MT5016

BUSINESS MODELS FOR HI-TECH PRODUCTS

Roberto De Joya Jr. A0118989E

Ryan Michael Gelig A0098535R
Zhou Xintao A0098599X
Liang Liang A0098464N
Jonathan Castillo A0098438M
Wong Chee Yeow A0104437M
 INTRODUCTION
SCOPE OF ACTIVITES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
CHANGING TREND IN HIGHER EDUCATION

Rising Costs

Perception of shrinking financial returns

of education

Unequal access to education

Unequal access to employers

RISING COSTS OF HIGHER EDUCATION

http://www.bloomberg.com/news/2013-08-26/college-costs-surge-500-in-u-s-since-1985-chart-of-the-day.html
http://money.cnn.com/2011/06/13/news/economy/college_tuition_middle_class/
MASSIVE OPEN ONLINE COURSES
Free and paid (for premium services)
educational courses offered online and
open to anyone
The concept started from
University of Phoenix’s initiative
in 1989

New York Times

declared 2012 as
the "Year of the
MOOC"

Current MOOC providers:

Coursera, Udacity, edX, 1st MOOC experiment launched in
KhanX 2008 by Stephen Downes and George
Siemens, “Connectivism and
Connective Knowledge”
MASSIVE OPEN ONLINE COURSES

http://elearninginfographics.com/wp-content/uploads/Are-MOOCs-the-Future-of-Online-Education-Infographic.jpg
COURSERA

Founded in 2012 by Prof. Daphne Koller

and Andrew Ng from Stanford University
Raised $65M in funding from Silicon
Valley VCs
6.8M registered users
108 partner institutions
Offering 600+ courses
COURSERA
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
SCOPE OF ACTIVITIES
Learning
Amazon
COURSERA Institutions / ACE Publishers Translators
Web Services
Universities

Content Delivery X

Licensing X

Distribution X

Screening Services X

X
Marketing

Content
X
Development

Web Storage X

Server Infrastructure X

Search X

Accreditation X

Reading Materials X

Translations X
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
VALUE PROPOSITION
VALUE NETWORK
Non-partner
Institutions

Amazon
School
Credits Textbooks

License to
Ad exposure for use platform and
textbook certain courses
recommendations

Students

Course content,
textbook
Free + Paid recommendations
courses
Peer
Elite Universities,
assessments Publishers

Students

Students within List of

a course Qualified Course
Students to Accreditation
Job placement Hire
for qualified
students

Employers
ACE Credits granted on
passing Signature Track and
Credit Exam
ACE Credit
VALUE PROPOSITION
PRESTIGIOUS COURSES

 COURSERA will only

offer classes/content
from the most
reputable institutions.

 A composition of
the members of the
Association of
American Universities
or “top five”
universities in
countries outside of
North America.
VALUE PROPOSITION
SIGNATURE TRACK

Students who have completed the course

with Signature Track will receive a Verified
Certificate issued by COURSERA and the
participating university.
VALUE PROPOSITION
VERIFIED CERTIFICATE
 Verified Certificate proves
that they have met the
passing criteria of the
online courses offered by
a university on
COURSERA.

 It can be used to advance

in their careers, gain
valuable credentials, or
build on what they already
know.

 People can also list their

Verified Certificate on
their résumé/CV and
include it on social
media/career profiles.
VALUE PROPOSITION
RECOGNITION OF CREDITS
Students can earn an ACE
CREDIT (American Council
on Education’s College
Credit) by signing up for an
eligible course in
the Signature Track.

As well as taking an online

proctored Credit
Recommendation Exam at
the end of the course.
VALUE PROPOSITION
CAREER ADVANCEMENT

COURSERA Career Services - opt-in recruiting service

that allows students to find and connect with positions
that “match their skills and interests.”
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
COMPETITOR ANALYSIS

https://www.edsurge.com/n/2013-12-22-moocs-in-2013-breaking-down-the-numbers
COMPETITOR ANALYSIS

Organization Status For-profit For-profit Non-profit

Funding $65M $21.1M $60M

Number of Students 5+ million 1.8 million 1.65 million

532 33 125
Number of Courses
(Broad range of subjects) (Technical fields) (Broad range of subjects)

Number of
5 63+ 1
Languages

No start/end dates (suggested

Pacing Start and end dates Start and end dates
completion time)

Virtually verified certificates for Virtually and physically proctored Physically proctored exam
Verified Certification
$30-100 for 70 courses exam certificates certificates

5 courses offered for ACE credit 5 courses offered for credit at

Accreditation for $90-190; Credit at licensing California State University Credit at licensing institutions
institutions system for $150

Career Services Limited number of companies Network of 400+ companies None

Platform
Company Company + student contributions Open-source
Development

Content Outsourced to elite partner Developed by institutions in

Co-developed with instructors
Development institutions xConsortium

*As of January 2014

COMPETITOR ANALYSIS
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
CUSTOMER SELECTION

Individuals

Companies

Learning Institutions / Universities

CUSTOMER SELECTION
INDIVIDUALS

Individuals pursuing particular courses

Individuals from around the world

Individuals interested in prestigious courses Individuals with busy schedules

Source: MOOCs @ Edinburgh 2013, 10 May 2013
Learn New
95
INDIVIDUALS

Things

Try Online

41
Education

To get a
certificate 33

Improve one's
32

career
CUSTOMER SELECTION

See what
20

MOOC's are
Aspirations

Meet new
12

people

Browse
7

Edinburgh's
MOTIVATION SURVEY

Offering
1

Unsure
CUSTOMER SELECTION
INDIVIDUALS
DEMOGRAPHIC SURVEY

http://mfeldstein.com/the-most-thorough-description-to-date-of-university-experience-with-mooc/
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
VALUE CAPTURE

