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Toward the reinvention of the business school

Business schools, defined as “educational institutions that specialize in teaching courses and programs related to business and/or management” (Kaplan 2018), are facing major challenges in years to come. These challenges stem from a number of major shifts in the business education landscape, including the rising importance of rankings and accreditations (AMBA, AACSB, EQUIS), the increased weight placed on ethical decision making, the ongoing debate on rigor vs. relevance in research, the digital revolution (Artificial Intelligence (AI), MOOCs, SPOCs, blended learning) and the significant decrease in public funding. In fact, they are so fundamental that the coming decade is likely to represent a new era in the history of business education—the fourth since the concept of the business school was created in 1819 with the establishment of ESCP Europe. (cf. Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons)

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Toward the reinvention of the business school

  1. 1. A school is “a building that has four 3 walls. ..with tomorrow inside”: Toward the reinvention of the business school Prof. Dr. Andreas Kaplan, MPA Rector, ESCP Europe Business School Berlin kaplan@escpeurope.eu
  2. 2. • Toward the reinvention of the business school • Key challenges and opportunities for business schools • Special focus on online / digital distance learning and education Agenda 2Andreas Kaplan – Rector ESCP Europe Berlin
  3. 3. Toward the reinvention of the business school Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons.
  4. 4. 4 Four eras of business schools Definition: Business schools are educational institutions that specialize in teaching courses and programs related to business and/or management History: • 1st era (1819 - 1945): Creation of the initial institutions dedicated to business education driven by the rising demand for a new type of business professional (i.e., the manager) • 2nd era (1945 - 2000): Business schools aimed to become more scientific, with the objective of establishing business administration and management as stand-alone disciplines • 3rd era (2000 - today): Period of globalization, defined by the rising importance of accreditation bodies such as AACSB, AMBA and EQUIS and the emergence of international rankings • 4th era (future): Era characterized by digitization (MOOCs, SPOCs, Artificial Intelligence), decreased in public funding, increased weight placed on ethical decision making, … Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons. Andreas Kaplan – Rector ESCP Europe Berlin
  5. 5. 5 Four criteria to classify business schools: Culture - Compass - Capital - Content Culture Independent of their actual (physical) location, business schools can be classified according to whether they follow the European or the US model Andreas Kaplan – Rector ESCP Europe Berlin Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons. Compass Business schools can be classified along a continuum, with international/ global schools on one end and regional/ local schools on the other Capital Business schools can either be publicly (state) funded or privately funded, for example through endowments or tuition fees Content Business school can be classified according to whether a school considers teaching or research to be its primary focus
  6. 6. 6 Four Cs to define & classify business schools Andreas Kaplan – Rector ESCP Europe Berlin Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons. Criterion Continuum Culture Europe US (e.g., CEIBS, ESCP Europe) (e.g., INSEAD, Kellogg) Compass Global Local (e.g., INSEAD) (e.g., Debrecen Business School) Capital Private Public (e.g., Kozminski University, WHU) (e.g., HKUST, UCLA) Content Research Teaching (e.g., HEC, Wharton) (e.g., EBS; Plymouth)
  7. 7. 7 4 T-A-S-Ks for reinventing business schools Andreas Kaplan – Rector ESCP Europe Berlin AS SE TS Alumni & Students Services & Equipment Teachers & Scholars T From Tower to Twittersphere Selection takes ability to serve as brand ambassadors and value in rankings and accreditations into account Importance of branding and communication, architecture and having the “right” image Research topics chosen, in part, for their PR potential; higher importance of “star” teachers & researchers Culture: European and US schools equally ready A From Auditorium to Anti- Café Evolution from passive consumers of knowledge to active co- producers of course content Need for flexible layouts to enable group work and interactivity; Importance of online courses Knowledge transmission moved to online sphere; classroom time used for highly interactive teaching Compass: Global schools likely to be more ready than local schools S From Stakeholder to Shareholder Shift from students to customers and future donors, resulting in higher customer/ student centricity Shift from bureaucracy and administration to becoming a concierge- like service-provider Faculty becomes one of several stakeholder groups to be managed, creating need for compromise Capital: Private schools likely to be more ready than public schools K From Knowledge to Know-how Selection based on soft skills in addition to intellectual achievements (grades) Importance of expert career service that provides professional advice and job offers to students based on skills and personality traits Evolution of faculty from knowledge professionals to coaches and facilitators in a transversal and interdisciplinary setting Content: Schools who balance teaching and research quality more ready than research- only schools Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons.
  8. 8. 8 Implementation will depend on strong buy-in Successful implementation of a new type of business school will only be possible if there exists a buy-in by most, if not all, members of faculty and staff. Andreas Kaplan – Rector ESCP Europe Berlin Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons.
