PCoOL | Jeff Maggioncalda – Beyond the Campus Walls | Columbia University, Oct. 3, 2018

– Good evening Welcome to the first provost conversation on online learning of this academic year The provost conversations on online learning features public talks by leading experts on the future of education And through such talks, we hope to share knowledge to enrich and enhance teaching and learning not only online but also on campus Back in April 2013, we invited Daphne Koller, the cofounder of Coursera to campus in this very room We are pleased to have Jeff Maggioncalda, the CEO of Coursera, with us today to share what has changed over the past five and a half years, what’s new, and what to expect in the future Jeff joined Coursera a year and a half ago after serving 18 years as the CEO of Financial Engines, a company founded by economist and Nobel Prize winners William Sharp, and prior to that Jeff worked for McKinsey and Cornerstone Research Jeff holds a bachelor degree in economics and english and an MBA from Stanford University Please join me in welcoming Jeff to Columbia University (clapping) – Great, thank you Thanks for the introduction It’s a thrill to be here and I feel like I almost have to apologize for the enthusiasm with which I’m about to present this talk Coursera is now six years old I’ve been here for about a year and a half It has been extraordinarily being in Europe, India, Latin America Last night I was in Moscow It is a global phenomenon what is happening with education around the world, especially higher education and I’ll say adult education, which is not always the same thing as higher education And what I want to talk a little bit about is these sort of tectonic forces that are creating the need for what Coursera does, and the way that our business and our products and our partnerships are evolving to meet these needs I will have some data, I will have many insights, and there are many questions yet to be answered where I will guess maybe at the answers but we just don’t have them right now So I like to say that the future of work and the future of learning are converging And they’re converging because fundamentally, the world is changing at a faster pace than it has ever changed before, driven mostly by globalization and by technology You have things like the availability to data, elastic computing power, artificial intelligence, which is both a function of computing power as well as data as well as an evolving understanding of how to create efficient neuro networks, and you have things like robotics and sensors We’re looking at, I was just with one of the largest companies at Russia last night and they are deeply troubled by the almost inevitability that self driving cars and trucks will dramatically change the economic landscape for country after country after country Not to mention the robotics manufacturing, even automation of white collar jobs So it’s incredible what we’re seeing, and so because the world’s changing so quickly, skills are becoming outdated, tasks are becoming automated and replicated, and the ability to do a job in that economy will be dependent on a ability to learn and develop skills in a world where skills are obsoleting very quickly There’s a book I was reading before I took this job, Thank You For Being Late by Thomas Friedman It’s a great book, I really recommend it It talks a lot about how fast the world’s changing and there’s a chart that he actually grabbed from someone at Google, that basically characterizes our point in time, we are here, at a point in time where the pace of innovation and change in technology has outstripped humans ability to adapt, especially in situations like governments, arguably intuitions like educational institutions, but also things like gender identities, jobs, parenting styles, I mean things are changing very very rapidly And what he says is that it is imperative that intuitions adapt and that we are able to learn faster and govern smarter to help humans stay up in a world where change is happening so quickly So I think fundamentally what gives rise for the need for Coursera is a world changing faster and faster This is happening at a time where various consultants will say different things McKinsey in 2017 came out with I think a very articulate report

on the impact of automation They expect about 400 million jobs to be impacted or potentially eliminated due to technology that exists today They looked across all the jobs, and not just the job, they looked at it by region, by industry, and by job activity And they sorted it at a time and motion study and they looked at all the technology that existed in 2017 and said how many of these activities could be replicated or substantially automated using technology that exists today They put the number at about 400 million, and you could see, it’s about half of jobs in most countries will be impacted by technology This is happening at a time where we expect about 300 million people to be entering the workforce in the next 10 years And it’s not evenly distributed around the world 100 million entering the workplace in India, there will be almost a billion working age people in India within 15 years You look at China, about 60 million 40 million in Brazil, about 39 million in the U.S Interestingly I was just in Russia giving this talk In Russia, and in places like Japan, there are some economies where the working age population is decreasing So Russia expects to see a decline of 10% in their workforce This comes at a time where they’ve been bumping up the retirement age because the ability of the government to sustain people through a longer lifespan is putting tremendous financial strain on their benefit and social welfare programs And so they’re facing a world where they cannot provide social security so early in life, which almost by definition means someone’s got to pay the bills, which means individuals have to work for a longer period of time in a world where the skills are obsoleting more quickly They are really interested in how do you educate and reeducate and keep agile an older population that the government cannot necessarily take care of in the way they used to in the past So the bad news is there’s a lot of dislocation that’s happening and that will continue to happen And what I personally worry about is the dislocation that is happening in terms of social fabric, the kind of tribalism that we’re seeing, the kind of fear, anger, and outrage and resentment when people around the world can see the differences between people And especially differences in economic opportunity I think it is imperative, and by the way, I was with the World Bank talking to the leaders in the Middle East, North Africa segment They’re talking about unemployment rates north of 50% among young males who are entering sort