Strategic principles for competing in the digital age — from mckinsey.com by Martin Hirt and Paul Willmott
Digitization is rewriting the rules of competition, with incumbent companies most at risk of being left behind. Here are six critical decisions CEOs must make to address the strategic challenge posed by the digital revolution.

Excerpts:

Today’s challenge is different. Robust attackers are scaling up with incredible speed, inserting themselves artfully between you and your customers and zeroing in on lucrative value-chain segments.

The digital technologies underlying these competitive thrusts may not be new, but they are being used to new effect.

…

As these technologies gain momentum, they are profoundly changing the strategic context: altering the structure of competition, the conduct of business, and, ultimately, performance across industries.

 

 

Also see:

Digital strategy — from mckinsey.com by Paul Willmott
Digitization is fundamentally altering the nature of competition. McKinsey’s Paul Willmott explains how digital winners think and what companies can do to compete.

Excerpt:

Digital is fundamentally shifting the competitive landscape in many sectors. It allows new entrants to come from unexpected places. We’re seeing banks get into the travel business in some countries. We’re seeing travel agents get into the insurance business. We’re seeing retailers go into the media business. So your competitor set is not what it used to be.

One thing that digital allows is what I call “plug and play dynamics”—meaning that companies can attack specific areas of the value chain rather than having to own the whole thing. This is because digital allows different services to be stitched together more quickly and cheaply.

 

From DSC:
The above two items made me wonder:

  • Do these principles apply to the corporate world only?
  • Or might they also apply to the world of higher education?
  • Are digital startups going to come between established colleges and universities and their normal “pipelines” of students?

Assuming that such startups can create quality alternatives at far less expensive prices, I would say the answer to that is “yes, at least a significant amount of the time.”  The word cannibalize was used in the “Strategic principles…” article, and again, I can’t help but think of Steve Jobs’ philosophy of cannibalizing one’s own company before someone else does it for you.  I also can’t help but reflect that Apple is the worlds’ largest/most valuable company based on market cap. 

There is danger in the status quo — especially if the status quo means taking no action whatsoever.

 

Failure is not fatal, but failure to change might be.

— Coach John Wooden

 

 

 

Also see:

  • The $10,000 Bachelor’s Degree — from U.S. Chamber of Commerce
    Excerpt:
    Starting this fall, Southern New Hampshire University will offer a bachelor’s degree for $10,000.What makes this online program unique is that it is ‘competency-based’ as opposed to the credit-based system that the majority of colleges offer. So, instead of earning credit hours towards degree completion, students will be tested on how well they know the subject matter. Once a student passes the assessment, he or she can move on to the next competency.
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  • The $10,000 degree: Fundamentally changing the way universities do business — from evolllution.com by Jean Floten | Chancellor, Western Governors University Washington
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  • Whither higher education? To the opera! — by Allison Rossett
    Excerpt:
    Higher education and opera face threats and opportunities in cultures deep with pomp, brilliance, ego, passion, longing, losses, greed, and alliances. For higher education there is an infusion of new blood, with educational technology firms attracting 1.25 billion dollars in funding in 2013, according to CB Insights. The interest continues into 2014. While the investment numbers for opera are small, some communities are stepping up, as San Diego is now, providing funding while asking for reinvention.Reinvention? How will higher education and opera respond? The answer is that some will, and some won’t. I’m hoping that our opera and universities will step forward with bold strategic changes, measured results, and commitment to continuous improvement. Either they will do that, or I’m pretty sure that something will do it to them.
  • Five trends to watch in higher education — from The Boston Consulting Group
    Excerpt:

    • Revenue from key sources is continuing to fall, putting many institutions at severe financial risk.
    • Demands are rising for a greater return on investment in higher education.
    • Greater transparency about student outcomes is becoming the norm.
    • New business and delivery models are gaining traction.
    • The globalization of education is accelerating.