet, many university activities that were formerly conducted as solution shop and value-adding process businesses are evolving into facilitated networks among students and faculty, such as hosted discussion forums.

Because of the combination of different business models within the same organization, there will be costs of complexity: additional overhead costs and inefficiency in the organization of the different activities (education, research and consultancy).

So in this time of financial crisis and a reorientation of students, the reaction of  existing educational institutions will be to increase their efforts in the existing activities: putting more effort in excellent research, aiming for the outstanding students and academic standards.

In the view of Christensen et al. (2011) this ignores the fact that the educational customers are changing: was the majority of the students in the 18 – 24 years old group, for whom degree less important than ‘becoming of age’, nowadays a large part of the learners is older and factors like costs, competences and timing become more important than degrees and socializing.

They see online education as the technological driving force which makes it possible for large amounts of people to get this ‘just-in-time’ education, based on competences at low costs:

online learning offers a natural medium to move forward focusing on competency based measures around what one is actually able to do, about which employers and society at large are actually concerned (p. 45).

One of the major barriers for moving towards a more just-in-time education based on competences is the fact that accrediting agencies reinforce the existing situation, by stressing the importance of research and keeping outsiders that operate differently out of the “club” (p. 46).

As existing organizations will not be able to move down the market; providing less services, but more value at lower cost, Christensen et al. (2011) assume that government agencies and politicians have to ‘open up’ the sector, giving four advices to regulators in the educational sector.

Some critical remarks

A lot of the examples in the 2011-rapport are of for-profit institutions, concentrating on online education or of existing institutions which have transferred their online education towards another ‘business unit’ outside the university.

Lawton and Katsomitros wrote about the failures of ODL (for-profit) organizations, listing the following institutions:

2001 NYUonline (part of New York University)UMUConline (University of Maryland University College)Virtual Temple (Temple University)
2003 Fathom (a high-profile and for-profit elearning portal launched in 2000 and led by Columbia, with Chicago, Michigan, LSE, Cambridge University Press, the American Film Institute, and other partners including the New York Public Library, British Library and a number of museums in London.)
2004 UK’s e-university experiment (UKeU)
2006 AllLearn, a not-for-profit online collaborative venture of Yale, Oxford, and Stanford, which started in 2001, and which more closely resembled the current MOOCs.

So not every alternative educational institute has become a success. Furthermore, although not every academic researcher is a good teacher, every good teacher is capable of translating scientific research into educational materials.

As I have argued elsewhere, a lot of the commercial educational institutes are built around  teaching professors, with a research position in publicly funded institutions. In this way, they can offer education at a cheaper rate as they do not have the investments in research and education of the teaching staff. In this sense Christensen et al. are right in the sense that there are less overhead and complexity costs, as these costs fall upon other institutions.

It is, however, a good approach to determine what society and individual learners really demand from educational institutes. It is a reminder that (academic) education is the translation of new knowledge into learning and competences. Accreditation should take this aspect of education more into account and put lesser emphasis on research activities of educational institutions.

Yet, in my experiences, working at the faculty of Management Sciences of the Open University of the Netherlands, most of my adult students are not only interested in the content of the courses, but also in the certificates of the individual course, to show their employers that they have acquired the essential knowledge. A large group is also interested in the Msc-degree. After some years, in which working experiences determines their career, they encounter some kind of ‘glass ceiling’ as they lack a formal degree.

The message of Christensen et al. is clear: online distance education should be concentrated on education, reducing overhead- and complexity cost. Affordable education, driven by the demand of the learners and society, will disrupt the educational sector; but only when policymakers will create the conditions for these initiatives to be sustainable.

Wirred: Christensen’s napkin

ODL, the social contract and the economic crisis.

