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Technology and Standards Watch Day February 7 2001 The Big Bang Diana G. Oblinger, Ph.D. Kenan-Flagler Business School University of North Carolina at.

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Presentation on theme: "Technology and Standards Watch Day February 7 2001 The Big Bang Diana G. Oblinger, Ph.D. Kenan-Flagler Business School University of North Carolina at."— Presentation transcript:

1 Technology and Standards Watch Day February The Big Bang Diana G. Oblinger, Ph.D. Kenan-Flagler Business School University of North Carolina at Chapel Hill Senior Fellow, EDUCAUSE Center for Applied Research Diana G. Oblinger, Ph.D. Kenan-Flagler Business School University of North Carolina at Chapel Hill Senior Fellow, EDUCAUSE Center for Applied Research

2 Technology and Standards Watch Day February Only the paranoid survive…. – Andy Grove Only the paranoid survive…. – Andy Grove

3 Technology and Standards Watch Day February Traditional vs. Net-economy Stable, predictable Rely on geography Protect markets Averse to failure Economies of scale Positioning Long-range planning Free-for-all Movement Cannibalize markets Failure is expected One-to-one Value migration Real-time execution Traditional Economy Net-Economy Hartman & Sifonis, 2000

4 Technology and Standards Watch Day February Born on the Web Companies

5 Technology and Standards Watch Day February The Big Bang e-companies emerged in the late 1990s Analogous to the big bang Net-generation companies are now coalescing into distinct constellations of products and services Eduventures, 2000

6 Technology and Standards Watch Day February Categories of e-business e-commerce e-learning e-care e-procurement

7 Technology and Standards Watch Day February e-commerce

8 Technology and Standards Watch Day February Definition of e-commerce Transactions involving individuals or organizations US students spent $700 million for online purchases in 2000 Estimates are that student purchases will exceed $14 billion by 2002 Transactions involving individuals or organizations US students spent $700 million for online purchases in 2000 Estimates are that student purchases will exceed $14 billion by 2002 Oblinger & Katz, 2000

9 Technology and Standards Watch Day February edu.com Competing for student e-commerce market Deep discounts on brand-name products for college students –computers –software –banking services –phone and Internet services –credit cards –textbooks

10 Technology and Standards Watch Day February UVentures.com Universities selling intellectual property online Hope to supplement research funds New online intellectual marketplace Designed to connect buyers and sellers, online Similar to models such as Autobytel.com

11 Technology and Standards Watch Day February e-learning

12 Technology and Standards Watch Day February Size of Education Market The US currently spends $740 billion per year on education more than is spent on national defense … more than the GDPs of Spain, Canada or Brazil Moe, 1999 The US currently spends $740 billion per year on education more than is spent on national defense … more than the GDPs of Spain, Canada or Brazil Moe, 1999

13 Technology and Standards Watch Day February Worldwide Academic vs. Corporate Education Market International Data Corporation, Billion $ Year Academic Corporate

14 Technology and Standards Watch Day February Growth of e-learning Universities with aggressive programs are seeing growth rates of % Partnerships between non-traditional providers and universities are increasing Over 5,000 competitors offer all types of e-learning; no single competitor has more than a 5% market share Last year, over 100 e-learning portals entered the market Oblinger, 2000

15 Technology and Standards Watch Day February UNext.com Provides online business education through Cardean Uses Internet technologies to create learner-centric, highly personalized and interactive environment Academic partners: Columbia, Chicago, Stanford, London School of Economics, Carnegie Mellon

16 Technology and Standards Watch Day February Hungry Minds Online learning portal that aggregates courseware from academic institutions and corporate training firms Over 37,000 online courses; more than 160,000 subscribers Academic partners: UC Berkeley, UCLA, Maryland, WGU, Jones International, U Mass-Lowell

