The type of education taught with the use of the use of a computer and the Internet What is ELearnin

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The type of education taught with the use of the
use of a computer and the Internet?What is
E-Learning

• Group Members
• Dave Boyd
• Patrick Frantum
• Mike Wilfong
• Andres Flores
• Kevin Wise
• Kenneth Brown

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Introduction

• UNext case Summary
• Virtual Generation Case Summary
• Advantages and Disadvantages of E-Learning
• Questions
• What was your initial reaction to the relation
  UNext had with a formerly convicted junk bond
  trader?
• Was anyone in the class shocked at the initial
  client list of UNext with clients, such as
  Columbia and Stanford?

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UNext Business Education and E-Learning

• UNexts Company Vision
• To reach people all over the world to be the
  preeminent global resource of high-quality,
  life-long learning delivered via the Internet to
  those without easy access to the best
  brick-and-mortar universities.

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Company Breakdown

• What set UNext apart from competitors?
• Quality of Academic Partners an Style of
  Instruction
• Columbia
• Stanford
• University Of Chicago
• Carnegie-Mellon
• London School of Economics
• Technology
• Universities lacked multimedia expertise and
  Internet Infrastructure which carried large costs
• Universities lacked expertise to reach students
  through distance learning
• Size of Investment
• Company started with investment of 100 Million
  before receiving its first dollar of tuition
• Initial financing provided from Michael Milken,
  Larry Ellison, and others

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Reaching a Growing Market

• Education Sector of the Economy
• In 2000, the education sector made up 10 of the
  U.S. economy with 785 Billion. Second only to
  the Health Care industry
• Despite its size, the education sector had long
  been ignored by Wall Street because only 10 of
  the industry was for profit and of that only 2
  was made up of publicly traded companies.
• As more for-profit companies entered the market,
  Wall Street began to take more notice.

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Market Conditions in Education

• Trends affecting the higher education industry
• Shift from industrial to an information-based
  economy
• Salaries becoming increasingly correlated with
  educational attainment
• Pay gap increased in 2000 to 111 up from 50 in
  1980
• Student population was aging
• Double the number of students in higher education
  were 25 or older in 1999, than there were in 1980
• New web-based technology held the prospect of
  transforming the education process

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Education Industry

• Degree-granting programs
• Business was the largest field in higher
  education
• 20 of all bachelor degrees granted
• 25 of all masters degrees granted
• 3 of all doctoral degrees granted
• 15 of the 250 Billion higher education market
  was spent on business education
• 85 of all business degrees are awarded by U.S.
  schools

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Regulations

• Heavily regulated industry
• Accreditation from the American Assembly of
  Collegiate Schools of Business (AACSB)
• Satisfy quality standards involving the
  curriculum, faculty resources, admissions, degree
  requirements, facilities, financial resources,
  and intellectual contributions
• Accreditation process limits the entry of
  companies

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Types of Company Training

• Corporate and Government Training
• Executive Training
• Soft-skills training
• IT training
• Executive Training
• Corporate universities
• Management consultants
• Business Schools

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Training Costs for Companies

• Costs in 2000
• 110 billion in direct costs (instruction,
  facilities, and materials)
• Indirect or Hidden Costs
• Travel expenses
• Opportunity costs
• Total estimate of 210 billion in hidden costs
  related to training in 2000
• Increase in Training
• Now seen as a revenue generator
• Pace of technology
• Company perk

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E-Learning

• Made up small part of education industry
  accounting for 7 Billion which was less than 1
  of the education industry in 2000
• By 2005 E-Learning was expected to reach 40
  billion and the expected growth rate is higher
  than the rest of the education industry
• One Analysis of over 300 studies found no
  difference between the effectiveness of classroom
  instruction and distance learning
• However, another review found that there is not
  enough research dedicated to e-learning to draw
  any concrete conclusions

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Benefits of Online vs. Classroom Instruction
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Costs Benefits

• Costs
• Development costs were 5 times as high as
  traditional classroom learning
• High Drop Out Rate
• Benefits
• Travel Savings (lodging, food, etc.)
• Capital costs savings (campus, library, etc.)
• Lower delivery costs
• Rural areas provided access to higher learning

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E-Learning Infrastructure

• Currently not thought of to be as high of quality
  compared to classroom learning but has the
  potential to be as good if not better
• Teachers have noted that classes respond better
  to questions through chat rooms, in addition
  there are new programs developing that can
  monitor student interaction through a web diagram

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E-Learning Infrastructure

• Authoring Tools
• Software that facilitated putting course content
  into web format.
• Platforms
• Technological medium through which e-learning was
  delivered.
• Learning Management Systems
• Software that allowed administrators to register
  students, track their progress, and test their
  knowledge.
• Portals
• Gateways to the internet that aggregated content
  and services from various (e-learning) suppliers.