  9. 9. Key challenges and opportunities of business schools
  10. 10. 10 Key challenges: The 3 E‘s for Education Core challenge 1: Enhance HE institutions’ prestige and market share in a consolidating global educational market. Core challenge 2: Embrace a deeper entrepreneurial mindset, with corresponding modus operandi and decision-making approaches. Core challenge 3: Expand links, interactions, and value co-creation with key stakeholders. Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. Andreas Kaplan – Rector ESCP Europe Berlin
  11. 11. 11 Strengths • Essential source for a society‘s talent and innovativeness - Institutionalized public service with a societal mission - Important provider of knowledge and innovation • National driver and global ambassadors - HE as domestic resource, engine of growth and economic recovery - International expansion and global knowledge dissemination Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. Decrypting higher education: A SWOT analysis Weaknesses • Substantial delay in entrance of business practices - Tradition of being a public service financed and protected by the State - Partial resistance of influential faculty • Low responsiveness to changes in corporate world - Little adaptation of programs and curricula to recruiters‘ needs and job expectations - Myopic publish-or-perish research strategies leading to purely academic publications without consideration of other stakeholders Opportunities • Fast-evolving HE environment through ICT - Development of new markets, potential productivity gains, and branding possibilities - Advancement of both general knowledge and network society • Rapid transformation encouraged by socio- demographics - Millennials seeking augmented educational experience - Growing and changing student population Threats • Continuous decrease in public funding - Necessity for external fundraising and increased self- financing - Need for marketization of HE, potentially lowering academic standards and quality • Increasingly competitive environment - Domestic deregulation leading to new market entrants - Gobalization broadening competition to an international scale Andreas Kaplan – Rector ESCP Europe Berlin
  12. 12. 12 1. Enhance prestige and market share Core challenge 1: Enhance HE institutions’ prestige and market share in a consolidating global educational market. • Guarantee resources for sustaining growth • Additional performance metrics to measure universities’ excellence, and ultimately enable them to access resources for future development; Market will assess which universities deserve to be part of the top leagues and rankings • More advanced stage of private fundraising, leveraging university reputation to become preferred partner of choice of key stakeholders (notably alumni, but also students, professors, corporations, etc.) and new forms of collaboration between the university and the rest of the world Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. Andreas Kaplan – Rector ESCP Europe Berlin
  13. 13. 13 1. Enhance prestige and market share ALUMNI ARE KEY Andreas Kaplan – Rector ESCP Europe Berlin
  14. 14. 14 2. Embrace entrepreneurship & innovation Core challenge 2: Embrace a deeper entrepreneurial mindset, with corresponding modus operandi and decision-making approaches. • Entrepreneurial leadership at all levels of HE institutions • Defined and formalized mission and strategy able to guide an entrepreneurial approach at all levels of HE’s institution • Pivotal role of academic-managers in contributing to HE institutions’ quality and reputation and participating actively in management and decision making • Increased autonomy and accountability permit more control over resources and freedom to choose investment strategies. Management of HE has to encompass more complex and urgent business decisions (e.g., the ICT infrastructure) Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. Andreas Kaplan – Rector ESCP Europe Berlin
  15. 15. 15 2. Embrace entrepreneurship & innovation Andreas Kaplan – Rector ESCP Europe Berlin
  16. 16. 16 3. Expand links and value co-creation Core challenge 3: Expand links, interactions, and value co-creation with key stakeholders. • Increased connections, interactions, and value co-creation with a larger set of key stakeholders • Learn to navigate the new technology-oriented and multimedia environment, with HE institutions supporting academics as they acquire necessary skills • Deeper integration of Web 2.0 and networking in research • New design of learning processes and infrastructures, aiming at co-learning through highly interactive and responsive pedagogies • Dialogue and participative communication, leveraging new media (and in particular Web 2.0 and social media) to address HE’s different audiences with customized messages Pucciarelli F., Andreas Kaplan (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. Andreas Kaplan – Rector ESCP Europe Berlin
  17. 17. 17 3. Expand links and value co-creation ALUMNI ARE KEY AGAIN Andreas Kaplan – Rector ESCP Europe Berlin
  18. 18. Special focus on distance learning and education
  19. 19. Classifying online distance learning: Time dependency & Number of particpants 19 Classification of online distance learning applications according to two dimensions: the number of participants (unlimited/limited) and the degree of time dependency (asynchronous/synchronous) Number of participants Unlimited Limited Time dependency Asynchronous MOOC (Massive Open Online Course) SPOC (Small Private Online Course) Synchronous SMOC (Synchronous Massive Online Course) SSOC (Synchronous Private Online Course) Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution: About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450. Andreas Kaplan – Rector ESCP Europe Berlin
