Mike Maddock of Forbes suggests that innovators can and should change the face of higher education.

Trump Aside, Why Higher Ed Needs Entrepreneurs

There has been plenty of news lately about Donald Trump, President Obama and the role of the private and public sectors related to changing our higher education system.

While I’ve heard the declarations made by Mr. Trump and our President described as everything from inspiring to unethical, one thing is for sure: higher education is facing a Napster Moment.

I define a Napster Moment as when someone with no business being in your business comes along and puts you out of business.

For example, if a college kid with a line of computer code can derail the recording industry, how long will it be before a high school kid wanting to be a college kid does the same? For those paying attention, the entrepreneurial-driven education revolution has already begun.

Don’t believe me? Google Kahn Academy or MOOC.

Why is a revolution underway? Because the catalysts for dramatic and sudden change within higher education (The Napster Moment) are all in place:

• Things are getting more complicated as regulations increase. (Has anyone gone through the college or loan application process lately?)

• There are fewer “traditional” entrants (and plenty of nontraditional ones).

• Competitive pressures are increasing. (Who ever thought we’d see the Ivy League universities offering classes online? Note that tweed jackets look just as bad virtually as they do in real life.)

• Margins are shrinking for most of the players.

• Product complexity is increasing. (Try to find something that isn’t offered as a degree by some school, somewhere – i.e., puppetry. I am not kidding. According to Yahoo’s education site, you can get a master’s degree in puppetry at the University of Connecticut. Go Huskies!)

• There is a flight to the high-scoring end of the bell curve (which explains why an average ACT score of 30+ is something colleges now care about).

• There is an imbalance of power in the supply chain. (Will professors and federal student aid officials have as much power in the future?)