The Education Technology Value Chain: Implications and Policy Options
        
        
        
			- By Glenn Pierce, Paul Cleary
- 08/11/16
Implementing, maintaining and  managing computer technology has been extremely difficult for most K-12  educational systems. The sometimes-impressive facade of computers gracing  desktops in many schools obscures a more sobering reality that educational  technology is often so unreliable its utility to students and teachers is negated.  Consequently, opportunities for significant  productivity gains from educational technology including pedagogical advances,  closing the achievement gap and facilitating K-12 reforms have gone unrealized.
Nevertheless, education  technology appears poised to make major contributions to K-12 education.  Increasingly, research finds that  technology can make a positive  impact on educational performance (for example, see the meta-analytical studies  by Cheung & Slavin; 2012, 2013, Zheng et. al., 2016). Moreover, a growing  body of evidence now suggests that when systematically implemented, educational  technology can support a wide range of educational innovations, including  flipped classrooms, peer-to-peer teaching, and customized learning.
 The Education Technology Challenge
However, the prolonged  implementation phase of K-12 educational technology is not exceptional when  compared with other transformative technologies, such as steam power,  electricity and earlier generations of computing.  Steam power took approximately 80 years from  Watts's first steam engine to realize significant gains in manufacturing  productivity (Crafts, 2004). In a similar manner, electric power took approximately  40 years before electric dynamo technology yielded dramatic increases in  manufacturing productivity (David, 1991). More recently, the failure to  identify productivity gains from the massive investments in computing  technology by American businesses was labeled a as "productivity paradox," a  perception that changed dramatically after the mid 1990s. 
Why did it take so long to realize  productivity gains from these different transformative technologies? 
David (1991) concluded that lags in  productivity were owing to:
    - The initial unprofitability of replacing existing  functioning technology;
- The need to identify and integrate complementary  technical components; and
- The need to integrate the new technology into organizational  processes (David, 1991).  
Today, challenges to the successful  introduction of educational technology into the K-12 system are similar to those  faced by previous transformative technologies because success requires  implementation of an entire system of technological and organizational  innovation, not just a single stand-alone invention. 
Given the significant opportunities offered by educational technology, a major  policy question facing the United States today is how to optimize its potential  in the quickest and fairest way possible for the entire K-12 system.  To examine  this challenge, we have adopted a technology value chain framework. The  framework is designed to: 
    - Identify  bottlenecks in educational technology implementation initiatives that have  impeded its adoption in the past; and
- Assess the  readiness of the K-12 system to integrate these technologies into the nation's  schools to  produce significant benefits  for students, schools and society. 
The Education Technology Value Chain
The value chain model developed for this  analysis (see fig. 1) assesses the technological, organizational and human  capital components of the K-12 educational technology system.  The framework presented here takes an  institutional level perspective of the provision of educational technology to  K-12 schools and we examine how technological, organizational, administrative  and even demographic trends can affect the delivery of educational technology services  to K-12 schools.
 
 
Components 1 through 4 focus the  potential of today's rapidly evolving cloud technology infrastructure that can support  the centralized delivery of educational technology services. Components 5  through 7 concern the adoption and integration of education technologies into  K-12 organizations. Component 5 focuses on the educational technology assessment  and procurement process; Component 6 concerns the adoption of educational  technology by students and teachers, and component 7 focuses on the integration  of educational technology into K-12 curricula and initiatives. Finally,  component 8 focuses the assessment and feedback systems necessary to evaluate  the impact of K-12 education technology (Manzi, 2012). 
Assessing the K-12 Education Technology Value Chain
Components 1 through 4:   Information Technology Infrastructure:  Today, there is a growing consensus among  information technologists that Cloud computing can support K-12 educational  technology, and at lower costs (Marston et al. 2011).  Cloud computing services provide on-demand  access to shared computing resources software application services.  Economies of scale delivered by cloud computing  services enable them to provide expert technical talent that is generally unavailable  to smaller organizations like K-12 school systems.  In addition, cloud services, along with  appropriate software and service licensing agreements, provide organizations  with much greater flexibility to scale-up or scale-down application services  based on customer demand and experience.  