Suddenly a social contract appears in the blogs I am reading. In “The Perfect Storm for Universities“, Popenici writes about the fact that more education does not necessary means a higher income or more change of a steady job. Bonnie Stewart states that the social contract can no longer fulfill its promises. Adding “Of course” to this sentence. Prinsloo lists the assumptions and links between Bildung, graduation and employment which are replaced by other forms of curriculum development, assessment and accreditation, as one of the major changes of 2012. 

Respecting the differences between the blogs, they all blame education for the break down of this relationship. Either the appearance of Moocs and the Internet flow of information (Stewart, Prinsloo) or the student loans, a business attitude of university administration and faculty and the arrogance of universities in general (Popenici). Or taking a quote of Christine Teelken: It seems that universities are no longer viewed as ivory towers of intellectual pursuits and truthful thoughts, but rather as enterprises driven by arrogant individuals out or capture as much money and influence as possible.

However, a contract is a two-sided agreement, depending on certain conditions. This social contract states that if the individual does his best to get explicit grades and diploma’ s, society will take care of his or her employment. One of the conditions attacked is the state of education, which is either bad or treated by ODL‘s as Moocs. Neither of them talks about the other conditions. In Europe as in the USA, there are only a few jobs available. Because of the credit- and the euro-crisis, because of the decline in competitiveness, the social contract has been broken, not necessary because of the rise in alternative sources of information and education.

If online distance learning (ODL) is not the source of the problem, perhaps they can be (part of) the solution? ODL’s, whether open educational resources aimed at teachers (reusable, remix and redistribution) or open online courses aimed at learners (and massive if successful).

In a world where income and employment decline, the access of education is limited as the example of Greece shows. Free resources and courses could help to overcome the scarcity of materials and teachers.

As one of the reasons to be involved in the production of open educational resources, the Unesco reports on the Russian Federation and China state the availability of good quality materials in distance parts of the countries, in Brazil availability over income groups is also mentioned.

Another reason for introducing ODL in a large scale in traditional education is given by Stephan Ruth. Combining different models of ODL (Mooc’s, course redesign using e-learning, virtual campus, the $10,000 degree), he concludes that e-learning can greatly decrease the costs of education. He therefore comes to a combination of models, the Export Import Model, in which the excellent universities offer open online courses and resources. Because of the restricted supply, each ODL becomes a Mooc, used by not-so excellent universities, who organize the tutoring, the discussions and exams. The not-so excellent universities pay the excellent universities a fee for the use of the materials and get an income from the students who want to get tutored, take exams and so forth.

Having some experience in developing distance education myself, I think the cost reduction is strongly depending on the amount of students. Designing and making good distance education is much more expensive than designing and giving face-to-face education. When the initial development costs are spread over more students, there will be a point after which ODL is cheaper than f2f education. However, as tutoring can not be up-scaled indefinitely, there can be an upper bending point after which the efficiency of tutoring declines and the cost reduction declines too.

Another drawback of Ruth’s approach is the division between developing and exploiting institutes, between high paying students studying on site at the excellent universities and other students studying at the not-so excellent universities. What such at division means for the social contract even when the economical crisis disappears, is not clear to me.

Mondon and Hoffstaeder give yet another view on such a division, however along the line of humanities versus natural sciences. They are afraid that online learning is in favour of hard sciences, which in their view can bet assessed by single answer questions, whereas humanities require other skills as good essay writing.

Secondly, they are afraid that students will not study humanities as the job prospects are limited; thirdly humanities are more dependent on student numbers and government grants as they find it harder to find private partners for funding their research.

Partly these worries are mirrored by the research of Teelken and the translation of this by Prinsloo, Stewart and Popenici, especially the dependency of education on market forces and efficiency, as stressed by Ruth. However, ODL, OER and Mooc’s are not the monsters depicted by Mondon and Hoffstaeder. Assessing essays, papers and other kinds of assessments are available and under construction. The fact that students in the present situation take their future job opportunities in account by choosing a curriculum is not strange given the economic situation, whereas the relation between ODL and research funding is a strange one.

