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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
Copyright Clayton M. Christensen 5

Disruption of Toyota

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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
Copyright Clayton M. Christensen 7

Expensive failure results when disruption is framed in technological rather than business model terms
Performance

Tabletop Radios, Floor-standing TVs

Different measure Of Performance

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
Copyright Clayton M. Christensen 11

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


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Copyright Clayton M. Christensen

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

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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

Copyright Clayton M. Christensen

Learning Styles

Temporal

Paces of Learning
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Standardization !!

Customization !!

Historically, most schools have crammed computerbased learning into the blue space
Performance

Core curriculum

Different measure Of Performance

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


Copyright Clayton M. Christensen

Time

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Prime examples of non-consumption

Looming budget cuts and teacher shortages are an opportunity, not a threat
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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
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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
Copyright Clayton M. Christensen 15

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
Copyright Clayton M. Christensen

05

07

09

11

13

15

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Online learning gaining adoption

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


Copyright Clayton M. Christensen 17

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
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Predictably improving

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How Disruptive Innovation Will Change the Way the World Learns

Disrupting Class:

mhorn@innosightinstitute.org
Copyright Clayton M. Christensen 20

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

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
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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.
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Copyright Clayton M. Christensen

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.
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Copyright Clayton M. Christensen

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
Copyright Clayton M. Christensen

Heavyweight
VP VP VP VP

Lightweight
VP VP VP VP

Functional
VP VP VP VP

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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

Copyright Clayton M. Christensen

The instructional materials business historically has been a value-adding process business
Performance

Different measure Of 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
Copyright Clayton M. Christensen 28

Stages in instructional disruption


Little

De

Extensive

Different measure Of Performance

Different measure Of Performance

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

Different measure Of Performance

Custom classes
Modules
Tutoring Facilitated Network: parents, Time teachers, students, entrepreneurs
Copyright Clayton M. Christensen 30

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

Copyright Clayton M. Christensen

How should assessment work?

Deliver content to students

Testing & assessment

Receive real-time interactive feedback

Progress to next grade, subject, or body of material

Copyright Clayton M. Christensen 32

Why do we need to innovate?


When education is not delivered in an intrinsically motivating way, prosperity is an enemy to education

Copyright Clayton M. Christensen 33

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?
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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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