of the working age, and they are deeply concerned about the stability of fundamental institutions if they cannot provide the skills and jobs to people that otherwise might find other ways to employ their time So there’s a high level of urgency around the world, much more so than in the United States The good news is, through technology , we can make very high quality levels of education available, and I’d like to talk a little bit about how, at least at Coursera, how we’re doing that So at Coursera, we like to talk about our offering as a platform, a platform for a global campus We basically bring together three types of stakeholders Learners, educators, and employers, and we think each of these three are all really important for our business model and for solving this problem So to date we have about 35 million learners around the world who registered on Coursera, and they come to what we say as learn and prosper It is definitely the learning piece, but for the vast majority of adults who are very busy, working and taking care of kids and trying to have some fun, they’re trying to learn the things that will help them get better economic opportunity or to help them hold onto their jobs We have about 170 universities around the world, so just because it’s very fresh in my mind, we have eight of the top universities in Russia, we have about 11 universities in Latin America, we have many tens of universities in North America, and in Europe, our biggest concentration of partners is in North America and Europe And increasingly, we are inviting on to the platform industry partners These are corporations who are offering courses and teaching folks, usually more applied skills, and they’re teaching folks how to use technology platforms So our largest industry partner is Google They’ve offered more than 30 courses on Google cloud platforms They’re in a titanic war with Amazon and Microsoft and IBM, and now Ali Baba, and now Yondex The cloud wars are in full force And most technology companies are realizing that in order to keep up, almost all business models, not almost all, many business models that are emerging now are ecosystem platform business models that require a set of talented developers to understand how to develop on that platform, and the value of the technology platform is related to the size of the developer audience

in ecosystem that understands and supports that platform So learning has become part of the product offering for many technology companies who’s pace of innovation is outpacing people’s ability to learn these new technology platforms So it has become business critical to educate a world of developers as well And then finally, on the employer piece, Coursera launched Coursera for Business two years ago We like to say we help employers transform talent So within two years, over 1500 companies have hired Coursera to offer our partners courses to their employees at work, who are trying to learn the skills in digital marketing, data science, technology, business, management, leadership, global workforce, supply chain automation etc And they don’t have the money or the expertise to author all this content themselves The learning need is to broad and is changing too quickly for companies to have their corporate universities where they produce all the content It’s like hey, Coursera, you guys have like 2900 courses from the best universities around the world in almost every language My employees are all around the world How about I sort of rent courses from you and make them available to our employees And this business is growing very very rapidly, and we like to think Coursera really is just a platform provider that helps these three stakeholders in this learning ecosystem create and exchange value with each other to identify and solve problems that we might not have seen, and we might not have been able to solve on our own So we’re really trying to enable learners to learn and prosper, educators to teach the world, and enterprises to transform their talent So in terms of the global population, the top five countries represented on Coursera are the U.S. followed by India, followed by China, Mexico and Brazil And you see the highest growth rates are generally in emerging economies 47% of our learners are in developing economies Among the employers, we hae 1500 employers who hired us The span the range across countries, geographies, industries They’re often the larger companies who cannot keep up with the speed and scale of education that’s now being asked of them through their digital transformation initiatives that you hear basically every major company in every major country is talking about digital transformation And many people, most people, even I, don’t know exactly what that means, and we’re kind of discovering it together But it has something to do with a lot of data, a lot of computing power, and new ways of communicating and marketing to customers who are changing behavior and purchasing patterns very rapidly And competitors who are merging from places that these companies have never anticipated, so customers and competitors are moving quickly, that’s what’s giving the real pressure on these companies to say we have to keep up And then our partners I mentioned are mostly in the U.S and Europe, but they do span a global range And what we’re doing on Coursera, our partners are driving a lot of innovation, but it’s been really exciting to see So again, we like to think of Coursera as a platform for your global campus In the early stages, a lot of our university partners came to Coursera because they knew that on Coursera, they could reach audiences that before they couldn’t reach Reach is a really big part of it A couple years ago, when we announced the Coursera for business, there was a new audience, which is learners at work that our educational partners can reach So that’s kind of what it started as, as come to Coursera to offer courses if you’re an university We’ll help deliver those courses to audiences that otherwise might be more difficult to reach What’s been happening though is our partners have been pressing us, and we’ve been very open to it, to say how else can we use this platform? So we just announced a pilot program called Coursera for Partners Where our partners are saying a lot of our students, especially those just coming in to undergrad, have grown up with a very different educational experience in high school They’re learning a lot of things from YouTube, they’re on their phones and computers all the time, this idea that you sit in a big lecture hall is feeling a little less appropriate for these newer learning audiences We want to put our MOOCs on campus We’d like to offer our MOOC’s to our students at no cost So we said fine, if you offered more than 20 MOOCs, you can now use Coursera for your own student population So my daughter is a sophomore at Duke, and Duke has authored maybe 70 courses, and those courses are now all available to all the students, staff, and faculty on Duke’s campus We now have about 10 universities, I’ll mention them in the next slide, who are doing this as well So it is absolutely a world, we are online and on campus are blending together Right now it’s mostly open content, not for credit, but you’ll see, we’re doing full degrees and even for credit degree components that we think are very interesting for both educators and for learners

