Business Designs of the University

A Position Statement
by
Peter J. Denning



Business Designs

The ACM97 conference asks us to think about the next 50 years of computing. The SDCR workshop asks us to think about the next 50 years of computing research. I would like to discuss the nature of education in the 21st century and the kinds of research that will be needed to support it.

Have you ever heard of a "business design"? I am thinking of the overall framework in which a business is formulated, its style, approach, and basic assumptions. Most businesses are aware that products and services may become obsolete; so they have research, development, and marketing processes by which they invent and market new ones. But the RD&M processes all occur within a fixed business design. What happens if the business design itself becomes obsolete? There is ample evidence that this happens. The design of IBM and DEC worked very well for many years but became obsolete when Microsoft introduced commodity software, and now Microsoft is being challenged by the business design of Netcsape and Sun's Java. The designs of Maxwell House and Folgers are now challenged by Starbucks. The design of the Postal Service is challenged by Federal Express and e-mail. When a new company offers a better design, the customers migrate to it. The older company cannot seem to find products and services that will attract the customers back because all those products and services are formulated within a context that the customers no longer find attractive.

I suggest that the business design of the university is becoming obsolete. Future customers (students, parents, employers) will migrate to educational organizations that change their design and away from those that want to stick with the traditional way. This is an enormous threat, bigger than the potential loss of federal research funds. It is also an enormous opportunity for new paradigms of education and for the technologies that will support them.

The Old and The New

The design of the modern university features four-year programs, large classes organized on semester (or quarter) schedules, midterm and final examinations, a small menu of degrees awarded after a student completes a certain number of credit hours with certain grades, a research program that occupies a lot of faculty time and energy and is accessible only to a few graduate students, and occasionally a continuing education program adjunct to the main academic offerings. You and I did not create this overall design; it was already here when we entered the academy and we have been designing new products and services within it. For example, it is easy to have a discussion about a new introductory course in CS, but difficult to conceive of a software engineering course leading to certification of competence.

Several major forces are at work undermining the assumptions on which this design is built. (1) The Internet and digital library are making the university library and attendant local community of scholars obsolete. (2) A college education is now seen as essential for getting a good job. (3) Many people want to earn degrees while employed full-time. (4) Many people think tuitions are too high for the value received and that universities as a whole are too bureaucratic and not responsive to customer needs. (5) The federal government plans to freeze or cut research dollars.

The business design of a successful educational organization of the 21st century is going to have to resonate with these changes in order to attract customers (students). The principal aspects of the new design will surely be:

  1. New course formats that rely on occasional workshops, active working groups of students communicating by Internet, projects, exhibitions and defenses of results, public presentations. The regular weekly scheduled class will be out. These formats will be consistent with the working schedules of employed people.
  2. Heavy use of information technologies for locating information and services, and for coordinating and communicating among course participants.
  3. Programs that promise, deliver, and certify specified competences. People will prefer to market themselves with portfolios of certificates rather than formal degrees.
  4. Programs for working professionals throughout their careers who seek higher levels of competence than anything now offered.
  5. Research programs integrated with curriculum so that students can learn the investigative practices of research and the processes of innovation.
  6. Brokerages that will custom-design courses to meet stated needs of individuals and groups, selecting from modular offerings of various providers.
  7. Educational organizations will be highly responsive to their customers and will be expected to deliver value commensurate or exceeding the costs. This does not necessarily mean that costs will go down; most of the cost will be in delivering the educational promises to the student, rather than in various overhead and administrative functions.
I use the term "educational organization" because there is no reason to suppose that all of today's universities will do this job. Some will transform themselves and be successful. Others will not and will disappear. Private organizations will make successful offerings, and will probably take the lead in the brokerage business.

Research Opportunities in Technology

Every one of the items on the list above represents a significant new practice, several of which do not exist yet. Getting to them offers enormous opportunities for research that will answer questions about the effectiveness of the new practices and about the technology and tools that will be needed to support them. I won't enumerate these opportunities here because most of us are well aware of the rich agenda of research questions surrounding education.

One of the opportunities that deserves special attention is tools to assist in certification. What human competences can be certified by a machine? Which ones require human judges? How do we learn to certify skills on line? What tools will be needed?

The Need for Transformed Teaching

Our practices of teaching will change. We have been trained in an environment where teaching is mostly presentation, and in which faculty development emphasizes classroom technique and presence. As machines take over much of the presentations -- often doing it much better than we can -- and as the machines take over testing and assessment, what will be left for the teacher to do? There is much. It is a complex of practices and skills that have to do with inspiring, motivating, and coaching students. Few of us have learned these skills because we never had to and in any case there was no one to teach us. We will need a massive program of faculty and teacher development to assist them in learning how to be highly effective teachers.

Readings

Walter Slywotsky has written Value Migration, in which he discusses at great length the concept of business design and has given many examples of customers migrating to new business designs that offer them greater value.

Lewis Perelman, in his book School's Out, discusses in great detail his vision of the future of education, in a paradigm he calls hyperlearning. If you haven't read this, you should. If you love the way the university works now, you will find this book deeply disturbing.

Peter Drucker, in his book Post Capitalist Society, lays out a vision of what teaching and learning for the knowledge worker will entail. This expands on an earlier version of his vision in The New Realities.

Various authors have written best-selling, apocryphal books about disease and corruption in the academy. Even if you don't accept the premises of these books, they were best sellers and hundreds of thousands of people paid $24.95 to own one or more of them. If nothing else, they give good insight into what ails the current business design of univerisites. I'll give you a list of these books if you ask.

Eli Noam wrote a provocative editorial on "The demise of the university" in Science magazine during October 1995. He spoke specifically about the way information technology is undermining the traditional assumptions of the university.

Eliott Soloway has written repeatedly about the need for effective teaching and teacher development, most recently in "Teachers are the key" in Communications of ACM, June 1996.

Andy Whinston and two colleagues have written about educational brokerages in "Electronic markets for learning: education brokerages and the Internet", Communications of ACM, June 1996.

Last (and least) I have written several articles containing some of these themes. You can find them in the Communications of ACM, December 1995, July 1993, and May 1996.