Online learning in Supplemental Education Industry

Introduction
While the nature of learning has been elucidated for many years, the typologies of programs offering still remain limited [1]. Common to most countries, the learning needs of people are not met through formal or academic education alone; mainly because of incompetency in the current education system and the changing demands of market place.
In the form of supplementary education, Kaplan ($400 million+ revenue) head-office in United States and Mega Study head-office in Korea ($195 million in revenue) have tried to fill this vault. From test prep courses, college prep courses, corporate job training, and home-schooling (who require an alternative to traditional high-school) supplementary education has played a critical role in the education industry.
With the technology explosion earlier and knowledge explosion now, much has changed for the entire education industry. The students today interact, play and learn through new media and they are constantly between online and offline worlds [2]. They absorb information in the form of text, images, video from multiple sources simultaneously, operate at "twitch speed[3]," expect instant responses and feedback, prefer Skype or IM to keep in touch and create their own media (or download someone else's) as to purchase a book or a music CD. They read wiki (over 13 million articles [4]), write blogs (over 200,000,000 Blogs [5]), and have started preferring virtual classroom to face-to-face (2009 US Department of Education study revealed that on average, online students out performed those receiving face-to-face instruction; 1 in 6 higher education students are enrolled in online curriculum[6]).
Consequently, some players have gone into obscurity and others have evolved to keep pace with the change. The elite in education have been quick to adapt this change. In academics, universities like University of Phoenix, Capella University, DeVry University, etc., offer online degree programs. In supplemental education, Kaplan offers online courses in myriad areas – test prep, tutoring, etc. and so do other ESPs (Education Service Providers) like Princeton Review and Mega Study. Evidently they developed most advanced technologies, deployed an army of people and invested millions in marketing their online programs.
The small ESPs have lagged behind, despite the fact that they provide more than 60% of the world’s supplemental education worldwide. Mainly because they are run by a small group of teachers or trainers who lack the internal acumen necessary to rapidly develop sophisticated technology, or even to decide what to buy and implement (or deploy). Further, they operate in a local geography and have a low appetite for capital expenditure. However, when it comes to imparting education, they are capable of competing with the largest of ESPs.
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Trends in Supplemental Education

Despite what these education providers could or could not do, the supplemental education has not lost its importance. It still continues to play a critical role in helping students get training, prepare for a test, take up a course or get extra help with school. But what’s alarming is, if these small ESPs’ do not adapt to the new environment it’s not too long before they start losing their market share to the large education providers. The following trends tell why:

1. Ubiquitous connectivity:

As per a report published by Morgan Stanley in November 2008, there are 5B views of online video in the United States (Americans watched a total of 12.6B videos / 591MM hours online in 9/08); Facebook has 120MM+ active users, Skype has 370 mm users, 2.2B Skype Out minutes, 16.0B Skype-to-Skype minutes and PayPal: 65mm users. The number of e-mails, text messages, and IMs exchanged on a daily basis continue to grow exponentially—and all this.

It seems like we are standing on the front wave of ubiquitous connectivity. And the more we are connected, the more we want to engage, meet friends, do shopping, watch movies, share ideas online. In this mostly connected, always switched-on world, online learning makes more sense than ever before.

Undermonetized Internet Usage Growth Drivers - Video + Social Networking + VolP + Payments

329MM(1) Users

+52%Y/Y/Growth

#3 site in global minutes; 5B views of online video in the US (Americans watches a total of 12.6B videos /591MM hours online in 9/08);

#2 global search engine - search queries on YouTube reached 9.2B in 8/08 (+123% Y/Y). Surpassing Yahoo! sites with 8.5B searches (+2% Y/Y).(1,2,3,6)

161MM (1) Users

+119%Y/Y/Growth

#5 site in global minutes; 120MM+ active users; 50%+ users outside of college; 24K+ applications + 95% of Facebook members have used at least one(1,4)

370MM (1) Users

+51%Y/Y/Growth

If ‘carrier’ then #2 behind China Mobile; $1.55 annualized revenue per registered user (-3% Y/Y); 2.2B Skype Out minutes (+54% Y/Y); 16.0B Skype-to-Skype minutes (+63% Y/Y)(5)

65MM (1) Users

+19%Y/Y/Growth

$15B total payment volume (TPV). +28% Y/Y. higher than eBay’s global gross merchandise volume; Off-eBay payment volume +49% Y/Y to 51% of TPV(5)

Source: Morgan Stanley, "Technology/Internet Trends," Nov 5, 2008, San Francisco.

2. Availability of sophisticated technology:

Online learning as we know it in 2010 is not the same that first appeared on the education and training industry’s horizon. Back then, e-teaching was a breakthrough. As the technology for personal and business use evolved, so did the tools available to teachers to enhance student learning. VoIP, with peer-to-peer technology has made computer-to-computer calls of better quality than standard phones – Skype is a classic example. It has also made long distance calling free by using the IP network than the telephone infrastructure. IM, email, RSS feed through collaborative technology has become a reality. Bandwidth penetration, connectivity problems, spatial inflexibility are things of the past. The wave we are riding on right now is penetrated thoroughly with Wi-MAX and 3G right around the corner.