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People and Partnerships

• UNext hired people whom expressed and interest in
  working in the field of education as opposed to
  working for the next dot com
• Sought out leading business schools to partner
  with
• First such agreement was with Columbia University

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Issues Facing the Columbia University Agreement

• Meyer Feldberg, Dean of Columbia School of
  Business wanted the ability to convert royalties
  in UNext into equity to increase schools
  endowment
• Professor situation
• Professors argued that they own the intellectual
  rights because it is similar to them owning the
  rights to books they published
• Universities said E-Learning should be treated as
  a patent because they provided the facilities
  that enabled the intellectual property to be
  created
• Milkens status with the company hurting the
  ability of approval form Columbia board of
  trustees

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The Agreement

• Columbia was given royalties estimated to be
  worth 20 million that had the option to be
  converted into 5 of UNext stock
• Columbia also controlled how their name was used
• Professors would not have intellectual property
  rights but would get additional or paid time off
• Milkens company stake was reduced to 20 down
  form 80 and no longer had voting rights

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Columbia Agreement Benefits

• Once Columbia agreed this opened the door for
  UNext to bring in additional universities
  including University of Chicago, Stanford,
  London School of Economics, and Carnegie Mellon
• This allowed UNext to rely on the knowledge and
  reputation of those leading universities while
  building its own brand.
• In Addition UNext could provide top-notch content
  from some of worlds leading scholars.

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Products and Placement

• UNext offered three types of courses through the
  companys online school called Cardean University
  which was accredited to offer MBA degrees in June
  2000
• Mastery
• Executive
• Pre-MBA

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Types of Cardean Courses
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Course Design and Development

• Select a professor from the University and
  transfer knowledge into e-learning format
• Course would be refined after delivery to market
• UNext focused on problem based learning
  students were given problem in situation and had
  to decide how to respond. The theory was
  students would learn better solving problems
  versus just listening to lecture
• Course problems consisted of accessing 5 to 7
  learning resources these consisted of self
  tests, lectures and video clips
• UNext tried to incorporate what online learning
  lacked personal contact with professors, study
  groups, and classmates socialization

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Course Delivery

• UNext committed to teaching not research
• UNext instructors were meant to be catalytic
  sherpas. They were catalytic in sparking
  discussion and sherpas in guiding students
  through difficult subject matter
• Adjunct professors on staff 24 hours a day to
  grade coursework
• Pay at UNext was in the 90th percentile
• Metrics such as completion rate, turn around
  time, and student complaints were calculated to
  assist instructors
• UNext goal was to have 1 instructor per 50
  students

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Markets and Admissions

• UNext original focus on business
• Many businesses had the necessary technology
  platform for E-Learning (computer networks)
• For accreditation UNext required students to pass
  2 courses prior to enrolling in the online
  program
• UNext main market was the U.S.
• Believed that B2B business would help deliver B2C
  customer base as employees trained using UNext
  courses
• UNext had researched BTB business but had not
  researched if the B2C customer relationship would
  develop
• Targeted growth was overseas due to the
  following
• Internet was a global platform
• Global market lacked sufficient high quality
  Universities to meet demand
• Problems
• Poor Countries lacked infrastructure for computer
  networks needed
• Some areas lacked funds to pay for UNext courses

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Barriers to Entry into the International Market

• Technology
• Many countries do not have the IT infrastructure
  required.
• Language
• Courses would have to be converted from English
  to the native language.
• Pricing
• Price arbitrage is a problem due to the global
  nature of the internet. UNext wanted to price
  discriminate by charging less in emerging markets.