So we started doing this on campus and then our partners said you know what, everyone talks about lifelong learning, one of the only ways we seem to really engage our alumni is basically through sports and sort of fundraising What if we became learning partners for our alumni for the rest of their lives? How can we continue to teach and be engaged with, bilaterally, in both directions, helping our alumni teach our students and helping us teach our alumni what’s happening in the world? So we’ve extended the Coursera for partners program to also include at no cost, and this is just a pilot program, the availability of our partners MOOCs to not only their faculty, students, and staff, but also their alums, and you can probably imagine, this has been very well received And then some of the schools said, well you know what, we also had this executive education department in the business schools where we go out to companies So it’s great that you have 1500 companies, but we have companies we work with as well We don’t really have a very scaled way of delivering these executive education programs And so could we use Coursera to actually create more scale at lower cost, and in many ways a higher level of convenience for our corporate partners, and so now we are working with our partners to have Coursera to actually do your corporate outreach And then we have a case which is now emerging in more than one partner where they said, there’s a program for instance with Coursera which is called Coursera for Refugees, where we make our courses available to refugee populations that don’t have access to educational opportunities at no cost And Duke came to us and said you know, a lot of our courses are being taken by refugees in Germany We’re going to be sending Duke students to Germany for the summer to actually help instruct refugees using our MOOCs So the ability to do social outreach and really scale the incredible value and opportunity and privilege that exists in the top universities is another really promising part of being able to use technology To take this really really valuable asset for the world, and instead of just having it contained on a few square acres, actually project that value and make it more available to more populations who really need that kind of help So there’s a lot of interest in using Coursera for social impact in our participants, our partners And we also have some partners saying wow, this platform thing’s really interesting If I could take these MOOCs and offer it to my students, alums, and social impact and businesses, I can develop a more diverse pipeline of students coming to campus Especially in the United States there’s a high disparity in different populations The quality of education that people are getting in high school And they’re saying could we use Coursera to offer courses specifically designed for certain populations of less advantaged high school students, who maybe didn’t have 20 or 30 AP courses available to them, to help them learn things os when they get A, to increase the chance that they’re qualified to come to campus and B, when they get to campus, reduce that disparity that exists so often with first generation college students where they just haven’t had the training and available resources educationally that many others have had So using Coursera as a platform for incoming students is also something that’s been very exciting And then recently we’ve been doing something called collaborations So what’s happened is that universities have said you know what, we’d like to work with other Coursera partners and actually combine and co create content, especially in different regions So there’s an initiative that we just announced a couple of months ago, that was born from a trip I took to Latin America in December I met with directors of Tec de Monterrey which is kind of the MIT of Mexico and Uniandes in Columbia, and Catalica de Chile in Chile They are three of the top universities in Latin America They are all Coursera partners, they’ve authored many courses, and they said Jeff, we want to collaborate across countries in Latin America We think the educational infrastructure in Latin America could be dramatically improved if only we had an ability to collaborate to ourselves, and to make this available to many other educational intuitions who don’t have the quality of education of Tec de Monterrey or Uniandes So they created something called La Triada, the three And what they’re doing is they’re using Coursera to combine course catalogs, so it’s a version of Coursera for partners, where each student on each campus has the full collection of all courses across all three campuses And not only are they just combining the courses, they are also now collaborating on authoring custom courses across these campus with an eye towards making these courses available through other intuitions that don’t have the kind of faculty and resources that they have to sort of up level the entire educational system of countries across Latin America So we’re very excited about that It’s only a pilot program right now, this Coursera for partners, but it’s been really quite remarkable, the amount of interest Here are the participating pilots, and there’s just a lot of excitement, so we’re really thrilled about the ways that our partners can collaborate and reinvent

