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![Page 1: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/1.jpg)
1Copyright Clayton M. Christensen
Disrupting Class:How Disruptive Innovation Will
Change the Way the World Learns
Michael B. HornMarch 5, 2010
![Page 2: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/2.jpg)
2Copyright Clayton M. Christensen
Sustaining and Disruptive InnovationsP
erfo
rman
ce
Time
Performance that customers
can utilize or absorb
Pace of
Technological
Progress
Sustaining innovations
Incumbents nearly always win
![Page 3: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/3.jpg)
3Copyright Clayton M. Christensen
Disruptive Innovations create asymmetric competition
Non-c
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Disruptive
Innovations:
Competing against
non-consumption
Per
form
ance
Time
Sustaining innovations
Incumbents nearly always win
60% on$500,000
45% on$250,000
40% on $2,000
20%
Performance that customers
can utilize or absorb
Entrants nearly always win
Pace of performance
improvement
![Page 4: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/4.jpg)
4Copyright Clayton M. Christensen
Disruption in business models has been the dominant historical mechanism for making things more
affordable and accessible
Today• Toyota• Wal-Mart• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Community colleges• Apple iPod
Yesterday• Ford• Dept. Stores• Digital Eqpt.• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• State universities• Sony DiskMan
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5
Disruption of Toyota
Copyright Innosight Institute, Inc.
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6Copyright Clayton M. Christensen
Disruption in business models has been the dominant historical mechanism for making things more
affordable and accessible
Today• Toyota• Wal-Mart• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Community colleges• Apple iPod
Yesterday• Ford• Dept. Stores• Digital Eqpt.• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• State universities• Sony DiskMan
Tomorrow• Chery• Internet retail• RIM Blackberry• Air taxis• ETFs• Zink• Linux• Salesforce.com• Skype• Online universities• Cell Phones
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Copyright Clayton M. Christensen 11Non
-con
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Per
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Pocket radios
Portable TVs
Hearing aids
Tabletop Radios, Floor-standing TVs
Path taken byvacuum tube
manufacturers
Expensive failure results when disruption is framed in technological rather than business model terms
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Proprietary,interdependent architectures:
Microsoft Windows;
Apple products
Different Systems Architectures
02/14/10 Copyright Clayton M. Christensen 5
Modular, open architectures
Linux; Dell PCs
Customization is very expensive
Customization is straightforward
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9Copyright Innosight Institute, Inc.
We all learn differently• Multiple intelligences- Linguistic, Mathematical, Kinesthetic
• Motivations/interests• Learning Styles- Visual, aural, playful, deliberate
• Depends on subject/domain• Research in practice- Scientific Learning- CAST/Universal Design for Learning- K12, Inc.- All Kinds of Minds- Renzulli Learning
• Talents- “Giftedness” is fluid
• Aptitudes• Different paces- Fast, medium, slow
• Ongoing neuroscience research
- fMRI scans
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10
Copyright Clayton M. Christensen
Conflicting mandates in the way we must teachvs.
The way students must learnNeed for customization for differences in how we learn
Stan
dard
ization !! L
earn
ing
Sty
les
Pac
es o
f L
earn
ing
Mu
ltip
le I
nte
llig
ence
s
Interdependencies in the teaching infrastructure
Temporal
Lateral
Physical
Hierarchical Cu
stom
izat
ion
!!
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11
Copyright Clayton M. Christensen
Historically, most schools have “crammed” computer-based learning into the blue space
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Core curriculum
Path taken bymost schools,
foundations and education software
companies
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Copyright Innosight Institute, Inc. 14
Prime examples of non-consumption
Looming budget cuts and teacher shortages are an opportunity, not a threat
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13
Copyright Innosight Institute, Inc.
School boards have been moving “up-market” to focus limited resources in the “new” trajectory of improvement
Time
Imp
ort
ance
o
f p
rog
ram
Time
German
Statistics
Psychology
Economics
Math
Science
English language & literature
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14
Copyright Clayton M. Christensen
Perfect opportunity to implement online learning disruptively
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Computer-based
learning: Compete
against non-
consumption
Po
litic
al im
po
rtan
ce
of
pro
gra
m
Time
German
Statistics
Psychology
EconomicsEnglish language & literature
Science
Math
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15
Copyright Clayton M. Christensen
The substitution of one thing for another always follows an S-curve
pattern
% new
% new% old
.001
.0001
.01
0.1
1.0
10.0
09 11070503 13 15
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16
Copyright Clayton M. Christensen
Online learning gaining adoption
Enrollments up from 45,000 in 2000 to 1,000,000 in 2007
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17
Predictably improving
Copyright Innosight Institute, Inc.
