Disrupting Class Michael B. Horn | [email protected] | Twitter: @christenseninst How...

Disrupting Class

Michael B. Horn | [email protected] | Twitter: @christenseninst

How Disruptive Innovation Will Change the Way the World Learns

Clayton christensen institute@christenseninst

Review of disruptive innovation


Disruption = affordability, accessibilityPast and present examples

Yesterday• GM• Dept. Stores• State universities• Digital Equipment• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• Sony DiskMan

Today• Toyota• Wal-Mart• Community colleges• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Apple iPod

CLAYTON CHRISTENSEN INSTITUTE@christenseninst

Disruption of Toyota

From hyundaiusa.com May 5, 2013


Disruption = affordability, accessibility

Yesterday• GM• Dept. Stores• State universities• Digital Equipment• Delta• JP Morgan• Xerox• IBM• Cullinet• AT&T• Sony DiskMan

Past, present, and future examples

Today• Toyota• Wal-Mart• Community colleges• Dell• Southwest Airlines• Fidelity• Canon• Microsoft• Oracle• Cingular• Apple iPod

Tomorrow• Chery• Internet retail• Online universities• Smart phones• Air taxis• ETFs• Zink• Linux• Salesforce.com• Skype• Smart phones


How does disruptive innovation relate to K12 education?


Online learning is gaining adoptionSubstitution calculation indicates online learning is growing disruptively

50% of all high school courses online by 2019


The rise of K-12 blended learningDefinition of blended learning

A formal education program in which a student learns at least in part through online learning, with some element of student control over time, place, path and/or pace

at least in part in a supervised brick-and-mortar location away from home (such as school).

100010001111010101000

100010001111010101000

The modalities along each student’s learning path within a course or subject are connected to provide an integrated learning experience.


Emerging blended-learning models


1. Sell to educators in existing system2. Sell to educators in sustaining innovation blended-

learning models3. Sell to educators in disruptive innovation blended-

learning models

Companies appear to have 3 options


The decision matters


Disruption is not a technology problem

Pe

rfo

rma

nce

Time

Time

Diff

ere

nt M

easu

reof

Per

form

ance

Tabletop Radios, Floor-standing TVs

Path taken byvacuum tube

manufacturers

Pocket radios

Portable TVs

Hearing aids


Systems disrupt systems

Pe

rfo

rma

nce

Time

Time

Diff

ere

nt M

easu

reof

Per

form

ance

Appliance Stores

Component suppliers

RCA, Zenith

Sony, Panasonic

Component suppliers

Discount retailers


Option 1: Selling to educators in existing system


Blended Learning is not…


Sustaining the chalkboardThere has been a long history of selling technology to enhance the current classroom

Perf

orm

ance

Time

Performance that customers

can utilize or absorb


Option 2: Selling to educators in sustaining innovation blended-learning models


Disruption isn’t so straightforward

Pe

rfo

rma

nce

Time

Time

Diff

ere

nt M

easu

reof

Per

form

ance

Tabletop Radios, Floor-standing TVs

Path taken byvacuum tube

manufacturers

Pocket radios

Portable TVs

Hearing aids


Perf

orm

ance

Time

Disruptive Innovations

Time

Ability to use improvements

Pace of performance

improvementPe

rfor

man

ce

The theory of hybrids

Peapod: Are there customers that would love a car that won’t go far, and won’t go fast?

Competing on design, reliability, and

performance on the California Freeway

Tesla $100,000

Prius Hybrid


Perf

orm

ance

Time


Time

Ability to use improvements

Pace of performance

improvementPe

rfor

man

ce


Smartphones

The disruptive technologydoesn’t invade and reform

the existing system.Rather, new measures of

Performance entice customersinto the new system

The metric of performance changes


How to spot a hybrid

1. It includes both the old and new technology; pure disruption doesn’t offer old in full form

2. It targets existing users, not nonconsumers3. It tries to do the job of existing technology4. It is less foolproof than a disruptive innovation; does not