The figure below shows World Internet penetration rates by Geographic Regions.

3. Lack of quality education in many local areas

A recent study reports deteriorating education standards in the United States over the past decade, putting the United States far behind other nations in student skills mastery measurements. Unfortunately it stands true for most counties in the world. The reason - there is dearth of good quality education worldwide. Online learning offers a lifeline, especially in areas where there is lack of quality education. Online learning can meet the needs of a wide range of students - from those who want to take advanced classes to those who need extra help, credit recovery, home schooling, etc.

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The Beneficiaries of Online Learning

Online Learning gives an opportunity to everyone who needs to learn a new skill, prepare for Med School, or pursue a new career, without moving or going anywhere. Online learning provides learners with more ways in which to participate in education, training, and professional development. Learners get “intentional knowledge”- knowledge the teacher intends for them to learn - they also gain the “unintentional knowledge that comes with the experience of collaborating with people halfway across the world [7]. This however has been proved in the Flat Classroom project.

The pure cost savings of online learning is compelling for Education Providers. They save on rental costs, infrastructure costs, travel costs and other expenses associated with traditional classroom teaching. They can handle more students while maintaining learning outcome quality that is equivalent to that of face-to-face instruction, says an online learning expert, Jane Bozarth, in her article on e-learning [8]

In supplemental education, when it comes to learning, saving money cannot be the only reason. The critical point is to have learning that accomplishes objectives and makes learners more productive.

The Offerings of Online Learning

Coming from old school - learning happens only from a community of learners. Perhaps it was true in the early days of online learning, when it was all about delivering content in the form of online courses.

Today different technology applications are used to enhance the quality of learning experiences and outcomes. Asynchronous communication tools (e.g., e-mail, threaded discussion boards, newsgroups) are used to allow users to contribute at their convenience. Synchronous technologies (e.g., webcasting, chat rooms, desktop audio/video technology) are used to approximate face-to-face teaching strategies such as delivering lectures and holding meetings with groups of students6.

Through different functionalities these applications make learning engaging, intense, personal and meaningful.

1. Engaging:

In a blog, chat room or discussion board, teachers and students can gather to talk about the topic they might be studying, discuss their queries or talk about politics or new products in the market. Teacher’s can mentor their students, solve their problems and have one-to-one talk with them

2. Intense:

By providing creative solutions, a teacher can teach students within the context in which they live. Computer Science students can understand the arcane concepts related to different applications through examples and demos. Finance students can get firsthand experience on the vagaries of the stock market through a dynamic trading simulation.

3. Personalized:

Whether it’s about designing a logo, developing a professional-looking website, directing a short film, or drawing a 3D model, teacher can actively engage students in using the creative tools. Students have the added bonus of creating professional-level portfolios to showcase their work to potential employers.

4. Meaningful:

Teacher can use multimedia software to illustrate scenes that can give students a deeper understanding of plots and characters in classic literature. Students can understand abstract concepts like electrical energy through simulation and illustrations in Photoshop. Arcane concepts can be made easier by sharing screen casts, walking students individually through examples or sharing desk top with them.

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Challenges - for Smaller ESPs

As it’s truly based on technology, online learning is doomed to fail without access to adequate technology, internet connectivity, the level or speed of connectivity and the learning platform. For Large ESPs, the answer lies in building their own software infrastructures like Kaplan Online Test Prep or taking the VSAT route, like Educomp with its ETEN Initiative in India. Whereas small ESPs face a plethora of challenges such as finding a platform, creating an online learning environment, acquiring customers, etc. Following is the brief description of the challenges that small ESPs face:

1. Seamless integration of applications:

Due to lack of resources small ESPs cannot build own softwares or infrastructure, but they can use open-source or free applications like Skype for live interaction, Moodle to build communities and deliver courses and social media for marketing e.g. promoting on Facebook networks or building a following on Twitter etc. While there is still an element of content delivery in these systems, they are not designed for education in any way. Consequently integrating all such applications to give seamless user experience is not possible.

2. Creating an online learning environment:

In order for online learning to thrive, there needs to be an online learning environment that can build success for learners 7. Creating an appropriate environment for small ESPs has several considerations:

Making content engaging: According to a survey conducted by eLearn Magazine, 70 percent of those surveyed responded that current online learning courses were not as engaging or motivating as face-to-face courses8. It illustrates the need to design more engaging online learning in order to create a more successful learning environment for online learners. However designing own courses is not only expensive but also requires a lot of time.

Training the trainers: The pedagogy in a virtual classroom is different than in a face-to-face classroom. As learners, we talk to colleagues outside of the classroom, read a book, discuss with peers or have one-on-one session with teachers. Different kinds of learning demand appropriate strategies, tools, and resources. Online learning makes available collaborative and adaptive tools that offer ways like text graphics, animation, audio, video and video conferencing to enhance leaning. But a lot of the tools teachers use for teaching requires training or tedious software installation.

3. Avoiding Technology Glitch or Demystifying the blue (or yellow) screen of death:

It’s a metaphor used for when the computer screen turns blue displaying an error message. It happens suddenly, unexpectedly, and for some reason when you're in the middle of a class. Once the blue screen error pops up, the only way to remove the blue screen error is to press the reset button. ESP's do not have IT departments. It’s not their line of business; they are just trainers and teachers.