  20. 20. Defining MOOCs, SPOCS, SMOCs, & SSOCs: Four groups of online distance education 20 Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution: About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450. • MOOC (Massive Open Online Course): Open-access online course (i.e., without specific participation restrictions) that allows for unlimited (massive) participation. • SPOC (Small Private Online Course): Online course that only offers a limited number of places and therefore requires some form of formal enrollment. • SMOC (Synchronous Massive Online Course): Open-access online course that allows for unlimited participation but requires students to be ‘present’ at the same time (synchronously). • SSOC (Synchronous Private Online Course): Online course that only offers a limited number of places and requires students to be ‘present’ at the same time (synchronously). • Distance education: Providing education to students who are separated by distance and in which the pedagogical material is planned and prepared by educational institutions. Andreas Kaplan – Rector ESCP Europe Berlin
  21. 21. Describing xMOOCs vs. cMOOCs: Passive learners vs. Active contributors 21 • xMOOCs: MOOCs based on traditional lecture formats (inspired by Harvard University, which used the prefix ‘x’ to indicate (offline) courses in the university’s course catalogue for which online versions were available). • cMOOCs: MOOCs where social media applications constitute a central part. Social media allow students to create pedagogical materials (via blog entries, tweets, podcasts, and the like) that can subsequently be commented on and further enhanced by other participants. Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution: About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450. xMOOC cMOOC Professor Instructor, who designs a standardized course for everyone Facilitator, who animates an individual learning process Participants Passive learners Active contributors Pedagogy Predetermined content, based on a formal curriculum, using lecture style and evaluation Collaboratively developed content without a formal curriculum, in seminar style without evaluations Pattern Structured with regular sessions over a fixed time period Unstructured based on continuous learning Platform Centralization of content in one place Decentralization of content across network Andreas Kaplan – Rector ESCP Europe Berlin
  22. 22. 22 MOOCs & further types of distance learning most likely not to replace physical presence To sell a concept where location and differences in local contexts additionally is of academic importance might be highly valued in the future “Within 50 years there will be only 10 institutions of higher learning left in the world” Sebastian Thrun – Cofounder Udacity But: • Physical presence might be necessary to go the extra mile • Networking often best happens after class and not during • Life skills than only knowledge + know-how Andreas Kaplan – Rector ESCP Europe Berlin
  23. 23. 23 MOOCs will make it essential for business schools to be an expert in a specific area To be an expert in a certain field will become more and more important in the future of MOOCs. • Universities and schools will produce MOOCs where they have a real legitimacy • Students world-wide will choose the expert‘s MOOC to learn in a specific field • A single business school hardly can be expert in everything • Local / regional players will arise (languages & different teaching approaches) Examples: • ESCP Europe -> European / cross-cultural manager • Harvard University -> Lawyers • Wharton School -> Investment bankers Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution: About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450. Andreas Kaplan – Rector ESCP Europe Berlin
  24. 24. 24 Further readings... • Kaplan Andreas (2018) “A School is a Building that Has 4 Walls - with Tomorrow Inside”: Toward the Reinvention of the Business School, Business Horizons. • Kaplan Andreas (2018) Academia Goes Social Media, MOOC, SPOC, SMOC, and SSOC: The Digital Transformation of Higher Education Institutions and Universities, in Bikramjit Rishi and Subir Bandyopadhyay (eds.), Contemporary Issues in Social Media Marketing, Routledge. • Kaplan Andreas (2018) Toward a Theory of European Business Culture: The Case of Management Education at the ESCP Europe Business School, in Suder Gabriele, Riviere Monica, Lindeque Johan (eds.), The Routledge Companion to European Business, Routledge. • Pucciarelli Francesca, Kaplan Andreas (2018) Le Università Europee oggi: sfide e nuove strategie, Economia & Management. • Kaplan Andreas, Haenlein Michael (2016) Higher Education and the Digital Revolution: About MOOCs, SPOCs, Social Media and the Cookie Monster, Business Horizons, 59(4), 441-450. • Pucciarelli Francesca, Kaplan Andreas (2016) Competition and Strategy in Higher Education: Managing Complexity and Uncertainty, Business Horizons, 59(3), 311-320. • Kaplan Andreas (2015) European business and management (Vol. I - IV) – Four-volume reference work, Sage Publications Ltd., London. • Kaplan Andreas (2014) European Management and European Business Schools: Insights from the History of Business Schools, European Management Journal, 32(4), 529-534. • Kaplan Andreas (2014) Social Media and Viral Marketing at ESCP Europe, the World's First Business School (est. 1819), European Case Clearing House, Case 514-058-1. • Kaplan Andreas (2009) Virtual worlds and business schools: The case of INSEAD, in Wankel C., Kingsley J., Higher education in virtual worlds: Teaching and learning in second life, Emerald Group Publishing, 83-100. Andreas Kaplan – Rektor ESCP Europe Berlin

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