reduce level of wealth and/or expertise to purchase and operate it


Emerging blended-learning models


Station Rotation Model


How to spot a hybrid

Traditional PLUS online

Core subjects,

mainstream students

Measuring itself against traditional value proposition

Requires expertise in

both


Station Rotation Model


Lab Rotation Model


Flipped Classroom Model


Option 3: Selling to educators in disruptive innovation blended-learning models


Prime examples of nonconsumption• Credit recovery• Drop outs• AP/advanced courses• Scheduling conflicts• Home-schooled and homebound

students• Small, rural, urban schools• Unit recovery• Disaster preparedness• Tutoring• Developing countries

• Professional development• Pre-K• After school• In the home• Incarcerated youth• In-school suspension• School bus commute• Summer school• Teacher absenteeism• Migrant worker families• Foreign languages

Budget cuts and teacher shortages are an opportunity, not a threat.


Individual Rotation Model: Carpe Diem


Carpe Diem


Flex Model


A La Carte Model


Enriched Virtual model


The pluses and minuses of targeting disruption


The markets appear either saturated or small

Core academics Nonconsumption

Sust

aini

ngD

isru

ptive

“No Excuses”

Trad’l quality metrics

Districts

Charters

Districts

C

C


TraditionalClassroom

New value propositionsLike all disruptions, disruptive blended-learning models deliver different value

DisruptedClassroom

Individualization Productivity

Access, Equity

@christenseninst

Disrupting ClassHow Disruptive Innovation Will Change the Way the World Learns

Michael B. [email protected]

Twitter: @christenseninst


Private enterprise & public education


• For-profits not inherently good or evil• Far fewer inherent differences between for-profits and non-

profits than many assume• Differences between for-profits stem from corporate

structure, where for-profits have owners and non-profits don’t• Easier for for-profits to attract capital, scale, and possibly talent• Easier for for-profits to focus• Non-profits can remain rooted in a community in absence of market

• Incentives matter. Policies must encourage smart demand

High-level conclusions


For-profits not inherently good or evil


Perf

orm

ance

Time


Time

Sustaining innovations

Incumbents dominate sustaining battles

Entrants typically win at disruption

Customer ability to use

improvements

Pace of technological

improvement

45% margin on$250,000

40% margin 20% margin on $2,000

60% margin on$500,000

Perf

orm

ance

Sustaining vs. Disruptive Innovation

CLAYTON CHRISTENSEN INSTITUTE# christenseninst

Understanding how users experience life

“The customer rarely buys what the company thinks it is selling him.”

Peter Drucker

If a customer won’t pay them to do something, over time they won’t do it. Will chase their incentives and do what they are paid to do—not much more and not much less


Far fewer differences


What is a business model?And why does it lock us in?

PROCESSES:

Ways of working together to address recurrent tasks in a

consistent way: training, development, manufacturing,

budgeting, planning, etc.

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


What is a business model?And why does it lock us in?

PROCESSES:

Ways of working together to address recurrent tasks in a

consistent way: training, development, manufacturing,

budgeting, planning, etc.

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

Business units don’t change. Will fighta new order that fundamentally challenges

how they make money

But non-profits have business models, too, and will do the same



profits than many assume• Non-profits aren’t always virtuous• Non-profits have business models, too• For-profits won’t cut corners if customers will punish them for doing so• In public education, historically, neither for-profits nor non-profits have actually saved

the taxpayer much money because of policy There is some sense in which they are all public entities because publicly funded




profits than many assume• Differences between for-profits stem from corporate

structure, where for-profits have owners and non-profits don’t• Easier for for-profits to attract capital, scale, and possibly talent• Easier for for-profits to focus• Non-profits can remain rooted in a community in absence of market

• Incentives matter. Policies must encourage smart demand


Disrupting Class Michael B. Horn | [email protected] | Twitter: @christenseninst How...

Documents

Transcript of Disrupting Class Michael B. Horn | [email protected] | Twitter: @christenseninst How...