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 +**The Innovative University: Changing the DNA of Higher Education from the Inside Out - Clayton Christensen**\\ ​ Bookbushido Summary by Lifebushido\\ \\  Welcome to the free Bookbushido resource site, sponsored by [[http://​www.lifebushido.com|Lifebushido,​ LLC ]]. We've compiled a single source of information to provide business executives and students who have an entrepreneurial passion with a handy reference guide containing brief summaries and helpful links for today'​s top business books.\\ \\ **The Innovative University: Changing the DNA of Higher Education from the Inside Out - Clayton Christensen**\\ {{http://​img2.imagesbn.com/​images/​116600000/​116608087.JPG|external image 116608087.JPG}}\\ \\ **Brief Summary:** The book takes a look at the traditional University system in the United States and identifies some modern challenges to the model such as for-profit institutions,​ lower financial support from governments and donors and changing populations. After identifying these issues, it goes on to use real examples from both Harvard and BYU-Idaho, addressing how the unique product traditional universities offer can be their saving grace as they adapt to the changes and challenges of the current environment.\\ \\ **Amazon Main Page:** http://​www.amazon.com/​The-Innovative-University-Education-Jossey-Bass/​dp/​1118063481\\ \\ **Amazon Genre:** Education\\ \\ **Amazon Customer Reviews Page:** http://​www.amazon.com/​Innovative-University-Changing-Education-Jossey-Bass/​product-reviews/​1118063481\\ \\ **Book Web Site**: http://​www.theinnovativeuniversity.com/​\\ \\ **Author'​s Web Site:** http://​www.claytonchristensen.com/​\\ \\ **Author'​s Company Site:** http://​www.innosight.com/​\\ \\ **Author Audios/​Videos:​** http://​www.claytonchristensen.com/​disruptive_innovation.html\\ \\ **Author'​s Bio Page:** http://​www.amazon.com/​Clayton-M.-Christensen/​e/​B000APPD3Y/​ref=ntt_athr_dp_pel_pop_1\\ \\ **Blogs/​Articles/​Reviews About the Book:**\\ http://​www.forbes.com/​sites/​stevedenning/​2011/​09/​23/​can-higher-education-be-fixed-the-innovative-university/​\\ http://​www.dgschwartz.com/​2011/​09/​05/​book-review-the-innovative-university/​\\ http://​hbswk.hbs.edu/​item/​6746.html\\ \\ **Other Books by This Author:​**\\ ​ The Innovator'​s Dilemma: The Revolutionary Book That Will Change the Way You Do Business\\ ​ The Innovator'​s DNA: Mastering the Five Skills of Disruptive Innovators\\ ​ How Will You Measure Your Life?\\ \\ **Similar Books by Other Authors:​**\\ ​ Academically Adrift: Limited Learning on College Campuses by Richard Acrum\\ ​ The Fall of the Faculty: The Rise of the All-Administrative University and Why it Matters by Benjamin Ginsberg\\ \\ **Notes and Excerpts from Book:**\\ \\ The theory of disruptive innovation is that entrants who start at the bottom of their market selling simple products to less demanding customers and then improving them from that foothold drive the prior leaders into a disruptive demise. In the past, teaching was difficult to disrupt because human qualities couldn’t be replicated. In the future though, teaching will be disruptible as online technology improves and shifts the competitive focus from a teacher’s credentials or an institution'​s per se to what students actually learn. \\ \\ Second, we observe two distinct groups of college students who have different jobs to be done. In one group, the campus experience is central for the college experience. For members of this group, the campus experience is hard to disrupt because of family and work responsibilities;​ however, students from the other group don’t want to spend time on campus to earn a degree. Your child in fact has almost a 50% chance of failing to finish college at all. Colleges have become expensive as a result of attempting to attract the most capable and discerning student customers not because of trying to accommodate employees. \\ \\ One-half to two-thirds of the 18 million students who are going to college were actually attending institutions bearing the name "​university."​ The ideal of the traditional university with its mix of intellectual breadth and depth, its diverse campus social milieu, and its potentially life-changing professors is needed now more than ever. \\ \\ A disruptive innovation brings to market a product or service that is not as good as the best traditional offering but is more affordable and easier to use. Disruptible innovation is initially a boon to non-consumers of a product or service. Traditional providers ignore it but as the disruptive innovation improves by its own sustaining innovation, it becomes a threat to traditional providers. \\ \\ The McKenzie Team analyzed the average cost by all institutions to produce a Bachelor’s Degree and came up with $75,000.00. The team then identified the institutions with significantly lower costs such as BYU, Idaho, Southern New Hampshire University, Western Governors University; they cost one-third to one-half of the others. McKenzie found that the low-cost university was 50% more efficient in administrative functions than typical universities,​ thanks to a high degree of process