The Need To Eliminate Friction in the Data Exchanges Between Management Systems and Online Learning Products

August 16, 2024
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Today, nearly all innovation in education is happening through online learning experiences. By embracing online learning resources, schools can better identify learning needs and personalize academic solutions for their students at a scale that was not previously possible. To maximize their effectiveness, modern online learning resources require access to information about the learner typically stored in other information management systems. Enabling and supporting the critical data-sharing links between management systems and online learning products has become a must-have in today’s accountability-minded learning environments.

Ensuring those data-sharing links are operationalized for reliability and security can be make-or-break for achieving the hoped-for educational benefits of the online resource itself. Take away the links or introduce friction into the process, and suddenly, the viability of the online resource is not just questionable; it's a non-starter. Friction in the data links typically manifests in one of three ways, Friction Type 1. The information is named and organized inconsistently between systems, Friction Type 2. Rules for secure online transmission of the information do not exist, and Friction Type 3. Parties to the data links require payments to make data transfers.

To bring confidence and security to these data links, the edtech industry has convened multiple edtech standards and advocacy organizations, and ClassLink deeply supports all of them (1EdTechAccess 4 Learning Community, CEDS, Ed-Fi Alliance, and Project Unicorn). These standards organizations, each having their own area of focus to reduce obvious overlaps, have achieved much on friction points 1 and 2 above, but little is done about friction item 3. As the old expression goes, “A chain is only as strong as its weakest link”, without a reliable elimination of Friction Type 3, the educational benefits of innovation in online resources cannot be fully achieved. We recognize that this is a thorny subject, as the edtech industry has unfortunately become a bit accustomed to the unhelpful practice of data exchange fees. For this reason, it’s important to examine how this matter is handled in other industries.

The need to move data between systems is nothing new for enterprise and commercial companies, and secure and robust techniques have been developed to meet the demand. The most successful enterprise and commercial firms have avoided fees for data transfers, allowing for innovation to flourish while keeping costs lower for the end customer. The table below includes some examples of worthwhile data-sharing business models across different industries.

As the importance of data sharing between edtech products increases, choosing optimal data-sharing business models becomes critical. Data exchange fees stifle innovation and waste money. Deceptive business models that appear to have no direct cost, yet create a pyramid of indirect costs through veiled fees, can increase product prices across the industry.  Additionally, models that have the appearance of selling data are legally problematic as student and personal data privacy laws bar the sale of such information. Nearly all of these laws put fiduciary responsibilities on school leaders. As these laws are inevitably tightened, so increases the risk to school organizations and their leaders for involvement in data broker business models.

What Comes Next

Today’s edtech products, and those that come tomorrow, will require ever more data sharing to be effective. Successful zero-cost data-sharing business models offer examples worth emulating. “Never waste a good crisis” has been a powerful motivator for leaders to make system-wide improvements, and upcoming school budgets will leave no room for unnecessary costs. There’s no better time than the present to remove unnecessary costs for essential learning tools.

Examples:

Industry/Company

Industry/
Company

Data sharing business model

CRM/Salesforce

CRM/
Salesforce

Salesforce is among the world’s largest Customer Relationship Management companies providing services to 150,000 organizations.

Salesforce customers demanded the flexibility to import/export their data to/from 3rd party products. To meet this market expectation, Salesforce invested in creating open application programming interfaces (APIs). Strategically, Salesforce chose not to charge any license or data gateway fees to these 3rd party products (other than a nominal $150/yr listing fee on their AppExchange portal). Salesforce wisely realized that they could not charge data access fees to these 3rd party products, as doing so would be tantamount to selling customer data.

This ‘no data fee’ decision made by Salesforce has inspired the creation of one of the most successful data exchange ecosystems in enterprise software and a platform where customers decide who can access their data.

Accounting/QuickBooks

Accounting/
QuickBooks

QuickBooks is among the world’s largest small-business accounting platforms.

QuickBooks customers demanded the flexibility to import/export their data to/from 3rd party products. To meet this market expectation, QuickBooks invested in creating open application programming interfaces (APIs). Strategically, QuickBooks chose not to charge any license or data gateway fees to these 3rd party products. QuickBooks wisely realized that they could not charge data access fees to these 3rd party products, as doing so would be tantamount to selling customer accounting data.

This ‘no data fee’ decision made by QuickBooks has inspired the creation of one of the most successful small business accounting data exchange ecosystems in enterprise software and a platform where customers decide who can access their data.

Biometrics/Apple

Biometrics/
Apple

Apple is one of the world's largest tech companies, and thanks to the Apple Watch, it's now one of the biggest watchmakers. Newer versions of the iWatch contain the ability to capture biometric data. App developers, having access to this data stream, have flourished, and iWatch owners expect the flexibility of these 3rd party products to access their personal biometric data. Strategically, Apple chose not to charge any license or data gateway fees to these 3rd party products that rely on biometric data collected and stored in the iWatch (other than a nominal $99/year developer membership fee). Apple wisely realized that they could not charge data access fees to these 3rd party products, as doing so would be tantamount to selling customer biometric data.

Apple's ‘no data fee’ decision has inspired the creation of one of the most successful biometric data exchange ecosystems for individuals, a platform where individuals decide who can access their data.

Genetic Data/23andMe

Genetic Data/
23andMe

23andMe, a leading personal genetics company, has built one of the world's largest databases of individual genetic information. The marketplace for individuals wanting to send their genetic data to geneticists and export the data into other systems has grown exponentially. Strategically, 23andMe chose not to charge any license or data gateway fees to these 3rd parties who rely on receiving genetic data. 23andMe wisely realized that they could not charge data access fees to these organizations, as doing so would be tantamount to selling customer genetic data.

This 'no data fee' decision made by 23andMe has inspired the creation of one of the world's most successful genetic data ecosystems and a platform where individuals decide who can access their data.

Supporting data:

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About the Author

About the Authors

Patrick Devanney

Senior VP of Strategy & Partnerships

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ClassLink

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