the way that we educate the world A lot of folks are familiar with MOOCs, that was started in 2012 Massively open online courses In 2014, we bundled up courses and called them specializations They’re more about mastering a full skill instead of just learning something new in a MOOC We charge a subscription fee for those specializations That’s a large part of what’s been driving our revenues And the company’s been growing spectacularly in the last year Year after year we have grown our revenue more than 50%, so for folks who are like oh, MOOCs aren’t working, they’re absolutely working in some really interesting ways, not the least of which is when you bundle them together and put a credential in something like data science and computer science, that’s a pretty valuable credential that employers do recognize and learners want to buy All the courses are still available for free If you want to watch the videos Virtually every course is still available for free But the assessment and the certificate are not free, you have to pay for that We also have launched degrees These are usually 20 to 25,000 dollars We now have 11 masters degrees and one bachelors degree, which I’ll talk more about And then master track certificates that are degree modules that you can buy for three or four thousand dollars It’s a piece of a degree with open admissions, has the full degree experience and can be used as a basis for admissions into a degree program where if you get into the degree program, the credit would count towards the degree So essentially, people earn degrees in modules You don’t have to buy the whole thing at once If you look at some of your top universities among the top programs that I’ve mentioned, Michigan, Penn, and Duke are among the most aggressive in trying new things that we’re doing on Coursera A lot of the innovation have been driven by our partners and by business and learners, but not necessarily by Coursera Columbia’s one of our earliest partners, although there’s a fairly modest course catalog Some of the most popular courses are from Columbia, and I’ll actually have a slide on that in just a moment And you can see that there’s a different rate of adoption among some of these innovation programs I mentioned degrees In 2016, we announced from the University of Illinois , three masters degrees A master’s in business administration, a master’s in accounting, and a master’s in computer science with focus on data science And then we announced last year a master’s in computer science at our March conference with our partners we announced the ASU master’s of computer science, global master’s of public health from Imperial College of London I think they’re the 8th ranked university in the world University of Michigan has been an early partner of ours They’re doing a master’s in public health and a master’s of applied data science University of London, a bachelor’s in computer science They see a global opportunity for training computer scientists around the world And then we just announced in July a degree from University of Pennsylvania, so they have a very popular program on campus called the master’s of computer information and technology This is a master’s degree in computers for people who did not get a computer science bachelor’s degree There is just a huge number of people from almost all past generations who got really good education, but computer science wasn’t such an important topic And so they’re thinking about how do I compliment my skill set and credential set from a top university in a field like computer science So we’ve seen really, amazing demand for that degree which will be launching next year And then we just announced in August a global MBA from Macquarie University in Sydney So really across business, technology and data science primarily, with now a movement towards health care where we see a huge need in education for health care as well We’re seeing both at one end of the spectrum the MOOCs becoming popular and continuing to grow, but also at the other end, degrees, which will be increasingly moving online And I like to say when people think about MOOCs, they’re definitely a way to educate folks, they’re also an amazing entryway into other types of learning and credentials, whether those are specializations of master track certificates These are parts of master degrees, or full degrees, it’s a great way for someone to engage in the topic, meet a professor, learn about the school, decide whether they’re good at it, enjoy it, and if they want to, they can decide to move up to higher value and more rigorous credentials About 50% of the students in our degree programs actually were open, free, MOOC learners So one of the things about online degrees is that they’re typically very costly, and the acquisition cost is usually 10 to 15,000 dollars per student Essentially from a business model perspective, this is like a premium business model, where our partners are putting MOOCs out there, very valuable content, teach very valuable things, they’re free People all come in and decide hey, I like this, I want to learn more about this,

I’d like to maybe build a career out of this And they can decide from that free entry point that maybe I want to buy something and participate in a learning experience that’s a bit more rigorous So I think the MOOCs have a very positive future I think they’re gonna be contributing to a business model in a gateway kind of method I want to just quickly show you a little video, it’s 90 seconds, that the University of Illinois did for their MBA, just to kind of show you what the learning experience looks like ‘Cause it’s built on MOOCs, it’s using technology in much more interactive and engaging ways – We wanted to do something that would democratize education And also to make a degree that was available to people to be able to work around their lives, so they could continue to work, continue to raise families Our online iMBA, it’s actually the same degree as any other way of earning a MBA for the University of Illinois And so you’re a full fledged member of the community, when you graduate, you’re one of our alums, and we love all our alums the same – The iMBA basically stood out because of the cost, the 20,000 dollars, the faculty, the flexibility of the program – I don’t think I would of been able to finish any other program because after giving birth, it was really super hard And having something that was based on certificates in a modular structure make the entire difference for me – I was shocked at how much it felt as good or better than when I was sitting in class in my undergraduate days The professor’s right there, looking into the camera, everyone has their camera’s on, on their computers There’s a chat feature so you can also type in a question, and the professor can answer your question that way – Office hours are another opportunity to get beyond just sort of information transfer and into more of the coaching aspect – I think the cool thing is that you can truly participate from wherever you are These systems work on your desktop, on your cellphone, it’s device agnostic Getting my MBA makes me feel empowered, because I don’t need to stop being myself I don’t need to stop working, I don’t need to stop being a mother, I don’t need to stop having my life And that is everything – So there are a lot of people who don’t have master’s degrees, cannot afford to quit their jobs, cannot afford to move their families, but who would love the opportunity to actually have a really high quality educational experience who are coming to Coursera to work with our partners to do more than just MOOCs And I mean I get really excited about it because I think it’s a chance