automation and operations management trainee. These institutions also save money by getting rid of non-academic functions such as food services and athletics. \\ \\ The strategy of most schools is one of imitation, not innovation. They are stuck in a dangerous competitive middle ground, neither highest in quality nor lowest in cost. The great schools, rather than being just comforted by the imitation, seem all the more desirable because of it. In 10 years after 1997, the yearly college cost rose by 30%, while the earning power of a Bachelor’s Degree remained the same. \\ \\ Thanks to government grants and loans, the students are less price-sensitive than in other purchase decisions. Most universities charge nearly identical tuition rates and stay in step with similar annual rate increases. While the industry leaders focus on better serving their highest-priced customers and matching their toughest competitors,​ they overlook what is happening beneath them--the growth in the number of would-be consumers who cannot afford the continuously enhanced offerings and thus become non-consumers. \\ \\ The pattern in sustaining innovation is broken by a disruptive technology. Historically,​ higher education has avoided such competitive disruption. The power of per se in the higher education market place with the quality of the product is hard to measure and related stabilizing force is the barrier to its disruptive innovation created by accreditation. Another reason for the lack of disruption has been the absence of disruptive technology. Universities first gather students into classrooms and the learning technologies,​ lectures, textbook, oral, and written exams remain largely the same. The elimination of a successful intercollegiate athletic program and the creation of the year-round academic calendar is important. \\ \\ John Harvard’s founder’s vision was the advancement of all good literature arts and sciences. Product proliferation is a genetic tendency of even poor profit organizations,​ but it is particularly strong in higher education. Harvard’s scholars published a volume called //General Education in a Free Society// or the red book. They state that the fundamental purpose of education is to promote freedom. The academic calendar'​s long summer break is a terribly inefficient use of expensive brick and mortar investment and inefficient in its use. Because students relate to one another as peers they can often communicate more effectively than the instructor in class. Every student teaches and every teacher learns. \\ \\ Trying to sell college courses without a source of financing is like trying to sell cars for cash only. Not impossible but extraordinarily difficult. WGU does not create a curriculum or grant grades. Its full time faculty specifies the things that students should know; they develop reliable tests of that knowledge. They license the best curricular materials from third-party publishers and their mentors fill the role that faculty members do in traditional institutions,​ guiding students as they prepare to pass competency tests. \\ \\ Online educators enjoy access to a growing body of skilled instructors. They create a pool of qualified online instructors who work for a few thousand dollars per course. By contrast, a tenured professor who teaches four or five courses per year and has no outside research funding may cost 10 times that amount on a per-course basis. The only way for such a professor to compete cost wise is to teach hundreds of students at a time. \\ \\ The cost disparity may grow as English speaking advanced degree holders in less developed countries join what is becoming a global online instructional work force. Online instructors are paid by the course. The ability to cull ineffective instructors may be another reason why online courses have achieved average cognitive outcome parity. There is lower physical facility cost, there are no graduate schools or scholarly activities to attend to. \\ \\ Advanced adjunct professors teach online courses for less than $1,000 per credit hour. If 30 students are taught at once, the instructional cost per credit is less than $35 per student. At this rate, the cost of delivering 120 credit hours--the amount typically required for a Bachelor'​s Degree--is $4,000. Thus the cost of delivering a full four-year degree is less than $13,000. This compares with a four-year price of $28,000 and $100,000 at the typical public and private institutions,​ respectively. \\ \\ The price of an online degree could be less than half the price of a traditional college education. The differential would be even greater if the student lived at home. Poor profit educators operate year around. They offer fewer majors, they have the capacity to admit all qualified applicants and they have no athletic teams. \\ \\ Disruptive innovations rarely come out of established enterprises,​ a new idea that has been dismissed entirely from what inevitably modified to set the way things are traditionally done losing its innovation impact in the process. The simplest solution to this problem is to create an autonomous organizational unit to develop the idea. The learning model includes five