17 Technology and Standards Watch Day February Business Models Business ModelDescription e-CommerceThe sale of products and services over the Web; reseller agreements AdvertisingThe sale of advertising space on a Web site Seat LicenseThe licensing of content or software on a per-use basis (e.g., license an entire library of courseware) SubscriptionThe sale of e-Learning services via periodic payment Pay for useThe sale of specific e-Learning products and services (e.g., purchase a specific course title) Direct Marketing/ Data CollectionThe sale of customer lists and market data Enabling ServicesThe sale of e-Learning development and delivery services, such as Web hosting, performance monitoring, professional services (e.g., content customization) Business ModelDescription e-CommerceThe sale of products and services over the Web; reseller agreements AdvertisingThe sale of advertising space on a Web site Seat LicenseThe licensing of content or software on a per-use basis (e.g., license an entire library of courseware) SubscriptionThe sale of e-Learning services via periodic payment Pay for useThe sale of specific e-Learning products and services (e.g., purchase a specific course title) Direct Marketing/ Data CollectionThe sale of customer lists and market data Enabling ServicesThe sale of e-Learning development and delivery services, such as Web hosting, performance monitoring, professional services (e.g., content customization) Source: U.S. Bancorp Piper Jaffray

18 Technology and Standards Watch Day February Other for-profit e-learning ventures Quisic (University Access) Pensare Provant Caliber SmartForce Headlight.com OnlineLearning.net

19 Technology and Standards Watch Day February Kentucky Commonwealth Virtual University KCVU is a utility company for educational institutions View and understand certificate and degree opportunities Admissions, registration and financial aid applications online Online classes Advising, bookstores, library and study groups online

20 Technology and Standards Watch Day February e-care

21 Technology and Standards Watch Day February Definition of e-care Using the Web to deliver information, support, services and decision-making aids –assistance in clarifying student career or goals –enrolling employees in human resources programs –update personal information (e.g., address) –answering Frequently Asked Questions (FAQs) Oblinger, 2000

22 Technology and Standards Watch Day February Rationale Most individuals ask the same questions over and over Question repeat rates are often 50% to 70% Telephone inquiry: $25 - $30 Web inquiry: $2 to $3 Oblinger, 2000

23 Technology and Standards Watch Day February Changes in Student Services Type of service Access method Automatically triggered with- out intervention by the student Proactive Service (70%)* Student requests for counsel/ guidance or referred by a generalist Special Service (10%) Student accesses technology and completes transactions on-line Self Service (70%)* General Service (20%) Student requests personal assistance PriceWaterhouseCoopers, 1999 *`Estimated 70% of all transactions could be handled through combined use of automatic service or self service. High touch High tech Help desk Phone bank KioskTouch tone Internet/WWWEFT Self-help center EFT EDI Imaging Mailings

24 Technology and Standards Watch Day February Smarthinking.com Provides online, real-time academic support for students Online writing lab Real-time math study sessions Tutoring Plans to provide –independent study resources –learning analysis

25 Technology and Standards Watch Day February Tutor.com Leading provider of educational referral services on the Internet Independent tutors and instructors register on National Registery Virtual classroom application includes text chat and whiteboard Database of 13,000 tutors & educators $1 connection fee and 10% of overall transaction

26 Technology and Standards Watch Day February e-procurement

27 Technology and Standards Watch Day February Definition Using digital technology for paperless procurement –EDI (electronic data interchange) –digitally process transactions –order management –inventory control Electronic payments reduce paperwork and cut costs Oblinger, 2000

28 Technology and Standards Watch Day February Rationale Eliminate paper bills –traditional paper bill costs $0.90 in postage and processing –online services can cut cost to $0.30 or $0.50 Improve efficiency –reduced cycle time –faster processing –reduced error rate Oblinger, 2000

29 Technology and Standards Watch Day February Commonfund Treasury Creates an online purchasing system Paperless systems reduce transaction costs –Traditional requisition costs $150 to process –e-procurement costs $10 - $15 Efficiencies and price discounts could lead to an additional 10% savings U Penn, CSU Fullerton, UCLA

30 Technology and Standards Watch Day February FreeMarkets.com Creates online auction markets Suppliers bid for clients business Working with Pennsylvania state government FreeMarkets has: –conducted 9 online auctions –items ranged from construction to telecommunications to license plates –$10 million in savings on procurement volume of $98 million

31 Technology and Standards Watch Day February Comparative Shopping The Internet is a perfect place to compare prices For example, shopping for CDs: –5 bricks-and-mortar stores per hour –50 online suppliers –with a shopping agent, exposure to 500 suppliers Hartman & Sifonis, 2000

32 Technology and Standards Watch Day February Net-Generation Companies

33 Technology and Standards Watch Day February Net-Generation Companies Online admission applications –Embark –CollegeNet –XAP Campus-based portals –Campus Pipeline –Jenzabar.com –Studentonline.com

