e-Literate

Present is Prologue

Tag: OPM

  • MOOCs Now Focused on Paid Certificates and OPM Market

    MOOCs Now Focused on Paid Certificates and OPM Market

    Writing in EdSurge, Dhawal Shah from Class Central describes the mostly-complete transformation of the large MOOC providers – Coursera, Udacity, edX, FutureLearn – away from lifelong learners and towards paid certificates and a form of Online Program Management for Master’s degrees. No one still claims that MOOCs will disrupt the university as previously hyped. Referring to these previous claims:

    Now, more that five years later, we know this [disruption of universities] is not the case. I started Class Central at the end of Nov 2011 as a side project to keep track of free online courses, so I’ve followed the space closely right from the beginning. MOOC providers have learned a lot in the last five years, and they’re now more certain about who their real audience is—and they’re not the dabblers and lifelong learners who take courses just for curiosity’s sake.

    Paid Certificates

    The description of the current MOOC target audience is a twist on an old term. Shah paraphrases Coursera’s previous CEO Rick Levin and then clarifies:

    The real audience is not the traditional university student but what [Levin] calls the “lifelong career learner,” someone who might be well beyond their college years and takes these online courses with the goal of achieving professional and career growth. [snip]

    Traditional lifelong learners might learn due to their love of learning, but in the case of lifelong career learners, the “lifelong” part is driven by the necessity of constantly adapting to the changing job market. Learning for the sake of learning sounds appealing, but, at least anecdotally, I hear from many people find they are more likely to make significant progress or even complete a course when they are tied to professional outcomes (that’s certainly my experience).

    Typical paid programs lead to certificates and may be sponsored by the employer and may be tied to a monthly subscription.

    Shah also describes how the MOOC providers have dramatically reduced the offerings and features available for free, lamenting at the end:

    But if you are true lifelong learner—the ones that helped start all the hype in the first place—the MOOC experience has largely been reduced to basically a YouTube playlist with a cumbersome user interface.

    Unless, of course, you are willing to pay.

    OPM Progress

    Shah also linked to a previous post of his at Class Central describing the progress made by the MOOC providers in creating an Online Program Management (OPM) business model. Udacity started this movement with their Master’s of Computer Science degree at Georgia Tech, but now the other vendors are following suit. Coursera announced their fourth program in March (three of them at the University of Illinois), edX added one at Georgia Tech, and FutureLearn announced three programs at Deakin University in Australia. All told, there are now 10 programs identified where the MOOC providers are acting as OPM providers, albeit from four universities. From the April post:

    In a post describing the OPM market last year I noted:

    The OPM market is interesting and dynamic. Here we see strong arguments for both bundled revenue-sharing models and for unbundled fee-for-service models. I personally do not believe that the market is moving away from revenue sharing as much as there is pressure for additional models. There are a growing number of choices available to schools, but there is also a crowded marketplace that is becoming more difficult to understand and compare vendors.

    The 10 programs mentioned above now represent one of these “additional models” in the crowded marketplace.

    For those wanting to understand where the large, commercial MOOC market stands in 2017, I recommend reading both of Dhawal Shah’s posts – from April at Class Central and July at EdSurge.

  • First Board Meeting For Kaplan / Purdue University: Tuition Levels Set

    First Board Meeting For Kaplan / Purdue University: Tuition Levels Set

    Last week was the first meeting for the board of trustees for NewU, the working name for Kaplan University now that it has been “acquired” by Purdue University. And yes, the scare quotes are intentional given the $1 purchase price. I’ll give the group high marks for transparency by the press release.

    In its inaugural regular meeting, the Board of Trustees for Purdue’s new affiliated institution, currently referred to as NewU, approved plans to offer a dramatic tuition discount for Indiana resident students and free tuition for Purdue employees.  The new Indiana resident rate, also approved by Kaplan University’s trustees, will take effect at the beginning of KU’s next academic term. [snip]

    An Indiana resident student pursuing an associate or bachelor’s degree will pay the equivalent of $220, including technology fees, per quarterly credit hour, which is a discount of approximately 45 percent. The total cost to graduation for a bachelor’s degree would be $39,600, compared to a total cost to degree of $80,088 (including room and board) for Indiana residents at Purdue’s West Lafayette campus.

    The reason there are two boards of trustees involved – for NewU and for Kaplan U – is that the deal still must be approved by state and federal regulators and by NewU’s accreditor HLC. (more…)

  • Purdue University Deal To Acquire Kaplan University: Interview with Trace Urdan

    Purdue University Deal To Acquire Kaplan University: Interview with Trace Urdan

    The surprise news today is that Purdue University has agree to acquire the academic operations of Kaplan University. As stated in the 8-K filing by Kaplan University’s owner Graham Holdings:

    On April 27, 2017, Kaplan Higher Education LLC and Iowa College Acquisition, LLC (collectively, “Kaplan”), subsidiaries of Graham Holdings Company, entered into a Contribution and Transfer Agreement (“Transfer Agreement”) to contribute the institutional assets and operations of Kaplan University (“KU”) to a new, nonprofit, public-benefit corporation (“New University”) affiliated with Purdue University (“Purdue”) in exchange for a Transition and Operations Support Agreement (“TOSA”), pursuant to which, among other provisions, Kaplan will provide key non-academic operations support to New University for an initial term of 30 years with a buy-out option after six years.

    Additional coverage of the deal at The Chronicle, Inside Higher Ed, The Wall Street Journal.

    This is an unprecedented move, and to get some insight, I interviewed Trace Urdan, who has long covered higher education as an investment analyst and is one of the most knowledgeable observers of the for-profit sector. The following description is based mostly on this interview, paraphrasing Trace’s explanations and adding quotes in places. (more…)