Disrupting Innovation and Credentialing:

1. Disrupting Innovation and Credentialing: How Technology is Shaping Postsecondary Education Delivery and How We Measure Results National Institute on the Assessment of Adult Learning June 6, 2012 Louis Soares

2. Overview • Access Through Affordability Agenda • President’s Goals • Challenges To Goals • Unbundling College • Disruptive Innovation • Alternative Credentialing (Non-Credit to Credit) • A New Value Network • Whither Freire?

3. Technology is Your Friend

4. What if Education Data was Personal and Mobile? http://www.youtube.com/watch?NR=1&v=8O1i0InZ8bM&feature=endscreen

6. Access Agenda Has Been A Success Fall Enrollment 1987 – 2018

7. President Obama’s 2020 Goal 7

8. Jobs in Today’s (and Tomorrow’s) Workforce Require More Education Source: Carnevale, Anthony P. et al. (June 2010). Help Wanted: Projections of Jobs and Education Requirements Through 2018. Georgetown Center on Education and the Workforce. www9.georgetown.edu/grad/gppi/hpi/cew/pdfs/FullReport.pdf 8

9. PSE Skills Demand Is Driving OtherNon-collegiate Learning Trends • Certification and Licensure • Required in Job Growth areas of healthcare, IT, Education, Green Tech • C/L require custom curricula and assessment with third party validation • Dynamic Labor Market requires occupational credentials for matching candidates with job requirements. Every year: • A third of the entire U.S. labor force changes jobs • 30 million Americans work at jobs that did not exist in the previous quarter • Many occupations that workers have today did not exist five years ago

10. America’s International Edge in College Degrees is Slipping Source: OECD, “Education at a Glance 2009” (All rates are self-reported) 10

11. Affordability Issue 11 • The price of college has increased faster than median household income • Student loan debt has surpassed credit card debt for the first time ever • Students graduate with an average of $25,000 in debt US Dept. of Education – Office of the Under Secretary Data from NCES and the Bureau of Labor Statistics

12. QUALITY • Study of 2,300 undergraduates • 45 percent “demonstrated no significant gains in critical thinking, analytical reasoning, and written communications during the first two years of college”

13. Additional 16M degrees needed to be the most educated by 2020 Source: National Center for Higher Education Management Systems, 2009

14. Rise of Working Learners • Working learners are: • Ages 18 – 64 • In the workforce but lack a postsecondary credential • Needed wage earners for themselves or their families • Three key commonalities: • Combine work and learning or move between them • Build skills and get credentials that employers recognize • Shore up literacy, numeracy, technology, ESL, college skills

15. Undergraduates Today Snapshot • 17.6 million undergraduates • 15 percent attend four-year colleges and live on campus • 43 percent attend two year colleges • 37 percent of undergrads enrolled part-time • 32 percent work full-time, 44 percent work part-time • 38 percent of those enrolled are over the age of 25 and one-fourth are over the age of 30. • The share of all students over age 25 is projected to increase another 23 percent by 2019. • The demands for degrees reflect this changed population. Slightly over half of today's students are seeking A "sub-baccalaureate" credential (I.E. A certificate, credential, or associate's degree). • In 2008-09, postsecondary institutions conferred 806,000 certificates and 787,000 associate's degrees, compared to 1.6 million bachelor's degrees.

16. Summary Problem • Stagnant Degree Completion • Rising Prices • Quality in Question Solution • From increasing access to making a quality education, more affordable – both price and cost • Disruptive Innovation as a means

17. What Society Want from College? • Knowledge • Skills • Socialization • Credentialling Do these deliverables need to be done in the same place at the same time? Or Can they be unbundled?