Premium
Licensing
Services

Affiliates
Program Career
Services

Merchandise
VALUE CAPTURE
VALUE CHAIN
Non-partner
Institutions
Textbooks

Amazon License to Licensing Fees:

School use platform and $3000 + additional
money
Credits certain courses fee per student

Exposure for % commission

textbook on each book
recommendations sale

Students

Course content,
textbook
Free + Paid recommendations
courses
Peer
assessments Elite Universities,
Publishers
% gross
Payment for revenue from
Signature Track courses
Students Program

Students within
a course
money List of Qualified
Job placement Students to Hire
for qualified Course
students Accreditation Evaluation
Fee
Employers
ACE Credits granted on
passing Signature Track and
Credit Exam
ACE Credit
VALUE CAPTURE
PREMIUM SERVICES

Signature Track
Premium Service
USD30-90 per course +
USD60-90 for exam

Estimated total revenue of

USD$1,300,000 in 12 months
(25,000 students in the Signature Tracks)
VALUE CAPTURE
PREMIUM SERVICES

Specialization
Certificate for a
set of courses
USD300-500 per
certificate
VALUE CAPTURE
LICENSING
Licensing of COURSERA platform
and certain courses to non-
partner institutions
USD3,000 + additional fee per student
VALUE CAPTURE
AFFILIATES PROGRAM

Affiliates Program with Amazon

COURSERA will collect profit from Amazon.com
each time students buy recommended textbooks.

“The publishers will make relevant

chapters from e-textbooks
available free of charge, although
students who wish to read the
books in full, or read them once
their course has ended, will have
to purchase them.”

http://www.timeshighereducation.co.uk/news/coursera-strikes-deal-with-publishers-on-textbooks/2003754.article
VALUE CAPTURE
MERCHANDISE
COURSERA Company Gear
Earns twice as much money than textbook revenues
VALUE CAPTURE
CAREER SERVICES

COURSERA Career Services

Companies seeking qualified employees pay a
certain fee for introduction, with a share of that
revenue going to colleges that offer the course.
 INTRODUCTION
SCOPE OF ACTIVITIES

VALUE PROPOSITION

COMPETITOR ANALYSIS

CUSTOMER SELECTION

VALUE CAPTURE

STRATEGIC CONTROL
STRATEGIC CONTROL
COMPLIMENTARY ASSETS
 Signature Track: Obtained certificates can be used as
degree credits.

 ACE credit: expand to more subjects

 College credit: Universities can offer courses that can be

counted for college credits

 Secure Assessments: Testing centers to prove students

have done work themselves

 Establish the Gold Standard in Course Certification

recognized worldwide (like GMAT, IELTS) by employers and
universities

 Security: Identity verification technology through keystroke

biometrics and webcam

 Partnerships:

 Job Opportunities
STRATEGIC CONTROL
BARRIER OF ENTRY
 Strengthen and establish exclusive relationships
with Elite Institutions

 Course videos, tests and presentations are

delivered only through:

a. COURSERA website;

b. Mobile application for iOS, Android, Windows

Phone; or

c. Limit the usage of course materials within the

COURSERA web platform and mobile
application.
STRATEGIC CONTROL
REVENUE
 Corporate learning: COURSERA provide specific
courses for companies with charges

 ‘Freemium’ model: Charge for courses that students

are interested to further pursue after introductory
chapters

 Company-sponsored courses: give options to

employers to bid for Signature Track with the courses
they prefer or build customized Track for employers

 Charging tuition: Universities can offer tutors for

courses

 Charging for Proctored Exams: offer proctoring

services that connect proctors and students via
webcam
STRATEGIC CONTROL
REVENUE

• Develop the COURSERAPad, a cheap tablet

device with all the tools pre-installed for
learning-on-the-go

• Can be used by students from primary to

university level

• Manufacturing will be outsourced

STRATEGIC CONTROL
REVENUE
COURSERAPad: a color multitouch tablet running
COURSERA OS for learning-on-the-go

• Software:
– OS: customized version of Android
– COURSERA Store: similar to iTunes University where
users can choose new courses to enroll in.
– COURSERA Apps: Pre-installed apps that can help in
learning Math, Algebra, Accounting, Physics, etc.

• Hardware:
– Processor and memory enough to run apps smoothly
– Webcam for identity verification in Signature Track
– WiFi for internet connectivity
– Touchscreen
STRATEGIC CONTROL
BUSINESS MODEL
*In addition to COURSERA’s
current business model
Advertisers Companies

Specialized
Advertising Courses Fees for
Exposure for Fees corporate learning
Ads

Students

Bid for Signature Track

Freemium or Paid COURSERA courses based on
Certified Courses preferred topic
Pad
Peer
assessments Coursera Employers
Screen and recommend
Payment for Signature potential candidates
Track and/or
COURSERAPad
Students
Access to talent Recruitment and
Students within database and advertising fees
a course ad space
Commission
on sales Exposure for
Online Tutor
Online services Commission on
tutoring recruited Student Data
COURSERA (Grades and
students Certifications)
InstaEDU
Signature Track students Online Tutor
get free access to Pay discounted rate
LinkedIn’s Premium
Services LinkedIn
THE
END
APPENDIX

 Business networking website

 Number of Users: 277 million, Revenue: $1.52 billion
 Alexa global website ranking: 8th

Revenue for 9 months

(ending in Sept. 30, 2013)

*numbers in thousands
APPENDIX

 Online tutoring company matching students with online tutors

 Founded by 3 Stanford graduates
 High quality tutors screened
 Subjects cover topics in higher education