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Enrollment Costs and Budget

• Cardean University charged 2,000 per course
  suite
• This was about 80 of the price of a top business
  school
• Costs per course suite was 1,400 with 700
  representing fixed costs
• Variable costs (technology and instructor costs)
  ranged from 440 to 500 per course
• Expected that as company grew variable costs
  would decrease to less than 400 per course
• 2001 Budget
• 75 Million fixed costs and 15 million variable
  costs
• Breakeven rate was 115 million
• Burn Rate was 6 million per month
• Development costs were estimated at 1 million per
  course

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• 1996

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1996 to 2001

• 2001 Congress allows Financial Aid Limitations
  on Distance Education to be Waived by FAO

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Distance Learning Competitive Environment
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Distance Learning Competitive Environment
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Competitive Environment 2009
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A Look Into the Future of Education

• Traditional education vs. Business E-learning
  market
• E-learning only deals with simple skills-based
  instruction
• If improved, could pose a serious threat

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Harvard Business School and E-Learning

• HBS fell behind
• Invested 11 million in technology upgrades to
  fill the gap
• One HBS professor said, distance learning is not
  what we are all about at Harvard.
• Students begin to prefer quicker degrees to the
  Harvard exclusivity

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HBS E-Learning Projects

• Online pre-matriculation courses in accounting
  and finance to MBA students entering in 2000
• HBS Working Knowledge (aimed at alumni)
• Offer non-degree program for Global Leadership
• HBS Interactive (HBSi)
• Produce videotapes and CD-ROMs to sale to
  corporate clients and the public

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E-Learning

• To be effective, technology in training needs to
• Be designed with good learning principles
• Match companys technology infrastructure
  capabilities
• Have top management support
• Critical components
• Needs assessment
• Design
• Transfer
• Evaluation

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Technologys Influence on Training and Learning

• Purpose of training
• Support business goals
• Be delivered to disperse groups
• Minimize training costs
• ex. Travel costs
• Maximize benefits gained
• Ex. Learning and transfer of training

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Technology and Collaboration

• Digital collaboration
• Synchronous communication
• Teleconferencing and live online
• Asynchronous communication
• E-mail, discussion groups
• Example
• Shoneys and Captain Ds restaurants implement
  OneTouch

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Technology and Learning Environment

• Classroom Learning Environment
• Traditional learning was very linear
• Trainer -gt Trainees
• Technological Learning Environment
• Technology makes learning more dynamic process
• Greater learner interaction between trainees
• Trainer more of a coach
• Access to experts and research materials
• Blended Learning Approach

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Learning Environments
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Technology and Multimedia

• Multimedia training combines audiovisual and
  computer-based training
• Examples
• CD-Rom
• Interactive video
• Online Learning (E-Learning)

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Computer-Based Training

• Interactive training
• Computer provides learning stimulus
• Trainee responds to stimulus
• Computer analyzes response
• Computer provides feedback
• Examples
• Vidicon Enterprises software called Performance
  Now!
• Bayer Pharmaceutical uses simulations

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Types of Computer-Based Training

• CD-Rom, DVD, and Laser Disc
• Example Apple Computers
• Interactive Video
• Example Federal Express
• Individualized training
• Trainees received immediate feedback
• Available 24 hours a day
• Online Learning (E-Learning)
• Internet- and intranet-based training

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Jeopardy Round 1
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Teaching the Virtual Generation

• Behind the Article from Proserpio and Gioia

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The Authors

• PhD in Business and Management
• Associate Professor, University of Bocconi
• Visiting Scholar, Carnegie Mellon University
• Research topics include Groupware, Distance
  Learning, Knowledge Management and Organizational
  change induced by information and communication
  technology.  

• Luigi Proserpio

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The Authors

• Dennis Gioia

• PhD Management, Florida State University
• Department Chair and Professor, Management and
  Organization, Penn State
• Considered an expert in Cognitive Processes in
  Organizations,Change Processes,Corporate
  Recalls,and Organizational Identity, Image
  Reputation

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Changing Approaches to Learning

• Traditional learning methods centered
  around verbal delivery.
• Learning methods evolved as technology
• and new information channels arrived,
• shifting the focus to a visual delivery.
• Most recently, the focus shifted to an
  interactive style dubbed a virtual
  delivery approach.

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Technological Changes

• Technological Generations are shorter than
  traditional generations.
• The TV Generation (1986) Students watch TVs, are
  visual learners
• The Virtual Generation (2007) Students use
  computers, seek out information via internet

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The Not-So-Distant Past

• The TV Generation, 1986

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Virtual Interactivity

• Interacting with others via computer technology
  and/or interacting with the software itself

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Virtual Generation Learners

• Surf the internet for news and entertainment

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And Virtual Learners

• Like to play online PC and online console games.

