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Memo: Disruptive Changes In Business Education

Decent Essays

To: Dean Ted Snyder
From: Chen Xie; Ernesto Cuestas; Paola Vega; Qinyuan Zhou; Rodrigo Perez
Subject: Disruptive Changes in Business Education
Date: October 10, 2014
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Disruptive Changes in Business Education

Dear Mr. Snyder,

As Dean of Yale SOM we feel that major changes and disruptive forces are raising in Business Education, the intention of this memo is to bring them to your attention and protect our school best interests.

The report focuses on Yale SOM current situation regarding online education and technology, explaining some complications with their issues, and new trends in the industry. Our core idea is to illustrate a virtuous circle between online and offline education, …show more content…

There’s a demand for online education, and Yale’s brand is a great asset for customer acquisition, not only that, the Global Network seems like the perfect platform to conduct this experiments and generate more revenues with less operating expenses.

What Yale SOM should do?
1. Create an online program in combination with the Global Network. This program can serve more students in the network that cannot come to US due time, money or family constraints. In this online program, Yale SOM can provide standard courses menu for both in-class students and online students, even live web courses for those that require more interaction.
2. In order to avoid damaging Yale’s brand and cannibalize full-time programs, our recommendation is to build a very robust online program under the same brand, but use the Global Network for beta testing to minimize the risk.

Technology’s fast evolution
IT technologies are evolving at a very high rate, driving changes and shaking other industries at every turn; what we know as IT today, in 5 years will look very different. Let’s take a look at the biggest challenges for the upcoming years:
Integrated …show more content…

Such is the change that is difficult for all entities to keep up with it - even for Tech companies is a heavy burden that limits and endanger their growth. This raises the question, “does our business needs to have in-house IT infrastructure or can be outsourced?”
Outsourcing vs. In-House Solutions
The big tech companies already invested billions of dollars in IT infrastructure, for example Amazon has invested more than $5 billion with their Amazon Web Services division, and estimates revenues of $20 billion by 2020 . Outsourcing provides the capability to shift from a fixed to variable cost IT infrastructure, and only pay for the usage without making big hardware and software investments. Ultimately, the company must decide what should be in-house and what can be outsourced.
Operating Cost
Security is a main concern for all entities, even though there are currently fewer cyber attacks; their damaging level has increased. In 2013 Target system was breached, resulting in 40 million credit cards stolen - the company had spent around $60 million in cyber security since then. And this is just one example ; cybercrime and espionage have an estimated annual cost of $445 billion as of today

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