1. Proposed OCW Business Model for Steady State 1 Proposed OCW Business Model for Steady State: 2008 and Beyond January 2006 Contents Need for new business model Assumptions Three models considered Risk levels Technology requirements Process overview Level of effort Conclusions DRAFT WORKING DOCUMENT FOR DISCUSSION PURPOSES Draft of 1/26/2006

2. Proposed OCW Business Model for Steady State 2 Need for a New OCW Business Model OCW will transition to “Steady State” operation in 2008 –Steady State represents MIT’s commitment to openly publish teaching materials as an ongoing service into the future For OCW to be sustainable as a regular part of the MIT teaching culture, it must be –Efficient—little additional cost to MIT –Integrated—a near-seamless part of the normal teaching process, with little burden to faculty –Valuable—a measurable benefit to MIT faculty and students, and to external users Current centralized model is not sustainable from a cost perspective

3. Proposed OCW Business Model for Steady State 3 Assumptions Annual Steady State publication target: 300 courses (50 – 75 new, remainder updates) Published courses must be high quality (broad, deep, usable) commensurate with MIT image Published version is a snapshot of course at a point in time Published materials not mirror image of what is used in classroom –No IP materials under fair use –Faculty preference as to what is published

4. Proposed OCW Business Model for Steady State 4 Three Models Considered

5. Proposed OCW Business Model for Steady State 5 Estimated Risk Levels CentralizedSelf ServiceHybrid Quality and usabilityLHM MIT imageLHL Faculty participation and buy-inLHM IP complianceLHM Sustainability: Long-term costHLM Sustainability: Long-term valueLHL Notes Risk in this context is a subjective judgment and means the relative likelihood that OCW will fail to live up to expectations of internal or external users, MIT faculty, or the Institute as a whole In some cases, this failure could result in –Negative publicity for MIT –Diminished user interest –Financial liability –Discontinuation of OCW

6. Proposed OCW Business Model for Steady State 6 Technology Requirements for Self-Service and Hybrid Models –Publishing tools Embedded tracking code Embedded license terms IP tracking Metadata tagging Hi-design display templates Preview capability Downloadable ZIP files Discussion group suppt Archiving –Workflow New model will require a robust Institute-supported LMS with… Accountable governance and management processes Ongoing MIT financial and staff support Integrated teaching and publishing features: –Robust authoring Easy capture Easy update –Document management Restricted teaching materials Open teaching materials –Import/export Offline authoring Self-publishing –Multiple views –Course administration

7. Proposed OCW Business Model for Steady State 7 Overview of Process Based on Hybrid Publishing Model Integrated with MIT Teaching Process PlanBuildTeach/ManagePublish Upstream foundational prep Recruit faculty Plan TEACHING version of course Plan OCW version of course Review existing content Identify & resolve IP (except permissions) Track IP by object in system Content development Collect/capture existing content Build content into LMS sections/templates Enter metadata Create commissioned works Process permission requests & make IP edits Live teaching and course administration Update/supplement materials Post announcements Assign, track, grade student work Interact (faculty-student and student-student) Open publication Perform course QA Obtain faculty approval Export to OCW site Support Renewal, archiving, and preservation Update course content Archive course content Color legend BLACKNormal teaching process BLUERequired for open publishing ORANGEFormer OCW steps eliminated HYBRID INTEGRATED PROCESS ARCHITECTURE OVERVIEW Spec course/map contentReformat/clean up/ restructure/contextualize Enter content into CMS Perform authoring QA Perform final edit Perform production QA Respond to user feedback Review/refine metadata (MIT Library) Edit course for errors ELIMINATED STEPS External OCW Audiences MIT Faculty & Teaching Assistants Individual Teaching Web Sites MIT-Supported LMS OCW External Web Site Dspace Archive MIT-supported option Assume 80% participation Publish - OR - Individual/local supported option Assume 20% participation Robust authoring –Easy capture –Easy update Document managemt –Restricted teaching matls –Open teaching matls Import/export –Offline authoring –Self-publishing Multiple views Course admin Teach MIT Students Publishing tools –Embedded tracking code –Embedded license terms –IP tracking –Metadata tagging –Hi-design display templates –Preview capability –Downloadable ZIP files –Discussion group suppt –Archiving Workflow Archive Harvest for archi ving or publishing

8. Proposed OCW Business Model for Steady State 8 Comparison of Level of Effort (Average Hours per Course)

9. Proposed OCW Business Model for Steady State 9 Annual Level of Effort (in Hours) Based on Level of Effort model and assumed publication of 300 courses per year in Steady State… Key findings OCW LOE in hybrid model is about 60% of LOE in centralized model –Translates into potential savings in OCW production cost of about $1.2M - $1.4M per year Faculty LOE ranges from 2 – 14 hours per course on average

10. Proposed OCW Business Model for Steady State 10 Cost Estimates Centralized-Reflects staff reduction from 2006 levels to align with reduced publication volume in Steady State -Continues current functions of outreach/communication and evaluation/reporting Self-Service-Assumes no centralized support for publication other than OCW program coordination (1 FTE) -Halves outreach/communication and evaluation/reporting functions Hybrid-Assumes reduced centralized support based on LOE model, including component of “high service” level for transitional period. Later years would see further reduction in LOE and costs -Halves outreach/communication evaluation/reporting functions Ongoing LMS support costs, though not likely to be part of OCW budget, are shown here as offset to OCW savings Implementation and support costs for integrated LMS are very general estimates Notes and assumptions

11. Proposed OCW Business Model for Steady State 11 Conclusions 1.MIT should preserve its goal to publish up-to-date teaching materials for virtually all courses 2.To achieve this goal, OCW must be an efficient operation integrated with the faculty’s teaching process: Eliminate duplication of content entry between LMS (for teaching) and CMS (for OCW publishing) Eliminate reformatting and restructuring by capturing original materials in publishable formats Eliminate outsourcing of course site build functions 3.The hybrid model achieves this efficiency and integration when fully implemented over time 4.For the hybrid model to work, MIT must develop an Institute-supported LMS that Includes robust authoring and other features Integrates publishing functions Is supported with ongoing financial and staff resources Is governed through an accountable management and oversight process 5.Faculty must embrace the hybrid model and the integrated LMS, with 80% participation over time, encouraged by Ease of use and simplicity of approach Support for content development and use of system Continued perceived value of open publishing Other incentives