MichaelHorn Disrupting Class

How Disruptive Innovation Will Change the Way the World Learns
Disrupting Class:
mhorn@innosightinstitute.org
Copyright Clayton M. Christensen 1
Michael B. Horn February 27, 2010
Understanding how users experience life

What jobs are students trying to do? Be successful/ progress Have fun with friends Key reason why students motivation is weak is that schools are improperly integrated: Instruction is typically uncoupled from activities in which students can feel success
Clayton M. Christensen 2
Sustaining and Disruptive Innovations

al e of Pac nologic h Tec ress g Pro
Incumbents nearly always win

Performance
Sus
i tain
ng
va inno
s tion
at customers Performance th sorb ab or ze can utili
Time Copyright Clayton M. Christensen 3
Disruptive Innovations create asymmetric competition

Performance
Incumbents nearly always win
nov ing in n i a t Sus

45% on $250,000
s ation
an orm perf t f o Pace ovemen impr

60% on $500,000
ce
Different measure Of Performance
at customers Performance th sorb can utilize or ab

Time
rs me u ns co ng n- umi ns o N ons sio c cca o
ions: nnovat ainst I e v i t g p - Disru ompeting a ption C on um s n o N c non or
40% 20% on $2,000
Entrants nearly always win

Copyright Clayton M. Christensen
Time
Disruption in business models has been the dominant historical mechanism for making things more affordable and accessible Yesterday Today Ford Toyota Dept. Stores Wal-Mart Digital Eqpt. Dell Delta Southwest Airlines JP Morgan Fidelity Xerox Canon IBM Microsoft Cullinet Oracle AT&T Cingular State universities Community colleges Sony DiskMan Apple iPod
Disruption of Toyota
Copyright Innosight Institute, Inc.
Disruption in business models has been the dominant historical mechanism for making things more affordable and accessible Yesterday Today Tomorrow Ford Toyota Chery Dept. Stores Internet retail Wal-Mart Digital Eqpt. RIM Blackberry Dell Delta Southwest Airlines Air taxis JP Morgan ETFs Fidelity Xerox Zink Canon IBM Linux Microsoft Cullinet Salesforce.com Oracle AT&T Skype Cingular State universities Community colleges Online universities Sony DiskMan Apple iPod Cell Phones
Expensive failure results when disruption is framed in technological rather than business model terms
Performance
Tabletop Radios, Floor-standing TVs
Path taken by vacuum tube manufacturers
Time
Portable TVs
or ers m u ns g -co min s n No onsu sion c cca o nNo Hearing aids
Pocket radios
Time
Different Systems Architectures

Proprietary, interdependent architectures: Modular, open architectures
Microsoft Windows; Apple products Customization is very expensive

02/14/10
Linux; Dell PCs Customization is straightforward

5
We all learn differently

Multiple intelligences
- Linguistic, Mathematical, Kinesthetic
Talents
- Giftedness is fluid
Motivations/interests Learning Styles

- Visual, aural, playful, deliberate
Aptitudes Different paces

- Fast, medium, slow
Depends on subject/domain Research in practice

- Scientific Learning - CAST/Universal Design for Learning - K12, Inc. - All Kinds of Minds - Renzulli Learning
Ongoing neuroscience research

- fMRI scans
Copyright Innosight Institute, Inc. 10
Conflicting mandates in the way we must teach vs. The way students must learn
Interdependencies in the teaching infrastructure Need for customization for differences in how we learn
Multiple Intelligences
Lateral Physical Hierarchical
Learning Styles
Temporal
Paces of Learning
11
Standardization !!
Customization !!
Historically, most schools have crammed computerbased learning into the blue space
Performance
Core curriculum
Path taken by most schools, foundations and education software companies

Time
nNo r o ers ng um umi ns s n s io -co on as on c occ

Time
12
Prime examples of non-consumption
Looming budget cuts and teacher shortages are an opportunity, not a threat
School boards have been moving up-market to focus limited resources in the new trajectory of improvement
literature English language & Science Math Economics Psychology Statistics German
Importance of program
Time
Time
Perfect opportunity to implement online learning disruptively

Math
Political importance of program
Science literature English language & Economics Psychology Statistics German
Time
o rs me u ns co ng n- umi ns o N ons sio c cca o
rning: ed lea t nons a b r s te again - ompu on on C Compete consumpti N r

Time
The substitution of one thing for another always follows an S-curve pattern
% new % old
% new
10.0 1.0 0.1 .01 .001 .0001
03
05
07
09
11
13
15
16
Online learning gaining adoption
Enrollments up from 45,000 in 2000 to 1,000,000 in 2007

What are public schools doing?

46 states have some form of online learning initiative 27 states have supplemental state-led programs
FLVS, Idaho Digital Learning Academy, MVU At least 7 have 10K+ enrollments
Districts increasingly getting into the game

Serving nonconsumers: drop-out recovery, credit recovery, advanced courses, home-schoolers
Copyright Innosight Institute, Inc. 18 16
Predictably improving
How Disruptive Innovation Will Change the Way the World Learns
Disrupting Class:
mhorn@innosightinstitute.org
Michael B. Horn February 27, 2010
Centralization followed by decentralization: Computing
The decentralization that follows centralization is only beginning in education
Autonomous Self-sustaining funding Not beholden by the old metrics
Practical implications
Seat time !Mastery/Performance-based Student: teacher ratio Teacher certification
Human resources pipeline and professional development Broadband/wireless infrastructure Portal/Based on usage and what works Treatment and use of data
Why does an organizational model lock us in?

THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job theyve been trying to do RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers
PROCESSES: REVENUE FORMULA: Assets & fixed cost structure, and the margins & velocity required to cover them Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc.
24
THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job theyve been trying to do
RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers
Business units dont evolve. Corporations do.

PROFIT FORMULA: Assets & fixed cost structure, and the margins & velocity required to cover them
PROCESSES: Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc.
25
When launching disruptions, autonomy is key

Organizational model in which product is used
Level of change
Autonomous
VP VP VP VP
Product architecture: What are the components, and which ones interface with others? Change the specifications for how components must fit together Improve performance of each component
Heavyweight
VP VP VP VP
Lightweight
VP VP VP VP
Functional
VP VP VP VP
26
Transforming the content model

Value-adding process businesses Facilitatednetwork businesses
Manufacturing Food services Medical procedures Instruction Textbooks; education software today
Telecomm Insurance EBay D-Life Education software tomorrow
The instructional materials business historically has been a value-adding process business
Performance
Path taken by Educational software developers

Time
on N or ers ing m u m s ns u n co cons casio n oc No
Time
Stages in instructional disruption

Little
De
Extensive
gr
ee
of
cu
m sto
iza
n tio
Performance
cou er-led h c a Te
rses
s ourse c e n i Onl
Teacher-led monolithic instruction
Online learning
ring Tuto
tools
Student-centric learning facilitated user networks Copyright Clayton M. Christensen 29
Student-centric software will be a facilitated-network business

Performance
Custom classes
Modules
Tutoring Facilitated Network: parents, Time teachers, students, entrepreneurs
on N or ers ing m u m s ns u n co cons casio n oc No
Assessment in today s monolithic system
Deliver content to students
Testing & assessment
Progress to next grade, subject, or body of material
Receive results
How should assessment work?
Deliver content to students
Testing & assessment
Receive real-time interactive feedback
Progress to next grade, subject, or body of material
Why do we need to innovate?

When education is not delivered in an intrinsically motivating way, prosperity is an enemy to education
A case study of successful innovation in education: The Florida Virtual School

Start small
Break the mold grant for $200K
What should it look like? Unconstrained by old assumptions; what can we do with this new medium? What is true in this world? Experiment and learn from failure Puzzle: who will want to use this?
Key policies emerge

Autonomous organization
Established in 2000 as independent educational entity New value proposition Freedom to create its rules and procedures and enter into agreements with providers, hold patents, etc. as need be to fulfill its mission
Funding
Initially a line-item allocation In 2003, self-sustaining model established
FL funding formula Seat time !Mastery
Copyright Innosight Institute, Inc. 35 32
FLVS Enrollments
100,000
150,000
200,000
50,000
19 19 19
97 98 99 20 20 20 20 20 20 20 20 20
-9 -9 -2
9 00 00 01 02 03 04 05 06 07 08 -0 -0 -0 -0 -0 -0 -0 -0 -0
0 1
FLVS growth

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How Disruptive Innovation Will Change the Way the World Learns

Michael B. Horn February 27, 2010

Understanding how users experience life

Sustaining and Disruptive Innovations

Incumbents nearly always win

at customers Performance th sorb ab or ze can utili

Time Copyright Clayton M. Christensen 3

Disruptive Innovations create asymmetric competition

Incumbents nearly always win

nov ing in n i a t Sus

an orm perf t f o Pace ovemen impr

Different measure Of Performance

at customers Performance th sorb can utilize or ab

rs me u ns co ng n- umi ns o N ons sio c cca o

ions: nnovat ainst I e v i t g p - Disru ompeting a ption C on um s n o N c non or

40% 20% on $2,000

Entrants nearly always win

Copyright Innosight Institute, Inc.

Tabletop Radios, Floor-standing TVs

Different measure Of Performance

Path taken by vacuum tube manufacturers

Different Systems Architectures

Microsoft Windows; Apple products Customization is very expensive

Linux; Dell PCs Customization is straightforward

Copyright Clayton M. Christensen

We all learn differently

Motivations/interests Learning Styles

Aptitudes Different paces

Depends on subject/domain Research in practice

Ongoing neuroscience research

Copyright Innosight Institute, Inc. 10

Lateral Physical Hierarchical

Copyright Clayton M. Christensen

Different measure Of Performance

Path taken by most schools, foundations and education software companies

nNo r o ers ng um umi ns s n s io -co on as on c occ

Prime examples of non-consumption

Perfect opportunity to implement online learning disruptively

Science literature English language & Economics Psychology Statistics German

o rs me u ns co ng n- umi ns o N ons sio c cca o

rning: ed lea t nons a b r s te again - ompu on on C Compete consumpti N r

10.0 1.0 0.1 .01 .001 .0001

Online learning gaining adoption

Enrollments up from 45,000 in 2000 to 1,000,000 in 2007

What are public schools doing?

Districts increasingly getting into the game

Copyright Innosight Institute, Inc. 19

Michael B. Horn February 27, 2010

Centralization followed by decentralization: Computing

Copyright Clayton M. Christensen

The decentralization that follows centralization is only beginning in education

Copyright Clayton M. Christensen

Autonomous Self-sustaining funding Not beholden by the old metrics

Seat time !Mastery/Performance-based Student: teacher ratio Teacher certification

Why does an organizational model lock us in?

Copyright Clayton M. Christensen

Business units dont evolve. Corporations do.

Copyright Clayton M. Christensen

When launching disruptions, autonomy is key

Transforming the content model

Telecomm Insurance EBay D-Life Education software tomorrow

Copyright Clayton M. Christensen

Different measure Of Performance

Path taken by Educational software developers