18. A Sector……. with complicated products/ services… that were expensive and inaccessible…. And served only a limited few sophisticated customers…… Is transformed into one which… Offers products and services that… Are simple, affordable and convenient serving…. Many…no matter their wealth and expertise Disruptive Innovation is the Process by which How? • Redefines quality in a simple often disparaged application • Slowly improves taking for market share by taking on complicated problems • Without replicating cost structure

19. Disruption Across Industries

20. Disruptive Innovation Process Non-consumption Functionality Reliability Simplicity Cost Reduction

21. Process Of Disruptive Innovation Sophisticated customers not interested New Customers, less complex needs, expectations Move up market without replicating cost structure

22. Enabler of Disruptive Innovation 1.Sophisticated technology that simplifies Policy/regulations and standards that facilitate change 2. Low-cost innovative business models 3. Economically coherent value network

23. Technology Enabler • Makes a complex product/service simpler, more affordable • Uses technology to automate routine processes • Allows for modularity in delivering value to customer • Is easily accessible to non-consumers

24. Technology Enabler – Online Education 2014 – 50 % 2003 – 10 %

25. 2009 37% of all courses

26. Business Models – How Value is Delivered

27. Value Networks Value Network • Network of suppliers & partners with compatible & inter-dependent business models • Business Model Disruption in Value Network • Assessment and credentialing (e.g., professional certification) • Learning content development, distribution and management • Learning and research information services (e.g., library services) • Learning infrastructure services • Institutional and program quality assurance

28. Standards/Conformity Assessment • Academic and technical skill and assessment standards • IT standards, including learning content • standards and data management standards • Quality assurance

29. Policy and Regulatory Environment • Federal and state regulations • Institutional and program funding • Student grant and loan policies • Institutional and program accreditation • Federal and state data reporting • P-20 data infrastructures

30. Three Basic Type of Business Models • Solution Shops • diagnose and solve unstructured problems • consulting firms, advertising agencies, hospital diagnoses • Deliver value through people they employ • Revenue - fee for service • Research in Universities • Value Adding Process businesses • organize inputs that are incomplete and turn them into outputs of higher value • Manufacturing, restaurants, retailing • Revenue – outputs of their work • Most Teaching in K12 and Universities • Facilitated user networks • Enterprise in which participants exchange things with each other • Mutual insurance companies, telecommunications • Fee for membership, fee for use

31. Historical Business Models Knowledge Creation (research) Knowledge Proliferation (teaching) Preparation for Life and Careers Disruptive Innovation Online Education Focused on teaching and learning Highly structured delivery Learning Analytics Target on prep for careers Competency-based

32. President’s Goals, Adult Learners & DI • Non-Traditional Learners • Older • Combine work and learning • Seek credentials with Labor Market Value • More mobile • Success and Affordability Require Interoperability • Non-credit to Credit

33. Enabler of Disruptive Innovation 1.Sophisticated technology that simplifies Policy/regulations and standards that facilitate change 2. Low-cost innovative business models 3. Economically coherent value network

34. Trends are Driving the Coalescing ofNon-Credit Validation Ecosystem • To meet the demands of the labor market for PS knowledge and skills and to meet the demand to educate more adult learners in a cost- effective manner. • An ecosystem is forming around the need to validate learning that is occurring in non-credit environments -- to capture prior learning to better engage adult learners, help them persist, decrease time to and reduce cost of degree. • The ecosystem is comprised of many players public and private, for-profit and not-for-profit, traditional and technology-enabled. The governing rules of the ecosystem are still forming.

35. Non-Credit v. Credit-bearing Learning Non-Credit Postsecondary Education and training Type Employer Training Apprenticeships Public Workforce Training Military Volunteer Experiences Providers Business Community Community-base organizations Cross-sector partnerships Community colleges Armed Forces Proprietary Firms Online Providers of Content Emerging Ecosystem To Validate Non-credit Learning

36. Why Is There a Need to Validate Non-Credit PS Education and Training • Credential Recognition • Credit-bearing coursework yields AA and BA • The most recognized and portable credentials in the labor market • Allows learners to add outside learning toward a degree/credential • Diverse Providers • Different objectives, delivery methods and learning outcomes • Makes it difficult to assure quality • Awarding Credit Challenge • Even when NC Education has robust learning outcomes • No standard translation to Credit-bearing coursework

