Experiments in online teaching: My Spring Classes and an Online Valuation Class

In my last two posts, I talked about the big picture, focusing on why I think MOOCs stumbled in the last year and the moat that gives universities their power to offer a "bundled product" at a premium price. In this one, I want to get back to the theme of experimentation and the future of online education.

Let me start by noting that there is far more that we are still learning about how to teach online. While MOOCs captured the public consciousness a few years ago, they did so more because of their numbers (of students) and less because of their effectiveness. A couple of years into this experiment, it is clear that there are problems: the drop out rates are astronomical, there are questions of effectiveness and even Sebastian Thrun, one of the earliest cheerleaders for the concept, seems to be having second thoughts.

This semester, I will be teaching my regular corporate finance and valuation MBA classes at the Stern School of Business at New York University, and like the last few semesters, I will be offering those classes on iTunes U and online for those of you who are interested.

Corporate Finance class: This is my big picture class in finance and sequentially comes ahead of the valuation class (though I don't think of it as a pre-requisite). It is  a business finance class that looks at the financial principles that should govern how we run businesses (small or large, private or public, developed or emerging). Here are your choices for taking it, if you are interested:
a. On my website: I will be posting all of the class webcasts, lecture notes and sundry material at the links below.
Link for the class: http://www.stern.nyu.edu/~adamodar/New_Home_Page/corpfin.html
Link for webcasts: http://www.stern.nyu.edu/~adamodar/New_Home_Page/webcastcfspr14.htm
There will be no protective gates around the class and you should be able to download the webcasts and other material.
b. On iTunes U: If you want a smoother experience, the same material will be posted on the iTunes U site in a public course (that anyone should be able to watch on an Apple device, if they have the iTunes U app, which is free)
Link for class: https://itunes.apple.com/us/course/id806212423
Classes start on February 3 and will go on until May 12, though the class will stay online for months afterwards.

Valuation class: This is a class about valuation, more valuation and still more valuation. As I describe, it is about valuing any type of asset or business, using any valuation technique and in any kind of setting. The choices for taking it are listed below:
a. On my website: All of the material for the class will be at the links below:
Link for the class: http://www.stern.nyu.edu/~adamodar/New_Home_Page/equity.html
Link for webcasts: http://www.stern.nyu.edu/~adamodar/New_Home_Page/webcasteqspr14.htm
b. On iTunes U: If you want a smoother experience, the same material will be posted on the iTunes U site in a public course (that anyone should be able to watch on an Apple device, if they have the iTunes U app, which is free).
Link for class: https://itunes.apple.com/us/course/id806212442
This class also starts on February 3 and lasts until May 12.

If you are interested in joining in, please do so. I would love to have you along for the ride. I know that many of you have tried to take these classes in the past and have had a difficult time making it past the first few sessions, and I entirely understand. Juggling family, friends, a full course schedule at your regular college and life's other challenges is difficult enough, without having to add two more 80-minute sessions each week, as well as all of the work that goes with these classes. If you can pull it off, I admire you, but if you don't have the time, I not only understand but I do have a offer for you that reflects four lessons that I have learned in my exposure to online learning.

1. Online learning is different from in-class learning: A classroom lecture of 80 minutes is long enough, but it is doable. An online lecture of 80 minutes is torturous. In fact, studies during the last two years suggest that an online lecture that lasts for more than ten minutes may very quickly end up losing its audience. Online classes have to be shorter, punchier and accompanied by fewer distractions than regular classes.
2. There is too little interaction: Online classes offer too little interaction, not only between faculty and students but also among students. Online classes need to find ways to increase interaction especially among students, not only to allow questions to be answered but to provoke discussion that can enhance learning.
3. There is limited or no feedback: Much as students like to complain about exams in their classes, it turns out that they miss not having them (as is the case in many online classes), since they provide tangible feedback on whether you are absorbing the material in the class. Online classes need to find ways to let students confirm that they are assimilating the key concepts of the class.
4. There is no hands-on experience: Ultimately, you learn by doing, not listening, and online classes seem to give short shrift to hands on experience. Online classes need to figure out ways of getting students to try what they learn in class on real world questions.

For the last few months, I have wrestled with how best to create an online class that tries (and perhaps fails) to overcome these problems. My first experiment was with my investment philosophies iTunes U class, tied to my book, that I posted on a few months ago. My second experiment is now ready to go and I would love to have your feedback on what parts of it work and which ones don't. It is my valuation class, restructured and redesigned for an online audience, with the following components. You can find it on iTunes U by going to the following link:
Online valuation class: https://itunes.apple.com/us/course/id780803998
If you have an iPad, this should be easy to do. If you have an Android, you will need to download an app that allows you to access iTunes U courses.  If you do try this class, you will find the following changes.

1. Less is more: I compressed each of my MBA classes (80 minutes) into a 10-15 minute session. Thus, this class is composed of 25 sessions, averaging around 15 minutes each. I tried to get the core of each class into the shorter session. You can be the judge!
2. Easier on the eye? Stern was kind enough to provide me with a professional cameraman and editor for the sessions and I think they are much more watchable. My thanks go to Kristen Sosulski, Brian O'Hagan and David Schumacher for making these videos look great, though I retain responsibility for anything stupid that was said during any of them.
3. Post class tests and solutions: Like the investment philosophy class, each session in this class comes with a post class test and solution to allow you to test your understanding of that session.
4. Discussion boards: Kipin Hall is a business started by some very bright young people at NYU that offers a discussion board online. I have added a link to each session, with a discussion forum for that session. You can use it to ask questions about the material that someone else taking the class may be able to answer or which I may, from time to time, be able to provide input on.You can also use it to chat with others in the class, post links about the topic or in any other creative way that you want. You will need to register the first time you use the discussion board, and if you any questions or issues, you can contact Kipin Hall at info@kipinhall.com. 
5. In-practice webcasts: Since you learn valuation by doing, I have added number of in-practice webcasts on practical questions ranging from how you read a 10K to how you adjust earnings for leases or compute a cost of debt. You can use this to take the material from the class and value companies.
6. Blog post valuations: In an ongoing part of the class, I plan to take the weekly company valuations that I do this semester in my regular class and do short blog posts on how I approached the valuation, accompanied by my spreadsheet containing the valuation.

I am not ready to give up on online learning yet. If they have not worked well so far, it is not because they can never work but because we have much to learn about how people learn online and what works and what does not. I plan to keep trying and with your help, I hope to get better over time.