4. Acquiring new customers:

Internet is an exceptionally good channel for customer acquisition especially when it’s about online world - You never see amazon.com advertising in newspapers. Still, acquiring customers takes much more than sticking advertisements on a billboard. Google Adwords is one way, but you need an expert per se social media optimizer. Social media tools like Twitter, Facebook, etc., are effective channels, but need a lot of time and effort.

Best-in-Class Solution - for Small ESPs

Clearly just building a learning system that can be accessed over the Internet does not guarantee success; nor does shoveling courseware online provide an online experience. However an easy to use platform can offer a truly rich learning environment for small ESPs.

The features necessary to give this system both the range and functionality of a truly rich learning environment are:

1. Interactive usage of Virtual Classroom:

DA virtual classroom provides a hassle-free two-way, real-time communication between the learner and teacher. To create and serve a virtual classroom is extremely quick and easy. It does not require you to download a special application or player prior to entering the virtual classroom. Teachers and students can use any computer on essentially any operating system, including Windows XP or Vista, Macintosh OS X, and Linux. Virtual classroom is managed directly from the user’s web-based account through any browser on any platform.

2. Collaborative experience within white board environment:

Teachers extend the reach and scope of their online learning experience by using features such as web camera sharing, VoIP audio communications, screen and application sharing across computing platforms on an interactive whiteboard. Its ease of access for learners frees educators to focus on their content instead of the technology. Students and teachers instantly engage in virtual classroom by simply clicking on their whiteboard account or course. The teacher controls the presentation and discusses the necessary points via mouse. Students contribute through live chat (text-based) or raise their virtual hand. The teacher also transfers control to students.

3. Seamless integration of applications:

Using different open source applications, need separate logins and separate database. Users experience a single application. From the uploading to delivery of content happens seamlessly and effortlessly. Students instantly enter and exit their classroom without re-entering their credentials. Teachers upload content in any format in a matter of minutes. Files are uploaded prior to the session or during the session using the content manager (uploading documents/audio/video streaming is very fast and without delay).

4. Easy to use interface:

An easy-to-use tool works on any operating system and requires no installation or changes in the user's system. It’s easy to use interface does not require training. The focus is on enabling teachers to integrate the tools effortlessly into their curricula, than struggle with arcane applications. However a training team offers any kind of assistance to teachers and students.

5. Online reputation, student feedback:

The system gives teachers access to students feedback. Upon completion, each student is asked to rate the courseware and the teacher. Courseware is graded on accuracy, quality of the learning experience, ease of use, and overall effectiveness. Teachers are graded for their expertise and interaction with the students. It helps small ESP’s to acquire new customers. They can post grades on their blogs or attract other students on the platform.

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Conclusion

It is clear that online learning is on the rise in supplemental education industry. Mostly because the way web services such as Google, Facebook, Skype, eBay and LinkedIn are enabling collaboration and impacting the way students - access information, learn and research, etc. Moving away from a complete dependence on classroom instruction and integrating different learning tools, such as simulations, virtual labs, Flash applications, and rich interactive graphics, are helping situate learning and making it more contextual. Large ESPs have done this by building their own software infrastructures or taken the VSAT route.

For small ESPs, the appropriate venue is one platform – that delivers customized, distributed, collaborative, and creative learning environments that will turn passive learners into active participants, ignite innovation, and make education more compelling, personalized, and accessible.

The WizIQ Solution

WizIQ is an online education platform where teachers can connect with and teach students beyond the conventional limits of location and time. It is a software-as-a-service, enabling educators and students to meet in real time for virtual classes as well as for teaching asynchronously through tutorials and online assessments

From working adult learners to full-time students, WizIQ Virtual Classroom offers an online synchronous communication environment between teachers and students, using video, audio and text chat. An easy to use interface works from a Web browser, eliminating the need of downloading any software or worry about upgrades. WizIQ’s teaching tools such as the virtual classroom, the educational content sharing tool and the online tests creation software provide an edge over the traditional classroom mode.

Going beyond providing online teaching tools, WizIQ enables professional teachers such as trainers, tutors and consultants to get new clientele and sell their courses thereby helping them build their teaching business. Currently, 70,000 small ESP’s are delivering online learning to 700,000 students on WizIQ.

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Bibliography

The flat classroom project was a brain child of two teachers. A group of students, in Dhaka, Bangladesh and in Camilla, Georgia, were partnered and given the task to create a wiki page. The students communicated regularly over the internet, shared resources (photographs, music, and the like), and planned their project as if they were literally face-to-face in one class room. Some students, outsourced portions of their video presentation to their international partner, moved seamlessly among many types of software, hardware, and Web Applications to create an effective Web presentation on their topic. These included a central wiki, wiki discussion areas for conversation and teacher feedback, and RSS feedbacks to monitor changes. Students and teachers used VoIP, IM chat, MySpace to connect, Evoca (to share audio), YouTube, Google Video, Dropload (to transfer files), and many other resources to collaborate.

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