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18
Copyright Innosight Institute, Inc.
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 16
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19
Copyright Innosight Institute, Inc.
Practical implications• Autonomous• Self-sustaining funding• Not beholden by the old metrics
• 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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20
Copyright Clayton M. Christensen
Disrupting Class:How Disruptive Innovation Will
Change the Way the World Learns
Michael B. HornMarch 5, 2010
![Page 21: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/21.jpg)
Copyright Clayton M. Christensen 7
Centralization followed by decentralization: Computing
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Copyright Clayton M. Christensen 8
The decentralization that follows centralizationis only beginning in education
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Copyright Clayton M. Christensen
PROCESSES:
Ways of working together to address recurrent tasks in a
consistent way: training, development, manufacturing,
budgeting, planning, etc.
Why does an organizational model lock us in?
REVENUE FORMULA:
Assets & fixed cost structure, and the margins & velocity
required to cover them
THE VALUE PROPOSITION:
A product that helps customers do more effectively, conveniently & affordably a job they’ve 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
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24
Copyright Clayton M. Christensen
PROCESSES:
Ways of working together to address recurrent tasks in a
consistent way: training, development, manufacturing,
budgeting, planning, etc.
PROFIT FORMULA:
Assets & fixed cost structure, and the margins & velocity
required to cover them
THE VALUE PROPOSITION:
A product that helps customers do more effectively, conveniently & affordably a job they’ve been trying to do
RESOURCES:
People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition
to the targeted customersBusiness units don’t evolve.Corporations do.
![Page 25: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/25.jpg)
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Copyright Clayton M. Christensen
When launching disruptions, autonomy is key
Improve performance of each component
Lev
el o
f ch
ange
VP VP VP VP
Autonomous
VP VP VP VP
Heavyweight
VP VP VP VP
Lightweight
VP VP VP VPFunctional
Product architecture: What are the components, and which ones interface with others?
Organizational model in which product is used
Change the specifications for how components must fit together
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Copyright Clayton M. Christensen
• Manufacturing• Food services• Medical procedures• Instruction• Textbooks; education software today
Value-adding process
businesses
• Telecomm• Insurance• EBay• D-Life • Education software tomorrow
Facilitated- network
businesses
Transforming the content model
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27
Copyright Clayton M. ChristensenNon-c
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Path taken byEducational
software developers
The instructional materials business historically has been a value-adding process business
![Page 28: 1 Copyright Clayton M. Christensen Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn March 5, 2010 mhorn@innosightinstitute.org.](https://reader036.fdocuments.in/reader036/viewer/2022062313/56649d135503460f949e65ba/html5/thumbnails/28.jpg)
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Copyright Clayton M. Christensen
Stages in instructional disruption
Diff
ere
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form
ance
Teacher-led courses
Diff
ere
nt
measu
reO
f Perf
orm
ance
Online courses
Tutoring tools
Little
Extensive
Degree of c
ustomiza
tion
Teacher-led
monolithic instruction
Online learning
Student-centric learning facilitated user networks
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Copyright Clayton M. Christensen
Student-centric software will be a facilitated-network business
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Per
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Modules
Custom classes
Tutoring
Facilitated Network: parents, teachers, students, entrepreneurs
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Copyright Clayton M. Christensen
Assessment in today’s monolithic system
Deliver content to students Testing & assessment Progress to next grade, subject,or body of material
Receive results
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Copyright Clayton M. ChristensenCopyright Clayton M. Christensen
How should assessment work?
Deliver content to students Testing & assessment
Progress to next grade, subject,or body of material
Receive real-time interactive feedback
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Copyright Clayton M. Christensen
When education is not delivered in an intrinsically motivating way,
prosperity is an enemy to education
Why do we need to innovate?
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Copyright Innosight Institute, Inc.
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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Copyright Innosight Institute, Inc.
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
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Copyright Innosight Institute, Inc.
FLVS growth