New business models for competency-based higher

education The opportunities of openness

Pedro J. Lara

(@plaraber, pedro.lara@universidadeuropea.es, http://linkedin.com/in/pedrojlarabercial)

Universidad Europea

Laureate International Universities

Introducing myself

• Vice-rector of Innovation and Education Projects Universidad Europea (UE)

• UE is a private university at Spain (+15.000 students, Madrid-Valencia-Tenerife)

• Laureate International Universities (1M students, 80 Institutions, 29 countries)

Contents

1. What is CBE?

2. What is not?

3. Comparing one example

4. Reasons why

5. Main challenges

6. Business Model characteristics

7. Cost drivers

8. Some prior decisions …

Sources @rpkGroup - CBE: A study of four new models and their implications for bending the higher education Cost Curve

@Blackboard – CBE Higher Education’s answer to the call for change

@VanDavis – The expansion of competency-based programs in higher education

@Eduventures – Myths and Misconceptions about CBE

@MITMediaLab – Blockcerts, An Open Infrastructure for Academic Credentials on the blockchain

What is CBE? Transitioning away from seat time, in favor of flexibility, allows students to progress as they demonstrate mastery of academic content

US Department of Education

Personalized Learning

Opportunities

Regardless of Time Pace Place

Enroll in a ¿Learning Unit?

Diagnostic Assessment

Mastered? Receive Credit

or accreditation

Summative Assessment

Formative Assessment

Develop competency

Registration Diagnosis Instruction Assessment Awarding

@Blackboard

What is not CBE? • … a few courses launched online

• … a new type of academic certificate

• … just a fad for a few institutions

• … something only for adult learners

• … only about skills

• … only uncoupling from the credit hour

… is a market of about 300 HE institution with 350.000 students and other 600 colleges in US.

… is compatible with credit hour-model

@Eduventures @rpkGroup

CBE …

CBE is not …

… and the notion of competency has been always in the base of “Good Education”

… requires design, planning and reconstructing curriculum, and a new delivery model

… is also about the application of skills against a good foundations of deep knowledge

Comparing one concrete example @TempoLearning

Approach to Learning Same Learning outcomes by completing competencies – smaller units of learning.

Tempo Learning™

Same Learning outcomes by completing a prescribed set of courses

Time to completion

You set the pace depending on how much you want to learn during a given time period or if you can apply prior knowledge and experience to

assessments.

You take a set of courses in a given term. Depending on individual progress and credits transferred, if applicable, you will earn your degree within a predetermined time frame

Length of Term You can complete as many competencies in a 3-month term as you want.

Depending on your degree program, you are enrolled in quarter-based programs or

semester-based programs.

Start Dates The first Monday of every month. At the beginning of every term

Traditional Models

Cost By subscription as an “all-you-can-learn” model.

The faster you go, the less you pay. Based on the number of credit hours required

Faculty

Academic Coach: helps to keep you on track.

Subject Matter Experts: share their expertise

Assessors: assessing & Feedback

A dedicated faculty who serves as the subject matter experts and also evaluate your

coursework.

What’s the relationship with openness? What if every competency a student get could be recognize everywhere?

BlockCerts

An open standard for digital academic certificates

Provider of Trust: The Bitcoin Blockchain

Issuer: Universities by creating digital academic certificates

Certificate: Using Open Badges as standards

Verifier: Anyone can, following the Blockchain

Wallet: Everyone can have one and safely store their certificates

@MITMediaLab

Reasons why

Employability

Accountability

Affordability

Accesibility

A way to ensure the preparation of students

in the way that

employers recognize

Instead of a whole grade, a

demonstrated mastery of a set of

competencies

The amount of the

investment and the number of

competencies acquired are a student’s

decision

Modularity and

Flexible Access can be better managed using

Technology

@Blackboard

Personalized Journey towards a concrete destination

Main Challenges

Manage investment and

costs in a mid term horizon

of ROI

@VanDavisBlog

Employability

Costs

Completion Rates

Admin. structures Regulation

Quality

Fit to all students

Personal Support Mechanism

Not only structures but

Institutional Cultures

The applied nature, a

limited F2F interaction and

modularization do not imply necessary lower quality

The risk is cooking CBE Programs but serving them

as a traditional. Lost of Impact

Business Model Characteristics

$5K-6K annually

Low prices to maximize access

@rpkGroup

CB curricular design eliminates duplication

Higher Students to Faculty Ratios (200:1)

Unbundling of Staff and Faculty Roles

PRICE

EFFICIENCY

SCALE Aggressive growth (150% annually)

Implies High Investment in

Marketing to foster Recruitment and speed up Enrollment per program

Student Support to improve Rettention

Mentoring

Success Coaches

Enrollment coaches

Assessment Experts

Instructional Designers

Learning Outcomes Assessors

Technology

1

2

Break Even

Year

5-6

Costs Drivers

@rpkGroup

Infrastructure Initial

Investment

Program Management

Curriculum (design, development, maintenance, assessment)

Learning Support (mentoring, coaches, assessors)

Academic Program

Student Services

Marketing & Recruitment

Institutional Support

43%

38%

Technology 20%

T

I

AP

Some prior decisions and problems to be solved

A question of Balance @rpkGroup

• What is the institution’s ability to invest?

• At what extend is a low Price strategy affordable to achieve the break event?

• How will CBE support a redesign of learning and faculty roles ensuring high quality?

• Holding learning constant and variable timeline or map program-level competencies into a credit-based model?

• How long are you willing to support CBE until Breakeven is achieved?

• At what extend are governments and regulators willing to support CBE?

Thank you

What doesn't evolve and adapt, will eventually become obsolete and die