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Technological Innovation in Legacy Sectors$
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William B. Bonvillian and Charles Weiss

Print publication date: 2015

Print ISBN-13: 9780199374519

Published to Oxford Scholarship Online: August 2015

DOI: 10.1093/acprof:oso/9780199374519.001.0001

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Applying the Legacy Framework to Service Sectors

Applying the Legacy Framework to Service Sectors

Higher Education and Healthcare Delivery

(p.96) 7 Applying the Legacy Framework to Service Sectors
Technological Innovation in Legacy Sectors

William B. Bonvillian

Charles Weiss

Oxford University Press

American higher education and healthcare delivery display classic features of legacy sectors. Higher education faces pressures to expand and lower its cost structure. Massive online open courses (MOOCs) have the potential to disrupt the paradigm of higher education, reinvigorating and putting it within reach of vastly more students at much lower cost. But a viable business model for MOOCs has yet to be developed, and there are limits to online teaching of discourse, advocacy, writing and lab research. The limitations of the pure MOOC model—high upfront costs, learning science limits, and the need to sustain university research—argue for a blended model that integrates both online MOOCs and face-to-face classrooms, applying neglected lessons from the science of learning. Healthcare delivery cost $3 trillion in 2014 but fails to deliver quality healthcare to 15% of the population. It suffers from a legacy price structure that favors procedures rather than prevention, and a payment system based on fee-for-service, not fee-for-quality.

Keywords:   legacy sector, massive online open course, MOOC, blended educational model, fee for service, fee for quality, learning science, higher education, healthcare delivery, perverse price structure

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