Cloud delivered educational  applications can also significantly reduce end-user (i.e., students and  teachers) costs associated with learning education technology  applications.  Because Cloud services can  provide educational technology applications on an anytime/anyplace/anydevice  basis, teachers and students gain the flexibility, time and access needed to  become proficient with educational technology.  
Cloud service models depend on  the ability of individuals to access the Internet.  National  surveys find continued gaps in access to the Internet by geographic location,  ethnicity, race and socioeconomic status (November; NTIA, 2011, February).  Various federal initiatives aimed at underserved  groups have had varying degrees of success to date (November; NTIA, 2011, February), and more  recently, the ConnectED initiative was established to bring Internet  connectivity and high-speed wireless access to virtually all K-12 schools  (NTIA, July 1, 2013). 
In addition to providing  technology applications, access to reliable end user computing devices (Component  4) has posed a significant impediment to implementing educational  technology.  Dramatic decreases in the  cost of end-user computers along with web browser technology that provides a  common interface across different computers devices has greatly reduced the  financial burden of this component (Credit Suisse data). Moreover, Gartner  (May, 2016) projects that by 2020 at least 70 percent of K-12 school districts  will be engaged in some form of a 1-to-1 computing initiative for students,  whether focused on particular grade levels or districtwide.           
Component 5: Educational Technology Assessment and Procurement: Negotiating  education technology licensing and service agreements requires flexibility to  field test, adopt and, if desired, discontinue particular applications or  services. To navigate this complex landscape market influence matters.  Larger negotiating groups are better positioned  to negotiate cost-effective, flexible agreements from educational technology  vendors. Fortunately, given the existing state and local level governance  structure of K-12 systems, comprehensive educational technology assessment and  acquisition processes can be integrated into existing planning systems and  organizations.  From a policy  perspective, this will help ensure that state education standards and procurement  procedures are maintained and that all relevant stakeholders have ongoing input  into the selection and acquisition of educational technology applications.  
Gartner Group (December, 2015) estimated  that IT spending as a percent of revenue from all educational institutions  (i.e., higher education, other post-secondary schools and K-12 systems) rose 5.2  percent of operating expenses in 2014 to 5.6 percent in 2015.  Nevertheless, funding constraints, in all  probability, continue to be a major factor slowing the adoption of education  technology into K-12 systems.  Within the  education marketplace, K-12 systems are likely to spend less on education  technology then there higher education counterparts. In addition, constrained local school budgets, combined with  often restrictive budgeting processes in many K-12 systems, means that school  districts are often unable to look forward to increased funding from their own communities  for educational technology initiatives (even at good prices). As a  result, K-12 systems operate with fewer resources devoted to IT than their  higher education counterparts (and many other information-intensive organizations).   
Component 6:  Teacher Training, Educational  Applications and Student Achievement:  The  successful adoption of education technology also depends on teachers learning  and integrating these technologies into their curriculum. Fortunately, a national  survey of teachers, found that most teachers already use computer technology on  a regular basis (PBS Learning Media, 2012, January). In addition, as technology-savvy  younger teachers increasingly replace retiring "Baby Boom" teachers, training  will become less problematic. Finally, cloud applications will enable teachers and  students alike to spend more of their time using applications rather than trying  to access limited computing resources.  Given  changing teacher demographics, existing teachers' experience with technology and  growing accessibility of Cloud delivered educational applications training is  likely to become less of a constraint to implementing educational technology.  
With a clearer view of educational  benefits and the development of common curriculum standards, private investors are  increasing their commitment to develop education technology.  The Bill and Melinda Gates Foundation and  Google have provided support for application developers seeking to address  historically difficult problems in math and reading literacy products (Gates  Foundation, 2014).  In terms of private  sector contributions, President Barack Obama announced commitments totaling  $750 million from several technology companies to help low-income students in  K-12 public schools gain access to the Internet and educational tools (Cheng,  2014).  
