Startup Revolution

Disruption In BSchool Education

Most of this talk is about disruption in education, but Christensen is the "master of disruption" and this conversation with Mark Suster is fascinating for Internet marketers.

Lack of technological core means an industry can't be disrupted. Education was in this boat for a long time. Online learning brings to education a "technological core" matched with pricing that has lost touch with reality means disruption is possible and likely.

Online learning and corporate learning programs are killing Harvard Business School. Christensen says half of the University business schools are in trouble and will be forced to get with it or close in ten years.

Apple Computer
Fascinating discussion of Apple & proprietary architecture at 10:33. The inevitable opening of a once proprietary operating system means prices fall and the money is made in "sophisticated manufacturing". "It really is scary," says Christensen about the loss of sophisticated manufacturing.

He goes on to blame business school for looking to layoff costs because of the way we teach people to measure things.

Freemiums
Another fascinating conversation about Fremiums at 14:30. "As a general rule if you have a product that doesn't get the job done you have to offer it for free," with Suster weighing in on charging for services. Modularity drives commoditization and that drives profit out.

Crowdfunding
Free usually means there is money to be made, "Above and below and you can invest or be an entrepreneur there and you can make money". Suster then talks about Venture Capital disruption and crowdfunding at 19:50.

Royalty Capital
Royalty Capital = movement in Boston to license capital as a way around limitations of venture capital at 24:00. When revenue starts there is a royalty rate returned to the capitalists. Fascinating alternative financing experiment going on in Boston.