to, as Dean Brown said, to really democratize something that is so valuable, that such a small percentage of the world had ever had access to So I think this is what technology does, this is what innovation does I think it has a chance to really provide a huge positive impact on the world In terms of our degrees, we have 45 countries represented by degree enrollment students, so I won’t read through all this I will say that the demand for degrees on Coursera from top universities is just unbelievable In the first six months after the announcement with our partners of those new degree programs, we’ve had over 90,000 expressions of interest from people around the world saying hey, I never thought I could get a master’s degree like one of the participants in the video I never thought I could get a MBA ’cause I couldn’t afford it, I couldn’t quit my job, I had to take care of my family It is now available at an accessible price, an accessible medium without sacrificing the quality of the instruction of the collegiality and your classmates and also the quality of the brand of the issuer of the degree So this is something that we’re very excited about In terms of what our learners are learning on Coursera, there are a wide range of topics, but the concentration probably not surprisingly, those courses that are closely related to job market demand for those skills taught by those courses So mostly you can see we have business, computer science, data science, those are our largest disciplines or domains in terms of enrollment In terms of the financial piece, who’s actually paying for courses, it is skewed even more dramatically towards business, technology, and data science So there’s a lot on social science, arts and humanities, those are great, people really like them, but they usually don’t pay much for those, if anything at all In terms of who is using it, you can see the mode for age is 30 to 39, concentration of younger people The app usage is definitely growing Interestingly, when we looked at the app usage, the mobile usage among our degree students, it was actually 80% of degree students are using the mobile device, and you’re like wow, they all clearly can afford computers, what’s going on? They’re almost all working and they said the only time I actually have to earn an MBA

within two years if I spend my hour or two commuting watching the videos If I spend my lunch breaks preparing, if I do this before dinner or when the kids go to bed, on weekends, I’ll try to get this in So this idea that the educational experience largely, at least in terms of the amount of hours of learning happens on a mobile device, is incredibly important And it’s really easy for people to say oh, lifelong learning You know, it takes time It takes time, and so you’ve got to look at people’s habits and you’ve got to look at their lives and it might be wonderful if everybody could come to campus, but at a certain point in life, it’s just not feasible And it’s not even feasible to sit in front of a computer for the number of hours that you need to to learn the amount of information that’s required to get an advanced degree You can see the skews male versus female in India, that’s 80 20 male female In Russia it’s 55 45 So across countries, there’s a different representation of males and females, but overall on a global basis, that’s the gender breakdown In terms of employment status, you can see that the vast majority of people are employed They’re usually looking to learn new skills to advance their career In terms of topics in business, management and communications are the two big ones People trying to figure out better ways of leading teams, evaluating performance, having influential presentations and communications with other folks There’s some specialty disciplines as well In technology, software engineering, operating systems are the big ones A lot of it’s how to program in Python, how to use R, how to do things that employers are now looking for when they’re posting job opportunities And then in data science, statistical programming and machine learning are all the rage I think that country after country realizes the impacts on our society because of data and especially the utilization of data in predictive models is gonna be tremendous One of our founders Andrew Eng who is very famous for AI, is a computer scientist and was at Stanford when he founded Coursera says that AI is the new electricity It will change the way we live our lives, it’ll change the way society functions And I think that’s probably not an understatement In terms of Columbia, we’ve had one and a half million enrollments in those courses authored, nine courses authored by Columbia Over a million unique learners I’m sorry, 13 courses, and a lot of these courses actually offer financial assistance, so you can get the certificate and do the assessments even if you don’t pay anything through a financial aid program Overall, we have 900 courses, 300 specializations, and 12 degrees With Columbia, we’ve had nine courses and one specialization, but we’ve seen quite a bit of interest in Columbia content, probably not surprisingly, around the world So here are some of our top selling, well I say not selling, top enrollments of courses that have been authored by Columbia And we have a number that are in the pipeline too that we’re very excited about, including one, is it machine learning and finance that we’re doing? Yeah, which will be coming that we’re pretty excited about In the top ten courses on Coursera, eight of them have machine learning in the title I mean there’s a lot of demand for machine learning And so to sort of summarize, the world is moving very very rapidly, especially in other countries where risk aversion is lower and experimentation is higher and the sense of urgency is higher You’re seeing just an incredible amount of experimentation So we think that this whole idea, which I think is a false dichotomy between online and on campus is going away Even today it’s going away Students on campus today, if they’re anything like my daughter at Duke, she might be sitting in a classroom, but when she goes back to her dorm, she’s on the net She’s doing all kinds of things to learn the material that’s being taught on campus With Coursera for partners, MOOCs are becoming a very important, not textbook substitute, but a really important piece of the on campus pedagogue I think that’s gonna rapidly grow because we’re not charging anything for that That’s just part of what we want to do as a way of providing an incentive for our partners to author more courses and to also get Coursera in front of students before they graduate from undergrad This whole idea that you earn a full degree and that’s it Either you have a degree or you have no formal education we think is going to be blurring and is blurring rapidly With MOOCs and specializations, and Udacity has nano degrees, and Edx has micro masters, and we have master tracks, this idea of sub degree credentials I think really has a lot of merit, because a degree takes a lot of time, it’s a huge time investment, it’s a huge cost investment, and a lot of folks don’t have that time I don’t think degrees are going away at all But I think slowly, and we’re already seeing it There’s a Wall Street Journal article just a few days ago that MBA’s are seeing reduced numbers of applicants

