Platform-mediated networks are disrupting the education industry. Nowadays, education is highly institutionalized, bound to physical locations and costly. Internet changes this. Key innovation for education are digital platforms.
E-learning describes learning situations with the use of IT. Students and teachers are connected through a digital medium.
These developments have led to massive online open courses (MOOCs). Platforms offering MOOCs enable teachers to place their courses including videos, readings, presentation slides and exams that can be accessed by students. These platform-mediated networks connect participants in a two-sided market, the course providers (universities / education institutions) and students (or anyone who wants to learn something).
The platform-mediated networks has built an eco-system on its own, consisting of four different players: producers, consumers, providers and owners. Producers are the parties creating content, e.g., universities. Consumers are the buyers on the platform, in this case students. Providers are devices enabling you to access these platforms and owners are organizations that legally own the platform.
Coursera is an example, where universities offer online courses through a digital platform, with verified certificates upon completion as a main revenue source.
Another example is edX. In contrast to Coursera, edX is a non-profit institution and an open source platform. Its producers are different than what Coursera has. This is because it allows both education institutions and any other party to offer courses. edX allows universities to create courses for its platform for free, and keep the first $50.000 of revenue and a 50% share after this.
We show how platform-mediated networks offerings MOOCs are disrupting the education industry by applying the theory of Newly Vulnerable Markets. The market is newly easy to enter because of reduced entry barriers regarding necessary investment to enter. Furthermore, it is attractive to attack because education is profitable. It is difficult to defend as potential competitors could enter by building their own digital platform.
Besides decreasing costs, MOOCs also enable customization regarding what and when to learn. Teacher-centered learning would become student-centered learning. Higher education becomes more affordable and accessible for students. Consequently, education would be more efficient.
By suggesting new courses based on the student’s study history, positive spillover effects are created. Platforms can rapidly increase the volume of interactions leading to an increasing network effect.
Additionally, the feedback systems embedded in these platforms ask students to evaluate themselves and the course. Students would be more motivated and empowered in terms of improving the course.
The challenge for education institutions is how students could earn academic credits or entire academic degrees equivalent to as they today.
AI and applications such as Gradescope could aid in assessing a student’s progress, which forms another challenge. Moreover, deep learning engines are expected to analyze, interpret and grade assignments without human involvement.
Another challenge is how MOOCs can be personalized and tailored to the needs of a student. A solution would be intelligent systems that facilitate customizable approaches and autonomously develop micro-content. Moreover, gamification and VR could play a role.
Future growth of platform-mediated networks and MOOCs in education is certain. The question is how and when these challenges will be overcome.
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