1. Disrupting Class Michael B. Horn | mhorn@christenseninstitute.org | Twitter: @christenseninst How Disruptive Innovation Will Change the Way the World Learns

2. Clayton christensen institute @christenseninst Review of disruptive innovation

3. Clayton christensen institute @christenseninst Disruption = affordability, accessibility Past and present examples Yesterday GM Dept. Stores State universities Digital Equipment Delta JP Morgan Xerox IBM Cullinet AT&T Sony DiskMan Today Toyota Wal-Mart Community colleges Dell Southwest Airlines Fidelity Canon Microsoft Oracle Cingular Apple iPod

4. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Disruption of Toyota From hyundaiusa.com May 5, 2013

5. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Disruption = affordability, accessibility Yesterday GM Dept. Stores State universities Digital Equipment Delta JP Morgan Xerox IBM Cullinet AT&T Sony DiskMan Past, present, and future examples Today Toyota Wal-Mart Community colleges Dell Southwest Airlines Fidelity Canon Microsoft Oracle Cingular Apple iPod Tomorrow Chery Internet retail Online universities Smart phones Air taxis ETFs Zink Linux Salesforce.com Skype Smart phones

6. Clayton christensen institute @christenseninst How does disruptive innovation relate to K12 education?

7. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Online learning is gaining adoption Substitution calculation indicates online learning is growing disruptively 50% of all high school courses online by 2019

8. CLAYTON CHRISTENSEN INSTITUTE @christenseninst The rise of K-12 blended learning Definition of blended learning A formal education program in which a student learns at least in part through online learning, with some element of student control over time, place, path and/or pace at least in part in a supervised brick-and-mortar location away from home (such as school). 100010 001111 010101 000 The modalities along each student’s learning path within a course or subject are connected to provide an integrated learning experience.

9. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Emerging blended-learning models

10. Clayton christensen institute @christenseninst 1.Sell to educators in existing system 2.Sell to educators in sustaining innovation blended- learning models 3.Sell to educators in disruptive innovation blended- learning models Companies appear to have 3 options

11. Clayton christensen institute @christenseninst The decision matters

12. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Disruption is not a technology problem Performance Time Different Measure of Performance Tabletop Radios, Floor-standing TVs Path taken by vacuum tube manufacturers Pocket radios Portable TVs Hearing aids

13. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Systems disrupt systems Performance Time Different Measure of Performance Appliance Stores Component suppliers RCA, Zenith Sony, Panasonic Component suppliers Discount retailers

14. Clayton christensen institute @christenseninst Option 1: Selling to educators in existing system

15. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Blended Learning is not…

16. Clayton christensen institute @christenseninst Sustaining the chalkboard There has been a long history of selling technology to enhance the current classroom Performance Time Performance that customers can utilize or absorb

17. Clayton christensen institute @christenseninst Option 2: Selling to educators in sustaining innovation blended-learning models

18. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Disruption isn’t so straightforward Performance Time Different Measure of Performance Tabletop Radios, Floor-standing TVs Path taken by vacuum tube manufacturers Pocket radios Portable TVs Hearing aids

19. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Performance Time Disruptive Innovations Time Ability to use improvements Pace of performance improvement Performance The theory of hybrids Peapod: Are there customers that would love a car that won’t go far, and won’t go fast? Competing on design, reliability, and performance on the California Freeway Tesla $100,000 Prius Hybrid

20. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Performance Time Disruptive Innovations Time Ability to use improvements Pace of performance improvement Performance The theory of hybrids Smartphones The disruptive technology doesn’t invade and reform the existing system. Rather, new measures of Performance entice customers into the new system The metric of performance changes

21. CLAYTON CHRISTENSEN INSTITUTE @christenseninst The theory of hybrids

22. CLAYTON CHRISTENSEN INSTITUTE @christenseninst How to spot a hybrid 1.It includes both the old and new technology; pure disruption doesn’t offer old in full form 2.It targets existing users, not nonconsumers 3.It tries to do the job of existing technology 4.It is less foolproof than a disruptive innovation; does not reduce level of wealth and/or expertise to purchase and operate it

23. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Emerging blended-learning models

24. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Station Rotation Model

25. CLAYTON CHRISTENSEN INSTITUTE @christenseninst How to spot a hybrid Traditional PLUS online Core subjects, mainstream students Measuring itself against traditional value proposition Requires expertise in both

26. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Station Rotation Model

27. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Lab Rotation Model

28. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Flipped Classroom Model

29. Clayton christensen institute @christenseninst Option 3: Selling to educators in disruptive innovation blended-learning models

30. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Prime examples of nonconsumption Credit recovery Drop outs AP/advanced courses Scheduling conflicts Home-schooled and homebound students Small, rural, urban schools Unit recovery Disaster preparedness Tutoring Developing countries Professional development Pre-K After school In the home Incarcerated youth In-school suspension School bus commute Summer school Teacher absenteeism Migrant worker families Foreign languages Budget cuts and teacher shortages are an opportunity, not a threat.

31. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Individual Rotation Model: Carpe Diem

32. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Carpe Diem

33. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Carpe Diem

34. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Flex Model

35. CLAYTON CHRISTENSEN INSTITUTE @christenseninst A La Carte Model

36. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Enriched Virtual model

37. Clayton christensen institute @christenseninst The pluses and minuses of targeting disruption

38. Clayton christensen institute @christenseninst The markets appear either saturated or small Core academicsNonconsumption Sustaining Disruptive “No Excuses” Trad’l quality metrics Districts Charters Districts C C C C

39. CLAYTON CHRISTENSEN INSTITUTE @christenseninst Traditional Classroom New value propositions Like all disruptions, disruptive blended-learning models deliver different value Disrupted Classroom IndividualizationProductivity Access, Equity

40. @christenseninst Disrupting Class How Disruptive Innovation Will Change the Way the World Learns Michael B. Horn mhorn@christenseninstitute.org Twitter: @christenseninst

41. Clayton christensen institute @christenseninst Private enterprise & public education

42. Clayton christensen institute @christenseninst For-profits not inherently good or evil Far fewer inherent differences between for-profits and non- profits than many assume Differences between for-profits stem from corporate structure, where for-profits have owners and non-profits don’t Easier for for-profits to attract capital, scale, and possibly talent Easier for for-profits to focus Non-profits can remain rooted in a community in absence of market Incentives matter. Policies must encourage smart demand High-level conclusions

43. Clayton christensen institute @christenseninst For-profits not inherently good or evil

44. Clayton christensen institute @christenseninst Performance Time Disruptive Innovations Time Sustaining innovations Incumbents dominate sustaining battles Entrants typically win at disruption Customer ability to use improvements Pace of technological improvement 45% margin on $250,000 40% margin  20% margin on $2,000 60% margin on $500,000 Performance Sustaining vs. Disruptive Innovation

45. CLAYTON CHRISTENSEN INSTITUTE # christenseninst Understanding how users experience life “The customer rarely buys what the company thinks it is selling him.” Peter Drucker If a customer won’t pay them to do something, over time they won’t do it. Will chase their incentives and do what they are paid to do—not much more and not much less

46. Clayton christensen institute @christenseninst Far fewer differences

47. CLAYTON CHRISTENSEN INSTITUTE # christenseninst What is a business model? And why does it lock us in? PROCESSES: Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc. REVENUE FORMULA: Assets & fixed cost structure, and the margins & velocity required to cover them THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job they’ve been trying to do RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers

48. CLAYTON CHRISTENSEN INSTITUTE # christenseninst What is a business model? And why does it lock us in? PROCESSES: Ways of working together to address recurrent tasks in a consistent way: training, development, manufacturing, budgeting, planning, etc. REVENUE FORMULA: Assets & fixed cost structure, and the margins & velocity required to cover them THE VALUE PROPOSITION: A product that helps customers do more effectively, conveniently & affordably a job they’ve been trying to do RESOURCES: People, technology, products, facilities, equipment, brands, and cash that are required to deliver this value proposition to the targeted customers Business units don’t change. Will fight a new order that fundamentally challenges how they make money But non-profits have business models, too, and will do the same

49. Clayton christensen institute @christenseninst For-profits not inherently good or evil Far fewer inherent differences between for-profits and non- profits than many assume Non-profits aren’t always virtuous Non-profits have business models, too For-profits won’t cut corners if customers will punish them for doing so In public education, historically, neither for-profits nor non-profits have actually saved the taxpayer much money because of policy  There is some sense in which they are all public entities because publicly funded High-level conclusions

50. Clayton christensen institute @christenseninst For-profits not inherently good or evil Far fewer inherent differences between for-profits and non- profits than many assume Differences between for-profits stem from corporate structure, where for-profits have owners and non-profits don’t Easier for for-profits to attract capital, scale, and possibly talent Easier for for-profits to focus Non-profits can remain rooted in a community in absence of market Incentives matter. Policies must encourage smart demand High-level conclusions