Online Education as an Agent of Transformation

Clayton Christensen & Michael Horn, via a kind Rick Kiley email:

WHEN the first commercially successful steamship traveled the Hudson River in 1807, it didn't appear to be much of a competitive threat to transoceanic sailing ships. It was more expensive, less reliable and couldn't travel very far. Sailors dismissed the idea that steam technology could ever measure up -- the vast reach of the Atlantic Ocean surely demanded sails. And so steam power gained its foothold as a "disruptive innovation" in inland waterways, where the ability to move against the wind, or when there was no wind at all, was important.

In 1819, the technology vastly improved, the S.S. Savannah made the first Atlantic crossing powered by steam and sail (in truth, only 80 of the 633-hour voyage was by steam). Sailing ship companies didn't completely ignore the advancement. They built hybrid ships, adding steam engines to their sailing vessels, but never entered the pure steamship market. Ultimately, they paid the price for this decision. By the early 1900s, with steam able to power a ship across the ocean on its own, and do so faster than the wind, customers migrated to steamships. Every single transoceanic sailing-ship company went out of business.

Traditional colleges are currently on their hybrid voyage across the ocean.

Like steam, online education is a disruptive innovation -- one that introduces more convenient and affordable products or services that over time transform sectors. Yet many bricks-and-mortar colleges are making the same mistake as the once-dominant tall ships: they offer online courses but are not changing the existing model. They are not saving students time and money, the essential steps to disruption. And though their approach makes sense in the short term, it leaves them vulnerable as students gravitate toward less expensive colleges.

Posted by Jim Zellmer at November 5, 2013 4:00 AM
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