When the Hobbit, Bilbo Baggins, closes his home to go There and Back Again, he didn’t realize what lay ahead of him. Also it is the question if modern multimedia techniques can beat 35 years of imagination. Will free ODL’s change the world is an open question but hopefully there will be a Back Again.

Moocs and the Bottom of the Pyramid

Moocs, Massive Open Online Courses, are provided for free to large amount of participants. Tuition and assessment are peer based. They are not really Open Educational Resources as they are only offered in certain periods and the materials are not available for (re)use in different educational situations.

As a economist, I realize that what irritates me is the way these courses are labeled massive by those who offer them. A course becomes massive because a lot of people participate in the open version, not because the teacher decides to offer a massive course as Steve Downs says in the introduction to the Change Mooc. Some course have a proven track record, Artificial Intelligence of Stanford has been a success, so have the courses of George Siemens and Stephan Downes on Higher Education. Perhaps other open online courses have been less successful (in numbers of students), but also less prominent in the publicity. Of course, Moocs and other online courses will be criticized for offering a Tata Nano versus the classroom BMW (Amanda Ripley in Time US).

George Siemens’ interview on MOOCs and Open Education by Andreia Inamorato

The free offering of courses from outstanding universities as MIT, Stanford and others make good quality education available in places where otherwise no education would be accessible. Furthermore, the massive character of these courses open the possibility of applying a “Bottom of the Pyramid” kind of financing for education.

One of the more interesting business models of Moocs is the supply of a paid-for degree course, together with a free non-degree version without expert tuition. Adding to this the possibility of asking a small fee for a certificate stating that the person has participated in the program, and the possibility to sell the program to third parties, these opportunities broaden the global participation, educating the bottom of the pyramid. For example, Sui Fai John Mak shows on his blog a figure consisting of three kind of markets he expects to emerge from the present Moocs (see below).

Yet another way the philosophy of the Moocs can be combined with the philosophy of Prahalad is by asking yourself what kind of education these people need. Is it possible to rework online distance courses in such a way that institutes in the neighborhood can build programs around these ODL’s so students can take formal assignments and get formal degrees. The combination in thinking about delivering to the point courses at affordable fee, compensating the costs through the amount of students and working together with local organizations for the formal recognition of the degree.

Of course such a development has the danger of unification of education in it, the McDonaldization; “MOOC’s may provide access to a world-class education, but the product is prepackaged and standardized. And, because it is readily available, it risks diminishing both the diversification of the higher-education sector and the advancement of globally engaged students and institutions”. If Moocs become the baseline in education in developing countries, the content of education will become the same everywhere.

When there are a large amount of people interested in participating in these kind of courses, the development costs per student will be very low, whereas other institutions can use the course to offer a degree based on the Mooc, tutoring and local assessment. Again, this makes education available for people who cannot afford regular education. Another observation of Amanda Ripley, based on her experiences in Pakistan was that “ at this stage, most MOOCs work well for students who are self-motivated and already fairly well educated. Worldwide, the poorest students still don’t have the background (or the Internet bandwidth) to participate in a major way” . In the TimesHangout, Amanda Ripley remarks that it are only the higher income students in developing countries can afford to participate in Moocs.

Concluding, in themselves Moocs will not solve the differences in education level around the world. There are too much problems concerning these online courses, associated with the low success rates of students, the lack of formal degrees. But also problems with the potential participants, as a lack of money for broadband internet and other income related problems and institutional problems, for example when Pakistan closed down YouTube blocking an anti-Muslim movie, they also blocked the access of 217 students to the massive, open online physics course (again according to Ripley).

However, I think that Moocs and other ODL-courses can be instrumental in providing education in places where otherwise no good quality education is available (whether in developing or developed countries). If it will be a success depends on the conditions which will be created locally. If other institutions adopt the Moocs, if governments are supportive of these kind of educational materials it is possible that this kind of education can provide a stimulus to better education. On the side of the Moocs, they could be made available around the year as open educational resources instead of just an additional outlet for existing education.