34 Technology and Standards Watch Day February Net-Generation Companies Online procurement –CommerceOne –Ariba –FreeMarkets Online course delivery –WebCT –Blackboard –Convene –eCollege

35 Technology and Standards Watch Day February Net-Generation Companies Supplemental content providers –PinkMonkey.com –CliffNotes.com –Thinkwell.com –InstantKnowledge.com –Versity.com Online libraries –Questia.com –Net.Library.com –ebrary.com Kidwell, et al., 2000

36 Technology and Standards Watch Day February Net-Generation Companies Online Textbook Distributors –VarsityBooks.com –Textbooks.com Advising and Tutoring –Smarthinking.com –Tutor.com –Degree Navigator Kidwell, et al., 2000

37 Technology and Standards Watch Day February Net-Generation Companies Learning portals –click2learn.com –Hungry Minds –Ziff-Davis –SmartPlanet.com –Blackboard.com Kidwell, et al., 2000

38 Technology and Standards Watch Day February e-Business Principles

39 Technology and Standards Watch Day February Why Use IT? The Economist Business Unit, 1999 Innovation Values Net-generation institutions use IT for its innovation value Competitive Advantage Efficiency Market Expansion Effectiveness E-Line

40 Technology and Standards Watch Day February Value Chain Alternative Providers Curriculum Development Content Development Learner Acquisition & Support Learning Delivery Assessment & Advising ArticulationCredentialing Faculties & Departments Full-Service Broker (WGU) Software Authoring Tools (WebCT, eCollege.com Asymmetrix) Student Services Full-Service Broker (WGU) Faculties & Departments Colleges & Universities (central administration) Full-Service Broker (WGU) University Spin-Offs(Online Learning.net, NYU Online) Educational Publishers Market Research Firms Software Publishers (CBT Systems, NETG) Catalogs (SREC, CVU, NJVU) Learning Environments (Convene, Lotus, Microsoft, Blackboard) Tutoring and Testing Centers (Sylvan, Kaplan Princeton Review) Teleconferencing Companies (Caliber, One-Touch) Testing Organizations (ETS) Online Applications (XAP, CollegeEdge, IBM) Industry Assn Standards Body (EduCause) Accrediting Associations & Licensing Agencies Training Companies Corporate Universities Educational Management Organizations (U of Phoenix, Open U., Harcort, UNEXT.com) Training Companies (GP Technologies, Knowledge Universe) Corporate Universities UNC and PwC, 1999

41 Technology and Standards Watch Day February IBM, 1999 Non-traditional Providers Traditional Providers Value Nets Creating a Value Web

42 Technology and Standards Watch Day February Internet Drives Cost Efficiencies Direct Sales Force $ Tele Coverage $30-40 Tele Marketing $3-8 Direct Mail $1-4 WWW $ Source: Agency Survey Cost-Per-Contact for Various Technologies

43 Technology and Standards Watch Day February Compression Transaction costs are reduced Time and distance are squeezed out of the equation Costs that were assumed fixed are eliminated Hartman & Sifonis, 2000

44 Technology and Standards Watch Day February Stickiness: How to Ensure Repeat Visitors High Quality Content75% Ease of Use66% Quick to Download58% Updated Frequently54% Cutting Edge Technology12% Purchasing Capabilities11% Customizable Content10% Chat and BBS10% Other6% High Quality Content75% Ease of Use66% Quick to Download58% Updated Frequently54% Cutting Edge Technology12% Purchasing Capabilities11% Customizable Content10% Chat and BBS10% Other6% Source: Forrester Research

45 Technology and Standards Watch Day February Technology Enablement Utilize standards across the enterprise If you can buy it, dont build it Build a technologically smart business organization Create a business-smart technology organization Hartman & Sifonis, 2000

46 Technology and Standards Watch Day February E-business Issues

47 Technology and Standards Watch Day February e-Business Issues Viewing IT as a strategic asset Adequate, affordable bandwidth Skills Consumer protection Legal framework Liability Privacy Equitable access

48 Technology and Standards Watch Day February Challenges Values / culture Nimbleness Leadership Focus Organizational structure –matrix –partnerships Funding Human resources

49 Technology and Standards Watch Day February All great truths begin as blasphemies. – George Bernard Shaw All great truths begin as blasphemies. – George Bernard Shaw

50 Technology and Standards Watch Day February The Big Bang Diana G. Oblinger, Ph.D. Diana G. Oblinger, Ph.D.


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