because the cost, the ROI, the lack of convenience of having to try to go to campus is just not really, is really not working for a lot of students So we do think that there’s a world of a full spectrum of educational opportunities underpinned by technology with different levels of credential value from different issuers of those credentials One thing I haven’t really talked much about is when you learn online, there’s a data trace of the entire thing, and you can build some, you can imagine A company started by Andrew Eng, and Daphne Koller, two computer scientists at Stanford, and the first courses were on machine learning, you can bet we were thinking about how data and machine learning might influence the way that people learn down the road One little feature, two little things I’ll sort of mention that are kind of interesting examples of data One is the course helper So as you’re going through a course, we’re watching all the questions you get right and wrong, we’re looking at all the other folks who went through that course and got similar questions right or wrong, we have tags on, we have difficulty, skill domain, etcetera, and then we look at the upcoming test and we say of students who performed the way you have so far, who passed the test successfully, here were the videos that they reviewed and the pieces of the lecture that they reviewed, and we have a personalized study guide for every student for certain courses that really helps you figure out where do you need a little bit more support in order to learn based on your particular learning path Another thing that we have for our degree students is what we call learner at risk model So we’re starting to get pretty good signals on when a learner is at risk of retrition Either falling behind, getting a poor grade, deciding to stop out of the program, and we think that the ability to spot where students need help, where they might be struggling with the topic, either providing more resources or providing additional information, or linking to a MOOC with some of the background basic information about how to master that concept, we think will be a huge benefit to students who maybe are trying to master a new domain with which they have less familiarity and are struggling So using machine learning to provide personalized dating, better student services and support, and also on the cost structure side, doing more scalable teaching and assessment so it becomes more forwardable to more people is going to be a very big thing And of course, you know, life long learning is important And to me, we talk about Coursera for business, it’s like look, if we believe that people need to learn for the rest of their lives, and we generally think that people are going to have to work for most of their lives, it means they’re gonna have to learn at work And so thinking about, not just preparing people for work, but all these people who are working, who are graduating from Columbia and any other school, they’re gonna have to learn for the rest of their lives And so figuring out how to really create a learning experience that works for people who are working, we think is a really big part of where we need to go in the future So those are just some of the things We have about 15 minutes and I’ll be happy to take any questions, and hopefully I can provide some answers (clapping) Yeah – So we have 15 minute for questions Maybe I’ll start with two, and I didn’t give him a clue on these questions So the first question has to do with your growing dependence on the degree programs and certificates How do you see the future in terms of that dependence, and also how do you react to folks who now compare you more and more with OPMs, online program management providers like to you? – Well you know, I guess there’s a sense where it would be dependence, in a sense maybe financial depends, if it becomes very successful The dependence that you have because you become really successful, I’ll take that kind of dependence I mean fundamentally, when we think about the importance of degrees, unlike an OPM which I think is trying to manufacture an online version of an existing product and just kind of sell it through direct sales, we see ourselves more as a platform, and we see degrees as one in a continuum of kind of learning products that the world is demanding And so certainly MOOCs are important, and I think degrees are important and degree components are important, so I think that really it’s a spectrum and I think the economics of working with Coursera, given that so much of the economics are driven by this platform business model are very different than the economics of a traditional OPM Where typically a university will outsource the entire thing, they’ll say like look, we do our on campus thing, you do the online thing, charge the same tuition Like I said, the acquisition costs of degree students

is typically you know, 10 to 15 thousand dollars That’s a lot of tuition right there We think that this model is more efficient and will provide both better access, but also I think a more, some universities want this and others are a little bit more reluctant, but I think fundamentally, online degrees will be a part of every single university within five to 10 years I just, I look at the fundamentals, I look at the learners, I look at the employers, I look at the economics, I look at the globalization I just think it’s gonna be something that every university does as a matter of their core components It’s not to say they are going to shut down, it’s not to say that degrees are going away, it’s not to say that they’re going to shut down their on campus programs at all But I think it’s going to be a continuum of products, prices, and even online offline – So, when Daphne came here, the learner base of Coursera was a little bit shy of three million And today you have 35 million learners Why is it you don’t have half a billion learners? – You know, that is a really important question I can only guess I think that in the earlier stages, it’s a combination of factors Increasingly a fact of it is not, is the availability of devices and technology and connectively to actually get access to it That’s one of the things I’m most thrilled about I was in the Amazon, and there