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Quake/Unreal
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Two Questions from the authors

• Are there sound ways to incorporate internet and
  videogame play into teaching?
• Can such technology influenced instruction lead
  to a better understanding of management and
  organizational phenomena for V-Gen students?

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Which leads to another question

• How can we use modern technologies to improve
  the alignment between our teaching styles and
  newly developed learning styles of our V-Gen
  students?

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Three Learning Goals for Using New Teaching
Technologies

• Facilitating students ability to make content
  connections via hyperlinks
• Facilitating students ability to make
  interpersonal connections
• Facilitating Students ability to make complex
  inter-domain connections.

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So how do they suggest to reach Virtual
Generation learners?

• Interactivity
• User involvement
• Interface Graphics
• Wow factor
• Engaging information search
• Virtual Group Activity
• Problem-solving orientations that lead to a
  game/simulation experience

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Advantages of E-Learning

• Supports companys business strategy and
  objectives
• Accessible at any time and place
• Can include employees and managers plus vendors,
  customers, and clients
• Can be delivered to geographically located
  employees
• Can be delivered faster and to more employees in
  shorter time period

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Advantages cont.

• Easy to update
• Practice, feedback, objectives, assessment, and
  other positive features of learning program can
  be built in and enhanced through use of multiple
  media and trainee interaction
• Paperwork in administration can be eliminated
• Can link learners to other content, experts, and
  peers

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Disadvantage to E-Learning

• Costs
• Lack of motivation to learn online
• Lack of management buy-in
• Lack of employee intranet access
• Lack of proof concerning Return On Investment
• Lack of high-quality content

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Future Expectations

• Why does the way we teach need to evolve?
• http//www.youtube.com/watch?vFnh9q_cQcUEfeature
  related
• Distance Learning
• Will be used by companies to disperse
  information, technology, new products, new
  procedures
• Cost effective and Fast
• Teleconferencing
• Telephone or video discussion for two or more
  individuals or groups in different locations
• Web casting
• Interaction through online portals
• Meeting online with chat rooms for questions and
  answers
• Disadvantage
• Lack of interaction and illustration

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How to Develop Effective Online Learning

• Needs Assessment
• Is their a connection between online Learning and
  businesses needs
• Do you have the technology needed?
• What are the specific training needs?
• Design
• Repurposing
• Translating Instructor led face to face training
  into an online format
• Learner Control
• Ability for trainees to learn from self paced
  learning, exercises, exploring links to material
  and conversations with trainers and experts
• Technology for Collaboration and Linking
• Bandwidth
• Amount of information that can travel between
  computers per second
• Plug-ins
• Additional software needed to listen to sound or
  watch video
• Hyperlinks
• Links to websites that provide information
• Learning Portals
• Websites and online learning centers that provide
  access to online learning communities

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Choosing New Technology Training Methods

• Measuring costs
• Development costs high but administration costs
  are low
• Advantages
• Accessible training provides cheaper training
  environment
• Reduced number of trainers
• Reduces costs for travel
• CD ROMs advantages over web based training
• Greater interaction between user and training
  program
• Greater Audio/Video uses
• Web based training advantages over CD ROMS
• Can offer immediate collaboration and sharing of
  experts through online seminars and chat rooms
• Additional online links to further information
• Open ended surveys for a stronger feed back
  versus a multiple choice test
• Easier to update over CD ROMS

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Jeopardy Round 2
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Where is UNext now?

• Found 1 article after 2002
• UNext.com is now Cardean Learning Group
• 3 current clients
• Non of the original clients still with company
• currently in large dispute over money with Ellis
  College of New York Institute of Technology which
  is the partner of Ellis University another client
  of Cardean.
• Appears partnership with Ellis College was used
  to help Cardean gain accreditation, if the
  partnership fails so may Cardean accreditation
• Could not find when the Big name Universities
  bailed out and why?

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Current Market for E-Learning

• Last Week Apollo Group Inc. the owner of
  University of Phoenix shares fell 16 due to
  company news release stating things are as good
  as they are going to get.
• Company announced that double digit growth is
  less likely and that they are peaking in the
  current market for E-Learning
• There are few competitors to Phoenix besides
  Devrys Keller school of business and individual
  programs from Universities.

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FINAL Jeopardy

• Category UNext by the numbers
• It is the amount of the initial investment by
  UNext in curriculum before receiving its first
  dollar of tuition.

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Questions

• ?