Component 7:  Curriculum Development and Education Reform: Research  has found that  that when teachers were  encouraged and supported in using technology in their classrooms they changed  the way they taught their classes because computers became "a catalyst for  supporting 21st century skills" (Levin & Schrum, 2013). More generally, evidence  is growing that education technology applications can support new approaches to  education, including flipped classrooms, collaborative teams and peer-to-peer  learning environments (Mitra, S. and Dangwal, R., 2010 and Staker & Horn,  2012). 
Equally important, the centralized  delivery of Cloud services can greatly assist in reducing the technology  resource gap that confronts economically disadvantaged communities because  there is less need to build local infrastructure and IT support.  In addition, cloud-delivered collaboration  applications can facilitate communities of best-practices education and  technology forums that engage stakeholders across K-12 systems.
Component 8: Assessment and Evaluation of Outcomes:  Transformative technologies typically  have multiple outcomes that need ongoing assessment to optimize their  performance.  Fortuitously, strategies  for assessing organizational performance are developing in many different  fields.  The developments hold the potential  to provide individualized feedback and more customized education for learners (for  example, Taylor, 2013, July 17, Financial Times). Such developments in what we  now term "big data" analytics should enable schools to customize and change  their programs and initiatives to better meet the needs of their students.  
The Potential of Educational Technology and the K-12 System
Examination of the educational  technology value chain indicates the U.S. is well positioned to consider  implementing educational services on a more comprehensive basis because many of  the components of an educational value chain are already in place or  potentially available. 
Societal returns on such  investments can be great.  Immediate  benefits include increased achievement and competency of K-12 students in  science and mathematics (STEM) subject areas and in reading and writing. In  addition, Cloud services can also help reduce the achievement gap and close the  digital divide.  Over the longer term,  new workforce entrants with 21st skills will help the nation  maintain its position in the global marketplace. 
Although not guaranteed, cloud-delivered  technologies could provide potentially powerful levers to support K-12  innovations, including:
    - Customizing education to meet the diverse learning  styles of students;
- Supporting the development of new K-12 education  models not possible in the past;
- Supporting national education goals; and
- Developing Cloud facilitated communities of best  educational practices. 
However, implementation of  education technology faces major challenges. 
First, current investment in K-12  information technology is substantially lower compared to comparable  institutions and organizations, and local school districts often face limited prospects  for additional funding for technology.  Funding  constraints combined with localized planning processes combine to mean that the  most education technology initiatives are implemented on a piece meal basis,  leaving such initiatives to fail or underperform owing to insufficient support  and/or shortfalls in other parts of the value chain.  As a consequence, many educational initiatives  underperform. 
Federal or state-level funding significantly  could reduce current K-12 technology supply constraints and enable educators to  focus on the selection and implementation of educational technology on a more  comprehensive basis rather than scrambling to fund initiatives on a piecemeal  basis. External funding would support more comprehensive educational technology  initiatives that would engage entire school systems where all components of the  value chain could be implemented in a coordinated manner. This would also  encourage more comprehensive and inclusive planning processes. 
To test this proposition, we propose  the federal government, collaborating with states, technology providers and  foundations, fund a set of comprehensive educational technology field tests. Appropriately  scaled field studies would allow us to assess how well cloud education technology  services can most optimally combine the advantages of economies of scale with  the ability of local K-12 systems to control and customize educational  technology to meet the needs of their students, schools and society. 
References
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Acknowledgment. We would like to thank Dr.  Elizabeth Grady for her insights on the integration of educational technology  into K-12 curricula and organizational systems 
Parts  of this paper are excerpted from, Pierce, G. and Cleary, P. (2016) "The K-12  Education Technology Value Chain: Apps for Kids, Tools for Teachers and Levers  for Reform" (with Paul Cleary) Education and Information Technologies,   21:863–880.