are villages with no running water and no electricity, that have mobile phones Well they have solar panels and they have radio towers up in the mountains It’s amazing the access that is now becoming available So thankfully, that’s not what it is I think a lot of it is we’re a startup company, not everybody knows about Coursera It takes a lot of money to create that kind of awareness I think that many people say hey, even if it’s free, 11 hours is a long time to spend on something Many parts of the population don’t have even the prerequisites to participate in the kind of learning and teaching that is happening on Coursera So I think more rudimentary content would be important Language is one of the factors We have 350 courses in Spanish, we have 215 courses in Russian, and we have subtitling on almost all the popular ones, but language is one of the obstacles And to a large degree I think, the connection between taking these courses and the benefit it has on your life has not been strong enough for a lot of people who are busy and say you know what, this is gonna take a lot of time and effort And so we’re really working on trying to make them more convenient and accessible and linking more closely to the benefits that you get if you come onto Coursera and take these courses – Thank you Jeff Questions? – [Audience Member] I’m faculty from the business world Coursera is criticized as much as the number of people starting MOOC who follow through is pretty low, but I get the sense that that’s really part of your business model A lot of people, who on top of a small number of people that actually go in and do the whole thing, so the more you can pull in – Absolutely – [Audience Member] Can you repeat the question? – Yeah, the question was sort of as a business model, and maybe also in terms of just the evidence for the value of the product being offered, a lot of folks who start a MOOC don’t complete the MOOC, and many see that as, or have seen that as an indictment as you know, people don’t value this What’s interesting is if you look at completion rates, the course level for free learners, and it differs by domain So the completion of a philosophy course is different than the completion of a data science course The free learners it’s about 10% or so These are eleven hour courses When you look though, at how many people completed a lesson So a course is usually made up of three or four modules Each module is usually made up of three or four lessons Each lesson is about 45 minutes Each lesson is made up of items, which are each about five to ten minutes So lesson completion rate is much higher It’s north of 50%, even among the free ones For paying learners, the completion rates are above 50% For enterprise, corporate learners, the completion rates are more like 60 or 70% This is getting closer to oh, my employer wants me to learn this If I do this, I’m gonna get some benefit Among degree students, our retention rates are above 90%, and that’s of course, a more intense level of effort and duration of time than anything So I think it really gets back to your question, which is what’s in it for me if I invest all this time and energy and complete this And you’re right A lot of the people who end up taking degrees didn’t finish that course, but they said yeah, I think I want to do this So we’re totally okay with people coming in for various pieces of these courses – I grow up in China, and I remember I registered for university writing course

before I came to the U.S because I wanted to be well prepared, and it’s very exciting experience I got a lot of classmates actually from Canada, from U.S, so we can really talk to each other But when I come to Columbia, I feel like in person contact is really different from the online talking So I wonder is it possible in the future that Coursera can organize some activities that help organize the community, the learner’s community, to maybe some in person activities – It’s a great question The answer is yes So there’s a continuum of experience where I would put at the on campus experience in terms of the level of social interaction and engagement with your colleagues You saw in the degrees experience, it’s not necessarily in the same place face to face, but it is live interaction with faculty, with TA’s, and with your classmates So when we do hear from students in our degree programs, they say what you said, which is I met a lot of people from around the world, but their level of interaction and engagement was much higher than in MOOCs In MOOCs I do think it’ll be valuable to try to have regional meetups, almost like book clubs if you will, kind of like MOOC clubs, for people who are in the same area, and I think that’s something we will be looking at more We’re kind of starting if you will at the high end of the product range where we know that the value and the accreditation requirements of having high engagement learning is necessarily The economics help to pay for it But a lot of what we’re learning in those more high engagement degree like experiences, we plan to make available down the line to some of the less costly products, because that’s a big part of it You know the MBA at Illinois, one of their big value propositions in the MBA program, even though they had that live interaction among just the degree students, they also have a number of their students are at parts of the curriculum in MOOCs, because they want their students to learn with the rest of the world And so they’ll often submit assignments or have conversations with open course participants, even though they’re in this more closed degree program We think there’s a really big advantage to doing that We think that community learning is not only important for shared interest, but a lot of people talk about soft skills A lot of people talk about soft skills And what I think is fascinating, we talk about how data will play a role, it might be a little bit counterintuitive to think that once you have group projects and provisioned online workspaces with Google Docs, online computer programming experiments, we have live Zoom integration and Slack integration We have a lot of peer assessments, peer feedback We now have, University of London is building into their degree experience, part of your grade will be based not only on participation, but also on how your peers said that you did in helping with group projects We can see how responsive people are, we can look at the quality of student feedback to each other, and I think, to a large degree, people will be working in virtual spaces when they leave school, they might as well be learning in virtual spaces where they’re at school, and we might even be able to get a pretty good sense for what someone’s soft skills are by watching the way that they’re collaborating and supporting their