37. Ways of Awarding Credit for Non-credit Learning Many of the players in the ecosystem participate in one or more of these approaches: • Individualized Student Portfolios • Credit For Training • Credit By Examination • Competency-Based Education

38. Individualized Student Portfolios How it works: • Student takes a specifically designed portfolio development course • Identifies learning from a variety of experiences • Prepares portfolios equating prior learning to college courses • Integrates prior and new learning to achieve academic goals • Faculty evaluate student portfolio for credit Players: • 66% of postsecondary institution offer service, with poor uptake

39. Credit For Training How It Works • Learning occurs in corporate, workplaces, union, community-based, unaccredited online and military settings • Program petitions credit evaluator for a credit-equivalency assessment • Faculty partners evaluate (curricula, etc.) make credit recommendation • Credit evaluator contacts designated institutions to recommend credit award • Network of institutions state they will accept, uptake uneven Players • AACC 17 States have exemplary policies for this type of credit

40. Credit By Examination How it Works • Customized Exams or Challenge exams • are offered by some colleges to verify learning. • Current course final exams or other tests developed at the department level • Assess general disciplinary knowledge and skill for awarding of credit • Standardized Exams • provided by third parties to verify learning that can be awarded credit Players

41. Competency-Based Education(fast-growing component of ecosystem) How it works • Institutions, employers and organizations establish learning outcomes and competencies, associated with non-credit education • Establish multi-stakeholder partnerships to align competencies with credit • Use curricula and assessments to validate learning and award credit • Not based on traditional seat-time models Players

42. Degree Profile — or qualifications framework — • Illustrates what students should be expected to know and be able to do once they earn their degrees. • Proposes specific learning outcomes that benchmark the associate, bachelor’s and master’s degrees. Five Dimensions of Learning Outcomes • Applied learning is used by students to demonstrate what they can do with what they know. • Intellectual skills are used by students to think critically and analytically about what they learn. • Specialized knowledge is the knowledge students demonstrate about their individual fields of study. • Broad knowledge transcends the typical boundaries of students’ first two years of higher education, and encompasses all learning in broad areas through multiple degree levels. • Civic learning is that which enables students to respond to social, environmental and economic challenges at local, national and global levels. Three states: IN, MN, UT Two disciplines: biology, chemistry, education, history, physics and graphic design

43. Partnership to award college credit for industry certified competencies

44. UOP/MI Partnership reflects broader trend called stackable certificates to link Degrees (for-credit) and Workplace Certifications and Certificates (non-credit) Courses Degrees Certifications Certificate Apprenticeships Certificate Above concept known as “stackable certificates”

45. Sets U.S. national standards for consumer protection and product conformity • 1,000 businesses, associations, and government agencies • U.S. representative to International Standards Organization (ISO) • ANSI accredits organizations whose standards development process meets all of its requirements to develop American National Standards. • 2009 begin accrediting orgs. that issue occupational certificates (<1yr) • Criteria to assure the quality of certificate programs • Learning outcomes are based on industry input and have market value • The content taught is in alignment with measureable learning objectives • Assessment tools measure learning outcomes • Infrastructure assures the continual success of the certificate program • A process ensures the continuous improvement of the training

46. Degree Completion Institutions How it works • Higher Education Institution accepts college credits from multiple institutions • Along with prior learning assessment • Applies them toward a degree at a single institution Players • 13 states report having a degree completion institution, little data on effectiveness (CT, ID, KY, MD, MN, NJ, NY, ND, SD, TX, UT, VT, VA)

47. Intro to Online Content and Curriculum* Emerging world of technology-enabled, unaccredited PS education (content, instruction, competency assessment)

48. What About Big Data? Formative Assessment? Student Learning Journey?

49. Technology-Enabled Learning Each of these interactions is an opportunity to gather Big Data U.S. Department of Education, National Education Technology Strategy, 2010

50. Black Box EDU