1 American Council on Education's 94th Annual Meeting Ahead of the Curve March 10-13, 2012 JW Marriott Los Angeles at LA Live Los Angeles, CA Register Now! ACE members receive discounted rates.

2 Now More Than Ever, Leadership Counts. Consider The ACE Fellows Program ® * Strategic Thinking * Institutional Capacity Building Best Practices Nominations/Applications due November 1, Financial Assistance Available

3 ACE gratefully acknowledges the generous support of the Lumina Foundation for Education for the Making Productivity Real Initiative

4 Keys to a Successful Webinar Tech Support—For technical assistance, dial Q&A—To ask a question, simply type your question into the Q&A box on the right side of your screen. After all three of our speakers have presented, we will hold a full Q&A session Volume—Adjust the volume on your computer’s speakers and also through your system settings Teleconference—To join via telephone, dial access code: Archive—This webinar is being recorded, and the online archive will be available for view within 48 hours of the conclusion of this event

5 Saving American Higher Education: Fostering Innovation & Productivity from the Inside out September 22, 2011

6 Keys to a Successful Webinar Tech Support—For technical assistance, dial Q&A—To ask a question, simply type your question into the Q&A box on the right side of your screen. After all three of our speakers have presented, we will hold a full Q&A session Volume—Adjust the volume on your computer’s speakers and also through your system settings Teleconference—To join via telephone, dial access code: Archive—This webinar is being recorded, and the online archive will be available for view within 48 hours of the conclusion of this event

7 Today’s Speakers Diana Cordova (moderator)—Director of the Center for Advancement of Racial and Ethnic Equity and Office of Women in Higher Education, and project co-director of ACE’s Making Productivity Real initiative Clayton Christensen—Co-Author, The Innovative University Henry Eyring—Co-Author, The Innovative University Kim Clark—President, Brigham Young University-Idaho Please submit your questions at any time using the chat panel in the lower right corner of your screen.

8 The Innovative University: Changing the DNA of Higher Education from the Inside Out Clayton Christensen and Henry Eyring, Co-Authors

9 Copyright Clayton M. Christensen

10 Copyright Clayton M. Christensen Decentralization is disruptive, and is hard to catch Performance Time 40% 20% on $2,000 Disruptive Innovations Time Sustaining innovations Incumbents dominate sustaining battles Entrants typically win at disruption Ability to use improvements Pace of performance improvement 45% on $250,000 60% on $500,000

11 Performance Time Pocket radios Portable TVs Non-consumers or Non-consuming occasions Different measure Of Performance Time Hearing Aids Tabletop Radios, Floor-standing TVs Path taken for transistors by vacuum tube manufacturers The customers are enticed into the new system, not vice versa. The metric of performance changes Copyright Clayton M. Christensen

12 Copyright Clayton M. Christensen A Theory of Hybrids Performance Time Disruptive Innovations Time Sustaining innovations Peapod: Are there customers that would love a car that won’t go far, and won’t go fast? Competing on cost, design, reliability, and performance on the California Freeway Tesla $100,000 Prius Hybrid

13 Questions? To ask a question, simply type your question into the Q&A box on the right side of your screen.

14 ACE Webinar Series Next ACE Webinar: The Technology Revolution and Student Learning: What You Need to Know –November 17, 2:00 pm ET –Registration will open in early October Contact Elizabeth O’Herrin at if you would like to receive updates about future webinars.

15 Thank you for participating