Journalism and the Age of Free Information

I wanted to write a blog on the international effects of the golden open access by the UK government. However, I got caught in an interesting discussion between a Dutch journalist and a website owner and chief editor on the way the website uses information and articles written by the journalist. The website called Nearby.nl (Dichtbij.nl) uses amateur writers, paid writers and secondary sources to fill its website with local news.

The Dutch journalist accuses the website owner of stealing his articles by reproducing them at his own website and of robbing him of his means of living. In his own words: the reader has the choice to pay about 300 Euro to read a newspaper or read the same items onscreen for free? The owner/editor has two answers to this. Firstly, he states that they “facilitate peoples hobbies, providing a place to publish their writings”. Secondly, he states that some journalist find a paid job working for his website. 

I think both of the discussants miss the point. The emergence of internet allows people to publish their opinion on everything, everywhere, for everyone to read and react. This can be on their hobbies (cats seem to be especially interesting at least at Facebook) but also a review of the local football club or starting a discussion on books they have read. Some will chose Facebook, WordPress or another personalized website; others will join a existing website as Dichtbij.nl. It is even allowed to add external links to your own website, as Dichtbij.nl does, linking to available internet contributions of newspapers and other news agencies. When the text of the internet item is reproduced and the source is only given in small print at the end of the item, it becomes less clear if this is still allowed.

However, as the news agencies themselves put the items online, the journalist is wrong in perceiving this as a danger to his occupation. In general, news gatherers should rethink their role in society. In this they could be helped by the vision of the website owner/editor: describing simple facts and events as they appear is too simple to justify the payment of hundreds of euro’s for a newspaper. In the present society, information is, or becomes fast, free.

To deny the view that journalism is no more than reporting events, requires an alternative vision. Question is what a professional reporter adds to the plain description of the events? Taking the Business Canvas approach, it is important to determine who is the customer, what are the core resources and activities, the essential partnerships of the (freelance) reporter?

Not being a journalist myself, it is complex to answer these questions. Assuming that (world and local) events will be known through social media and free websites, the journalist could provide a context to the isolated event. Either by investigating journalism, using strategic partnerships, describing the unknown background or hidden agendas, or placing the single event in time; deterministic or unique.See for example the different models of Jeff Jarvis on sustainable journalism.

In this sense the journalist plays the role of the teacher as described in my former blog about data, information and knowledge. The journalist helps the reader to make sense of events which isolated may look insignificant or too important. Furthermore, the journalist can act as the memory of the readers, confronting politicians with former promises, acknowledging series of events leading up to this particular happening. Journalists have to become an authority, building a reputation of integrity, expertise and sensitivity to the news. Question is if every of the present day journalists can play this role of investigating reporter?

Lastly, the view of the website owner/editor reflects a post-modern approach to expertise. This approach denies the importance of experts as journalists, teachers and GP’s.  As all information is freely available on the internet, we can all make our own newspaper, become self-learners and diagnose health problems. This ignores the fact that experts have the competences to translate information and data into knowledge. A website with local facts and figures will certainly attract enough visitors to make a business model based on advertising worthwhile. It also ignores objectivity, the mentioned events can be brought to the attention of the website by enthusiastic amateurs, participators, and public but also by the organizers of an event.

Open and free access to data and information will force several types of industry to discuss their core activities. The owner/ editor of the website thinks that his core competence lies in the use of amateur journalists, because -1- they have a deeper knowledge of the local situation; -2- they are less expensive than professionals. Question is if he adds so much to the open information he copies that his website generates enough traffic to attract advertisers (his earning model in my view).

Journalists, teachers and even GP’s have to deal with the flow of free information (open resources). This may not be new (free magazines, learning on the workplace or medical columns in magazines) but the size and speed makes the supply of information different from these older examples.

Yet, it is here to stay…………………………………………….