classmates during the learning experience, in a way that’s harder to measure frankly, when you’re on campus – Mic – Thank you sir It seems like the online experience is getting better and better Can you talk a little bit about credentialing, like what does Coursera’s future, what do you think about, how do you feel about improving that in the future, because it feels like that’s the piece if you could corner the credential in you, it can make a big big change – The credentials are interesting I think about sort of a value chain of our learning experience At the bottom, it’s kind of the content, and that content gets delivered in a learning experience with colleagues and interactive programming assignments and other neat stuff, that the content delivered in the learning experience delivers competency Knowledge and skills about how to do things Those competencies, if you pass certain assessments, you can get a credential that says they actually know these kinds of things And the value of the credential is largely based on the brand of the issuer, and the perceived value of that credential by the employer So when I think about credentials, I think about job market demand There are times where the value of a credential is, I went to Stanford and that makes me feel good, I talk to other people at Stanford, I have access to resources ’cause of that But a lot of it is it helps me get a job, or helps me improve in my career So when I think about the credential market a lot of what I think about is their existing credentials like Ivy League degrees that are very very valuable, and the demand in China, India, for Ivy League degrees is just huge

I think that those emerging credentials, I look at Udacity, I think about EdX, I think about our master track, they’re not gonna be really valuable until the workplace decides that they’re gonna look a little bit more carefully or pay a little bit more or give an edge to someone who has that credential, and they won’t do that unless they think that person knows more and is more effective at getting a job done at advancing the business interest than someone who got some other credential So I think a lot of what the credential’s gonna be based on is the quality of people who earn the credential, as to some degree, summarized by the issue of such credential, but ultimately it’s the job market that will determine whether these credentials are valuable So we think working with employers is gonna be a big part of building valuable credentials – So a question over here then a question over there – Hi there You touched on this a little bit but I was wondering if you could go deeper In the K to 12 space, you know, as the challenges in that area compound themselves, and as they start to dabble in the online and blended worlds, have you done any partnership work with K to 12 ecosystem themselves, more than just a bridge to college? – It’s something that I thought about before I took the job at Coursera I now get to run in ed tech circles, which is kind of fun I had dinner in San Diego a few months ago with someone who was the CEO of one of the leading K through 12 ed tech players, and he said Jeff, the best thing you ever did was stay out of the K through 12 space One of the big, so unfortunately it’s extremely important, it’s extremely challenging One of the big differences among a few between K through 12 and college and special post colleges, the value of an adult learning on Coursera can be driven by in a sense, compensated by an employer who will pay more for it So it’s much more clear and immediate and quantifiable Value to educating young people who won’t be job ready for a long time, and ultimately the value of that education will be a societal benefit shared by all and difficult to measure, among decision makers, decision making K through 12 is not straight forward And who pays for it? When the social benefit is over a long period of time, and the benefit and the cost of not having that is shared by many, there’s just not a very tight link between the importance and value of doing it, and the ability as a business to grow So I unfortunately think it’s a very very difficult business, and to answer your question, and I’m sorry it’s taking me so long, we haven’t done that much, and ideally maybe there’s something we can do through Coursera for partners where if our universities, our schools of education want to start doing things to probably teach teachers how to provide better types of education, I could see there are partners of schools of education might use our platform to teach teachers that might ultimately trickle down to K through 12 That’s how I hope that maybe we could help – Thank you for the presentation, it was great I just have a question about your profit sharing with universities and colleges And if you can just generally talk about what is the strategy there – Yeah, it’s quite simple We only have one method of earning revenue at Coursera, which is to charge for those learning products Many of them we still give away for free It was something that was important I think as part of the mission of Coursera It remains important as part of our business model frankly, we’re not gonna stop doing that because it’s working pretty well The way the economics work, essentially if you blend it all together, about half of what learners pay goes towards our partners Sometimes it’s more here, sometimes it’s less here, but overall it’s about half of what learners pay go to our partners So a sense, if you ever, if we ever end up becoming a public company and people read all of our financial statements, essentially half of that is gonna be the economics that universities are getting – I will unfortunately have to conclude by asking you a question which builds on what you just said How much are you getting from your VC’s for an exit, including an IPO – It’s not the first time I’ve been asked My last company, I was the first employee, it took 12 years before we went public We ended up going public and I was the CEO for five years, so I’ve certainly been through that Not a lot of pressure, almost at all There are certain types of opportunities, and if you look at Airbnb and if you look at Uber and you look at Lyft, a lot of the big platform plays, there’s such a big opportunity that investors say now’s not necessarily the time now If it’s the right thing to do it’s the right thing to do, but often times, there’s a value in kind of figuring out more of your business model

and continuing to grow It is a possibility, perhaps a likelihood at some point, and I don’t feel a ton of urgency right now, but who knows? – Thank you very much Jeff Thank you for being here, and we look forward to strengthening our partnership with Coursera and also welcoming you in the future – Great – Thank you – Thank you (clapping)