principles: preparing to learn, teaching one another, pondering, and proving one’s learning. Students are responsible for their own learning and for teaching one another. Instructors become responsible for dual competency, mastering both the subject matter and the art of conveying it for maximum student learning. \\ \\ At BYU Idaho lectures consume nearly 80% of class time. Clark suggested the ratio is inverted with professors lecturing only 20% of the time and the 80% of class time is working to grow in teaching one another. The power of peer instruction there made student-to-student interaction an essential element of the courses they created. They found traditional inspiration and guidance in a mounting body of scholarly evidence that sometimes the best learning occurs peer-to-peer. \\ \\ One of the highest profile applicants of peer instruction is Harvard’s Physics Professor Eric Naser. A student who has just mastered a complex concept can often explain it more effectively to a fellow in the office than can a professor who may have long since taken the concept for granted. The lower cost, less specialized learning peer can be a more effective teacher than the highly credentialized scholar. Maser co-authored //Peer Instruction:​ A User’s Manual//. \\ \\ A block calendar offers 48 start dates per year with a combination of 16-week and 8-week courses in an automated learning management system Irriolern. This is Rio Salado in Phoenix. Rio Learns allows students to take the first dates of study to choose between the 16-week and 8-week schedule. The combination of low cost and high quality has helped the community college achieve the largest online enrollment in the United States. \\ \\ As has been the case in recruiting full time faculty for BYU Idaho, that supplied online instructors for its use and need. There were 39 people hired from 700 applicants. The online instructors could be drawn from anywhere in the world. The average quality of the online courses would steadily improve through innovation. The fully online offerings enjoyed an across-the-board cost advantage over traditional instruction. Many of the online faculty are working professionals for whom the pleasure of teaching was as great a motivator as financial compensation. University paid new online instructors $2,500 per course, an amount consistent with the market rate but one-third the cost of a full-time faculty member.\\ \\ Campus-based faculty members, especially those working full-time, may see online courses as the competitive threat. The online instructor makes less and works on a short-term contract while providing a product that in purely cognitive terms offers comparable value. In head-to-head competition,​ this has an ominous feel. Online learning is as disruptive at the institutional level. However, gifted face-to-face teachers within innovative institutions may be able to continue much as before. \\ \\ Once they analyzed the classrooms between 7:45 and 5:30 p.m. each weekday, the typical classroom was occupied 70% of the time. The percentage of seats occupied in those classes was 70%; that means that in what appeared to be a university offering the peak efficiency, a classroom seat was used less than half of the normal school day. In addition, faculty members press the secretaries for favorite rooms at the preferred times between 9:00 a.m. and 2:00 p.m. Particularly for students living with their parents and working jobs paying more, this could make taking courses online mean a total education savings on a 50% but something closer to 90%. They could sample college at a price of a few hundred dollars plus transportation cost for the weekly trips to the local institute building. \\ \\ The Perpetual Education Fund, PEF, was established by Gordon Hinkley in 2001, one year after founding BYU Idaho. 30,000 pioneers made use of the Perpetual Education Fund. The Perpetual Education Fund serves 40,000 students ,who realized an average three-to-four-fold increase on their pre-education income. Online courses are comparable to the cars rolling off the line of a Toyota factory. So these engineers minimize the use of non-standard processees, which creates unnecessary cost, and they reduced the likelihood of inconsistent performance such as deviating from a syllabus or wasted efforts such as inefficient grading. \\ \\ Institutions granting only certificates have shown the power of focus in helping students persist to graduation. Only 43% of people entering through your public institution seeking a certificate achieve that goal in five years. However, institutions that focus solely on certificates,​ rather than both degrees and certificates,​ achieve a 72% graduation rate. Valencia Community College has a co-work model and freshmen learn study skills. They have a life map and personal goals.\\ \\ \\  If you would like to learn more from the best business books on the market today, sign up for our [[http://​www.bookbushido.com|**FREE** Bookbushido Business Book Notes]]. You'll receive a free series of short book summaries designed by the experts at Lifebushido to help fellow business entrepreneurs succeed.\\  
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